At AIC, we are committed to ensuring that tax implications are considered in all investment decisions.
Efficient trading activity
Our commitment to the long run allows our clients to enjoy enhanced tax efficiencies. Fund companies that employ a high level of trading activity will flow the resulting gains through to clients in the form of taxable capital gains.
Our buy-and-hold strategy dramatically limits the amount of capital gains to be taxed
In most cases, these gains are the result of selling portfolio securities, but due to our investing philosophy, as well as our less-than-25-companies-in-a-fund discipline, sales of portfolio securities are kept to a minimum.
“I’m proud of paying taxes. The only thing is – I could be just as proud for half the money.” Arthur Godfrey 1903 – 1983, Radio and TV host and raconteur
We make the Income Tax Act work for you
AIC also makes use of the Capital Gains Refund Mechanism (CGRM) of the Income Tax Act to deal with the capital gains triggered by sales.
This prevents double-taxation of the capital gains – once when redeemed by the investor, and then again among the remaining individuals who continue to hold that fund. The CGRM ensures that only the individual redeeming is taxed on the gains – no additional taxation would be shared among the remaining holders.
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