Overview
The Partnership will aim to provide investors who are taxed at the highest marginal rate, with the opportunity for attractive after-tax returns by virtue of the Partnership’s approximately 15 month investment in the common shares of Barrick, Goldcorp and Yamana while limiting the impact of possible declines in the market prices of the Selected Gold Stocks.
In the view of the Portfolio Advisor, gold prices are supported by positive market fundamentals, and as a hedge against inflation and a possible decline in the value of the U.S. dollar. The Portfolio Advisor believes that expansionary monetary initiatives by central banks in many developed countries (including the United States) will lead to higher gold prices during the Investment Period and higher market prices for the Selected Gold Stocks.
Investment Highlights
Leveraged Exposure with Downside Protection
- Investors receive a call option premium, dividends plus upside growth potential
Attractive Potential After-Tax Returns
Individual investors, who are taxed at the highest marginal rate may earn an after-tax return over the Investment Period of approximately:
- Upside - A total return on the basket of shares of 6% would translate into approximately 82% after tax return for investors in Ontario
- Downside protection - if the basket of stocks is down -10%, -30%, -100% etc an Ontario investor would receive a -3% after tax return
* Returns vary for each province
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