Golden Opportunities Fund is Saskatchewan’s first Provincial Labour-sponsored Venture Capital Corporation (LSVCC). The Fund was launched over 25 years ago with three main objectives:

• 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;
• To provide Saskatchewan investors a vehicle by which funds can remain at work at home for the benefit of the Saskatchewan people, managed by a Saskatchewan Fund Manager and Board of Directors.
• To maximize shareholder returns.

To date, the Fund has approximately 28,000 Shareholders across the Province, and has invested approximately $600 million in 165 local companies.

A Labour-sponsored Fund or Labour-sponsored Venture Capital Corporation (LSVCC) is a type of mutual fund, which means that a professional fund manager makes investment decisions on behalf of its pool of investors. Individuals investing in LSVCCs indirectly share in both the profits and/or losses from these investments. With the LSVCC investing in a number of different companies, individual investors are able to reduce their overall investment risk.

The LSVCC investment portfolio differs from a conventional mutual fund in the fact that LSVCCs invest predominantly in hand-picked, private, small to medium-sized enterprises (SMEs) whereas conventional mutual funds traditionally invest in larger public companies. LSVCCs are managed by highly specialized fund managers, who devote a sizeable amount of time to the management of each individual portfolio company.

A venture capital investment has two major characteristics:

• Liquidity of investee companies:
  In contrast to selling larger, publicly traded companies such as those in a traditional mutual fund, the selling process of smaller private companies, such as those held in an LSVCC portfolio, is complex and takes time to complete. As such, LSVCC investment portfolios are less liquid than regular mutual funds.
• LSVCCs often take an active role in the management of companies in their investment portfolios by participating in the Board of Directors.

In addition, there are a number of differences in the rules that govern LSVCCs 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 LSVCCs, in order to permit LSVCCs to satisfy their investment objectives.

Investments are RRSP eligible, and offer a tax credit of 15% from the Federal Government and 17.5% from the Saskatchewan Government on the first $5,000 invested annually. These tax advantages can reduce your net after-tax cash outlay to as low as $200 for each $1,000 invested, if you are in a 47.50% marginal tax bracket.

Most investments involve some level of risk. Venture capital investments traditionally involve higher levels of risk, due to the size and stage of investee companies. An investment in Golden Opportunities Fund helps reduce this risk utilizing the following strategies:

• Structuring a secured investment position where possible to help provide some downside protection with the goal of the majority of the portfolio maintaining upside capital gains potential. Regular yields to the fund cover operating expenses and help to stabilize unit values.
• The net cost of an investment is reduced by RRSP eligibility and the additional Federal and Provincial tax credits.
• Investing in a diversified portfolio across strategic industry sectors reduces risk. No more than 10% of the net assets of the Fund can be invested in any one company, thus ensuring diversification of investments and risk.
• At the time of investment, obtaining certain rights for the Fund to help protect the value of the investment. These rights vary, but include participation on a company’s Board of Directors, right of first refusal on future financing rounds and rights to force liquidity in certain circumstances, as well as debt conversion rights and options for future shares.

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

• The investment offers access to substantial tax savings of 32.5% or up to $1,625 on an investment of $5,000.
• The investment is 100% RRSP eligible.
• All dollars raised in Saskatchewan stay at work in Saskatchewan-based companies, helping to build a strong local economy, creating jobs and supporting communities in the future.

Golden Opportunities Fund provides the most diverse retail venture capital portfolio offerings in Saskatchewan, providing investors with choice between 3 share classes:

Golden Opportunities Fund’s management team is one of the leading venture capital fund managers in the country, and was honored as the inaugural recipient of the Canadian Labour-sponsored Investment Fund of the Year at the 2004 Canadian Investment Awards.

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, $20,000 could be contributed to the spousal RRSP with each spouse using tax credits on $5,000 contributions for the current and the prior tax year (assuming no prior investment).

100% of the tax credits received when you purchase the Fund will be repayable to the Federal and Provincial Governments on those shares you redeem before the eight year hold period has elapsed.

Golden Opportunities Fund does not charge a load or sales fee to its shareholders.

As of December 2016, the Fund has eliminated all DSC (deferred sales commission or early redemption fees) from all share classes.

Golden Opportunities Fund investments are 100% RRSP eligible.

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.

The Notice of Assessment that you receive from Canada Revenue Agency (CRA) 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 CRA.

You have until March 3, 2025 to contribute to your RRSP. Once this date has passed, RRSP contributions are only deductible against your taxable income in the subsequent year.

Start your RRSP contributions NOW! 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 previous 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.

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 Canada Revenue Agency with your Notice of Assessment.

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 to your estate.

When the “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 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.

Upon death of the Contributor the Shares may also be redeemed by the beneficiary without Federal and Provincial Tax Credits or redemption fees withheld.

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 ‘income splitting’.

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 the 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 RSP 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. 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.

Yes, Golden Opportunities Fund can be purchased in a spousal RRSP account. The contributing spouse is deemed as “Contributor” and is issued an RRSP receipt. The tax credit receipt (T2C) is issued in both spouses’ names and can be used by either spouse.

You may open a Golden Opportunities Fund RRSP by having your advisor complete the appropriate section of the Subscription Form.

Yes, you can hold Golden Opportunities Fund as a non-registered investment. Non-registered purchases are still eligible to receive the 32.5% tax credits.

Mature and non-mature units of Golden Opportunities Fund can be transferred into a RRIF, but new Shares cannot be purchased within a RRIF.

