TORONTO--(Marketwire - Mar 26, 2013) - The 2013 federal budget proposes to eliminate the taxable benefits that have been enjoyed primarily by numerous fixed income funds, by converting ordinary or interest income to capital gains. Since only one-half of a capital gain is taxable, the government's revenue is reduced by 50%, so investors have been realizing a significant tax benefit. Often the tax on the taxable capital gain can be deferred for longer than a decade.
The proposal is not expected to impact the Bullion Management Group Inc. Gold Advantage Return BullionFund ("Fund"), as the Fund does not use the structure that the government proposes to eliminate, given that the Fund does not convert interest income to capital gains. Therefore, the Fund will continue to distribute return of capital distributions, which are not immediately taxable and have the impact of reducing the cost base of the unit holder's investment.
The BMG Gold Advantage Return BullionFund combines the historical stability of uncompromised gold bullion with a mechanism to receive monthly cash flow from capital gains, in a tax-efficient manner. Investors would receive these regular cash distributions, while at the same time, have the potential to enjoy a growth in their capital.
For those investors and advisors who are looking for continued benefits from return of capital distributions, and who now have funds to place, you may want to investigate the benefits of BMG Gold Advantage Return Fund. Look for BMG300 class A (FE), and BMG302 Class F.
About Bullion Management Group Inc.
Toronto-based Bullion Management Group Inc. (BMG) is a precious metals bullion management company whose mission is to be a global leader in providing secure, cost-effective and transparent ways to purchase and store physical bullion. BMG has CDN$579 million of bullion assets under management. The company is an Associate Member of the London Bullion Market Association (LBMA) and Social Investment Organization (SIO). Through its subsidiary, Bullion Management Services Inc., BMG manages three mutual funds. BMG BullionFund is the world's first open-end mutual fund trust that purchases equal dollar amounts of gold, silver and platinum bullion. BMG Gold BullionFund is an open-end mutual fund trust that purchases gold bullion. BMG Gold Advantage Return BullionFund couples monthly fixed cash distributions with an underlying asset in Class I Units of BMG Gold BullionFund, which invests solely in gold bullion. For more information on BMG and BMG Funds, please visit: www.bmgbullion.com.
- Investment & Company Information
- gold bullion
- capital gains