Desjardins T Class Funds

Owning Desjardins T Class Funds is a bit like owning a rental property—minus having to unplug a clogged sink on a Saturday morning!

These mutual funds are designed primarily to provide regular distributions while aiming for greater tax efficiency.

What sets the T Class apart is that all or part of the distributions may be treated as a return of capital rather than immediately taxable income.

How does it work?

Each distribution can be made up of several components:

  1. Return of capital (not immediately taxable)
  2. Interest
  3. Dividends
  4. Capital gains

The return of capital reduces the adjusted cost base (ACB) of the units you hold.

Taxes are therefore deferred over time, until the units are sold, at which point the potential capital gain is calculated.

Do your members have $250,000 or more to invest? L Class Funds offer the same features, along with preferred pricing.

Benefits

  • Regular, predictable Distributions

    1. Stable monthly payments.
    2. Helpful for supplementing income, planning cash flow, or covering ongoing expenses.

  • Tax efficiency (tax deferral)

    1. The return of capital is not taxable in the year it is received.
    2. Tax is deferred until the investment is sold.
    3. This can help smooth the overall tax burden if the future tax rate is lower.

  • Flexibility and ease of use

    1. Can be integrated into an overall withdrawal strategy—no need to sell units to generate cash flow.
    2. Tax-deferred switch option: moving from an existing class to the T Class of the same Desjardins Fund does not trigger a deemed disposition.
    3. Wide selection of underlying funds.
    4. Automatic management of distributions.

When should you offer them?

  • Non-registered account

  • Looking for a steady stream of Income

  • Wants to defer taxes

  • Expects a lower tax rate in the future

  • Preference for simplicity

  • Approaches or lives in retirement

Desjardins Funds and Portfolios: your go-to for T Class solutions

Desjardins Portfolios
Desjardins Active Strategy Portfolios T4 / T6
L4 / L6 		T4 / T6
L4 / L6 		T5 / T7
L5 / L7 		T5 / T7
L5 / L7 		T6 / T8
L6 / L8 		N/A
Desjardins Sustainable Portfolios T4 / L4
 T4 / L4
 T5 / L5
 T5 / L5
 T6 / L6
 N/A
Desjardins ETF Portfolios N/A N/A N/A N/A N/A N/A

Desjardins Funds
Desjardins Québec Balanced Fund T6 L6
Desjardins Global Balanced Strategic Income Fund T6 L6
Desjardins Dividend Balanced Fund T6 L6
Desjardins Dividend Growth Fund T8 L8
Desjardins Canadian Equity Income Fund T8 L8
Desjardins Canadian Equity Focused Fund T8 L8
Desjardins Global Dividend Fund T8 L8
Desjardins Sustainable Global Dividend Fund T8 L8
Desjardins Multifactor Global Equity Fund T8 L8
Desjardins Global Infrastructure Fund T8 L8

A few tips

  1. A return of capital reduces the adjusted cost base (ACB), which may result in a higher capital gain when the investment is sold.
  2. Distributions are not guaranteed and depend on the fund’s performance.
  3. Excessive withdrawals can erode your capital over the long term.

Want to talk to a business development advisor about our investment solutions?

(For Caisse advisors only)

The Desjardins Funds are not guaranteed, their value fluctuates frequently, and their past performance is not indicative of their future returns. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The Desjardins Funds are offered by registered dealers.

Desjardins®, all trademarks containing the word Desjardins, as well as related logos are trademarks of the Fédération des caisses Desjardins du Québec, used under licence.