TORONTO, Dec. 11, 2013 /CNW/ - Fidelity Investments Canada ULC (Fidelity
Canada) today announced that its entire mutual fund lineup will provide
reporting information required to make certain elections under the U.S.
Passive Foreign Investment Company rules (PFIC). Fidelity Canada is
taking a leadership position by making this option available to
Canadian investors who are classified as "U.S. persons" under U.S. tax
"Fidelity Canada knows that many advisors and investors are concerned
about the U.S. Passive Foreign Investment Company (PFIC) rules, which
could significantly affect investors who hold Canadian mutual funds
that have U.S. tax reporting obligations," said Peter Bowen, Vice
President, Tax Research and Solutions, Fidelity Investments Canada ULC.
"Fidelity Canada believes well managed mutual funds are a great way for
investors to save for their financial goals. We want to support our
clients who have U.S. tax filing obligations so that they can continue
to have access to the entire Fidelity Canada mutual fund lineup."
For the 2013 tax year and going forward, Fidelity Canada will now
provide PFIC Annual Information Statements, upon request, for the full
range of its mutual funds; these statements will allow investors to
make the Qualified Electing Fund (QEF) election on their 2013 U.S. tax
In making the QEF election, investors only include their pro-rata share
of the mutual fund's earned income and capital gains for U.S. tax
purposes. This is similar to how U.S. mutual funds are taxed in the
U.S. and generally aligned with how Canadian mutual funds are taxed in
Canada. There are other reporting options, such as the Mark-to-Market
election, but in many cases the QEF election will be the most
beneficial to U.S. persons.
"PFIC rules are complex, and we believe it is important for advisors and
their clients who may be impacted by these rules to have the knowledge
necessary to make informed decisions. We believe that impacted clients
should not make changes to their Canadian holdings without first
speaking with their advisor and a U.S. tax specialist and informing
them that Fidelity Canada mutual funds will now provide the necessary
reporting information to support the PFIC - QEF election" said Bowen.
To learn more about this new option and the PFIC rules, please visit http://www.fidelity.ca/cs/Satellite/en/public/products/regulatory_documents/pfic
About Fidelity Investments
Fidelity Investments Canada ULC is part of the Fidelity Investments
organization of Boston, one of the world's largest providers of
financial services. Recipient of the 2013 Morningstar Advisors' Choice
Fund Company of the Year, Fidelity Canada manages a total of $82
billion in mutual fund and institutional assets. This includes $16
billion in assets for institutional clients including public and
corporate defined benefit pension plans, endowments, foundations and
other corporate assets on behalf of clients across Canada as at October
Fidelity Canada provides Canadian investors a full range of domestic,
international and income oriented mutual funds, as well as asset
allocation and managed solutions and the high net worth program, the
Fidelity Private Investment Program. Fidelity funds are available
through a number of advice-based distribution channels including
financial planners, investment dealers, banks, and insurance companies.
Fidelity is a proud supporter of the Boys and Girls Clubs of Canada and
we are dedicated to helping young Canadians realize their full
potential as productive, responsible and caring citizens.
SOURCE: Fidelity Investments Canada ULC
For further information:
Vice President, Corporate Affairs