Passive Foreign Investment Company (PFIC)
Information for mutual fund investors who are U.S. taxpayers
To support investors who are affected by the Passive Foreign Investment Company (PFIC) rules, we provide PFIC Annual Information Statements for 25 of our mutual funds, should investors choose to make Qualified Electing Fund (QEF) elections on their U.S. income tax return.
What is a PFIC?
A Passive Foreign Investment Company (PFIC) is defined as a non-U.S. corporation (or a non-U.S. entity treated under U.S. tax principles as a corporation) where 75% or more of its gross income is passive income, or at least 50% of the corporation's assets produce or are held to produce passive income. Under this definition, Canadian mutual funds are treated as PFICs.
How do PFICs work?
U.S. taxpayers who hold Canadian mutual funds in a non-registered account are likely subject to PFIC rules and are required to report income from each PFIC when filing U.S. income tax returns.
The PFIC rules are complex. It’s recommended that U.S. taxpayers consult their tax advisor concerning the overall tax consequences of their ownership of the fund and their U.S. tax reporting requirements.
For the 2015 tax year, Sun Life Global Investments is providing PFIC Annual Information Statements for the following funds:
Mutual fund trust
Sun Life Granite Balanced Portfolio
Sun Life Granite Balanced Growth Portfolio
Sun Life Granite Conservative Portfolio
Sun Life Granite Growth Portfolio
Sun Life Granite Moderate Portfolio
Sun Life MFS Canadian Bond Fund
Sun Life MFS Global Growth Fund
Sun Life MFS Global Total Return Fund
Sun Life MFS Global Value Fund
Sun Life MFS International Growth Fund
Sun Life MFS International Value Fund
Sun Life MFS U.S. Equity Fund
Sun Life MFS U.S. Growth Fund
Sun Life MFS U.S. Value Fund
Sun Life NWQ Flexible Income Fund
Sun Life Granite Balanced Class
Sun Life Granite Balanced Growth Class
Sun Life Granite Conservative Class
Sun Life Granite Growth Class
Sun Life Granite Moderate Class
Sun Life MFS Canadian Equity Class
Sun Life MFS Global Growth Class
Sun Life MFS International Growth Class
Sun Life MFS U.S. Growth Class
Sun Life Sentry Value Class
*On July 29, 2015, the word "Managed" was replaced by the word "Granite" in the name of each Sun Life Granite Managed Solution.