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Class A (GOF 502) Share Price $13.49 (as of May 17, 2013)
Class I (GOF 504) Share Price $10.07 (as of May 17, 2013)

 
 

FAQ's

Provided below are answers to the most frequently asked questions regarding Golden Opportunities Fund. If you would like more information or have a specific question, please feel free to contact us:

What is Golden Opportunities Fund?

Golden Opportunities Fund was launched in March 1999. The Fund has three main objectives:

  1. To create a pool of venture capital for small to medium-sized businesses to access capital by which to grow and expand their corporations, thereby creating new job opportunities at home;
  2. To provide investors a vehicle by which funds can remain at work at home for the benefit of the people, managed by an experienced Fund Manager and Board of Directors.
  3. To maximize shareholder returns.

To date, the Fund has approximately 26,000 Shareholders, has raised in excess of $277 million, and has invested in 110 different companies.

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How is a Labour-sponsored Investment Fund similar to a mutual fund? How is it different?

A Labour-sponsored Investment Fund (LSIF) is a type of mutual fund, which means that it allows professional money managers to make investment decisions on behalf of its pool of investors. Individuals investing in LSIFs indirectly share in both the profits and/or losses from these investments. With the LSIF investing in a number of different companies, individual investors are able to reduce their overall investment risk.

A LSIF investment portfolio differs from a conventional mutual fund in the fact that, since it provides private equity funding, it will include many private companies that mature and realize value through mergers and acquisitions (M&A), initial public offerings (IPO), or capital appreciation. LSIFs invest predominantly in hand-picked private small to medium-sized enterprises (SMEs) where as conventional mutual funds draw from a 'universe' of public companies. LSIFs are also managed by highly specialized private equity managers, who need to devote a sizeable amount of time to the management of each individual portfolio company.

In addition, there are a number of differences in the rules that govern LSIFs and conventional mutual funds. For instance, some of the rules directed at ensuring liquidity and diversification of investments and certain other investment restrictions and practices normally applicable to conventional mutual funds do not apply to LSIFs, in order to permit LSIFs to satisfy their investment objectives.

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Why should I consider a venture capital investment with Golden Opportunities Fund?

Investments are eligible for RRSP's and offer a tax credit of 15% from the Federal Government on the first $5,000 invested annually and 15% from the Provincial Government on the first $12,000 invested annually. These tax advantages can reduce your net after-tax cash outlay to as low as $236 for each $1,000 invested, if you are in a 46.40% marginal tax rate.

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What makes venture capital different?

A venture capital investment has two major characteristics:

  1. Liquidity of investee companies:
    The venture capitalist who invests in private companies cannot phone an investment dealer to dispose of his investment. The selling process of a private company is complex and takes a number of months. The venture capitalist must be prepared to get involved in the overall operations of a company to fix situations that are not feasible. Time and energy are required to identify and resolve issues that are preventing an investee company from achieving its potential. Due to lack of liquidity of private company investments, the venture capitalist is not able to readily dispose of a non-performing investment, but must either wait for the turnaround of the company situation or write down the value of his investment. 
  2. Active participation of the venture investor in the investee companies:
    The venture investor can better understand the business and make a positive contribution to the company by taking a seat on the Board of Directors and/or building a relationship with the investee company. This contribution arises on long-term issues such as key additions to management, setting strategic objectives, acquisitions, and financing.

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How does Golden Opportunities Fund reduce the risk of venture capital investing?

Most investments involve some level of risk. Venture capital investments usually involve much higher risk. An investment in Golden Opportunities Fund reduces this risk utilizing the following:

  1. Providing a secured investment position where possible to provide downside protection while a majority of the portfolio maintains upside capital gains potential. Regular yields to the Fund cover operating expenses, among other things and stabilize unit values.
  2. The net cost of an investment is reduced by RRSP eligibility and the substantial Federal and Saskatchewan tax credits.
  3. Investing in a diversified portfolio across strategic industry sectors and maintaining a number of different companies in the portfolio. Not more than 10% of the net assets of the Fund can be invested in any one company, thus ensuring a diversification of investments and risk.
  4. At the time of investment, obtaining certain rights for the Fund to help protect the value of the investments. These rights vary but include participation on a company's Board of Directors, rights of first refusal on existing or new treasury shares and rights to force liquidity in certain circumstances, as well as debt conversion rights and options for future shares.

