Implications of the 2016 federal budget on corporate class funds effective October 1, 2016

LÉVIS, QC, April 4, 2016 /CNW Telbec/ - In the federal budget tabled on March 22, 2016, Canada's Minister of Finance announced the decision to eliminate one of the tax benefits of corporate class funds.

As of October 1, 2016, investors with shares in a mutual fund corporation (or corporate class mutual fund) will no longer be able to exchange shares from one class to another within the mutual fund corporation on a tax-deferred basis. Such exchanges will now be treated as a disposition at fair market value, which will trigger a capital gain.

Transfers between classes within the same fund will not be affected by the change.

Despite this change, corporate class funds continue to have other advantages, such as sharing of income and expenses between all of the funds within a single corporation, and distributions made in the form of Canadian dividends and capital gains.

Corporate class funds from Desjardins Investments

  • Desjardins Money Market Corporate Class
  • Desjardins Dividend Growth Corporate Class
  • Desjardins Canadian Equity Income Corporate Class
  • Desjardins IBrix Canadian High Dividend Equity Corporate Class
  • Desjardins IBrix Canadian Equity Focus Corporate Class
  • Desjardins Canadian Equity Value Corporate Class
  • Desjardins Canadian Equity Growth Corporate Class
  • Desjardins American Equity Growth Corporate Class
  • Desjardins Overseas Equity Growth Corporate Class
  • Desjardins Global Equity Growth Corporate Class
  • Desjardins Global Small Cap Equity Corporate Class
  • Desjardins Emerging Markets Opportunities Corporate Class

Investment solutions from Desjardins Investments

  • Chorus II Conservative Portfolio – Corporate Class
  • Chorus II Balanced Income Portfolio – Corporate Class
  • Chorus II Balanced Growth Portfolio – Corporate Class
  • Chorus II Growth Portfolio – Corporate Class
  • Chorus II High Growth Portfolio – Corporate Class
  • Chorus II Maximum Growth Portfolio – Corporate Class

Investors who hold Desjardins corporate class funds can contact their advisor before October 1 for more information on the impact of these changes and to find out what their options are.

About Desjardins Group
Desjardins Group is the leading cooperative financial group in Canada and the sixth largest cooperative financial group in the world, with assets of $248.1 billion. It has been rated one of the Best Employers in Canada by Aon Hewitt. To meet the diverse needs of its members and clients, Desjardins offers a full range of products and services to individuals and businesses through its extensive distribution network, online platforms and subsidiaries across Canada. Considered North America's strongest bank according to Bloomberg News, Desjardins has one of the highest capital ratios and some of the best credit ratings in the industry.

The Desjardins Funds are not guaranteed, their value fluctuates frequently and their past performance is not indicative of their future returns. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The Desjardins Funds are offered by such registered dealers as the Desjardins Financial Services Firm, a mutual fund dealer belonging to the Desjardins Group that distributes the Funds in caisses throughout Québec and Ontario, as well as through the Centre financier Desjardins.

 

SOURCE Desjardins Group

For further information: (media inquiries only): Richard Lacasse, 418-835-8444 or 1-866-835-8444, ext. 3163, media@desjardins.com


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