FAQs

 

 

Q: Does Westcourt manage my money directly?

A: No. Westcourt's function is to research and identify investment opportunities with the characteristics sought by our clients, rather than to invest their money on their behalf. When we make an investment recommendation and our clients choose to invest, they invest directly with the entity managing the investment.

 

 

Q: If I subscribe directly to a fund recommended by Westcourt, will I receive better terms?

A: No. In some cases, funds do not deal with the public, only through their registered dealers. In other cases, funds do accept direct investments from the public, but on equal or less favourable terms than would be available were the investment to be submitted through Westcourt. To put it simply, Westcourt's clients always receive terms on their investments that are as good or better than those submitted directly to the fund manager.

 

Q: What advantage is there to me working with Westcourt?

A: In addition to investing in Westcourt-recommended funds on equal or better terms than would be available directly (see question above), Westcourt's clients benefit from our end-to-end due diligence on the investment funds we recommend. This research is ongoing: once a fund is approved, we conduct quarterly updates to ensure that the material aspects of the approved fund remain strong. We make these updates available to all of our clients upon request. The alternative investment universe is large: Westcourt's role is to help you navigate your way through it and support you while you make important investment decisions.

 

 

Q: What is a Qualified Investor?

A: Depending on where you live in Canada, there are different legal requirements regarding your annual income or net worth for you to invest in the products Westcourt recommends. Generally speaking, the rules are as follows:

  1. If you invest $150,000 or more in any individual product, there are no further requirements;
  2. If you live in Ontario and you invest less than $150,000, then you must be an Accredited Investor. This generally means that either you (and your spouse, if applicable) have net investable assets of at least $1,000,000 or that you alone earn at least $200,000 per year, or you and your spouse combined earn more than $300,000 per year.
  3. If you live outside Ontario and you invest less than $150,000, and the investment in question is being sold through an offering memorandum, then you must be an Eligible investor. The definition of “eligible investor” includes a person whose (i) net assets, alone or with a spouse, exceed $400,000; or (ii) net income before taxes in each of the two most recently completed calendar years exceeds $75,000 or, together with a spouse, exceeds $125,000.

 

 

Q: What kind of returns can I expect to receive?

A: “Total returns” are the sum of distributions (such as interest payments or dividends) and capital growth (the value of your holdings increasing over time). At Westcourt, we focus on conservative investments that should provide a total return of between 8%-12%. The range reflects different levels of risk associated with different investments. The least risky investments are generally those fully secured by a diversified pool of residential real estate in Canada. Naturally, they are also the investments with the lowest returns.

 

 

Q: Can my investments provide me with tax-efficient returns?

A: Yes. Westcourt has identified tax-efficient investments that provide returns that are either treated as capital gains or are tax-deferred, rather than being subject to full income tax. Other conservative alternative investments are RRSP, RESP and RRIF eligible. Even after studying offering documents pertaining to a particular investment, however, you should always speak with your accountant to receive advice about your taxes.

 

 

Q: I am more focused on growth than on income. Can I re-invest my returns rather than receive them on a monthly or quarterly basis?

A: Most investments allow for the re-investments of distributions. This allows you to compound the value of your portfolio over time.

 

 

Q: What are the risks involved?

A: All investments carry a certain amount of risk. Although Westcourt attempts to recommend investments to its clients that provide strong risk-adjusted returns, we do not suggest that these investments provide risk-free returns. You should always read offering documents carefully to establish the risks involved with any investment and speak with a lawyer to obtain independent legal advice before investing.

 

 

Q: How easy will it be for me to get my money when I need it?

A: One of the features of private investments is that they are generally less “liquid” than publicly traded securities. While most allow for you to redeem your investment either monthly or quarterly, they also generally apply “redemption fees” penalizing investors who invest for less than 1 or 2 years. This is a very important consideration when considering an investment, and you should ensure to be fully informed about the redemption rules for any investment.

 

 

Q: Does Westcourt have "skin in the game" with the investments they recommend?

A: Yes. Westcourt invests in all recommended product before any of our clients invest, and stay invested for the long-term. This aligns our interests with our investors and provides added incentives for Westcourt to conduct ongoing due diligence post-investment.

 

 

Q: Does Westcourt have exclusivity on any recommended investment product?

A: Not currently. Since Westcourt sees its responsibility to its clients rather than to the issuers of securities, we believe that exclusivity is generally unnecessary. Were Westcourt to identify an attractive investment with limited financial capacity, however, it is possible that we would negotiate an exclusive agreement with the issuer in order to provide our clients with the opportunity before its release to the general public.