Managed Yield Funds – Blog

The Canadian income-oriented fund landscape continues to expand. Against the backdrop of historically-low interest rates, 2011 was a watershed year for the managed yield fund category. Managed yield funds are designed for investments outside of registered plans. Through the use derivatives, the income generated by the fund is treated as capital gains rather than interest income, which results in a more favorable tax treatment. As of November 2011, the category had amassed $10.2 billion in assets, a 53% increase from the prior year, well ahead of the 15% increase for the overall fixed income funds category. There are now 47 managed yield funds from 19 sponsors, including three ETFs. For more information on news and developments concerning the Canadian investment funds industry, please see the Insight Advisory Services at by Bonnie Ho