With the Bizzarro Group, you directly own the stocks in your portfolio, which provides significant benefits from a tax perspective.
No embedded capital gains
When you buy units in a mutual fund, you can unwittingly assume a tax liability. As a mutual fund unit holder, you are taxed on all of a mutual fund's capital gains in any given year—including capital gains made before your purchase. So even if you have not shared in all the capital gains, you are still taxed on them. With the Bizzarro Group, since you directly own the individual securities in your portfolio, you do not assume existing capital gains.
Control over taxable events
When a stock is sold, there can be a capital gain or loss. Capital gains are taxable, but they can be offset with capital losses to reduce the net capital gain. With mutual funds, you have no control over when capital gains and losses are realized. However, with our portfolios, you can give instructions to realize capital gains and losses according to your personal tax situation. This enables you to potentially reduce your taxes.
Convenience and flexibility
The Bizzarro Group offers the convenience of delegating day-to-day investment decisions to highly qualified investment managers. At the same time, our portfolios are designed to accommodate your personal preferences and give you a high degree of flexibility.
This includes the ability to instruct the portfolio managers to avoid certain stocks or industries for whatever reason. For instance, you may already own a sufficient amount of a given stock outside your portfolios.
Another convenience is the ability to transfer securities from your existing portfolio into our portfolios in many cases. This can be advantageous if you have a low cost base on stocks that are also held in our portfolios you have selected.
In addition, the services you receive through the Bizzarro Group are available to you for one convenient, all-inclusive fee. This includes trading and safekeeping services.
Keeping you informed on your progress
You will be updated regularly on the progress of your portfolios. Our comprehensive reporting services include:
monthly RBC Dominion Securities account statements.
a special quarterly portfolio review, which details your overall portfolio results. You will have the option to receive a consolidated view of all your existing portfolios in either Canadian or U.S. currency.
complete annual tax-reporting package.
online account access