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Why should I buy Golden Opportunities Fund?

An investment in Golden Opportunities Fund offers three main benefits to Shareholders:

  1. The investment offers access to substantial tax savings of 30%, 15% Federal tax credit to a maximum of $750 per year (reached at an investment of $5,000 annually) and 15% Provincial tax credit to a maximum of $1,800 per year (reached at an investment of $12,000) annually.
  2. The investment is 100% RRSP eligible.
  3. All dollars raised in Manitoba stay at work in Manitoba-based companies building this province's top companies and helping to ensure a strong economy in the future.

Golden Opportunities Fund's management team is one of the leading venture capital fund managers in the country. Golden Opportunities Fund was chosen as the first and only Canadian Labour-sponsored Investment Fund of the Year at the 2004 Canadian Investment Awards.

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What receipts will I receive for tax purposes?

Two receipts are issued. One for your RRSP contribution and one for the tax credit claim (T2C).

If your RRSP is a Golden Opportunities Fund RRSP, the RRSP contribution receipt is issued by Prometa Fund Support Services Inc., the back office for Golden Opportunities Fund, in mid-January for contributions made during the remainder of the year comprised of any purchases made between March 2 and December 31 and periodically during the 1st 60 days of the year. If your Shares are held in a self-directed account, the RRSP receipt will be issued by your plan holder.

The tax credit form (T2C) is used for both the Federal tax credit and the Manitoba tax credit. These receipts are also issued by Citigroup Fund Services Canada Inc. mid-January for remainder of year purchases and periodically throughout the 1st 60 days of the year.

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How can I claim my tax credits on my tax form?

If you subscribed to the Fund last year or within the 1st 60 days of this year you are eligible for a Manitoba Labour-sponsored Venture Capital Corporation (LSVCC) Tax Credit and Federal Labour Sponsored Fund (LSF) Tax Credits. To claim these tax credits the individual must file with his or her tax return the document (T2C) issued by the Citigroup that evidences the amount of these tax credits the individual is eligible to claim as a result of the acquisition of the Fund Shares.

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When can I claim my tax credits?

The tax credits for purchases made between March 2nd and December 31st (remainder of year) can be claimed only for that tax year. Purchases made between January 1st and March 1st (1st 60 day period) can be claimed for the previous tax year or the current tax year.

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Can I carry forward my tax credits to future years?

No, LSIF tax credits must be used in the year of purchase. There is no carry forward of LSIF tax credits unless the purchase is made in the 1st 60 days of the year, in which case the tax credits may be claimed against income in the previous or current tax year in the same manner as RRSP deductions.

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How do tax credits work within a spousal RRSP?

When Golden Opportunities Fund is purchased in a spousal RRSP, either spouse is able to claim the tax credits. This means that in the first 60 days of the year, a maximum of $48,000 could be contributed to the spousal RRSP with each spouse using tax credits on $12,000 contributions for the current and the prior tax year (assuming no prior investment).

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What happens to my tax credit savings should I sell some or all of my investment before the eighth year after purchase?

The tax credits will be repayable to the Federal and Provincial Governments on those shares you redeem before the eight year hold period has elapsed.

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Does Golden Opportunities Fund have load fees, sales fees or other fees?

Golden Opportunities Fund does not charge a load or sale fee to its Shareholders.

Investors that hold a Golden Opportunities Fund RRSP will be required to pay a service charge of $35 plus GST at the end of the eight year hold period.

If Shares are redeemed prior to the expiry of the eight year hold period, or an earlier redemption, a redemption fee may be triggered, depending on the length of time the shares have been held. The table below indicates the redemption fee on the amount redeemed for each year or partial year remaining before expiry of the eight-year hold period. This fee is based on the market value of the shares at the time of redemption and does not apply to shares redeemed by an estate.

Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8
8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 0.00%

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Does Golden Opportunities Fund qualify as an RRSP investment?

Yes. Any Manitoba resident may purchase Shares in the Fund by means of an RRSP, thereby reducing their taxable income and potentially increasing their tax savings.

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What is an RRSP?

