This structure typically reduces the cost and tracking error * associated with replicating an index and increases tax efficiency • Tax efficient: HTH is not expected to make
taxable distributions • Hedged exposure: Get Canadian
currency - hedged ** exposure to the US 7 - 10 year treasury market • Higher compound growth: The reinvestment of index distributions are reflected in HTH's Net
Asset Value («NAV»)
Among these requirements are the following: (i) at least 90 % of the fund's gross income each
taxable year must be derived from dividends, interest, payments with respect to securities loans, and gains from the sale or other disposition of stock, securities or foreign
currencies, or other income derived with respect to its business of investing in such stock or securities or
currencies and net income derived from an interest in a qualified publicly traded partnership; (ii) at the close of each quarter of the fund's
taxable year, at least 50 % of the value of its total
assets must be represented by cash and cash items, U.S. Government securities, securities of other RICs and other securities, with such other securities limited, in respect of any one issuer, to an amount that does not exceed 5 % of the value of a Fund's
assets and that does not represent more than 10 % of the outstanding voting securities of such issuer; and (iii) at the close of each quarter of the fund's
taxable year, not more than 25 % of the value of its
assets may be invested in securities (other than U.S. Government securities or the securities of other RICs) of any one issuer or of two or more issuers and which are engaged in the same, similar, or related trades or businesses if the fund owns at least 20 % of the voting power of such issuers, or the securities of one or more qualified publicly traded partnerships.
The issue of taxation and cryptocurrencies has always been someone of a contentious topic, ever since the U.S. Internal Revenue Service announced in 2014 that it would treat such
assets as a
taxable form of property rather than, say, a
currency.