AIC Limited has introduced a new fund that offers investors the opportunity to achieve tax savings. The new fund, AIC Total Yield Corporate Class, is available to investors through financial planners and brokers across Canada.

“With the uncertainty of equity markets in recent times, many investors are seeking the stability of money market funds,” says Michael Lee-Chin, Chairman and Chief Investment Officer of AIC Limited. “Although money market funds can protect your portfolio from volatility, this protection typically comes at a cost to investors in the form of taxes and lower returns. The new AIC Total Yield Corporate Class is one solution that can provide the return and stability of a bond fund without the tax disadvantages”.

Specifically, the new Fund offers two important tax advantages. Generally, any annual cash payments that investors receive from the fund are taxed as capital gains, which are taxed at one-half the rate of interest income which bond funds usually generate. The Fund exists inside of a corporate structure, which means investors can switch in and out of this Fund to another class of AIC Corporate Fund Inc. without triggering a capital gain.