TD Asset Management Inc. has launched a new mutual fund family that is set up within a corporate structure, allowing investors to switch between funds in a tax-efficient way.

The TD Mutual Funds Corporate Class, launched on Tuesday, includes a full offering of TD Mutual Funds’ Canadian, foreign and U.S. equity funds.

“TD Mutual Funds Corporate Class fills the gaps which can exist in the retirement plans of many Canadians who may have reached their RSP or TFSA contribution limits,” said Thomas Dyck, president TD Mutual Funds. “We listened to advisors and clients when they told us they wanted a way to grow non-registered investments in a tax-advantaged way, with no contribution or age limits. We’ve launched a solution backed by the strength of TD Mutual Funds to meet those needs.”

Each fund in the corporate class family is offered as a different class of shares in the corporation. Investors can switch between classes – or funds – within the corporation without any capital gains or losses being realized. The payment of taxes on any capital gains from growth of investments is deferred until money is withdrawn or redeemed from the corporation.

As a result, investors can build their portfolios faster by deferring taxes when switching between classes, can reduce taxes by receiving tax advantaged types of distributions, and can manage taxes by having more flexibility in deciding when to trigger a capital gain or loss.

“Investors have the freedom to rebalance or switch between classes within the corporation to maintain their investment strategies without triggering an immediate taxable event,” said Dyck. “Moreover, the money they would have had to pay in taxes would be available for investment.”

New premium series on fixed income funds

TD Asset Management also announced on Tuesday that it now offers a premium series option on several of its fixed income funds. With a minimum investment of $100,000 per fund, the premium series option offers lower management fees, which can result in better returns for investors.

TD Ultra Short Term Bond Fund launched

TD has also announced the launch of the TD Ultra Short Term Bond Fund. This new fund seeks to deliver a higher potential return than money market funds and lower sensitivity to interest rate changes than longer term bond funds.

“We are proud to introduce what we believe is a unique offering to Canadian fixed income investors with this addition to our exceptional fixed income lineup,” said Dyck.


IE