Distributions from the Fund have tax benefits which results in higher after-tax cash flow than if the income had been earned as interest income.
The portfolio is largely invested in dividend paying equities. Dividends have a much more favourable tax treatment for taxable investors than income distributions. Dividends are taxed at less than half the rate of ordinary income for many Canadian investors in the highest marginal tax bracket. Consequently, distributions, which are taxed as eligible dividends, result in significantly higher after-tax income for investors.
The actual breakdown of distributions for tax purposes will be provided to unitholders annually in March as soon as possible following receipt of the information from the Fund's individual holdings. This information will also be posted on the website as soon as it is available.
This information is of a general nature only and does not constitute legal or tax advice to any particular investor. Accordingly, prospective investors are advised to consult their own tax advisors with respect to their individual circumstances.
Investors may elect to automatically reinvest their distributions in additional units of the Fund and realize the benefits of compound growth. Any units acquired pursuant to the distribution reinvestment program qualify for the service fee. DRIP Plan
The following information is applicable to holders who, for the purposes of the Income Tax Act (Canada), are resident in Canada and hold trust units as capital property. If this is not the case, a tax advisor should be consulted.
Holders of trust units outside of a RRSP, DPSP, RRIF, RESP or TFSA should expect to receive a T3 slip from their investment dealer. T3 supplementary slips will indicate Other Income (Investment Income and Non-Investment Income) in Box 26, Foreign Business Income in Box 24, Foreign Non-Business Income in Box 25, Capital Gains in Box 21 and Eligible Dividend Income in Box 49. Dividend income is subject to the standard gross up and federal dividend tax credit rules.
The return of capital component is a non-taxable amount that serves to reduce the adjusted cost base of the Fund units and is reported in Box 42.
Date Return of
Capital Foreign Non-
Business Income Other
- Jan 31, 2018Feb 14, 2018TBDTBDTBDTBDTBDTBD0.05000
- Feb 28, 2018Mar 14, 2018TBDTBDTBDTBDTBDTBD0.05000
- Mar 29, 2018Apr 13, 2018TBDTBDTBDTBDTBDTBD0.05000
- Apr 30, 2018May 14, 2018TBDTBDTBDTBDTBDTBD0.05000
- May 31, 2018Jun 14, 2018TBDTBDTBDTBDTBDTBD0.05000
- Jun 29, 2018Jul 16, 2018TBDTBDTBDTBDTBDTBD0.05000
- Jul 31, 2018Aug 15, 2018TBDTBDTBDTBDTBDTBD0.05000
- Aug 31, 2018Sep 17, 2018TBDTBDTBDTBDTBDTBD0.05000
- Sep 28, 2018Oct 15, 2018TBDTBDTBDTBDTBDTBD0.05000
- Oct 31, 2018Nov 14, 2018TBDTBDTBDTBDTBDTBD0.05000
- Nov 30, 2018Dec 14, 2018TBDTBDTBDTBDTBDTBD0.05000
- Dec 31, 2018Jan 15, 2019TBDTBDTBDTBDTBDTBD0.05000
- Total TBDTBDTBDTBDTBDTBD0.60000
*(December distribution) Special non-cash distribution: This special non-cash distribution of units with immediate consolidation will result in an increase to the unitholder's ACB per unit by the amount of the special non-cash distribution.