WHO CAN INVEST?
Van Arbor Funds are distributed by way of an Offering Memorandum, and each investor must meet a specified purchaser exemption as set out in National Instrument 45 -- 106.
NI 45-106 sets out several exemptions available to investors and below are 3 of the most commonly used exemptions. For further exemptions please refer to NI 45 -- 106: www.bcsc.bc.ca
Canadian Resident
Purchaser's Exemptions
A potential investor must meet at least one of the following exemptions:
- Accredited Investor
(available to investors resident in each province and territory)a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer, other than a person registered solely as a limited market dealer,
an individual who, alone or with a spouse, beneficially owns, directly or indirectly, financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000,
an individual who, alone or with a spouse, has net assets of at least $5,000,000, an individual whose net income before taxes exceeds $200,000 in each of the 2 most recent calendar years, and who reasonably expects to exceed that net income level in the current calendar year, or
an individual whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the past 2 most recent calendar years, and who reasonably expects to exceed that net income level in the current calendar year
- Minimum Purchase
(available to investors resident in each province and territory)available to an investor that purchases units to a value equal to or greater than $150,000.
- Risk Acknowledgment
(only available to residents of British Columbia, New Brunswick, Nova Scotia and Newfoundland and Labrador)a purchaser purchasing as principal that completes the Risk Acknowledgment Form.
International Resident
A potential investor must meet at least one of the following exemptions:
- Accredited Investor
(see definition above) - Minimum Purchase
(purchase of units to a value equal to or greater than $150,000.)
US Resident
Please contact your investment advisor or contact Van Arbor directly for further information.
What are the FundSERV Codes associated with each Fund?
| 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 |
Why should I own a Van Arbor Fund?
It has been shown that professionally managed portfolios usually provide better overall returns than individually selected holdings. Managing diverse equity investments is a full time job.
When is the best time to invest?
Investing should be a long-term proposition: Warren Buffett said "our favorite holding period is forever". Getting started, even in a small way, is the key to capital growth.
Are the Van Arbor Funds liquid? When can I cash out?
The Van Arbor Funds are valued monthly. Units can be redeemed at month end by contacting your investment advisor. The redemption amount is based on the month's end valuation.
What is Van Arbor's fee structure?
Van Arbor receives an Management Fee based on the monthly assets under management. The Management Fee for a Series B unit is 2.0% and for a Series F unit is 1.0%. A Performance Fee of 20% is charged annually on the increase in net asset value from the previous "high water mark", less management fees. The "high water mark" is the highest year end portfolio valuation. For more information, please refer to the Offering Memorandum, available in the "Forms" section.
Are the Funds qualified for use in my RSP, RIF, TFSA and RESP?
Yes, the Van Arbor Funds are eligible RSP, RIF, TFSA and RESP investments.
What safeguards do investors have?
The portfolio securities will be held by CIBC World Markets. In addition, the Funds and Van Arbor Asset Management Ltd are audited annually by the accounting firm KPMG LLP.
Why is Van Arbor using an Offering Memorandum rather than a Prospectus?
The Van Arbor Funds may use leverage in the management of the portfolio. National Instrument 81-102, which sets out the portfolio investment methodology that is acceptable for a prospectus offering, does not allow a leveraged Mutual Fund to be offered by prospectus.
Therefore, Van Arbor can only offer its units via Offering Memorandum.
What is Leverage?
Leverage is the use of borrowed capital. Under the IDA Guidelines, the maximum leverage that a dealer can use with a client account is 70%. Therefore you can put $30.00 into your account and purchase a $100.00 security. The level of leverage used in the management of the Van Arbor portfolios would be expected to be less than 35% of the total portfolio. That is for every $100 in a Van Arbor Fund, the Fund may borrow up to $50.00.
The Van Arbor Funds may employ a conservative amount of leverage during certain market conditions. Typically, during low volatility periods in the market, the Funds may consider the use of a conservative amount leverage.
What is the difference between the VAA150 and VAA151 units (VAA450 & VAA451 )?
The VAA150 / VAA450 units are pending accounts. The unit price for these pending accounts is a static $10.00 per unit. Once Van Arbor has received the investor’s completed documentation, the holding in VAA150 or VAA450 will be ready for the end of month pricing of the VAA151 / VAA451 portfolio units.
The VAA151 / VAA451 are the units with the equity portfolios. At month end the Funds are priced and the investor’s holding in VAA150 / VAA450 will roll into the VAA151 / VAA451 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. You client will see that the $100,000 is invested in VAA151 and the holding in VAA150 has been converted into units of VAA151.
How do I monitor the investment?
The Van Arbor Fund units are priced and reported monthly. Your investment prices will be available through a newsletter prepared and sent to each unit holder on a monthly basis. The value of your investment will be reflected in your monthly statement that you receive from your broker.
Also the Funds are quoted on-line in such locations as www.morningstar.ca , www.globefund.com and www.fundlibrary.com.
How do I purchase units?
The Van Arbor funds are offered by offering memorandum. An investor can purchase units in our Funds by contacting their investment advisor or financial planner.
Please complete the Subscription Form using our on-line process and then send the printed Subscription Agreement to your investment advisor or financial planner.
Please contact Van Arbor directly at info@vanarbor.com or call 604.895.7130, if you have further questions about investing in either of the Van Arbor Funds.