Passive Foreign Investment Company

Passive Foreign Investment Company (PFIC) annual information statements area available to U.S. persons who are unitholders of our Mutual Funds and Exchange Traded Funds (ETFs) and who therefore file U.S. tax returns.

What is PFIC?

Canadian mutual funds and ETFs are classified as corporations for U.S. tax purposes and as a result ‘U.S. persons’ who hold Canadian mutual funds and ETFs may benefit from PFIC tax reporting. PFIC Annual Information Statements contain information that enables investors to treat a fund or ETF as a Qualified Electing Fund (QEF) on IRS Form 8621. Whether the QEF election is appropriate for you depends on your personal circumstances. The QEF election is the only way that the appreciation in a fund’s value can be eligible for U.S. taxation at the more favourable capital gains rates.

Does this impact you?

Investors who hold Canadian Mutual Funds or ETFs and file U.S. tax returns or are considered a ‘U.S. person’ may benefit from PFIC tax reporting. Unitholders of the Fund should consult with a U.S. tax professional to determine whether they are United States persons.