FAQs

We have compiled a list of our most frequently asked questions to assist you in making informed investment decisions as well as keep you up-to-date about Canoe Financial and its funds. Please use the menu below to select a fund and you will be redirected.

About Canoe Financial

• Who is Canoe?

  Canoe Financial is an investment management firm focused on building financial wealth for Canadians through investing in Canada. Its ‘GO CANADA!’ investment thesis reflects Canoe’s strategic confidence in Canada as a place to invest. With continued global urbanization, increasing worldwide demand for resources, and Canada’s sound fiscal structure, Canoe believes this country provides long-term growth potential for investors.

  Canoe is one of Canada’s fastest-growing mutual fund companies and currently manages approximately $1.6 billion in assets through its investment products.

  Canoe’s funds include the following:

  Canoe Canadian Money Market Class, formed in 2011
  • Managed by Canoe Financial LP

  Canoe Bond Advantage Fund, formed in 2011
  • Managed by AEGON Capital Management Inc.

  Canoe Bond Advantage Class, formed in 2011
  • Managed by AEGON Capital Management Inc.

  Canoe Enhanced Income Fund, formed in 2011
  • Managed by AEGON Capital Management Inc.

  Canoe Enhanced Income Class, formed in 2011
  • Managed by AEGON Capital Management Inc.

  Canoe Canadian Monthly Income Class, formed in 2011
  • Managed by Haber Trilix Advisors, LP

  Canoe Canadian Asset Allocation Class, formed in 2011
  • Managed by Haber Trilix Advisors, LP

  Canoe Equity Income Class, formed in 2011
  • Managed by AEGON Capital Management Inc.

  Canoe Energy Income Class, formed in 2011
  • Managed by Canoe Financial LP

  Canoe Canadian Equity Class, formed in 2011
  • Managed by Haber Trilix Advisors, LP

  Canoe Canadian Energy Class, formed in 2011
  • Managed by Canoe Financial LP

  Canoe Capital Appreciation Fund, formed in 2011
  • Managed by Haber Trilix Advisors, LP

  EnerVest Natural Resource Fund, formed in 2000
  • Managed by Canoe Financial LP

  EnerVest Diversified Income Trust (TSX: EIT.UN), formed in 1997
  • Managed by Haber Trilix Advisors, LP

  Canoe Income Fund (TSX: CSR.UN), formed in 2011
  • Managed by Haber Trilix Advisors, LP

  Canoe 'GO CANADA' Income Fund (TSX: GCI.UN), formed in 2011
  • Managed by Haber Trilix Advisors, LP

  EnerVest Energy & Oil Sands Total Return Trust (TSX: EOS.UN), formed in 2006
  • Managed by Canoe Financial LP

  Canoe FTS Limited Partnerships
  • Managed by Canoe Financial LP

• What are Closed-end Funds?

  A closed-end fund has a set number of shares that trade on a stock exchange (for example, the Toronto Stock Exchange).  These shares are sold through an initial public offering, and any subsequent share purchases are done in the secondary market through an investment advisor/firm.  The purchase or sale price of a closed-end fund share is the market price, which can be above the net asset value (NAV) (called a premium) or below the NAV (called a discount), depending on the perceived value of the fund’s shares.

• What is the difference between a closed-end fund and open-end fund?

  A closed-end fund has a set number of shares that trade on a stock exchange (for example, the Toronto Stock Exchange). These shares are sold through an initial public offering, and any subsequent share purchases are done in the secondary market through an investment advisor/firm. The purchase or sale price of a closed-end fund share is the market price, which can be above the Net Asset Value (NAV) (called a premium) or below the NAV (called a discount), depending on the perceived value of the fund’s shares.

  An open-end fund continuously offers and redeems shares based on the inflow or outflow of investors.  Shares of an open-end fund do not trade on any exchange.  The purchase or sale price of an open-end fund share is NAV plus or minus any fees that may be applicable.

• How can I subscribe to be on Canoe’s mailing list?

  Please click here to be taken to our subscription form.

• How do I notify Canoe if I have recently moved and need to update my mailing address?

  Investors who hold our Funds through an investment advisor should update their records through their investment firm.  Registered unitholders of EnerVest Diversified Income Trust and Canoe ‘GO CANADA’ Income Fund should call Alliance Trust Company at 403-237-6111.  Registered unitholders of EnerVest Energy & Oil Sands total Return Trust should contact Computershare at 1-800-564-6253.  Unitholders of the EnerVest Natural Resource Fund should contact CIBC Mellon at 1-800-250-3303 to file a change of address.  To make changes to our supplementary mailing list please contact us at info@canoefinancial.com.

• What are the fund codes and symbols for the Canoe Funds?

