SOURCE: Dynamic Funds

Dynamic Funds

March 30, 2016 14:40 ET

Dynamic Funds Addresses the Impact of 2016 Federal Budget on Its Corporate Class Fund Line-up

TORONTO, ON --(Marketwired - March 30, 2016) - 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.

Contact Information

  • For further information, please contact:
    Customer Relations Centre 
    1-800-268-8186 
    www.dynamic.ca 

    For media enquiries only:
    Debra Chan
    Public, Corporate and Government Affairs
    Scotiabank
    (416) 866-6443
    debra.chan@scotiabank.com