How to Invest in BMG Mutual Funds
Canadian Investor Information
BMG Mutual Funds are accessible to residents across all ten Canadian provinces and Territories. In specific situations, individuals from other countries may also have access to BMG Mutual Funds. Residents outside Canada are advised to consult their financial advisor for additional details.
Working with an Investment Advisor
BMG offers Class A units of BMG Mutual Funds through commission-based Investment Advisors, receiving trailer fees of 1%, totaling a management fee of 2.25%. Class F units are available through fee-based advisors with a 1.25% management fee and no trailer fees. Investment Advisors may also charge additional fees for their services, in addition to the Management Expense Ratio..
If your financial advisor is not registered to sell BMG Mutual Funds, kindly ask them to contact RBC Investor and Treasury Service toll-free at 1.866. 241.6484, providing their dealer rep code.
Looking for a financial advisor well-versed in precious metals’ role in wealth preservation? We’re here to assist. Reach out to us at 888.474.1001 or at firstname.lastname@example.org, and we’ll connect you with a financial advisor prioritizing your best interests.
Choosing the Right Advisor
Prepare. Interview. Choose.
Selecting an advisor whom you trust on both personal and professional levels requires careful consideration. Take your time, engage in face-to-face discussions, and pose pertinent questions to ensure an informed decision.
What factors should I consider when selecting an advisor?
What are my goal priorities?
Consider these factors: risk tolerance, time horizon, income, taxes, and holdings.
For individual investors, it’s crucial that your advisor comprehends your goals and financial status to provide appropriate recommendations. Important aspects to consider when defining your goals include:
- Investment Objectives – What are your aspirations: A comfortable retirement? Leaving a legacy? Charitable endeavors?
- Risk Appetite – How much volatility are you comfortable with in exchange for potential high returns?
- Investment Timeline – When do you anticipate needing funds from your investments?
- Income Requirements – Do you require regular income from your investments? How much?
- Tax Circumstances – Does your tax bracket necessitate a tax-conscious approach?
- Existing Assets – Do you have substantial assets tied up in real estate or other non-liquid investments?
- Other Considerations – Do you have intricate planning requirements regarding wealth transfer, executive compensation, risk mitigation, business succession, or charitable giving?
As you embark on your research, it’s essential to assess each advisor thoroughly. Begin by compiling a list of recommended advisors, then devise a set of questions to pose to each one. This ensures you gather all necessary information for comparison. Sample queries include: What are your credentials? Do you provide the services I require? How are you compensated? What is your approach to investing for clients like me? Where will my assets be held? Being well-prepared brings confidence in securing your financial future.
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Working with a Discount Brokerage Firm
BMG offers Class D units of BMG Mutual Funds through Discount Brokerage platforms, ideal for self-directed investors. These units entail a total management fee of 1.25%, with no sales charges upon buying or selling. However, investors may incur a fee directly to the discount broker. Class D unit holders can make independent investment decisions and enjoy lower management fees. Switching to Class D from any other class of the same BMG Mutual Fund incurs no additional fees, except for potential charges of up to 1.5% if redemption occurs within 60 days of purchase or switch.
The Investment Process
BMG Fund Codes
BMG100: Class A-FE units CDN$
BMG101: Class A-FE units US$
BMG600: Class F units CDN$`
BMG601: Class F units US$
BMG130: Class D units CDN$
BMG Gold BullionFund
BMG200: Class A-FE units CDN$
BMG201: Class A-FE units US$
BMG202: Class F units CDN$
BMG203: Class F units US$
BMG230: Class D units CDN$
BMG Silver BullionFund
BMG400: Class A-FE units CDN$
BMG401: Class A-FE units US$
BMG402: Class F units CDN$
BMG403: Class F units US$
BMG430: Class D units CDN$
RBC Investor & Treasury Services (RBC I&TS)
- BMG Funds’ Administrator
- Custodian of BMG Mutual Funds’ cash
- Sole signing authority on BMG Mutual Funds’ bank account
- Calculates daily valuation of Net Asset Value (NAV) and NAV per unit
- Responsible for BMG Mutual Funds’ banking and recordkeeping
- Processes all purchases and redemptions
- Pays authorized BMG Mutual Fund expenses
BMG Management Services Inc.
