Fund Performance

Net Asset Value (As of August 31, 2017) $132,821,699
Outstanding Class A Shares (As of August 31, 2017) 15,886,681
NAV Per Class A Share (As of August 31, 2017) $8.36
Distribution Per Class A Share (August 31, 2017) $0.0147

Performance History

Record Date Distribution Per Class A Share NAV Per Class A Share
2017
August 31, 2017 $0.0147 $8.36
July 31, 2017 $0.0148 $8.34
June 30, 2017 $0.0143 $8.34
May 31, 2017 $0.0140 $8.34
April 30, 2017 $0.0155 $8.34
March 31, 2017 $0.0103 $8.34
February 28, 2017 $0.0139 $8.34
January 31, 2017 $0.0153 $8.34
2016
December 31, 2016 $0.0112 $8.34
November 30, 2016 $0.0083 $8.34
October 31, 2016 $0.0084 $8.34
September 30 ,2016 $0.0080 $8.34
August 31, 2016 $0.0088 $8.34
July 31, 2016 $0.0080 $8.34
June 30, 2016 $0.0083 $8.34
May 31, 2016 $0.0080 $8.34
April 30, 2016 $0.0106 $8.34
March 31, 2016 $0.0085 $8.34
February 29, 2016 $0.0084 $8.34
January 31, 2016 $0.0083 $8.34
2015
December 31, 2015 $0.0104 $8.34
November 30, 2015 $0.0083 $9.31
October 31, 2015 $0.0098 $9.31
September 30, 2015 $0.0082 $9.31
August 31, 2015 $0.0092 $9.31
July 31, 2015 $0.0077 $9.31
June 30, 2015 $0.0056 $9.31
May 31, 2015 $0.0104 $9.31
April 30, 2015 $0.0102 $9.31
March 31, 2015 $0.0096 $9.31
February 28, 2015 $0.0089 $9.31
January 31, 2015 $0.0104 $9.31
2014
December 31, 2014 $0.0141 $9.31
November 30, 2014 $0.0068 $9.60
October 31, 2014 $0.0087 $9.60
September 30, 2014 $0.0106 $9.60
August 31, 2014 $0.0127 $9.60
July 31, 2014 $0.0129 $9.60
June 30, 2014 $0.0112 $9.60
May 31, 2014 $0.0112 $9.60
April 30, 2014 $0.0122 $9.60
March 31, 2014 $0.0142 $9.60
February 28, 2014 $0.0160 $9.60
January 31, 2014 $0.0212 $9.60
2013
December 30, 2013 $0.0209 $9.60
November 30, 2013 $0.0208 $9.90
October 31, 2013 $0.0224 $9.90
September 30, 2013 $0.0187 $9.90
August 31, 2013 $0.0284 $9.90
July 31, 2013 $0.0352 $9.90
June 30, 2013 $0.0351 $9.90
May 31, 2013 $0.0365 $9.90
April 30, 2013 $0.0364 $9.90
March 28, 2013 $0.0367 $9.90
February 28, 2013 $0.0323 $9.90
January 31, 2013 $0.0366 $9.90

There is no assurance that historical performance will be representative of future performance.

Performance and NAV information provided is unaudited, and net of all fees and expenses.

Fund distributes on a monthly basis.

Net Asset Value (“NAV”)

The NAV of the CareVest® Mortgage Investment Corporation, (“MIC”), at any time is the aggregate value of all assets of the MIC less the value of all liabilities of the MIC at such time (including any accrual of any performance fee) and less, for the purpose only of calculating the NAV, the stated capital of any shares to the extent that such stated capitals are included in the value of liabilities of the MIC.

NAV per Share

The NAV for each class of the MIC preferred shares is calculated by Carecana™ Management Corp. each valuation date by allocating to each such class its proportionate share of the net assets of the MIC, its proportionate share of common expenses and its specific share class expenses.

The NAV per Class A Share at any time will be the quotient obtained by dividing the Class NAV of the Class A Shares by the total number of Class A Shares (immediately before any retractions and subscriptions) at the close of business on the relevant valuation date.

News

Financial Statements

Q&A

1. What is a mortgage investment corporation (“MIC”)?

A mortgage investment corporation (“MIC”) is a corporation that invests primarily in a portfolio of mortgages. A MIC does not pay corporate income tax on any of its income that it pays out to its shareholders as dividends and in this way it acts as a tax flow-through entity. The MIC’s income primarily consists of interest or distributions generated from its investments. Because it is a “flow through” entity, the dividends paid by the MIC to shareholders are generally taxed as interest in the hands of shareholders. CareVest® MIC currently pays out all of its net income as dividends to shareholders.

A MIC allows an individual to invest in a portfolio of mortgage investments under professional management on a scale and with diversification not generally available to individual investors. The investor in a MIC earns a rate of return based on the net interest earned from the mortgage portfolio. The portfolio of mortgage investments is secured by real estate.

