FAQs

As at August 18, 2017

SaskWorks Diversified (Class A - Series A) $18.2626 SaskWorks Resources (Class R - Series A) $11.1778

SaskWorks Diversified (Class A - Series F) $18.9777 SaskWorks Resources (Class R - Series F) $11.5138

  1. What is a Labour-Sponsored Investment Fund?
  2. What is SaskWorks Venture Fund?
  3. Why should SaskWorks be a part of my investment portfolio?
  4. What is the difference between SaskWorks’ Diversified Share Class (Class A) and SaskWorks’ Resources Share Class (Class A-R)?
  5. What are the tax advantages to investing in SaskWorks?
  6. When can I claim my tax credits?
  7. What receipts will I receive for tax purposes?
  8. How do I claim my tax credit on my tax return?
  9. What is the mandatory holding period for investments in SaskWorks? What happens after it has elapsed?
  10. Can I redeem some or all of my investment prior to its maturity?
  11. How can I purchase shares in SaskWorks?
  12. What is SaskWorks Payroll Investment Plan?
  13. Who manages SaskWorks?

What is a Labour-Sponsored Investment Fund?
Labour-Sponsored Investment Funds, commonly referred to as “LSIFS,” are specialized venture funds designed to stimulate investment in small- and medium-sized private businesses. In Saskatchewan, LSIF-specific legislation allows investors in Labour-Sponsored Investment Funds to receive a 20% provincial tax credit and a 15% federal* tax credit on their investment. If the investment is held within a registered investment vehicle, the shareholder will also receive a RRSP tax deferral commensurate with their marginal tax bracket.


What is the SaskWorks Venture Fund?
The SaskWorks Venture Fund is a Saskatchewan-based LSIF. Since the Fund’s inception in 2001, SaskWorks has provided a unique opportunity for Saskatchewan residents to keep their investment dollars at home. The Fund invests exclusively in private Saskatchewan businesses, helping to grow our local economy and creating jobs in our province.

The SaskWorks Venture Fund is divided into two share classes: Diversified (Class A) and Resources (Class R). Shareholders may choose to place 100% of their investment dollars into one of the share classes or divide their investment between the two by any percentage they choose.


Why should SaskWorks be a part of my investment portfolio?
Since the Fund’s inception in 2001, SaskWorks has provided a unique opportunity for Saskatchewan residents to keep their investment dollars at home. There are three main benefits to investing in SaskWorks:

  1. Access to substantial tax savings: investors receive a 35% tax credit on investments up to $5,000, plus an RSP tax deferral if the investment is held in a registered account;
  2. Portfolio-approach to investing in a dynamic mix of private, Saskatchewan-based companies; and,
  3. Ability to place your investment in one or both share classes: Diversified (Class A) and Resources (Class R).

What is the difference between SaskWorks’ Diversified Share Class (Class A) and SaskWorks’ Resources Share Class (Class R)?
SaskWorks’ Diversified share class invests in carefully selected Saskatchewan-based companies that demonstrate geographic and sectoral diversity. The Diversified share class invests primarily in the oil and gas, manufacturing, and value-added agriculture industries. To view SaskWorks’ Diversified portfolio, click here.

SaskWorks Resources Share Class, introduced in 2004, provides shareholders with access to Saskatchewan’s oil and gas, mining, and alternative energy sectors. To view SaskWorks’ Resources portfolio, click here.


What are the tax advantages to investing in SaskWorks?
Saskatchewan’s income tax legislation was amended in 1990 to allow for the establishment of a Labour-Sponsored Venture Capital Program. Under this initiative, investors in Saskatchewan-based labour-sponsored investment funds are eligible to receive a 20% provincial tax credit and a 15% federal tax credit* on their investment of up to $5,000 annually. If the investment is held within a registered investment vehicle such as an RRSP, the investor will also receive an RSP deferral based on their marginal tax bracket.


When can I claim my tax credits?
The tax credits associated with purchases made during March and December must be claimed for the year in which the purchase was made. The tax credits associated with purchases made during the 1st 60 days of the year (January 1st – March 1st) may be claimed for the previous or current tax year.

LSIF tax credits may not be carried forward.


What receipts will I receive for tax purposes?
You will receive two tax receipts: an RRSP receipt and a Government-issued T2C receipt. The T2C receipt is required in order to correctly claim your tax credit on both your Provincial and Federal tax returns.

