Corporate class

Tax smart solutions with Scotia Corporate Class Funds

Overview

Scotia Corporate Class Funds

Investing outside a registered plan often comes with an unwelcome tax bill. Scotia Corporate Class Funds offer tax advantaged income to help meet your ongoing income needs.

Tax-efficient income

A mutual fund is required to pass on any net income it generates to investors. This income is subject to tax, which can take a bite out of your savings – especially if it’s in the form of higher-taxed interest and foreign income. When Scotia Corporate Class Funds distribute income to investors, they are structured to pass on capital gains dividends and ordinary Canadian dividends, two more tax-advantaged forms of income.. They also seek to reduce taxable distributions and minimize taxes by pooling expenses and capital losses with other Scotia Corporate Class Funds.

Corporate class income options

With Series T options, withdrawing an income from corporate class investments is easy. Series T corporate class mutual funds are designed to provide a regular, tax-efficient cash flow from your non-registered savings.

Benefits

Receive regular cash flow while maintaining a professionally managed and diversified portfolio that’s suited to your individual needs.
Greater tax efficiency by combining a variety of investment income sources, including Return of Capital (ROC).
Stop, start or adjust your cash flow at your convenience by selecting the Series T portfolio that best suits your income needs.

Tax-advantaged income

Scotia Corporate Class Series T options use a combination of income sources, including ROC, that are designed to potentially create more tax-efficient cash flow than traditional income-producing investments alone. Return of capital represents the return of a portion of your original investment (i.e. capital) and is not immediately taxable.

Disclosure

For illustrative purposes only. Based on the marginal tax rates for taxable income at $150,000 in Ontario in 2022. Tax rates: Interest income (43.41%), Eligible dividends (25.38%), Capital gains tax (21.70%). Any net interest and foreign income earned by Scotia Corporate Class Funds will be subject to tax within the mutual fund corporation. For distributions that include ROC, the adjusted cost base (ACB) is reduced, which may in turn result in a larger capital gain when the fund is sold. Distributions are not guaranteed and may change at any time at the discretion of the fund's Manager. If distributions paid by the fund are greater than the performance of the fund, distributions paid may include a return of capital and an investor's original investment will shrink. A return of capital is not taxable to the investor, but will generally reduce the adjusted cost base of the securities held for tax purposes. If the adjusted cost base falls below zero, investors will realize capital gains equal to the amount below zero. Distributions are automatically reinvested unless an investor elects to receive them in cash. Investors should not confuse a fund's distribution rate with its performance, rate of return or yield. Please read the prospectus before investing.

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