2. Who is the CareVest® group of companies?

The CareVest® group of companies (CareVest®) are private sector companies working in the Canadian real estate commercial mortgage investment industry. CareVest has originated, underwritten and serviced over $5 billion in mortgage investments on behalf of numerous investor clients and financial institutions since 1994. CareVest is well known in the non-bank real estate lending industry in Western Canada and sources potential transactions through both a related and external network of licensed mortgage brokers and through repeat borrowers. CareVest maintains offices in Alberta and British Columbia.

Some members of the CareVest group of companies that have relationships with CareVest® MIC include:

  • Carecana™ Management Corp. (CMC) – CMC is registered in Alberta as an investment fund manager and restricted portfolio manager and acts in these capacities for CareVest MIC.
  • CareVest® Capital Inc. (CCI) - CCI is licensed in Alberta and British Columbia as a mortgage broker and in Ontario as a mortgage administrator. CCI has been exclusively engaged by the MICs to originate, structure, advance and administer mortgage investments for acquisition by the MICs
  • CVC™ Market Point Inc. (CVC) – CVC is registered as an exempt market dealer in Alberta and British Columbia.
  • Carecana Settlement Corp. (Carecana Settlement) - Carecana Settlement acts as the custodian of CareVest MIC’s funds.

3. What is the investment objective of CareVest® MIC?

The principal investment objective of CareVest® MIC is to acquire and maintain a diversified portfolio of mortgages that preserves capital and generates returns in order to permit CareVest MIC to pay distributions to its shareholders.

4. What are the investment policies, practices and restrictions of CareVest® MIC?

CareVest® MIC will invest directly or indirectly in commercial, industrial and residential mortgages in Canada in accordance with a set of investment policies, practices and restrictions set by the directors of CareVest® MIC.

To the extent that, from time to time, CareVest MIC’s portfolio is not invested in mortgages, idle cash will be deposited with a Canadian chartered bank or such funds may be invested in short term investments, deposits, savings accounts or government guaranteed income certificates or treasury bills.

CareVest MIC will not invest in a mortgage or loan any funds to be secured by a mortgage unless at the date the mortgage is acquired or funds are initially committed (as the case may be) the indebtedness secured by such mortgage plus the amount of additional secured third party indebtedness of the borrower registered in priority to CareVest MIC, if any, does not exceed 75% of the appraised value of the real property securing the mortgage, as determined by the manager or such persons authorized by the manager from time to time; provided that the appraised value may be based on stated conditions including, without limitation, construction, “as complete” or other conditions or assumptions.

CareVest MIC and its portfolio are professionally managed by Carecana™ Management Corp., a registered investment fund manager and restricted portfolio manager that is a related company to CareVest MIC.

5. What market does CareVest® MIC invest in?

The mortgage markets in which CareVest® MIC invests are the mid-tier market segments of the Canadian lending industry.

The mid-tier mortgage market segments differ from tier-one segments. Differences may include less borrower equity, lower presales/pre-leasing, and size of loans. The mid-tier mortgage market is generally only serviced by the large financial institutions in Canada given their geographical preference to trade in the large urban centres of Canada. As a result of this focus, a number of niches exist in the mortgage investment market to underwrite well-structured, secure mortgage loans with attractive pricing. These markets present a significant opportunity for short term, customized loans to experienced borrowers who often require faster execution and more flexible terms.

6. Does CareVest® MIC have general security agreements and personal guarantees from its borrowers?

CareVest® MIC has exclusively appointed CareVest® Capital Inc. (“CCI”), an affiliate of CareVest MIC, under a Mortgage Brokerage Agreement to use its reasonable efforts to originate, structure, advance and administer mortgage investments opportunities for CareVest MIC that meet its investment policies. In addition to mortgage security, most loans sourced are also secured with general security agreements and personal guarantees from the borrowers.

7. Does the MIC use leverage?

CareVest® MIC does not currently have any long term debt, but has access to a $5 million operating facility from a related financial corporation.

CareVest MIC may utilize leverage from time to time in the future through a credit facility arranged with a commercial bank or other source. CareVest MIC expects that the terms, conditions, interest rate, fees and expenses of and under any future credit facility will be typical of credit facilities of this nature and that the lender will require CareVest MIC to provide a security interest in favour of the lender in the assets of CareVest MIC to secure such borrowings. CareVest MIC will not borrow amounts greater than 30% of its total assets.

8. What are the risks associated with an investment in CareVest® MIC?

An investment in CareVest® MIC is risky. The MIC’s business is subject to certain risk factors that should be carefully considered, including, among others, risks related to the nature of our investments; risks related to mortgage defaults, foreclosure and related costs; reliance on the Manager; environmental matters associated with our business; availability of investments; potential conflicts of interest; borrowing risks; limited sources of borrowing; risks related to the renewal of mortgages comprising our mortgage portfolio; the composition of our mortgage portfolio; subordinated and subsequent debt financing and use of leverage; reliance on borrowers; no guarantees or insurance; litigation risks; ability to manage growth; concentration of loans by type, geography, or borrower; changes in legislation; qualification as a mortgage investment corporation; no market for Class A Shares; resale restrictions; payment of dividends; dilution; and limitations on the ownership and repurchases of shares of the MIC.

