Harvest reviewed the recent proposed legislative changes tabled by the Minister of Finance in the Federal Budget on March 19, 2019.  There were a couple of surprises that could potentially impact how some investment income may be taxed.  In particular, the proposed changes to the taxation of fund structures that use different types of derivatives and strategies to recharacterize the way a portion of distributions and returns are taxed.

Sounds complex – because these structures often are, but it’s worth noting that many investors may already own them.  While some investors will be upset that such a tax-efficient structure will no longer be available — if the legislation passes — savvy investors will continue to seek efficient ways to manage their investment income.

Covered call strategies are not impacted by the proposed budget and continue to offer investors a way to earn attractive and tax efficient distributions.

Harvest Portfolios Group Inc.,  manager of 8 covered call Harvest ETFs including those exposed to global healthcare, global utilities, and global brands, recently released a very informative piece on how covered call strategies work.

Covered call options as part of a Harvest ETFs investment objective and strategy remain a tax-efficient source of income for investors. Please visit www.harvestportfolios.com for more information.

Download The Art of Covered Call Writing; by Michael Kovacs, President & CEO.


Harvest Portfolios Group Inc. does not guarantee the accuracy, completeness, timeliness or reliability of this information or any results from its use. The information may change at any time and should not be construed as investment advice. This material is for informational purposes only. This material is not intended to be relied upon as research, investment, or tax advice and is not an implied or express recommendation, offer or solicitation to buy or sell any security or to adopt any particular investment or portfolio strategy. Please consult your financial and/or tax advisor for financial and/or tax information applicable to your specific situation.

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