Golden Opportunities now also offers a Client Name Retirement Income Fund (RIF) Account which provides clients with a no fee option when the time comes to transfer your Golden Opportunities assets to a RRIF.

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

No, Golden Opportunities Fund cannot be purchased within a TFSA.

Yes, RRSP investments transferred into Golden Opportunities Fund will not receive RRSP contribution receipts, but will be eligible for the 32.5% tax credits.

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

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 (Saskatchewan) and investments in the Fund are eligible for tax credits from the Federal and Provincial governments.

No. The Fund is sponsored by the Construction and General Workers’ Union, Local 180, as required under the Labour-sponsored Venture Capital Corporation Act (Saskatchewan), however whether a company is unionized or not does not determine investment decisions.

Only residents of Saskatchewan, as of December 31st of the taxation year in which the tax credits will be used, are eligible investors in the Fund.

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 tax credits can only be claimed on a maximum investment of $5,000 per taxation year.

Yes, Golden Opportunities Fund is sold through licensed Investment Advisors and online through a registrant. However, 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.

Yes, you can now purchase Golden Opportunities online through InvestatHome.ca. Simply create a Qtrade Investor account to manage your trades with flexible and affordable contributions to help meet your investment goals.

Although the Fund may declare dividends from time to time, to date no dividends have been paid by the Fund on any shares. It is not the Fund’s intent to declare dividends in the future.

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

The Fund is not listed on a stock exchange. It is a private mutual fund corporation owned by its shareholders. The share price is updated on goldenopportunities.ca weekly on Fridays. The fund price is also reported on fundata.com and morningstar.ca.

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 timeframe. These receipts are mailed in January. Individual receipts will be sent for purchases made during the 1st 60 day period and mailed periodically throughout this period. Receipts are also available online at Shareholder Access.

Labour-sponsored Investment Funds are required to communicate with shareholders when semi-annual and annual reporting is available. In keeping with the Fund’s continued focus on environmental stewardship and cost reduction for shareholders, it is our policy to not automatically send each shareholder a paper copy of the Annual and Semi-Annual Reports. If you are interested in receiving paper copies of these reports please email info@goldenopportunities.ca.

Email notification when electronic copies of the reports are available online will be sent to those shareholders that have provided their email address by completing this form (click here). The Fund will follow your instructions until you change them.

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

Yes. The Saskatchewan tax credit limit is $875 in any one year, with no lifetime limit. The Federal tax credit limit is $750 per year, also with no lifetime limit. Effectively the tax credits on a $5,000 investment are the maximum that can be claimed in any tax year.

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.

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

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 LSVCC 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.

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’s back office immediately (1-866-261-5686 or goldenopportunities@prometa.ca) if there is an error so that arrangements can be made to have a revised receipt issued.

Yes, first time home buyers that have withdrawn from their RRSP to make their down payment can save on a portion of every dollar repaid to the plan by investing in Golden Opportunities and receiving tax credits on their contribution.

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 Provincial Governments on those Shares that have been held for less than eight years. The amount of tax credits issued will be withheld from the amount payable.

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 additional tax credits on the amount reinvested.

The market value of Shares can be:

• Reinvested upon maturity triggering additional tax credits and restarting the 8 year holding period, up to a maximum of $5,000
• Held as matured units in your account, the additional tax credits will not be generated and the 8 year hold period will not begin again
• Transferred to another RRSP account using a T2033 RRSP transfer form
• Redeemed in cash (if held in a non-RRSP account)

Two receipts are issued. One for your RRSP contribution and one for the tax credits called a T2C.

If your RRSP is a Golden Opportunities Fund RRSP, the RRSP contribution receipt is issued directly from Golden Opportunities Fund in mid-January for contributions made during the remainder of the year, 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 T2C receipt for both the Federal tax credit and the Provincial tax credits will be issued mid-January for remainder of year purchases and periodically throughout the 1st 60 days of the year.

If you purchased the Fund during remaining of year (ROY) last year or within the first 60-days of this year, you are eligible for a Saskatchewan Labour-sponsored Venture Capital Corporation (LSVCC) Tax Credit and Federal Labour-sponsored Venture Capital Corporation (LSVCC) Tax Credit. To claim your tax credits, file the T2C Tax Receipt issued by the Saskatchewan Government that indicates the amount of tax credits that you are eligible to receive on your tax return.

There are three amounts to claim for most Golden Opportunities Fund purchases:

1. Federal Tax Credits are claimed under Federal tax (formerly Schedule 1) within Step 3. Line 41400 of this form is where you will claim the 15% federal portion of the tax credit to a maximum of $750 (15% of $5,000).
2. Provincial Tax Credits are claimed on Form SK 428. Line 75 is where you will claim the 17.5% provincial portion of the tax credits to a maximum of $875 (17.5% of $5,000).
3. If the contribution to Golden Opportunities Fund generated an RSP receipt, this amount can be claimed on Schedule 7 and carried forward to line 20800 on the T1 General Return.

Using Turbo Tax to file your return? Click here to see where to claim your Golden Opportunities Fund contribution.

The tax credits for purchases made during the 1st 60 day period of the year can be claimed for the previous tax year or the current tax year. Purchases made during the remainder of the year can be claimed only for the current tax year.

No, with the exception of the 1st 60 day period, LSVCC tax credits must be used in the year of purchase. There is no carry forward of LSVCC tax credits. If the purchase is made in the 1st 60 days of the year the tax credits may be claimed against income in the previous or current tax year in the same manner as RRSP deductions.