Guardian Group of Funds (GGOF) today announced the launch of additional T Class units, a form of purchase option that provides a monthly distribution that helps investors manage their regular cash flow needs. T Class units offer investors greater tax efficiency, investment flexibility and purchasing power.

“While every investor is unique, investment objectives typically fall into three broad categories: capital growth, capital preservation and income generation. Challenges, however, can arise for investors with complex or differing investment objectives,” said Gavin Graham, chief investment officer, GGOF. “For example, too much emphasis on income generation can result in a loss of purchasing power to inflation, while too great an emphasis on capital growth can create an uncomfortable degree of volatility and provide insufficient capital for everyday needs. One solution to help balance these potentially contradictory objectives is T Class units.”

Each GGOF fund that offers T Class units will establish a regular, predictable monthly distribution amount at the start of each year. The unique structure of T Class units provides an investor with various tax advantages. Firstly, it allows the investor to defer taxation, effectively controlling when to incur the tax liability. Secondly, once a gain is realized, it is taxed at the preferential capital gains rate.

T Class units also offer a more productive use of capital. Because taxation is deferred until the investor’s time of choosing, an investor needs to withdraw less principal to produce the same after-tax monthly cash flow. They also offer greater investment flexibility, especially for investors with complex or differing investment objectives.

GGOF currently offers T Class with two distribution options: an 8% distribution rate on its Solutions funds and a 5% distribution rate on select GGOF funds.

For a complete list of funds that offer T Class units, please refer to the attached news release.