Janea Bellay

Labour Sponsored Investment Funds are a type of mutual fund sponsored by a labour organization to invest in small businesses to create jobs.

There are 2 Labour Sponsored Investment Funds available to Saskatchewan residents only:

1. SaskWorks Venture Fund
2. Golden Opportunities Funds

Why Should You Invest in a Saskatchewan Labour Sponsored Investment Fund?

1. Substantial Tax Savings – These funds are RRSP eligible and therefore qualifies for a tax deduction. In addition you will receive a 15% Federal tax credit to a maximum investment of $5,000 as well as a 20% Provincial tax credit to a maximum contribution of $5,000 annually. The 35% in tax credits combined with the RRSP tax deduction provides for substantial tax savings for investors, reducing their net cash outlay and risk in an investment in this fund.
2. Keeping Your Funds at Work in Saskatchewan - An investment in these funds ensures that your hard earned money is reinvested in Saskatchewan, thereby staying at work for you, your family and friends, and creating growth for Saskatchewan companies and new job opportunities.
3. Diversified Portfolio - Each of the funds investment philosophy is to invest in high growth sectors within a diversified portfolio across numerous industry sectors. A review of the portfolio of companies will show a wide range of investments, from agriculture, oil and gas, biotechnology, renewable energy, value added processing and technology.
4. Saskatchewan Jobs – Your money is working right here in Saskatchewan by providing capital for companies to implement their business plans. This investment activity is creating quality jobs and providing young people with opportunity, optimism and a bright future. Your investment is making Saskatchewan a great place to live and work.
5. Saskatchewan’s Best Companies - When you invest you’re actually investing in each of the local companies in the Fund`s portfolio. It gives investors like you an opportunity to invest in private, local companies. Chances are, you or someone you know works for one of these companies to support their family. When these companies prosper, so do you, and so does Saskatchewan. It’s a winning formula!

Investment Strategies

• Switch and Save! - Transfer existing RRSP investments to Golden Opportunities Fund to qualify for the 35% tax credits. Without investing any new money you can save up to $1,750 in taxes.
• Develop a Regular Investment Plan! -Investing is made easy through monthly or biweekly pre-authorized contributions. Your contributions can be debited directly from your paycheque.
• Increase Your Take Home Pay Today! -When you invest in a Labour Sponsored Investment Fund you can have the amount of tax withheld from your paycheque reduced.
• Rollovers – Earn Two 35% Tax Credits for the Price of One if you decide to rollover your investment in the 9th year. The mandatory eight year hold period associated with LSIF investments presents a unique investment opportunity to “rollover” units once the hold period has expired. For example, a shareholder that invested in a Provincial LSIF in 2000 became eligible to “roll” $5,000 of those shares in January 2008, generating $1,750 in tax credits with no new money invested.
• Rollover Effect – Invest in a LSIF each year for eight consecutive years. In the ninth year the first investment will become eligible for “rollover”, meaning that the eight year hold period has expired on those funds. If they are rolled over, the funds are deemed a new purchase and you will receive a 35% tax credit with no new money invested! This will continue in perpetuity once the first 8 years are invested.
• Invest in a Non-Registered Account - Your investment into Golden Opportunities Fund does not have to be in an RRSP. If you invest in a non-registered account you will receive the 35% tax credit on your investment. Up to $1,750 in tax credits on investments up to $5,000.
• Repay Withdrawals Under the Home Buyer’s Plan with 65¢ Dollars! -You have up to 15 years to reimburse your RRSP for money borrowed to buy a home and you may purchase LSIF shares when you repay your RRSP account. This investment is eligible for the 35% tax credits – effectively you would be repaying your RRSP with 65¢ dollars. And – these shares can be redeemed to make a down payment on a new home.

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SaskWorks Venture Fund Inc.  and Golden Opportunities Fund are registered labour-sponsored investment funds. The offering is made by prospectus, in Saskatchewan only, for provincial residents. An investment in the Fund is subject to substantial risk; share values and returns will fluctuate. Redemptions are dependent on net income and retained earnings, and may be restricted in certain circumstances. If redeemed prior to the eighth anniversary of purchase, you may be subject to an early redemption fee, and to repayment of tax credits. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated. Obtain a copy of the prospectus from your investment advisor or the agent, Union Securities, and read carefully before investing.