FAQs

General

• What are the Fund’s objectives?

  EOS’ investment objectives are to maximize total return through capital appreciation in the portfolio by investing in oil sands related issuers and oil and gas issuers, and to provide unitholders with income from monthly cash distributions.

• Who is the Portfolio Manager for this fund?

  Canoe Financial L.P. (“Canoe”) is the portfolio manager for EOS.  Canoe is a registered Portfolio Manager. The portfolio management team is led by Mr. Rafi Tahmazian, who has more than 20 years of investment management experience.  For more information on Canoe and the investment team please click here.

• What type of investor is best suited for this Fund?

  EOS is suited for investors who want an actively managed portfolio of oil sands-related entities and oil & gas royalty trusts. EOS has the potential for capital appreciation while delivering a consistent tax-advantaged monthly distribution.

• What is the termination date for EOS?

  EOS does not have a fixed termination date, but may be terminated at any time upon not less than 90 days written notice with the prior approval of the holders of at least 66 ⅔% of the units of EOS present in person or by proxy at a duly convened meeting of Unitholders.  For full details please refer to the Annual Information Form

• How do I purchase units of EOS and what kinds of costs are associated?

  EOS trades on the Toronto Stock Exchange. To purchase units of EOS, you require an account with an investment advisory firm.  Commissions are paid to your investment advisor and/or brokerage firm when you purchase or sell any units.

• What is the Management Expense Ratio?

  The Management Expense Ratio (MER) consists of management fees, the general and administrative expenses relating to the operation of EOS, and interest on the credit facility. 

  MER (December 31, 2011):
  2.98% excluding issue costs and interest
  2.98% including issue costs and interest

• Is the Fund able to use leverage? If so, how much?

  Pursuant to the Declaration of Trust, EOS is able to borrow up to 25% of the value of the total assets of the fund after giving effect to the borrowing. 

• How does the Fund determine and support the distribution?

  The Declaration of Trust requires EOS to pay 100% of its net income and 100% of its net realized capital gains.  If income and capital gains are insufficient to maintain the monthly distribution, a return of capital may result.

Tax

• I am a non-resident of Canada – how much withholding tax will be deducted?

  Canadian domestic law requires 25% tax to be withheld on payments made to non-residents. In certain circumstances this 25% withholding rate may be reduced by Canada’s bilateral tax treaties for certain kinds of payments to residents of those countries with bilateral tax treaties.  Investment advisors are responsible for assessing the withholding tax requirements on distributions from the funds based upon the residency of the recipient.

• Do you provide an estimate on my tax breakdown, including return of capital?

  As we need to wait until all of the relevant tax data is received from the portfolio companies and a tax analysis is performed, EOS is unable to provide an estimate prior to releasing the full information. Canoe issues a news release in early March containing the full tax breakdown of distributions for that year.  To view historical tax information, please click here.

• What is my adjusted cost base for tax purposes?

  EnerVest is not able to calculate this information for investors.  Please consult with your investment advisor or go to ACB Tracking, a fee based service provider that can help.

DRIP

• What is the Distribution Reinvestment Plan?

  Unitholders of EnerVest Energy and Oil Sands Total Return Trust (EOS) may elect to have their monthly cash distributions automatically reinvested into new units of EOS by participating in the Distribution Reinvestment Plan (the “Plan”).  Investors do not incur any costs to participate in the Plan (including investment advisor fees or commissions), and the Plan allows for dollar cost averaging.

  EOS units purchased pursuant to the Plan may be purchased from the TSX or from treasury. Purchases of units will be made in the market during the 5 business days following the Distribution Date, on any business day when the market price is less than the NAV per unit on that Distribution Date.  If, during this 5 day period, there are proceeds remaining from the distributions paid, the Plan Agent will purchase units on behalf of the plan participants directly from the Trust at NAV on the Distribution Date.  If the circumstance arises where the trading price exceeds the NAV per unit, the Plan Agent will purchase units from the Trust in accordance with the Declaration of Trust.  As the Trust has historically traded at a discount, this situation is less likely to occur.

  For registered unitholders, there is no minimum investment to participate.  If the units are held in nominee, meaning the units are held at an investment firm on the investor’s behalf, investment advisors may have a minimum before they will administer the DRIP.

• When will I see new units in my account from the DRIP distribution?

  If you hold your units in your brokerage account, please consult with your investment advisor for full details on when your account should reflect these new units.  It is expected, however, that DRIP units should be credited to your account usually about the 15th day of the month.

Redemption

• What is the redemption feature and how does it work?

  Unitholders may submit units for redemption by contacting their investment advisor or investment firm.  The redemption period begins September 15 and ends at 3:00 p.m. Calgary time on the 10th business day following September 15 each year.  The redemption date is the last business day in October, and proceeds are paid on or before November 15th of the year of redemption.  The redemption price is equal to 100% of the average net asset value, calculated on the three trading days preceding the redemption date, less direct costs – which are costs incurred that directly relate to funding and administering the redemption.  Units tendered and accepted for redemption will remain eligible for the distribution up until the redemption date.

  Important notes:

  • EOS’ annual redemption feature will commence every year on September 15, subject to EOS’ right to suspend the redemption in certain circumstances.

  • The redemption feature is strictly voluntary.  Unitholders who do not participate are not charged any fees.

  • Submitting units for redemption is irrevocable.  More information regarding EOS’ redemption feature can be found in the Annual Information Form.