An RRSP is a Federal Government regulated program that encourages people to save for their retirement years. RRSP's have special tax benefits that defer income tax to potentially greatly accelerate the accumulation of savings. Contributions to an RRSP can only be made by individuals with earned income taxable in Canada, which includes salaries, self-employment income, alimony, rental income (but does not include income from pensions or investments). Statements are issued to individual taxpayers with their "Notice of Assessment" informing them of their RRSP contribution limit for the following year.

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What is my maximum tax-deductible RRSP contribution?

The Notice of Assessment that you receive from Revenue Canada after filing your tax return each year states the amount of your maximum contribution. If you have not received this notice or need to double check the amount, simply call your Local District Taxation office. The number is available in the blue pages of your phone book.

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What's the deadline for an RRSP contribution that is deductible for the 2013 tax year?

You have until March 1, 2014 to contribute to your RRSP. Once this date has passed RRSP contributions are only deductible against your taxable income in the subsequent year.

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At what age should I begin contributing to my RRSP?

Start you RRSP contributing NOW! Contribute as much as you can afford as modest regular contributions can build over the years into a significant retirement nest egg. Revenue Canada now makes it easy to know how much you can contribute to your RRSP's each year. For your limit, simply refer to your last year’s Tax Notice of Assessment. The advice on this Notice includes both the maximum amount which you may contribute this year based on your last year’s earned income and any unused contribution room carried forward from previous years.

It pays to start your RRSP now. The sooner you start, the more you'll have when you retire.

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I did not maximize my RRSP last year. Is there anything I can do?

If you don't contribute the maximum amount allowable to your RRSP in any year you can carry the unused portion forward indefinitely. Any amounts carried forward should be reflected in the statement provided by Revenue Canada with your Notice of Assessment.

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What happens to my RRSP when I die?

The value of an individual's RRSP may be transferred to a surviving spouse on a tax-deferred basis, if directed by Designation of Beneficiary or by Will. Otherwise, the value of the RRSP at the date of your death is taxable as income.

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What happens to Golden Opportunities Fund Shares when the Shareholder dies?

When the "Principle Contributor" dies the value of the Shares may be transferred to a surviving spouse on a tax-deferred basis, if directed by Designation of Beneficiary or by Will. The Principle Contributor is defined as the annuitant for an individual RRSP, an individual non-registered account and a spousal RRSP account or the first name on the account for a joint account.

The Shares may also be redeemed by the beneficiary without Federal and Provincial Tax Credits or redemption fees withheld.

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What is a spousal RRSP?

The more taxable income you have, the higher your marginal tax rate. You should therefore, consider allocating future taxable income as evenly as possible between you and your spouse - commonly known as the 'income splitting' opportunity.

You are entitled to put all or part of your allowable annual and carried forward contribution eligibility into an RRSP in your spouse's name. This may lower your combined income tax you and your spouse must pay each year when you withdraw your RRSP eligible savings during retirement.

As the contributor to a spousal RRSP, you benefit from the tax deduction while building a retirement nest egg for your spouse. Amounts withdrawn from a spousal RRSP will be considered part of your spouse's taxable income, provided you contributed any amount to a spousal plan in the current year or the two pervious years. A spousal RRSP is most beneficial in a situation where the plan-holder would otherwise have little retirement income while the contributing spouse would have a significant amount of income.

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Does Golden Opportunities Fund qualify as an investment in a spousal RRSP?

Yes, Golden Opportunities Fund can be purchased in a spousal RRSP account. The contributing spouse is deemed as principle contributor and is issued an RRSP receipt. The tax credits receipt (T2C) is issued in both spouses' names and can be used by either spouse.

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If I don't have a self-directed RRSP, how do I purchase the Fund in an RRSP?

You may open a Golden Opportunities Fund RRSP by filling in the appropriate section of the Subscription Form with your Financial Advisor.

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Does Golden Opportunities Fund qualify as a non-RRSP investment?

Yes, you can hold Golden Opportunities Fund as a non-registered investment. Non-registered purchases are still eligible to receive the 30% tax credits.

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Does Golden Opportunities Fund qualify as a RRIF investment?

Golden Opportunities Fund can be transferred into a RRIF but new Shares cannot be purchased within a RRIF.

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Does Golden Opportunities Fund qualify as an RESP investment?

No, Golden Opportunities Fund cannot be purchased within an RESP.

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Can I purchase Fund Shares using money I already have in an RRSP?

