REGISTERED ADVISOR INFORMATION
Can a client hold the Van Arbor Funds in an RRSP account?
Yes. Both of the 2 funds are RRSP/ RRIF / RDSP / RESP / TFSA eligible.
How to facilitate your client's purchase of units of Van Arbor Funds:
The Van Arbor Funds are designated as a Private Mutual Fund Trust and, therefore, are sold by Offering Memorandum. Your client will need to receive an Offering Memorandum and the Subscription Forms. These are available on our website located at www.vanarbor.com, under the section entitled: FORMS.
You can place your client's order to purchase Van Arbor fund units through FundSERV.
| Fund | Purchase Code | |
| Van Arbor Canadian Advantage Fund | Series B | VAA150 |
| Series F | VAA120 | |
| Van Arbor World Advantage Fund | Series B | VAA450 |
| Series F | VAA420 |
Van Arbor needs to receive a signed copy of the completed Subscription Agreement.
This entails:
1) the Subscription Form (Page 3) and
2) the relevant transaction exemption form, either
i) the Accredited Investor Exemption and / or
ii) the Risk Acknowledgement Exemption
The auto-complete of the Agreement allows for a quick and comprehensive review that all required information is entered. Once your client has signed the documents, the Agreement is required to be received by Van Arbor. In many cases your compliance department will forward these forms on your behalf.
For all subsequent purchases, it is required that a new completed Agreement be forwarded to Van Arbor. If the client is purchasing based on a monthly pre-authorized transaction, subsequent forms are not required, unless the investor's personal situation changes.
What is the difference between the Series B Units and the Series F Units?
The Series B units pay a Management Fee of 2.0%, the Dealer receives annually 1.0% of the Management Fee as a Trailer Fee and may receive up to 10% of the Performance Fee paid.
The Series F units pay a Management Fee of 1.0%, the Dealers receives no Trailer Fee. This Series of units is to be sold to a client with a wrap account with the Dealer.
What is the difference between the VAA150 and VAA151 units (VAA450 & VAA451)?
The VAA150 / VAA450 Series of units are pending accounts. The unit price for these pending accounts is a static $10.00 per unit. Once Van Arbor has received your client's completed documentation, the holding in VAA150 / VAA450 will be ready for the end of month pricing of the VAA151 / VAA451 Series of units.
The VAA151 / VAA451 are the Series of units associated with the equity portfolios. At month end, the Funds are priced and the client holding in VAA150 / VAA450 will roll into the VAA151 / VAA451 Series of units at the end of month unit valuation.
As an example a $100,000 investment would convert into 10,000 units of VAA150. At month end if VAA151 had a unit price of $12.50, the $100,000 investment would convert into 8,000 units of VAA151. Your client will see that the $100,000 is invested in VAA151 and the holding in VAA150 has been converted into units of VAA151.
A Sample Transaction:
| DATE | FUND | TRANSACTION | UNITS | PER UNIT COST | BOOK VALUE |
| May 5 | VAA
150 Pending Fund |
Purchase | 10,000.000 | $10.00 / unit | $100,000.00 |
| By
1pm (PST) May 31 |
All documentation is received at Van Arbor in Good Order. Holdings are ready to be switched into the portfolio at month end. | ||||
| May 31 | VAA
150 Pending Fund |
Switch Out | 10,000.000 | $10.00 / unit | $100,000 |
| May 31* | VAA
151 Portfolio Fund |
Switch In | 8,000.000 | $12.50 / unit | $100,000.00 |
|
*After the month end switch into the portfolio fund (VAA151 ), the market value of the units is determined by the current portfolio fund price multiplied by the number of units held in the portfolio fund. MARKET VALUE = PORTFOLIO FUND PRICE X NUMBER OF PORTFOLIO FUND UNITS Investors can refer to the portfolio fund listing in the financial press for the current price of their units |
|||||
How do I monitor the investment?
The Van Arbor Fund units are priced and reported monthly. The unit prices will flow directly through Fund SERV to your firm’s system and unit prices will be automatically updated.
The Van Arbor Funds are quoted on-line in such locations as www.morningstar.ca, www.globefund.com and www.fundlibrary.com.
Why use the pending account and the portfolio account?
The Funds price monthly; so transactions to purchase wait until month end to be processed. This also gives a period to allow for the Subscription Agreement to be reviewed by Van Arbor to ensure that it is in good order and in line with the requirement set out in NI 45 – 106.
The Securities Commissions require that each investor in units of a fund offered by Offering Memorandum complete documentation stating the purchase exemption that is being used to allow the trade to occur. Van Arbor can not place the client's investment into the portfolio account without the documentation being completed. The holding account is where the client investment resides until the client documentation is received by Van Arbor. Once the documentation is received in good order your client's investment will be transferred into the portfolio account at the next month end valuation of the fund.
If my client intends to purchase units of both Funds, is documentation required for both funds?
Yes, each transaction requires a Subscription Form and an Exemption Form be completed by the client.
When is the cut-off day for client documentation to be received at Van Arbor for my client's holding to be switched from the pending account to the portfolio account?
Client documentation must be received by 4:00 pm Pacific Time on the day prior to the last business day of the month. As an example, if the last business day of the month is Wednesday May 31, then documentation must be received by 4:00 pm on the Tuesday May 30.
What happens if documentation is not received IN GOOD ORDER by the month end switch deadline?
As the Funds are priced monthly, investor's capital is placed into the portfolio account on a monthly basis. If the completed investor documentation is not received by the cut off time, then the investor's capital will remain in the pending account until the completed investor's documentation is received. At the next month end the investor's capital will be placed in the portfolio account.
My client intends to set up a PAC, what documentation is required?
Documentation is required for the initial transaction and as long as your client's personal situation does not change, no further documentation is required. If your client's personal situation does change, such that you are up-dating their Know Your Client Form, then new documentation is required by Van Arbor.
Who do I call if I have other questions?
If you have question regarding how to purchase Van Arbor units for a client or you are experiencing and difficulties, please contact : Andrew Parkinson at T:604.895.7122, or by email: andrew@vanarbor.com