TAX-EFFICIENT CASH FLOW
WITH T-CLASS
Agenda
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Market opportunity
What is T-Class?
How does T-Class work?
Sales process
Competitive overview
Market opportunity
Retirees and pre-retirees looking for a stable income
that also provides:
• Capital preservation
• Growth potential
• Tax minimization
To overcome
• A low-yield environment
• Reduced dividends
• Negative real rates of return
• Limited investment choices
What is T-Class?
• Income solution that creates a predictable tax-efficient cash
flow using CI Corporate Class funds at no additional cost
• Create a customizable, monthly income stream which may
allow investments to continue to grow
• A predictable cash flow from non-conventional income
sources, such as equities and balanced portfolios
• A choice of more than 50 mandates
Cash flow with T-Class
Please note that T-Class may pay taxable annual dividends in addition to the return of capital payments.
Tax efficiency
The difference in the after-tax value of $10,000 in income from interest, dividends,
capital gains and return of capital1
$7,046
$2,954
1
Assumes a top marginal tax rate of 46.4%.
$1 million investment in an income mandate:
Trust version income: Assumes 5%
interest income and no capital growth
5.0% T-Class distribution:
Same assumptions as trust example
Mutual Fund Trust
Corporate Class
Investment
Market Value
$1,000,000
Gross
Distribution
-
Taxes
-
Net Income
-
Market Value
$1,000,000
Book Value
$1,000,000
Gross
Distribution
-
Taxes
-
Net Income
-
Year 1
$1,000,000
$50,000
$23,200
$26,800
$1,000,000
$950,000
$50,000
$0
$50,000
Year 2
$1,000,000
$50,000
$23,200
$26,800
$1,000,000
$900,000
$50,000
$0
$50,000
Year 3
$1,000,000
$50,000
$23,200
$26,800
$1,000,000
$850,000
$50,000
$0
$50,000
Year 4
$1,000,000
$50,000
$23,200
$26,800
$1,000,000
$800,000
$50,000
$0
$50,000
Year 5
$1,000,000
$50,000
$23,200
$26,800
$1,000,000
$750,000
$50,000
$0
$50,000
Year 6
$1,000,000
$50,000
$23,200
$26,800
$1,000,000
$700,000
$50,000
$0
$50,000
Year 7
$1,000,000
$50,000
$23,200
$26,800
$1,000,000
$650,000
$50,000
$0
$50,000
Year 8
$1,000,000
$50,000
$23,200
$26,800
$1,000,000
$600,000
$50,000
$0
$50,000
Year 9
$1,000,000
$50,000
$23,200
$26,800
$1,000,000
$550,000
$50,000
$0
$50,000
Year 10
$1,000,000
$50,000
$23,200
$26,800
$1,000,000
$500,000
$50,000
$0
$50,000
Year 11
$1,000,000
$50,000
$23,200
$26,800
$1,000,000
$450,000
$50,000
$0
$50,000
Year 12
$1,000,000
$50,000
$23,200
$26,800
$1,000,000
$400,000
$50,000
$0
$50,000
Year 13
$1,000,000
$50,000
$23,200
$26,800
$1,000,000
$350,000
$50,000
$0
$50,000
Year 14
$1,000,000
$50,000
$23,200
$26,800
$1,000,000
$300,000
$50,000
$0
$50,000
Year 15
$1,000,000
$50,000
$23,200
$26,800
$1,000,000
$250,000
$50,000
$0
$50,000
$348,000.00
$402,000.00
$826,000.00
$0.00
$750,000.00
If Redeemed $1,000,000.00
Total after-tax gain
$402,000
Total after-tax gain
T-Class Advantage:
1
Assumes a top marginal tax rate of 46.4%.
$174,000.00
$576,000.00
43.3%
Same Gross
Income
T-Class Corporate Class advantage
T-Class is built on the tax-efficiency of CI’s Corporate
Class, which ensures:
• Monthly distributions will be ROC
• Flexibility to move between T-Class and all CI Corporate
Class funds, without triggering a taxable event
T-Class investment lineup
Income/Diversified Income
Select Income Managed CC, Signature High Income CC
Balanced
Cambridge Asset Allocation CC, Black Creek Global Balanced CC, Harbour Global Growth & Income
CC, Harbour Growth & Income CC, Signature Global Income & Growth CC, Signature Income &
Growth CC
Dividend/Equity
Signature Dividend CC, Signature Global Dividend CC, Black Creek Global Leaders CC, Black Creek
International Equity CC, Cambridge Canadian Equity CC, Cambridge Global Equity CC, Cambridge
Global Dividend CC, Cambridge American Equity CC, Cambridge Canadian Equity CC, Cambridge
Growth Companies CC, CI American Value CC, CI Canadian Investment CC, CI Global CC, Harbour CC,
Harbour Global Equity CC, Signature Select Canadian CC, Signature Select Global CC, Synergy Global
CC
Managed Solutions
Portfolio Series – Balanced, Balanced Growth, Growth and Maximum Growth portfolios
Portfolio Select Series – all one-ticket portfolios
T-Class competitive advantage
How does T-Class work?
Calculation of monthly payments
T-Class distribution is adjusted based on previous year’s performance.
T-Class in a rising market
T-Class in a falling market
Sales process
• Identify target markets
• Select investment that fits your clients’ objectives and
risk tolerance
• Choose from two target distributions: 5% or 8%
– or adjust to fit your clients’ income needs
• Customize to fit your clients’ cash flow needs as required
Target markets
• Non-registered investors looking for a tax-efficient
source of income
• Retirees seeking income, without triggering
OAS clawbacks
• Pre-retirees in the accumulation stage
Choose distribution
Key benefits
• Flexible to provide cash flow tailored to meet your
clients’ needs
• Predictable, sustainable monthly income
• Tax efficiency
• Provides income without sacrificing growth
T-Class competitive position
• CI’s Corporate Class tax-efficient platform:
– Switch, defer
– ROC certainty
• Most of the industry:
– mutual fund trusts
– switches are taxable
– ROC is “top-up”
Contact
Head Office
Calgary
2 Queen Street East,
Twentieth Floor
Toronto, Ontario M5C 3G7
Tel: 416-364-1145
Toll Free: 1-800-268-9374
Tel: 403-205-4396
Toll Free: 1-800-776-9027
English Client Services Team: 1800-563-5181
French Client Services Team: 1800-668-3528
Halifax
Tel: 902-422-2444
Toll Free: 1-888-246-8887
Montreal
Tel: 514-875-0090
Toll Free: 1-800-268-1602
Vancouver
Tel: 604-681-3346
Toll Free: 1-800-665-6994
Thank you
All charts and illustrations in this guide are for illustrative purposes only. They are not intended to predict or project investment results.
®CI
Investments and the CI Investments design are registered trademarks of CI Investments Inc. Commissions, trailing commissions, management fees and
expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise indicated and except for returns for
periods less than one year, the indicated rates of return are the historical annual compounded total returns including changes in security value. All performance
data assume reinvestment of all distributions or dividends and do not take into account sales, redemption, distribution or optional charges or income taxes
payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not
be repeated.
FOR ADVISOR USE ONLY – NOT FOR DISTRIBUTION TO CLIENTS