Fidelity Capital Structure

• Rebalance a portfolio to the ideal mix of investments, or seek out new opportunities in more attractive areas of the market without triggering immediate capital gains.
• Plan when to trigger capital gains tax liability.
• Potentially reduce future tax bills, if tax rates decrease or the government lowers taxes.
• Enjoy compound growth on deferred tax, which could result in a higher account value.

Unlike a traditional mutual fund (trust structure), the investment is a class structure held within one corporation, which means that the resulting capital gains on switches can be deferred within the corporation. This allows investors to enjoy tax-deferred compound growth, and ultimately to increase the potential value of their investment.

When investors eventually withdraw assets from the Capital Structure, they have two options:

1. Withdraw assets from the structure and be subject to a capital gains tax.
2. Switch assets to Fidelity T-SWP™ Class and receive tax-efficient monthly cash flow.

It is important to note that, as with all mutual funds, you must still pay tax on capital gains distributions that arise from the sale of individual fund holdings by fund managers, and on interest and dividend distributions.

   

Fidelity Capital Structure US$ offers tax-deferred growth potential for non-registered investors with US$ bank accounts (at a Canadian bank).

Features and benefits:

• Ability to defer taxable income.
• Allows forward planning to reduce tax consequences.
• Ability to switch investments without triggering a taxable disposition.
• Remove immediate tax consequences from rebalancing and/or switching investments.
• Underlying investments may benefit from market growth.
• Potential for capital preservation, growth and inflation protection.
• Choose from a diverse group of U.S. dollar investment options, including Fidelity Managed Portfolios.
• Avoids currency conversion fees.

Fidelity  T-SWP™ Class  US$ is also available for investors who need the added benefit of sustainable, tax-efficient monthly cash flow in U.S. dollars.