  • EnerVest Diversified Income Trust – TSX: EIT.UN
  • EnerVest Energy and Oil Sands Total Return Trust – TSX: EOS.UN
  • Canoe ‘GO CANADA’ Income Fund – TSX: GCI.UN
  • Canoe Strategic Resources Fund - TSX: CSR.UN
  • Canoe Mutual Funds - please click here to view fund codes.

• Is there a minimum investment required to purchase any of the Canoe funds?

  The following Canoe funds have a minimum initial and/or subsequent investment:

  • EnerVest Natural Resource Fund Ltd. (GOC 040) has a minimum initial investment of $2,500 and a minimum subsequent investment of $500.
  • Canoe ‘GO CANADA!’ Corporate Class Funds have a minimum initial investment of $2,500, other than for Series T6 shares where the minimum initial investment is $5,000, and a minimum subsequent investment of $50.  If purchases are made through a pre-authorized chequing investment plan, the minimum initial purchase is $1,000 and the minimum subsequent purchase is $50.

   

• Can I hold Canoe Funds in a registered account?

  The following Canoe Funds are eligible to be held in the following registered accounts:

  EnerVest Diversified Income Trust and EnerVest Energy and Oil Sands Total Return Trust

  • Registered Retirement Savings Plans (RRSP)
  • Registered Retirement Income Funds (RRIF)
  • Registered Education Savings Plans (RESP)
  • Tax Free Savings Accounts (TFSA)
  • Deferred Profit Sharing Plans (DPSP)

  In addition to the above registered accounts, EnerVest Natural Resource Fund Ltd. and Canoe ‘GO CANADA’ Income Fund are also eligible to be held in Registered Disability Savings Plans (RDSP).

  EnerVest FTS Limited Partnerships are not eligible for registered accounts.

• Do any of the Canoe funds have an annual redemption feature?

  Yes.  The EnerVest Diversified Income Trust has an annual capped redemption feature whereby unitholders may redeem up to 10% of the aggregate outstanding units of the fund at 95% of the average net asset value, based on the three trading days prior to the redemption date, less direct costs.  For more specific details, please click here.  EnerVest Energy & Oil Sands Total Return Trust has an annual full redemption feature which allows unitholders to redeem units of the fund at 100% of the average net asset value, based on the three trading days prior to the redemption date, less direct costs.  For more specific details, please click here.  Units of the EnerVest Natural Resource Fund may be redeemed daily at a redemption price of that day’s net asset value per share, provided that the redemption request is received on a valuation day prior to the valuation time.  Otherwise, the redemption price will be the net asset value per share on the next valuation day.

• What tax forms should I expect to receive from Canoe?

  Please view the following pdf for tax form information.  If you are still waiting for your tax slip after reasonable mailing time has passed, please request a duplicate tax slip by calling the contact as listed.

EnerVest Natural Resource Fund

• What are the Fund’s objectives?

  The investment objective of EnerVest Natural Resource Fund Ltd. (ENRF) is to provide superior capital appreciation by investing primarily in equity securities of Canadian companies which are engaged in the exploration, development or production of natural resources or companies which support those industries or activities.

• How can I find out my Adjusted Cost Base?

  Please contact CIBC Mellon at 1-800-250-3303 for all matters relating specifically to your account.

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

  ENRF is ideal for investors who maintain a long-term focus and want to get diversified exposure to junior companies in the Canadian natural resource industry, particularly those in the oil & gas sector.

• What is the termination date for the EnerVest Natural Resource Fund?

  ENRF does not have a fixed termination date.

• When are you sending my tax forms, and which one are you sending?

  You will receive a T5 from CIBC Mellon Global Securities Services Company (CIBC Mellon) only if there was a distribution made in that tax year.  For further information please contact your investment advisor or CIBC Mellon at 1-800-250-3303.

• How do I purchase shares of ENRF and what kinds of costs are associated?

  ENRF shares are available for purchase through registered dealers.  A sales charge is payable at the time of purchase.  Applications to purchase shares must be made in writing and dealers are required to transmit applications received before the close of normal business hours to us on the date that they are received. 

  The price of the shares purchased is equal to the net asset value per share on the day following the day on which an application to purchase has been received, unless the application is received prior to the valuation time, in which case the price per share will be calculated at the net asset value per share on that day.

• 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 ENRF.  As of December 31, 2010, the MER for ENRF is 2.95%.

• Who is the Portfolio Manager for this fund?

  Canoe Financial L.P. (“Canoe”) is the portfolio manager for ENRF.  Canoe is a registered Portfolio Manager. The portfolio management team is led by Mr. Rafi Tahmazian, who has more than 22 years of investment management experience.  For more information on Canoe and the investment team please click here.

EnerVest Diversified Income Trust

• What are the Fund’s objectives?

