TORONTO, ON - March 30, 2016 /CNW/ - The 2016 Federal Budget has proposed changes to Canadian tax law that will impact the tax treatment of investors holding shares of mutual fund corporations, including Dynamic Global Fund Corporation and Dynamic Managed Portfolios Ltd. The Federal Budget proposes to amend the Income Tax Act (Canada) so that an exchange of shares of a mutual fund corporation that results in the investor switching between mutual funds will be considered to be a disposition at fair market value for tax purposes.
Currently, shareholders of mutual funds that are classes of a mutual fund corporation may switch their shares of one mutual fund for shares of another mutual fund that is a class of the same corporation without triggering a taxable disposition. However, if these proposed changes are implemented, switches between mutual funds that are classes of Dynamic Global Fund Corporation or Dynamic Managed Portfolios Ltd. that occur on or after October 1, 2016 will be taxable transactions for shareholders.
Investors should consult with their financial advisor on how this proposal may impact their investment plans. 1832 Asset Management L.P., the manager of the Dynamic Funds, continues to assess and evaluate this proposal and its potential impact on the Funds.
The Dynamic Funds affected by the proposed changes to Canadian tax law are:
Classes of Dynamic Global Fund Corporation | ||
Dynamic Blue Chip U.S. Balanced Class | Dynamic Value Balanced Class | |
Dynamic Dividend Income Class | Dynamic Alternative Yield Class | |
Dynamic Preferred Yield Class | Dynamic Global Infrastructure Class | |
Dynamic Strategic Yield Class | Dynamic Premium Yield Class | |
Dynamic Advantage Bond Class | Dynamic Strategic Energy Class | |
Dynamic Corporate Bond Strategies Class | Dynamic Strategic Gold Class | |
Dynamic Money Market Class | Dynamic Strategic Resource Class | |
Dynamic Power American Growth Class | Dynamic U.S. Sector Focus Class | |
Dynamic Power Balanced Class | DynamicEdge Balanced Class Portfolio | |
Dynamic Power Canadian Growth Class | DynamicEdge Balanced Growth Class Portfolio | |
Dynamic Power Global Balanced Class | DynamicEdge Conservative Class Portfolio | |
Dynamic Power Global Growth Class | DynamicEdge Equity Class Portfolio | |
Dynamic Power Global Navigator Class | DynamicEdge Growth Class Portfolio | |
Dynamic Power Dividend Growth Class | Dynamic Aurion Tactical Balanced Class | |
Dynamic American Value Class | Dynamic Aurion Total Return Bond Class | |
Dynamic Canadian Value Class | Dynamic Alternative Investments Private Pool Class | |
Dynamic Dividend Advantage Class | Dynamic Canadian Equity Private Pool Class | |
Dynamic EAFE Value Class | Dynamic Global Equity Private Pool Class | |
Dynamic Emerging Markets Class | Dynamic Global Yield Private Pool Class | |
Dynamic Global Asset Allocation Class | Dynamic U.S. Equity Private Pool Class | |
Dynamic Global Discovery Class | Dynamic Conservative Yield Private Pool Class | |
Dynamic Global Dividend Class | Dynamic Premium Bond Private Pool Class | |
Dynamic Global Value Class | Marquis Balanced Class Portfolio | |
Dynamic Income Growth Opportunities Class | Marquis Balanced Growth Class Portfolio | |
Classes of Dynamic Managed Portfolios Ltd. | ||
DMP Power Global Growth Class | DMP Value Balanced Class | |
DMP Resource Class | ||
About Dynamic Funds
Dynamic Funds is a division of 1832 Asset Management L.P., which offers a range of wealth management solutions, including mutual funds, investment solutions for private clients, institutional clients and managed asset programs. 1832 Asset Management L.P. is a limited partnership, the general partner of which is wholly owned by Scotiabank.® Dynamic Funds is a registered trademark of its owner, used under license.
Commissions, trailing commissions, management fees and expenses all may be associated with investments in the funds. Please read the prospectus before investing. Investments in the funds are not guaranteed; their values change frequently and past performance may not be repeated.