Yes, an RRSP investment transferred into Golden Opportunities Fund will not receive an RRSP contribution receipt but will be eligible for the 30% tax credits.

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What is the purpose of Golden Opportunities Fund?

The Fund's purpose is to provide a strong return on capital for Shareholders by making equity investments in small to medium-sized growth companies. We seek long-term appreciation on our investments in most cases.

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Can Golden Opportunities Fund be purchased through a pre-authorized purchase plan (PAC)?

Yes, Shares can be purchased on a weekly, biweekly or monthly basis. The minimum PAC investment is $25. PAC purchases will be debited on the first Friday following the specified contribution period.

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Is Golden Opportunities Fund a Government Fund?

No. Golden Opportunities is a private Fund managed by a private Fund Manager. The Fund is a Labour-sponsored Venture Capital Corporation (LSVCC) regulated under the Labour-sponsored Venture Capital Corporation Act (Manitoba) and investments in the Fund are eligible for significant tax credits from the Federal and Provincial governments.

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Does the Fund invest only in unionized companies?

No. Whether a company is unionized or not does not enter into consideration when making investment decisions. The Fund is sponsored by the Construction and General Workers Union Local 180 as required under the Labour-sponsored Venture Capital Corporation Act (Manitoba).

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When did the Fund start?

The Fund was officially launched in January 1999.

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Who can purchase Golden Opportunities Fund?

Only residents of Manitoba, as of December 31st of the year in which the tax credits will be used, can purchase Golden Opportunities Fund Manitoba Shares.

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What are the minimum and maximum amounts that can be purchased?

The minimum lump sum investment is $250. The minimum amount for a pre-authorized purchase is $25 with no initial investment required. There is no maximum investment; however, the Federal tax credits will maximize on a $5,000 annual investment and the Provincial tax credits will maximize on a $12,000 annual investment per taxation year.

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Do I have to buy from an Investment Advisor?

Yes, Golden Opportunities Fund is only sold through licensed Investment Advisors. This is because there is much you should know about the Fund including eligibility rules, redemption restrictions, tax implications, and a general awareness about the suitability and appropriate amount of this kind of investment in your RRSP portfolio mix. It is the Investment Advisor's responsibility to ensure that you receive a prospectus outlining the details of the investment.

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Does Golden Opportunities Fund pay interest or dividends?

Although the Fund may declare capital gains dividends out of monies legally available for dividends from time to time as may be appropriate. To date no dividends have been paid by the Fund on any shares. The Fund may annually capitalize certain amounts of its interest and other investment income and capital gains to the extent necessary to obtain a refund of the tax otherwise payable. This may have tax implications for shareholders holding their shares in non-registered accounts.

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How do I earn money on my investment?

The objective of the Fund is to provide its Shareholders with an increase in share value over time (i.e. by capital appreciation).

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How do I determine what the share price is? Is Golden Opportunities Fund listed on a public exchange?

The Fund is not listed on a stock exchange. It is a private mutual fund corporation owned by its shareholders. The share price is listed in the Globe and Mail and the National Post. The fund price is also reported on www.globefund.com, www.morningstar.com, and www.goldenopportunities.ca.

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How often are communications sent to shareholders?

Shareholders are sent a confirmation of purchase for lump sum purchases and for the first PAC purchase (but not for subsequent PAC purchases). Shareholders will also receive an annual account statement as of December 31st that is mailed in January/February.

One RRSP Contribution Receipt for Golden Opportunities Fund RRSP plans and one T2C Tax Credit Receipt will be sent for all purchases made during the remainder of the year (March 2 - December 31). These receipts are mailed in January. Individual receipts will be sent for purchases made during the first 60 day period and mailed periodically throughout this period.

Without your consent otherwise, Labour-sponsored Investment Funds are required by law to communicate with shareholders twice per year through the semi-annual and annual report mailings. Golden Opportunities Fund sends out a package to shareholders twice each year, the first containing the semi-annual report and the second containing the annual report.

If you are interested in opting out of receiving hard copies of your Annual and Semi-annual Report and instead would like to receive notification via email when these documents have been made available online, click here.

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My household has more than one Golden Opportunities Fund Shareholder, can we receive only one copy of the materials mailed out instead of us both receiving the same material?

