National Bank Securities has announced the official launch of the Retirement Option Managed Portfolios, a solution designed to generate potentially higher after-tax income.

The new Managed Portfolios are primarily intended for investors who are in the withdrawal phase of the investment cycle or looking for additional monthly income. This option, which is integrated into NBF’s original Managed Portfolios product line, offers access to the same six investor profiles, consisting of 16 underlying funds.

NBF says this new Managed Portfolios option will win over many investors who are transitioning to retirement.

Because Managed Portfolios and Retirement Option Managed Portfolios are in fact the same solution, a client can move from one to the other easily, with no tax impact, if he keeps the same investor profile.

As well, there is limited tax impact when the client moves from one investor profile to another. As the various profiles often contain the same underlying funds, it is not necessary to sell all the units held.

The amount of the fixed distribution is reviewed at the start of every year in order to reflect market conditions. It is not guaranteed and may be adjusted depending on market conditions. During the year, the fixed distributions, which consist in part of returns of capital, are paid monthly.

NBF notes that returns of capital are not considered income and therefore are not taxable immediately, making for a simple and advantageous distribution strategy that can be a very attractive option for clients who are looking to defer income taxes to a more beneficial period when their tax rate is lower.

“Retirement Option Managed Portfolios are an excellent solution to meet the needs of Managed Portfolio clients. We acted on comments from clients who are looking for an easy way to secure a stable source of income, whether they are in the withdrawal phase of the investment cycle or nearing it. Retirement Option Managed Portfolios maximize flexibility and minimize tax concerns,” says Charles Guay, president and CEO of National Bank Securities.

“Because the transition to retirement can often be a major source of anxiety, our clients can be assured that in this regard, they have one less thing to worry about, Guay concludes.