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Tell anFrequently Asked Questions
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.
C. Offering Memorandum
(only available to residents of British Columbia, New Brunswick, Nova Scotia and Newfoundland and Labrador)A purchaser purchasing as principal that completes the Risk Acknowledgement 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 adviser or contact Van Arbor directly for further information.
What are the FundSERV Codes associated with each Fund?
| Fund | Purchase Code | Holding Code | |
| Van Arbor Canadian Advantage Fund | Series A | VAA110 | VAA111 |
| Series F | VAA120 | VAA121 | |
| Van Arbor US Advantage Fund | Series A | VAA210 | VAA211 |
| Series F | VAA220 | VAA221 | |
| Van Arbor Euro Fund | Series A | VAA310 | VAA311 |
| Series F | VAA320 | VAA321 |
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?
As soon as possible. 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?
Van Arbor Asset Management's Funds are valued monthly and posted in the mutual fund section of most business papers. Units can be redeemed at month end by contacting your investment advisor. The redemption amount is based on the month's end valuation, less any applicable fees. The quality of the fund's securities portfolio is the final determinant of its overall liquidity.
What is Van Arbor's fee structure?
There is an annual management fee of 1.5% of assets under management. The annual management fee is negotiable for assets under management in excess of $1 million. A 20% performance fee 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 page 4 of the Offering Memorandum, available in the "Forms" section.
Are the Funds qualified for use in my RSP or RIF?
Yes, the Van Arbor Funds are eligible RSP and RIF 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 Deloitte Touche LLP.
Why is Van Arbor using an Offering Memorandum rather than a Prospectus?
The Van Arbor Funds use leverage, and 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 Van Arbor methodology employs leverage in its funds. The amount of leverage will vary but as the portfolio securities are held at CIBC World Markets and they are an IDA member, the leverage can never exceed 70%.
What is the difference between the VAA110 and VAA111 funds (VAA210 & VAA211 / VAA310 & VAA311)?
The VAA110 / VAA210 / VAA310 funds 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 VAA110 or VAA210 will be ready for the end of month pricing of the VAA111 / VAA211 / VAA311 portfolio funds.
The VAA111 / VAA211 / VAA311 are the funds with the equity portfolios. At month end the portfolio funds are priced and the investor's holding in VAA110 / VAA210 / VAA310 will roll into the VAA111 / VAA211 / VAA311 fund at the end of month unit valuation.
As an example a $100,000 investment would convert into 10,000 units of VAA110. At month end if VAA111 had a unit price of $12.50, the $100,000 investment would convert into 8,000 units of VAA111. You client will see that the $100,000 is invested in VAA111 and the holding in VAA110 has been converted into units of VAA111.
What are the symbols that I follow to monitor the investment?
The portfolio funds are VAA111 / VAA211 / VAA311. These are the Van Arbor Funds that will be priced and reported monthly.
Also the Funds are quoted on www.globefund.com and www.fundlibrary.com and in major newspapers such as the Globe and Mail and The National Post.
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. Or contact Van Arbor directly at info@vanarbor.com or call 604.895.7130.
Does Van Arbor comply with Global Investment Performance Standards?
The Global Investment Performance Standards (GIPS) are a voluntary set of standards endorsed by the CFA Institute on February 1999 as a worldwide standard. The GIPS apply to investment management firms and are intended to serve prospective clients and existing clients of investment firms and consultants that advise these clients. The GIPS are ethical standards for investment performance presentation designed to ensure fair representation and full disclosure of an investment firm's performance history. In order to claim GIPS compliance a number of standards must be met including presentation of at least five years of annual investment performance numbers that comply with GIPS. While still relatively young, Van Arbor does intend to make every effort to comply with GIPS standards in the near future.
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