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February 5, 2014updated 04 Apr 2017 2:32pm

CIBC Asset Management to provide US tax reporting statements for mutual fund investors

CIBC Asset Management will make reporting information available that will help US tax filers who own Canadian mutual funds receive more favourable US tax treatment.

By Verdict Staff

CIBC Asset Management will make reporting information available that will help US tax filers who own Canadian mutual funds receive more favourable US tax treatment.

Under US tax law, most Canadian mutual funds are now subject to US Passive Foreign Investment Company (PFIC) rules, which are aimed at limiting the extent to which investors, classified as US persons, can defer US tax through foreign investments.

CAM will provide PFIC Annual Information Statements for Renaissance Investments family of funds, Imperial Pools and CIBC Personal Portfolio Services in non-registered retirement savings accounts, starting with the 2013 tax year.

These statements allow investors to make the Qualified Electing Fund (QEF) election on their US tax returns. The QEF election allows for long-term capital gains to be taxed at more favourable rates and interest penalties can be avoided.

Steve Geist, president, CIBC Asset Management, said: "We are pleased to be among the first Canadian fund providers to offer customized statements that benefit our investors who are affected by this U.S. tax law."

Jamie Golombek, managing director of Tax and Estate Planning with CIBC Wealth Advisory Services, said: "These new PFIC statements will allow U.S. tax filers to receive the benefits of owning mutual funds without having to worry about potentially punitive U.S. tax consequences."

Clients should contact their advisors in order to obtain more information and request their PFIC Annual Information Statement, if appropriate.

CIBC Asset Management (CAM), the asset management subsidiary of CIBC, provides a range of high-quality investment management services and solutions to individual and institutional investors.

CAM’s offerings include: a comprehensive platform of mutual funds, strategic managed portfolio solutions, discretionary investment management services for high-net-worth individuals, and portfolio management for institutional clients. CAM is one of Canada’s largest asset management firms, with over US$90 billion in assets under management as of Dec. 31, 2013.

Renaissance Investment family of funds, Imperials Pools, and CIBC Personal Portfolio Services are not registered with the United States Securities and Exchange Commission and they are sold in the United States only in reliance on exemptions from registration.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Renaissance Investments family of funds simplified prospectus before investing. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer, nor are they guaranteed. The values of many mutual funds change frequently. Past performance may not be repeated.

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