Receipts are issued in mid-January for investments made between March and December of the previous year and periodically throughout January and February for RRSP season purchases.


How do I claim my tax credit on my tax return?
To claim your tax credit, fill out your tax forms as follows:

Federal Tax Schedule 1
Labour Sponsored Tax Credit
Line 413 – Total Bought; Fill in your total investment in SaskWorks
Line 414 – Allowable Credit; Fill in the 15% Federal Tax Credit ONLY*

Provincial Tax SK428
Line 60 – Labour Sponsored Tax Credit; Fill in the 20% Provincial Tax Credit ONLY
Line 61 – Investments and Venture Capital; do not fill in


What is the mandatory holding period for investments in SaskWorks? What happens after it has elapsed?
Under the Labour-Sponsored Venture Capital Corporations act, a shareholder must hold their SaskWorks shares for 8 years.

After the legislated 8-year LSIF hold period has elapsed, an investor may redeem their shares in the SaskWorks Venture Fund without penalty. Should a shareholder redeem their shares before the 8-year hold period is over, they will incur a deferred sales charge (DSC) in addition to having to pay back the tax credits that they received for their investment. Please note: any tax clawbacks are waived in the event of a shareholder’s death.

Mature shares will remain invested in the Fund until the shareholder chooses to redeem them. Shareholders may also “roll” their mature investment back into the Fund; upon doing so, the shareholder will receive a second tax credit on their original investment.


Can I redeem some or all of my investment prior to its maturity?
Yes, you may redeem your investment at any time. If you redeem all or part of your investment prior to the expiry of the 8-year holding period, the tax credits received on the redeemed shares must be repaid to the Provincial and Federal governments. The amount of tax credits issued (35%) will be withheld from the amount payable.*

In addition, selling your shares may trigger a redemption fee depending on the length of time that the shares have been held. If you redeem in the first year of holding your investment, you will incur an 8% early redemption fee. This fee is reduced by 1% per year until the investment’s maturity.

The early redemption fee is based on the market value of the shares at the time of redemption and does not apply to shares redeemed by an estate.


How can I purchase shares in SaskWorks?
SaskWorks Venture Fund can be added to your portfolio via a specially-licensed investment advisor. If you do not currently work with an advisor, please contact the Fund at (306) 791-4813 or saskworks@saskworks.ca.

You may invest in SaskWorks in one of the following 3 ways:

  1. Lump Sum: annual or semi-annual contribution;
  2. Payroll Plan: deducted off your paycheques (requires employer approval); or,
  3. Pre-Authorized Debit: regular withdrawal from your chequing account.

What is SaskWorks’ Payroll Investment Plan?
SaskWorks Payroll Investment Plan (PIP) is a systematic contribution strategy that allows shareholders to invest in the SaskWorks Venture Fund with a lower initial cost outlay. Participants in the plan have a pre-determined amount deducted from their paycheque each pay period and redirected to their SaskWorks investment. Since the 30% combined tax credit and the RRSP tax deferral are received at source – that is, deducted from the income tax paid each pay period – participants pay less tax while investing in Saskatchewan’s top-performing labour-sponsored investment fund.


Who manages SaskWorks?
SaskWorks is managed by PFM Capital Inc., a Regina-based private equity investment management firm. Celebrating its 25th birthday in 2015, PFM manages over $600 million in assets. Learn more about PFM Capital at www.pfm.ca.

 *15 federal tax credit pending legislative approval.
READ OUR PROSPECTUS > This offering is made only by prospectus. The prospectus contains important detailed information about the securities being offered. Copies of the prospectus may be obtained free of charge from your Investment Advisor or the agent, Industrial Alliance Securities Inc. (www.iavm.ca). Investors should read the prospectus and consult an Investment Advisor before making an investment decision.

Welcome

Please choose one of the following options to enter the site.

Search FAQs Advisor FAQs Legal Contact Facebook Logout

READ OUR PROSPECTUS > This offering is made only by prospectus. The prospectus contains important detailed information about the securities being offered. Copies of the prospectus may be obtained free of charge from your Investment Advisor or the agent, Industrial Alliance Securities Inc. (www.iavm.ca). Investors should read the prospectus and consult an Investment Advisor before making an investment decision.