- BMG Mutual Funds’ Manager and Trustee
- Purchases bullion on behalf of BMG Mutual Funds
- Monitors Administrator and Custodian
- Approves BMG Mutual Funds’ expenses
- Assures compliance with securities regulations
- Ensures filing and reporting completed as required
Bank of Montreal (BMO)
- BMG Funds Custodian
- Takes delivery of purchased bullion
- Holds physical custody of BMG Funds’ gold and platinum bullion
- Holds bullion on an allocated and insured basis. Serial numbers and bar sizes are recorded
Brinks Canada Limited (Brinks)
RSM Canada LLP
- BMG Mutual Funds Auditor
- Audits and verifies BMG Mutual Funds’ holdings annually
- Investors may redeem units on any regular business day
- BMG Mutual Fund units will be redeemed at that day’s Net Asset Value (NAV)
BMG Funds are eligible for TFSAs and RRSPs
Saving Just Got a Whole Lot Easier
The Tax-Free Savings Account (TFSA) is a flexible, registered general-purpose savings vehicle that allows Canadians to earn tax-free investment income in order to more easily meet lifetime savings needs. Regardless of what you are saving for – a vacation, boat, house, or retirement, – the TFSA complements existing registered savings plans like the Registered Retirement Savings Plan (RRSP) and the Registered Education Savings Plan (RESP).
To find out how a TFSA can fit into your financial plan, speak to your financial advisor.
- TFSAs are available directly through BMG via our administrator, RBC Investor Services.
- Advisors no longer have to go through a third party to set up a TFSA and incur associated costs.
- There are NO FEES to set up a TFSA through BMG and NO ANNUAL FEES.
- Download the TFSA application form or use our online fillable form.
- Introduced in 2009, TFSAs allow Canadians to save money each year without paying any tax on the investment income (interest, dividends or capital gains).
- Contribution room for 2021 of up to $6,000 per year are allowed (BMG Mutual Funds require minimum investments of $1,000).
- The TFSA program commenced in 2009 and any unused contributions can be carried forward.
- Canadian residents age 18 or older can contribute up to $6,000 annually to a TFSA.
- Investment income earned in a TFSA is tax-free.
- Withdrawals from a TFSA are tax-free.
- Unused TFSA contribution room is carried forward and accumulates in future years.
- Full amount of withdrawals can be put back into the TFSA in future years. Re-contributing in the same year may result in an over-contribution amount which would be subject to a tax penalty.
- Both BMG BullionFund, BMG Gold BullionFund and BMG Silver BullionFund are eligible for TFSA’s
- Contributions are not tax-deductible. Neither income earned within a TFSA nor withdrawals from it affect eligibility for federal income-tested benefits and credits, such as Old Age Security, the Guaranteed
- Income Supplement, and the Canada Child Tax Benefit.
- Funds can be given to a spouse or common-law partner to invest in their TFSA.
- TFSA assets can generally be transferred to a spouse or common-law partner upon death.
- An RRSP is intended for retirement savings. A TFSA can be for any type of savings goal.
- RRSP contributions are tax deductible. TFSA contributions are not. With an RRSP, you deduct your contribution from the income you report on your tax return. With a TFSA, you can’t deduct your contribution on your tax return.
- You pay tax on your RRSP withdrawals because you made the contributions with pre-tax dollars. TFSA withdrawals are tax free because you made the contributions with after-tax dollars.
- In the year you turn 71, you can’t make any more contributions to your RRSP and you must close it. At that time, you have to use your savings to buy either an RRIF or an annuity. With a TFSA, you don’t have to stop contributing or close it at a certain age.
- You need earned income to contribute to an RRSP, but not to a TFSA.
- With both plans, you can name your spouse as a beneficiary. The money will roll over to them upon your death. With an RRSP, after your spouse dies, taxes will be due on any money left in the account. So if your children inherit the money, they will receive what is left after the tax is paid. With a TFSA, only the increase in the value of the TFSA since the date of death is taxed in the year the children receive it. If the amount they receive is not greater than the value of the TFSA at death, no tax is paid.
- Shop around and compare fees and plans: spousal or common-law partner RRSPs, Self-Directed RRSPs, and so on.
- Decide how you want to invest your savings: GICs, Canada Savings Bonds, Mutual Funds, and so on.
- Choose a financial institution.
- Complete an RRSP application.
- Open the account.
Did You Know
If you file an income tax return and have earned income, you can open and contribute to an RRSP. There are limits on how much you can contribute to an RRSP each year.
You can contribute the lower of:
- 18% of your earned income in the previous year
- the maximum contribution amount for the current tax year.
If you are in a defined benefit (DB) plan, a defined contribution (DC) plan or a deferred profit sharing plan (DPSP), you won’t be able to contribute as much to your RRSP. The reduction in your RRSP contribution room is known as a pension adjustment or PA.