TD Asset Management introduces new corporate class mutual fund

TD Asset Management, the manager of TD Mutual Funds, has introduced TD Mutual Funds Corporate Class.

TD Mutual Funds Corporate Class is a mutual fund family set up within a corporate structure. Each fund is offered as a different class of shares in the corporation. Investors can switch between classes – or funds – within the corporation without any capital gains or losses being realized.

The payment of taxes on any capital gains from growth of investments is deferred until money is withdrawn or redeemed from the corporation.

TD Asset Management claims that the new investment solution will enable investors build their portfolios faster by deferring taxes when switching between classes, reduce taxes by receiving tax advantaged types of distributions, and manage taxes by having more flexibility in deciding when to trigger a capital gain or loss.

TD Mutual Funds president Thomas Dyck said that the TD Mutual Funds Corporate Class fills the gaps which can exist in the retirement plans of many Canadians who may have reached their RSP or TFSA contribution limits.

“We listened to advisers and clients when they told us they wanted a way to grow non-registered investments in a tax-advantaged way, with no contribution or age limits. We’ve launched a solution backed by the strength of TD Mutual Funds to meet those needs,” Dyck said.