Personal income tax rates in Canada can run as high as 59% depending on the province and type of income. This can translate into substantial obstructions to maximizing the benefits in non-registered portfolios and in rebalancing portfolios efficiently.
First Asset's corporate class structure is designed to host Exchange Traded Funds under a tax beneficial umbrella allowing tax liabilities to be deferred to a point in time when an investor redeems from the corporation.
First Asset's corporate class structure offers key advantages such as:
Favourable Tax Treatment:
Distributions to shareholders of the First Asset Corporate Class ETFs will only be in the form of capital gains, Canadian dividends or return of capital (ROC) – all of which are taxed at lower rates than ordinary Canadian or foreign source income.
First Asset Corporate Class ETFs
|Fund||Symbol||Investment is designed to:||Asset Class|
|First Asset CanBanc Income Class ETF||CIC||Acts as a simple, cost effective solution to provide exposure to Canada's 6 largest banks, while minimizing volatility and generating an attractive income stream through an actively managed covered call writing strategy. Distributions are paid quarterly and no more than 25% of each bank held will have call options written upon them at any given time.||Sector Equity|
|First Asset Core Canadian Equity Income Class ETF||CSY||This one-ticket portfolio solution holds each of First Asset's four Canadian smart-beta ETFs - Value, Momentum, Dividend and Risk Weighted - in a single ETF. The weightings to each of the four underlying ETFs are based on a proprietary relative strength methodology, ensuring that allocations are optimally rebalanced every quarter. This ETF is particularly well suited for those looking for diversified factor exposure as an alternative to typical market-cap weightings.||Canadian Equity|
|First Asset MSCI Canada Quality Index Class ETF||FQC||This ETF offers investors a way to participate in high quality, 'blue chip' stocks by replicating, to the extent possible, the MSCI Canada Quality Index (the "Index"). The index holds stock in 25 dominant Canadian companies with sustainable competitive advantages, durable business models, consistently improving earnings and healthy balance sheets. The result, historically, has been long-term outperformance with attractive defensive characteristics - particularly when investors have adopted a 'flight to quality' mentality.||Canadian Equity|
|First Asset Short Term Government Bond Index Class ETF||FGB||Replicate, to the extent possible, the performance of a Canadian short term government bond index, currently the FTSE TMX Canada Short Term Government Bond Index, net of expenses.||Cdn Short-Term Fixed Income|