Investor's Guide: A 6 Step Process
1. Select a Natixis Fund
Select a Natixis fund which holds investments that are a suitable match for fulfilling future goals on both a risk and return basis.
2. Select a Tax Class
Select a Tax Class that can accommodate both personal and/or corporate objectives such as tax deferral, income splitting and cash flow needs. Non-taxable investors can select Natixis Registered Funds to be held in registered accounts like RRSPs, RRIFs and TFSAs.
3. The Funds Invest & Gather Income
All of Natixis’s Tax Managed Funds are housed within a single “bucket” – The Tax Management Corporation. The stocks and bonds within each Tax Managed Fund generate different types of income which are tallied within the corporation.
4. Income Allocation
The Tax Managed Corporation allocates the gathered income to Natixis’s four Tax Classes, which in turn offer the investors their preferred tax treatment. For example, capital gains are generally allocated to the Capital Gains Class and eligible Canadian dividends are generally allocated to the Dividend Tax Credit Class.
5. Dealing with High Tax Rate Income
Interest income and foreign dividends are taxed at high rates which investors typically want to avoid. Some strategies used in Natixis’s proprietary management of taxable income include utilizing available tax refunds and allocating income against both fees and expenses generated by the Funds.
6. Tax Efficient Income Distribution
Natixis ensures each Fund's returns are calculated accurately and that the tax efficient income is distributed to clients as defined by their selected Tax Class. The two tier decision (selecting a Fund and selecting a Tax Class) creates customizable and flexible investments solutions that are as unique as the individual investor.
* Capital Gains dividends are declared as necessary to eliminate the overall tax liability of the structure.
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