Labour-Sponsored Investment Funds

Like mutual funds, labour-sponsored funds pool money from thousands of investors and employ professional investment managers to invest in a variety of individual securities. What makes them different is that they only invest in small- to medium-sized companies, often start-up businesses.

Labour-sponsored investment funds are not for every investor. A Quadrus investment representative can help you determine if they’re right for you.

Features and benefits

• Generous tax credits and/or registered retirement savings plan (RRSP) receipts to reduce tax liabilities:

• Federal and some provincial governments offer tax credits (details vary by province)
• Please note: Tax credits are provided to those who remain invested over the long term. You must hold labour-sponsored investment funds for at least eight years to be eligible

• Attractive to Canadians in higher tax brackets, with a higher risk tolerance
• Opportunity to invest in Canada’s up-and-coming companies
• RRSP-eligible

Income tax savings are only one aspect of labour-sponsored investment funds. The merits of the funds as a whole should be considered before investing. Past performance may be no indication of future returns. Unit value and investment returns will fluctuate. Important information about the funds are contained in the funds' prospectus, which may be obtained from your investment representative.