  EIT’s investment objectives are to maximize distributions and Net Asset Value while managing risk for Unitholders through an actively managed, high yielding diversified portfolio of income-generating and capital-growth oriented securities.

• Who is the Portfolio Manager for this fund?

  Effective November 15, 2010, Bob Haber of Haber Trilix Advisors, LP assumed the portfolio management responsibilities for EIT.UN.  For more information on Mr. Haber please click here.

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

  EIT.UN trades on the Toronto Stock Exchange as a common stock under the symbol EIT.UN, and has a market price.  To purchase units of EIT, 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 EIT.UN, and interest on the credit facility.

  MER (June 30, 2011):
  1.45% excluding issue costs and interest
  1.68% including issue costs and interest

• What is the termination date for the EnerVest Diversified Income Trust?

  EIT has a dissolution date of December 31, 2050, subject to any extension approved by the Unitholders or earlier termination as described in the Annual Information Form.

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

  Pursuant to the Declaration of Trust, EIT.UN is able to borrow up to 20% 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 distribution is designed to be funded primarily by portfolio income and topped off with realized capital gains.  Although the Declaration of Trust requires that the Fund pay out 100% of income earned and 100% of realized capital gains, these levels are anticipated in advance and the distribution is set appropriately to provide a smooth monthly payout.  The distribution level is reviewed on a regular basis and a number of key factors are considered when making the monthly distribution decision.  The primary objective is to maintain a stable monthly distribution for Unitholders, while ensuring asset value is maximized, risk is minimized and the Fund is sustainable for the long term.

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

  The EnerVest Diversified Income Trust has a voluntary annual capped redemption feature whereby unitholders may redeem up to 10% of the aggregate outstanding units of the fund at 95% of the average net asset value, based on the three trading days prior to the redemption date, less direct costs.

  For further information regarding EIT.UN’s redemption Privilege, please click here or go to the Annual Information Form.

• What is the ex-Distribution Date?

  The ex-distribution date refers to the day on or after which new units purchased will not receive that month’s distribution.  As the record date for each distribution is the last trading day of each month, the ex-distribution date is two days prior to the record date.  This is in line with trade settlement rules, which require trade plus three days to become an actual unitholder.  Investors are encouraged to consult with their investment advisor for a full understanding of trade settlements.

• 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, Canoe 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?

  Canoe 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.

• 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 a bilateral tax treaty.  Investment advisors are responsible for assessing the withholding tax requirements on distributions from the funds based upon the residency of the recipient.

• What is EIT’s Value Enhancement Plan (VEP)?

  The VEP is a series of strategic and operating initiatives for EIT designed to increase long-term, sustainable value for the benefit of all EIT unitholders.

  The initiatives are:

  • The addition of the voluntary annual capped redemption feature to provide additional flexibility to unitholders by offering an alternative method of disposing of units in addition to selling them on the TSX.
  • The ability for EIT to split or consolidate units, which occurred in April 2009 on a three for one basis, to allow the Manager flexibility to ensure that the trading price per unit of EIT is optimal in the market for unitholders to make purchases.
  • To amend investment management restrictions, to provide additional flexibility for EIT to meet its overall investment objectives by allowing it to invest in a broader range of investments and utilize other investment opportunities.

  The VEP was announced in February 2009 and a Special Meeting was held whereat Unitholders overwhelmingly voted in favour of all resolutions.

• What is the Distribution Reinvestment Plan (DRIP) and Optional Cash Purchase Program (OCPP)?

  Unitholders of the EnerVest Diversified Income Trust may elect to have their monthly cash distributions automatically reinvested into new units of the Fund by participating in the Distribution Reinvestment Plan (DRIP).  Participants are also eligible to make additional purchases of up to $1,000 per month under the Optional Cash Purchase Program (OCPP).  Participants do not pay any costs associated with these features.  Both the DRIP and OCPP allow unitholders to dollar cost average their investment in the Fund which should improve their total return.

  Highlights of the Plans

  • No brokerage fees or commissions;
  • Monthly purchases allow for dollar cost averaging of your investment;
  • Ease and benefits of automatic reinvestment compounding;
  • Unitholders will receive statements for their account each quarter.

  Units of the Fund purchased pursuant to the DRIP or OCPP may be purchased from the TSX or from treasury. Units purchased from treasury will be at a price equal to the lesser of the weighted average price and the net asset value on the relevant distribution date, and will be credited to the participant’s account.  Registered unitholders, those who hold a physical unit certificate in their name, should contact Alliance Trust Company at 403-237-6111 to participate.  Any non-registered unitholder wishing to participate in the DRIP or OCPP should contact their investment advisor.

• 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.

EnerVest Energy & Oil Sands Total Return Trust

• 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.

• 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.

• 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 (June 30, 2011):
  3.15% excluding issue costs and interest
  3.15% 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.

• 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.

• 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.

• 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.