SOURCE: Purpose Investments Inc.

Purpose Investments Inc.

April 11, 2016 18:00 ET

Purpose Investments Comments on Impact of 2016 Federal Budget Proposals on Its Corporate Class Funds

TORONTO, ON--(Marketwired - April 11, 2016) - Purpose Investments Inc. ("Purpose") wishes to comment on the 2016 Federal Budget proposed changes to the Income Tax Act (Canada) (the "Proposal") from March 22, 2016 that will prevent tax-deferred switching between shares of a mutual fund corporation. If adopted in its current form, the Proposal will become effective on October 1, 2016 and will treat a switch between mutual funds shares of the same mutual fund corporation as a disposition at fair market value for tax purposes resulting in a capital gains or losses for the investors. 

The Proposal affects all mutual fund corporations in the industry and as such will affect an investor's ability to compound wealth over the long term. In Purpose's opinion this will likely result in some mutual fund manufacturers electing to abandon the corporate class structure altogether.

The Purpose corporate class funds will continue to benefit from consolidating expenses, income, gains and losses of multiple funds into a single entity to provide tax efficient outcomes for investors.

Investors should consult with their financial advisor about the potential implications of the proposed changes to their portfolios, tax situation and investment plans. Purpose will continues to monitor and assess the Proposal and any further updates and changes to it and the potential impact on the Purpose corporate class funds.

The list of Purpose corporate class funds affected by the proposed changes to Canadian tax law can be found in the table below:

 
Fund
Purpose Core Dividend Fund
Purpose Premium Yield Fund
Purpose Total Return Bond Fund
Purpose Best Ideas Fund
Purpose Tactical Hedged Equity Fund
Purpose International Tactical Hedged Equity Fund
Purpose Enhanced US Equity Fund
Purpose Diversified Real Asset Fund
Purpose Duration Hedged Real Estate Fund
Purpose Monthly Income Fund
Purpose Premium Money Market Fund
 

About Purpose Investments Inc.
Purpose Investments is an asset management firm inspired by the belief that all investors should have access to great investment products along with low fees. Purpose believes in focusing first on managing risk and creating value that is currently missing from the marketplace, thus empowering all Canadians to be better investors. Purpose has over $2.0 billion in assets under management and currently offers 17 exchange traded funds and mutual funds and 6 closed-end funds across multiple asset classes and both traditional and alternative investment strategies.

Purpose is the manager of NexC Partners Corp. (TSX: NXC), an investment corporation which invests in a portfolio of North American dividend-paying equity securities, plus owns an equity stake in Purpose.

Commissions, trailing commissions, management fees and expenses all may be associated with investment fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total return and the cumulative total return including changes in share value and reinvestment of all dividends and does not take into account sales, redemptions, distributions or optional charges or income taxes payable by any shareholder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Contact Information

  • For further information please contact:

    Dan Rubin
    Vice President, Marketing
    Purpose Investments Inc.
    Tel: (877) 789-1517
    Email: info@purposeinvest.com