- What products does Terra offer?
- What is a Flow-Through Fund?
- What Flow-Through Fund does Terra offer for 2012?
- Does Terra offer a mutual fund?
- Does Terra only invest in shares of public companies?
- How do I buy Terra Funds?
- When can I purchase these funds?
- Do I need to fill out a Subscription Agreement?
- Do I need to be an accredited, eligible or sophisticated investor to purchase?
- Are the Funds available in all provinces and territories of Canada?
- What is the minimum investment amount?
- What is the minimum investment term and when can I redeem my investment?
- When can I expect my tax deductions and tax credits?
- What kind of return can I expect?
- What is the advantage to donating my shares to a registered charity?
- Do the investments use leverage?
1. What products does Terra offer?
Terra’s investment products for 2012 include a flow-through fund and four corporate class resource mutual funds sold by offering memorandum in all provinces and territories of Canada.
2. What is a Flow-Through Fund?
The Terra 2012 Flow-Through LP and Terra 2012 Foundation Flow-Through LP are limited partnerships that invest in public junior oil & gas or mining companies. These resource companies then “flow-through” exploration and development expenses to the LP which allows investors to claim these expenses as income tax deductions and tax credits and reduce their taxes accordingly. To learn more about flow-through investing, please click here.
3. What Flow-Through Fund does Terra offer for 2012?
For 2012 Terra offers two diversified resource flow-through funds that invest in the “Energy” and “Mining” sectors so investors benefit from diversification in both sectors.
4. Does Terra offer a mutual fund?
Yes. Terra offers four corporate class mutual funds: Terra Small Cap Resource Fund; Terra Resource ETF Fund; TerraTundra Equity Income Fund; and TerraTundra Money Market Fund. The Terra Small Cap Fund's objective is to invest in a select portfolio of junior and intermediate resource firms active in the Energy and Mining sectors. The Terra Resource ETF Fund's objective is a more broad-based resource investment strategy because it invests in resource ETF's listed on major public exchanges. The TerraTundra Equity Income Fund is invested in up to 75 dividend paying stocks listed on the TSX 300 Index and provides an annual distribution. The TerraTundra Money Market Fund is invested in short-term, high quality money market instruments. Investors also have the option to switch between each fund in a tax-efficient manner.
5. Does Terra only invest in shares of public companies?
Yes. Terra will only invest in public companies trading on stock exchanges including the TSX, NYSE and the ASE, for all of its funds
6. How do I buy Terra Funds?
Terra flow-through funds and mutual funds are purchased through your broker or financial advisor via the FundSERV investment fund order system or by direct purchase. For purchases through FundSERV, settlement is T+3.
7. When can I purchase these funds?
The Terra 2012 Flow-Through Funds are now available for purchase. Terra’s mutual funds are also available to qualified investors.
8. Do I need to fill out a Subscription Agreement?
Yes. All investors are required to complete a Subscription Agreement. Trades through FundSERV require a Subscription Agreement and may also require minimal additional paperwork (Note: Please consult your compliance department about your company’s procedure.)
9. Do I need to be an accredited, eligible or sophisticated investor to purchase?
Yes. Terra’s funds are only available to an individual resident of Canada or a Canadian corporation or institution meeting the Eligibility Criteria for Investors.
10. Are the Funds available in all provinces and territories of Canada?
Yes.
11. What is the minimum investment amount?
The minimum investment amount for accredited and eligible investors is $10,000 in all funds, except for the Terra 2012 Foundation Flow-Through LP and Class F shares of a mutual fund, whose minimum investment is $25,000. The minimum investment for a sophisticated investor is $150,000.
12. What is the minimum investment term and when can I redeem my investment?
The investment term for Terra’s 2012 Flow-Through LP is to September 30, 2013, after which investors can choose to redeem or retain their investment in Terra’s resource mutual fund, subject to minimum term and redemption features. The investment term for Terra’s 2012 Foundation Flow-Through LP is to April, 2013.
13. When can I expect my tax deductions and tax credits?
Investors will receive on or about March 31 of each year, a T5013 tax form (or RL-15 form for Quebec investors), which provides the tax deductions and tax credits an investor may claim on his or her current income tax return.
14. What kind of return can I expect?
There are 2 components to the return provided by Terra flow-through funds: (1) substantial tax savings; and (2) investment returns from the portfolio of resource companies in the fund. Terra’s mutual funds provide the opportunity for additional longer term returns.
15. What is the advantage to donating my shares to a registered charity?
By donating the flow-through share investment to a registered charity, an investor can combine the tax benefits of a flow-through share with the preferential charitable deduction available for donations. Please see Charitable Donations.
16. Do the investments use leverage?
No leverage is permitted in either the mutual funds or flow-through limited partnerships.
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