AIC Total Yield Corporate Class

AIC Total Yield Corporate Class is the ideal solution for those investors looking for the stability of a bond fund combined with the tax-smart nature of equity investments.

Although investments such as GICs, money market funds, and bond funds can help protect your portfolio from volatility, they typically come at a cost to you in the form of higher taxes when you invest outside a registered plan. And this tax cost means fewer dollars in your pocket at the end of the day. AIC Total Yield Corporate Class solves this tax dilemma.

Cash and near cash investments attract higher taxes because they provide you with interest income, which is taxed annually.

The problem is that interest income is fully included in income and, therefore, is taxed at a rate higher than other types of investment income, regardless of your income level or province of residence.

Capital gains, on the other hand, represent the most tax-efficient kind of investment return for many investors (Canadian dividends may be taxed at rates lower than capital gains for an investor whose taxable income is less than approximately $32,000. Please refer to AIC’s Tax Rate Card).

Why are capital gains so tax smart? The reason is that just 50% of any capital gain realized is included in income. This is why many taxable investors prefer to focus on equity investments that generate capital gains instead of fixed income products that generate interest income.

This is where AIC Total Yield Corporate Class fits. This Fund provides you with the same degree of capital preservation as a bond fund, but does not subject you to the higher taxes levied on interest income.