Mackenzie Financial Corp. today announced the availability of the Mackenzie T-Series, a set of seven funds that can provide investors with a tax-effective way to receive steady monthly cash flow from their non-registered investments.

“T-Series is a tax-smart alternative to systematic withdrawal plans,” said Jim Fraser, senior vice president, Mackenzie Financial Services. “T-Series act like SWPs, giving you monthly cash flow from your Mackenzie funds, but without the need to pay taxes on that amount until you sell your funds.”

Each systematic withdrawal from a SWP is considered a “redemption of fund units” and is taxed accordingly in that year. With the Mackenzie T-Series alternative, a portion of the monthly income is paid to investors as “return of capital.” In other words, investors will be paid back a portion of their original investment each month. Since return of capital is non-taxable, tax payments can be deferred until investors eventually sell their T-Series.

Mackenzie believes T-Series funds will be attractive to retirees, those nearing retirement, GIC refugees, or other investors looking to supplement their monthly income with non-registered savings.

Unlike some other options on the market that offer a fixed monthly income, Mackenzie’s T-Series are flexible and let investors customize the amount of money they wish to receive each month.

Mackenzie currently offers the greatest selection of these tax-smart funds with T-Series versions of seven top performing Mackenzie balanced funds: Cundill Canadian Balanced Fund; Cundill Global Balanced Fund; Ivy Global Balanced Fund; Ivy Growth & Income Fund; Mackenzie Balanced Fund; MAXXUM Pension Fund; and Universal Canadian Balanced Fund.

The funds aim to provide a monthly cash flow at a rate of 8% per year and fixed to the net asset value per share or market price of each fund unit, although strong markets could result in higher cash payouts to investors in subsequent years.

In the event of sustained down markets, the distribution rate is flexible to protect against capital depletion. The rate will be reviewed annually before December 31 and, for additional capital security, Mackenzie may also make mid-year adjustments with written notice.