Richardson GMP

In January each year, clients receive annual performance reports for your accounts at Richardson GMP. The reports show how you have done as a household as well as account by account. You may notice quite a variation in the performance of one account to another, if you have a registered account (such as RRSP, RRIF or TFSA) as compared to a non-registered (or taxable) account. We thought you might be curious as to why there would be difference in performance.

At Jefferson|Steele Wealth management, we manage the vast majority of client accounts as one combined portfolio. If you are a couple with 2 RRSPs, 2 TFSAs, one joint account and one corporate account, we will manage all of these accounts with one overall asset allocation, which is usually guided by the target rate of return determined by your financial plan.

We consider taxes when determining into which account an investment should go. For example, an equity which pays no dividend would be ideal in a non-registered (or taxable) account, but less ideal inside an RRSP. The reason is that if the investment increases in value in the non-registered account, no tax is owing until it is sold and then the gain is taxed at capital gains rates which are ½ of the tax rate charged on interest or employment income. If that same equity was inside a RRSP or RRIF and had the same gain, this would cause the future RRIF payments, which are taxed as income, to increase. As well, this gain would ultimately be taxed as income when the RRIF is ultimately de-registered on death. Another example would be a fixed income fund which pays out interest income each year. If possible, we would put this fund into an RRSP or RRIF. Second choice would be a TFSA and last choice would be a non-registered account.

As a result of this decision making process, clients with a theoretical 50% equity and 50% bond portfolio may have a RRSP or TFSA that is 100% fixed income or a non-registered that is 80%-100% equity. In a year like 2017, where equity markets handily out-performed fixed income markets, this can result in one account materially outperforming another.


Dwight Jefferson, CIMA®
Senior Vice President
Portfolio Manager
Tel.: 604.640.0555 • Email

Tyler Steele, CFA
Senior Vice President
Portfolio Manager
Tel.: 604.640.0554 • Email

Neil Kumar, CIM®
Vice President
Portfolio Manager
Tel.: 604.640.0406 • Email

Eddie Gudewill, CFA
Portfolio Manager
Tel.: 604.640.0562 • Email

Wendy Lloyd
Tel.: 604.640.0556 • Email

Jessica Dewey
Tel.: 604.640.0405 • Email

Brenda Geib, BA
Tel.: 604.640.0559 • Email

Richardson GMP Limited
500 – 550 Burrard Street
Vancouver, BC V6C 2B5

Toll Free: 1.866.640.0400
Fax: 604.640.0300


The opinions expressed in this report are the opinions of the author and readers should not assume they reflect the opinions or recommendations of Richardson GMP Limited or its affiliates. Assumptions, opinions and estimates constitute the author's judgment as of the date of this material and are subject to change without notice. We do not warrant the completeness or accuracy of this material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Past performance is not indicative of future results. The comments contained herein are general in nature and are not intended to be, nor should be construed to be, legal or tax advice to any particular individual. Accordingly, individuals should consult their own legal or tax advisors for advice with respect to the tax consequences to them, having regard to their own particular circumstances. Insurance services are offered through Richardson GMP Insurance Services Limited in BC, AB, SK, MB, NWT, ON, QC, NB, NS, PEI and NL. Additional administrative support and policy management are provided by PPI Partners. Richardson GMP Limited is a member of Canadian Investor Protection Fund. Richardson is a trade-mark of James Richardson & Sons Limited. GMP is a registered trade-mark of GMP Securities L.P. Both used under license by Richardson GMP Limited.