Golden Opportunities Fund is required by law to communicate with each account holder separately, therefore; according to the legislation that governs Labour-sponsored Investment Funds, Golden Opportunities must send copies of the material to all Shareholders invested.

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Are there maximum tax credits in any one year, or in a lifetime?

Yes. The Provincial tax credit limit is $1,800 in any one year, with no lifetime limit. The Federal tax credit limit is currently $750 per year, also with no lifetime limit.

Tax credits for purchases made in the 1st 60 days of the calendar year can be used for either the current year, the prior year, or split between the two years.

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Is the tax credit deducted from my taxable income or my income tax payable?

The tax credit is deducted directly from your income tax payable so it is not diluted in any way.

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Is there a difference between a tax credit and a tax deduction?

Yes. A tax credit is the amount deducted directly from income tax otherwise payable. A tax deduction is the amount deducted from total income to arrive at taxable income. The Federal and Provincial governments provide LSIF tax credits to Golden Opportunities Fund Shareholders. The benefits received from investing in an RRSP are tax deductions because the investment amount reduces taxable income.

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What happens if there is an error in my tax credit receipt (T2C)?

If there is an error with a T2C, both copies of the original receipt must be returned to have a new receipt issued. Please contact the Fund immediately (1-204-489-5557) if there is an error so that arrangements can be made to have a revised receipt can be issued.

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I received confirmation and a tax credit certificate (T2C), but where is my RRSP receipt?

The confirmation of a contribution is sent directly by the Fund to the subscriber and a copy is sent to the Investment Advisor of record. The Tax Credit Certificate ("T2C") is sent out separately directly to the Shareholder. RRSP receipts are sent out by the agent or trustee of your RRSP account. If you opened a Golden Opportunities Fund RRSP then the receipt would be issued by Client Services on behalf of Cooperative Trust of Canada, Trustee for Golden Opportunities Fund's RRSP Plans. Client Services should be able to tell you when the RRSP receipt was issued and sent.

If you contributed to a self-directed RRSP either your Investment Advisor or the administrator of the self-directed plan should be able to tell you when they issued and sent your RRSP receipt.

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Can I receive tax credits if I am repaying my RRSP under the New Home Buyers' Plan?

Yes, you have up to 15 years to reimburse your RRSP for money borrowed to buy a home and you may purchase Golden Opportunities Fund Shares when you repay your RRSP account. The investment into Golden Opportunities Fund is eligible for the 30% tax credits. Golden Opportunities Fund Shares can be redeemed to make the down payment on a new home, however, tax credits and redemption fees will be withheld making this an unattractive option.

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Can I redeem some or all of my investment before the eight year holding period expires?

Labour Fund investments have an eight-year holding period attached to them. This is meant to encourage you to hold your investment long enough to allow the Fund to make prudent investments that will increase your share value. However, you can redeem your investment at any time.

If you redeem all or part of your investment prior to the expiry of the eight year holding period the tax credits will be repayable to the Federal and Saskatchewan Governments on those Shares that have been held for less than eight years. The amount of tax credits issued (cost of Shares times 30%) will be withheld from the amount payable.

In addition, selling your Shares may trigger a redemption fee depending on the length of time the Shares have been held. The table below indicates the redemption fee on the redemption amount for each year or part year remaining before expiry of the eight-year hold period. This fee is based on the market value of the Shares at the time of redemption and does not apply to Shares redeemed by an estate.

Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8
8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 0.00%

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What happens at the end of the eight year hold period (Rollovers)?

At the end of the eight-year hold period you can either redeem your investment without any amount being withheld or you can reinvest your Shares to receive an additional tax credit on the amount reinvested.

If you choose to reinvest your Golden Opportunities Shares you will receive an additional 30% in tax credits on your investment (the maximum investment on which tax credits can be claimed in any single tax year still applies). You can receive 30% in tax credits without investing any new money!

The balance of the market value of Shares over the annual limit can be:

  1. Reinvested in the 1st 60 day period triggering an additional 30% in tax credits and restarting the 8 year holding period
  2. Held as matured units in your account, the 30% in tax credits will not be generated and the 8 year hold period will not begin again
  3. Transferred to another RRSP account using a T2033 RRSP transfer form
  4. Redeemed in cash (if held in a non-RRSP account)

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