How to Invest in BMG Mutual Funds
Canadian Investor Information
BMG Mutual Funds are available to Canadian residents, and are available in all ten Canadian provinces, and the Territories. In certain circumstances, BMG Mutual Funds are available to residents of other countries. Residents of other countries should contact their financial advisor for further information.
Working with an Investment Advisor
BMG offers Class A units of BMG Mutual Funds through commission-based Investment Advisors that receive trailer fees of 1% for a total management fee of 2.25%. Class F units units are sold through fee-based advisors with a management fee of 1.25% with no trailer fees payable. In addition to the Management Expense Ratio, Investment Advisors may charge a fee for their services.
If your financial advisor is not registered to sell BMG Mutual Funds, please have him or her contact RBC Investor and Treasury Service toll-free at 1.866. 241.6484 with their dealer rep code.
Do you need a financial advisor who understands the role precious metals play in wealth preservation? We can help. Contact us and we will recommend a financial advisor with your best interests in mind.
Choosing the Right Advisor
Prepare. Interview. Choose.
To choose an advisor you feel comfortable with – both personally and professionally – it’s smart to take your time, talk face to face, and ask the right questions to help you make an informed choice.
How do I choose the right advisor?
What are my goals and preferences?
Consider these factors: risk tolerance, time horizon, income, taxes, and holdings.
If you are an individual investor, your advisor should understand your goals and your particular financial situation and make recommendations that are suitable for you. Some important factors to consider in defining your goals include:
- Investment goals – What are you working toward: A comfortable retirement? Leaving a legacy? Philanthropic goals?
- Risk tolerance – How much fluctuation in value can you tolerate in exchange for the opportunity to earn above-average returns?
- Time horizon – When will you need to withdraw money from your investments?
- Income needs – Do you need current income from your portfolio? How much?
- Tax situation – Does your tax bracket require a tax-sensitive strategy?
- Other holdings – Do you have significant wealth tied up in real estate or other illiquid assets?
- Other needs – Do you have complex planning needs related to wealth transfer, executive compensation, risk management, business succession planning, or philanthropic planning?
As you begin to do your research, you’ll want to evaluate each one. Firstly, start with a list of recommended advisors, then create a set of questions that you can ask each of them to help ensure that you have all the information you need to compare them with. For example: What are your credentials?, Do you offer services that I need?, How are you compensated?, How will we work together?, How do you approach investing for people like myself?, Where will my assets be held?
Being prepared, means peace of mind when it comes to 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 for the “do-it-yourself” investors. The investor does not receive investment or financial advice. BMG’s Class D units have a total management fee of 1.50% that includes a trailer fee of 0.25% for the discount brokerage firm to compensate them for providing the service. No sales charges apply when you buy or sell Class D units of the BMG Mutual Funds. Instead, you may have to pay a fee directly to the discount broker.
Investors in Class D units enjoy lower management fees with the benefit of making their own investment decisions. There are no additional fees to switch to Class D from any other class of the same BMG Mutual Fund.
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 Services Trust
- BMG Funds’ Administrator
- Sub-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
The Bank of Nova Scotia
- BMG Mutual Funds’ Custodian
- Takes delivery of purchased bullion
- Holds physical custody of BMG Mutual Funds’ bullion in its Toronto vault
- Holds bullion on an allocated and insured basis. Serial numbers and bar sizes are recorded
BDO 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 2017 of up to $5,500 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 $5,000 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.