NRC eligible refers to securities that are suitable for investment by Non Resident Clients (NRCs) because they are designed to avoid securities subject to withholding tax for these clients.
Understanding NRC Eligibility Based on the Reference
Based on the description of the NRC Eligible Preferred Securities Strategy, the term "NRC eligible" describes investments chosen specifically to meet the needs of Non Resident Clients (NRCs).
The strategy focuses on:
- Investing in developed market preferreds and corporate subordinated debt.
- Seeking income and capital preservation.
- Crucially, avoiding securities subject to withholding tax for Non Resident Clients (NRCs).
Therefore, securities considered "NRC eligible" within the context of this strategy are those that do not incur withholding tax for investors who are Non Resident Clients. This makes them potentially more attractive for such investors seeking to maximize their net return on income and capital.
In simple terms, for an investment strategy or a security to be deemed "NRC eligible" based on this reference, it must satisfy the condition of not being subject to withholding tax when held by a Non Resident Client.
- NRCs: Non Resident Clients
- NRC Eligible: Refers to securities that avoid withholding tax for NRCs.
