The objective of this class is to provide a fixed monthly distribution consisting primarily of Canadian Eligible dividends. Investors can expect to recieve a steady monthly income of eligible Canadian dividends, which provide a significant tax advantage compared to ordinary investment income. 

To view the individual distribution rates for each Fund, click here

Top Uses:

  1. Make any Fund a “Dividend” Fund

    • Investors can receive monthly eligible dividend distributions on any Natixis Bond, Balanced or Equity Fund regardless of the fund's underlying portfolio assets.
  2. Tax Free Investment Income

    • Substantial amounts of Canadian eligible dividend income may be received on a tax-free basis by individual investors with no other sources of income.
  3. Income Splitting Arrangements

    • Canadian Eligible Dividends can be a really effective tool to "sprinkle" income to low-income family members through various income splitting arrangements.
  4. Tax Efficient Income Sprinkling

    • Corporate clients may be able to stream eligible dividend income to multiple family members on a tax efficient basis.

Substantial amounts of annual Canadian eligible dividend income may be received on a tax-free basis by individual investors with no other sources of income. However, actual dividends received above a certain amount can give rise to federal and provincial Alternative Minimum Tax. The tax-free threshold does vary depending upon your province of residence, and provincial taxes can apply at lower thresholds. As a result, you should discuss the chart below with your financial advisor.

2016 Tax-Free Limits for Eligible Dividends*

 

British Columbia

Alberta

Ontario

Quebec

Eligible Canadian Dividends

$51,476

$51,476

$51,476

$35,842

* These numbers do not include provincial sales tax. All maximums subject to changes in Canadian Legislation. Consult your financial advisor.

 

Top Marginal Tax Rates - 2016

 

British Columbia

Alberta

Ontario

Quebec

Eligible Canadian Dividends

31.30%

31.71%

39.34%

39.83%

Ordinary Investment Income

47.70%

48.00%

53.53%

53.31%

For the purposes of the Income Tax Act (Canada) and any similar provincial and territorial legislation, NGAM Canada Investment Corporation (“NGAM”) designates all dividends paid on the mutual fund shares of the applicable Tax Managed Funds (other than capital gains dividends) as “eligible dividends” unless NGAM indicates otherwise.