If you need tax-efficient monthly cash flow from your investments, our Series T option might be for you.
What is it?
Our Series T option is designed to give you tax-efficient monthly cash flow, and is available on most of our mutual funds.
How does it work?
Series T allows you to access cash flow from your investment. The cash flow that’s distributed through Series T is a return of capital (ROC), which is not immediately taxable. Any cash flow that is paid out as ROC lowers the adjusted cost base (ACB) by the ROC amount. Capital gains or losses are realized when the investment is sold or when the ACB reaches zero.1
Available in Series T6 and T8, you select the option that pays out a predictable monthly cash flow. Empire Life Mutual Funds Series T6 and T8 units pay a range between 5% and 9% annualized distribution.2
Why should I choose Series T?
Because the cash flow you receive from using our Series T option is a distribution of return of capital (ROC). This means that capital gains earned on your investment remain unrealized and you can defer paying tax on it until your investment is sold. You get to decide when you pay that tax.*
Predictable cash flow
Cash distributions are set at the beginning of each year, so you know how much cash flow you’ll receive each month.
If your cash flow needs change, you can switch between Series T options without tax implications.
Our Series T option is available on the following mutual funds:
- Empire Life Dividend Growth Mutual Fund
- Empire Life Monthly Income Mutual Fund
- Empire Life Emblem Diversified Income Portfolio
- Empire Life Emblem Balanced Portfolio
- Empire Life Emblem Moderate Growth Portfolio
- Empire Life Emblem Growth Portfolio
- Empire Life Emblem Aggressive Growth Portfolio
Talk to your advisor about a Series T option that’s right for you.
1 When the ACB drops to zero, all subsequent distributions are treated as capital gains and taxed accordingly. It is the responsibility of the investor to calculate the ACB and capital gains or losses realized on sale of units. Any income and capital gains generated by the fund are distributed at the end of the year separately from the monthly ROC distributions.
2 The average monthly distributions of ROC that are made on Series T6 units are expected to be between approximately 5% and 7% and for series T8 between approximately 7% and 9% of the average net asset value of the Fund over the year.