Common Questions For Our Fund Managers
Is the Manager of The Investment Partners Fund registered with the Ontario Securities Commission?
Yes. JDM Investment Partners Ltd. is the Manager of the The Investment Partners Fund and we are registered with the Ontario Securities Commission (OSC) as Portfolio Manager, Investment Fund Manager and Exempt Market Dealer. Please visit the following OSC link for more information: http://www.osc.gov.on.ca/en/Investors_check-registration_index.htm.
You’ll find us listed as JDM Investment Partners Ltd.
Where are my assets being held?
JDM Investment Partners Ltd. has designated CIBC Mellon as the custodian of the Fund.
A custodian, is a financial institution responsible for safeguarding a firm’s or individual’s financial assets. CIBC Mellon holds all the assets of The Investment Partners Fund and records all the unitholders of the Fund.
What is the legal structure of the Investment Partners Fund?
The Investment Partners Fund is a pooled fund trust.
How do pooled funds differ from mutual funds?
Pooled funds and mutual funds are very similar in how they operate with a few small differences. A pooled fund is the grouping of investment savings that belong to many individuals who share the same investment goals. The ‘pool of funds’ is typically invested by an investment management firm in a well-diversified portfolio of securities. Each investor or unitholder, owns a share of the fund’s total assets (represented by units). Investment earnings are generated when the securities held in the fund, pay dividends or interest income. In addition, as the values of the securities in the fund rise or fall, each investor’s ‘unit price’ or value will change as well.
Are the financial statements of The Investment Partners Fund audited?
Yes. Financial statements are audited by an independent chartered accountant firm on an annual basis.
What is the minimum I need to invest in the Fund?
The minimum initial investment in the Investment Partners Fund is $150,000. Subsequent investments must be a minimum of $10,000, although smaller amounts may be accepted at the discretion of the Fund Manager. You can purchase or redeem units on the first business day of each month (with 5 business days notice).
Can my wife and I combine our assets and contribute the $150,000 minimum together?
No. Regulations prohibit husbands and wives from combining assets to meet the $150,000 minimum. You can however combine multiple accounts including RRSP, LIRA, and non-registered to reach the minimum.
How many days notice do I need to give to purchase or redeem units in the Fund?
We need a minimum of 5 business days notice prior to the first business day of each month to purchase or redeem units.
If I need to sell my units in the Fund, will you charge me an early redemption fee like most mutual or hedge funds do?
No. You won’t be charged any commissions or early redemption fees when you sell your units in the Fund. You will only be charged a performance fee if it is earned.
What fees will you charge me for investing in the Fund?
Fees charged to unitholders of the Investment Partners Fund will consist of the base management fee of 0.5% per annum (payable as 1/12 of 0.5% per month) and the performance fee of 20% of the investment return payable to the Manager which is based on positive performance of the Fund.
What kind of fees do I have to pay if the Fund has positive performance?
The following fees would be earned: (1) The 0.5% base management fee, (2) If the investment return of the Fund is positive, the performance fee will be 20% of the investment performance applied to the total value of these units at June 30th; plus applicable taxes in effect from time to time.
Is there a highwater mark for the performance fee?
How are fees collected?
The management fee will be paid from the fund directly. Performance fees payable will be paid in units.
How large do you expect the Fund to get and will you close the Fund to new investors at that number?
As 100% of our investable net worth is in this Fund (and our units are exactly the same as our investors), we will be very much attuned to our ability to buy and sell in the quantities required to take meaningful positions in our best ideas. If we ever reach a point where one of our best ideas is unable to fit into the Fund because of the size of our assets under management, we will close the Fund (or if we have to, reduce its size). Great investment ideas are too rare to pass up. Keep in mind that our fee structure is designed to reward successful investment performance and not asset gathering.