Fiscal allocations as at October 31, 2024

We are providing you with a table of the different fiscal allocations for our fund lineup in the Classic Series 75/75 of the IAG SRP, year-to-date, as at October 31, 2024.

(Only non-registered contracts are taxed annually)

These fiscal allocations:

pertain to clients who held fund units between January 1, 2024, and October 31, 2024
vary based on the period during which each client held fund units during this period
show preliminary values and do not include an estimate of distributions in the underlying mutual funds, which will be completed before the end of 2024
are a good indicator for the funds offered in other series or products

Values as at December 31, 2024, will be uptated and provided to you in early 2025.

There are two sources of income and capital gains/losses to consider:

Segregated funds must allocate all income and capital gains/losses to its unitholders each year, on a time-weighted basis.
Taxable capital gains usually stem from portfolio managers’ active strategies, with the goal of providing the best possible total return to fund holders. This source of income and capital gains/losses is represented in the above table, “Allocations Table as at October 31, 2024”.
When an investor/unitholder redeems units, a capital gain or loss results.

The allocations realized for tax purposes increase the Adjusted Cost Base (ACB) of the unitholder, thus avoiding double taxation. The number of units remains the same and the ACB is calculated by iA Financial Group.

Capital gains resulting from transactions made by fund managers AND capital gains resulting from withdrawals made by the client will appear on the same tax slip (T3 [federal] and R16 [Quebec]).

New since June 25, 2024

Corporations and trusts: 66.67% of capital gains are taxable.

Individuals: the capital gains inclusion rate is 50%. For the portion exceeding $250,000 in a year, the inclusion rate is 66.67%. The proportion of allowable net capital losses is the same as the inclusion rate for offset capital gains.

The portion of capital gains or losses realized before June 25, 2024 will be shown separately on the tax slip (T3 [federal] and R16 [Quebec]).

Click here for more information about the tax treatment of segregated funds.

Offer proactive advice:
Assist your clients with their year-end tax planning!

Segregated funds are the only investment funds where capital losses are allocated to unit holders.

This is a major advantage for investors, who can claim a deduction for these losses and offset capital gains realized in the same year or in the three previous years.

Unused capital losses can be carried forward indefinitely to offset capital gains that will be realized in the future.

Your clients can also reduce their tax bill by selling fund units with a market value lower than the price paid and use the resulting capital loss to offset any capital gains realized in recent years.

Refer to the Advisor Centre to see the adjusted cost base.

You can also refer to your sales teams for more information.

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