In addition to the risk factors set out above, other risks and uncertainties of which CareVest MIC is not presently aware may have a materially adverse effect on an investment in CareVest MIC, the financial performance of CareVest MIC, and the ability of CareVest MIC to pay dividends or satisfy requests for retractions. Shareholders should consult with their own professional advisors to assess the income tax, legal and other aspects of holding an investment in CareVest MIC.

For a more complete discussion of risks, investors should refer to the documentation they received at the time of their purchase.

9. What are the management fees paid by CareVest® MIC?

CareVest® MIC pays fees for the management and operation of the MIC as well as the sourcing and servicing of the mortgage portfolio. CareVest MIC pays the following fees:

Management Fee: Carecana™ Management Corp. receives a management fee of 1.35% per annum of the gross assets of the MIC attributable to the Class A Shares, calculated daily and payable monthly.

Performance Fee: Carecana Management Corp. receives a performance fee equal to 20% of the amount by which the Net Return of the Class A Shares exceeds the product of (a) the average month-end NAVs during such year, and (b) the average of the two-year Government of Canada bond yield on the last day of each calendar month during the year plus 400 basis points. The performance fee is payable within 30 days following the end of each fiscal year.

Mortgage Administrative Fee: CareVest® Capital Inc. receives a fee for administration and servicing of the mortgages in the portfolio of 0.15% of the outstanding aggregate principal balance of all mortgage loans, calculated daily and payable monthly.

Although not a cost of CareVest MIC, CareVest Capital Inc. is entitled to retain any overnight float interest on all accounts maintained by it and all charges, origination fees, brokers fees, lenders fees, commitment fees, extension fees, renewal fees, NSF fees, advance fees, discharge fees, late payment fees, administration fees and similar other fees to borrowers with respect to mortgages in the Mortgage Portfolio, all of which fees shall be and remain the sole property of CareVest Capital Inc.

10. Is an investment in CareVest® MIC liquid? Are there any resale restrictions?

There is no market for the Class A Shares and it is not expected that a market will develop. The Class A Shares are subject to overall restrictions under securities laws, the MIC’s Articles and the terms of the Class A Shares. Investors will not be able to liquidate their investment or withdraw their capital at will and, other than in accordance with the limited retraction feature attached to the Class A Shares, investors may never be able to sell their Class A Shares to recover any part of their investment.

As the MIC is not currently a reporting issuer in any jurisdiction, the Class A Shares are subject to resale restrictions pursuant to applicable securities laws and investors will be restricted from selling their securities for an indefinite period.

The retraction feature attached to the Class A Shares is limited. The MIC cannot guarantee that any shareholder will be able to retract any or all of the shareholder’s Class A Shares at any time.

11. Is the investment guaranteed?

No. There is no assurance of any return on an investment in CareVest® MIC or a guarantee of invested capital. There can be no assurance that the MIC’s mortgage portfolio will result in a guaranteed rate of return or any return to shareholders, or that losses will not be suffered on one or more mortgage loans.

12. Has any securities regulator reviewed, approved or assessed the merits of CareVest® MIC?

No. As is common with any prospectus-exempt security, no securities regulatory authority or regulator has assessed the merits of the CareVest® MIC Class A Shares or reviewed an offering memorandum.

13. Do the Class A shares of CareVest® MIC have voting rights?

No, Class A shareholders in CareVest® MIC do not have the right to vote on most matters affecting the MIC, including the election of directors.

However, shareholders may be called upon under applicable corporate and securities laws to receive notice of, attend, and vote at a special meeting for certain matters, including any amendment to the provisions or rights attached to the Class A Shares.

14. Are the Class A shares of CareVest® MIC redeemable by the MIC?

Yes, the Class A shares are redeemable by CareVest® MIC in the MIC’s sole discretion with 1 to 60 days notice at a redemption price not less than the NAV per share.

15. How can I retract my shares?

You may contact Carecana Investor Relations at This email address is being protected from spambots. You need JavaScript enabled to view it. if you are interested in requesting a retraction of shares and they will provide you with further information and the required forms.

In accordance with the MIC Class A share terms, CareVest® MIC has notified Carecana that it has received sufficient retraction requests to fill its monthly 1% retraction limits for 2017. As such, and in accordance with the retraction rights of the MIC Class A shares, no further retraction notices will be accepted for retraction by the MIC for the balance of the 2017 fiscal year.

16. How much notice do you need to retract? What are the retraction limitations?

Shares may be retractable under the conditions outlined in the articles of the corporation. Subject to limitations, shareholders are entitled to request that CareVest® MIC retract their shares once every twelve months during one of the available Monthly Retraction Notice Periods.

CareVest MIC will not accept for retraction on any Monthly Retraction Date shares representing more than 1% of the average number of shares outstanding during the 90-day period immediately preceding the applicable Monthly Retraction Date.

CareVest MIC may suspend the retraction of shares for any period not exceeding 180 days during which the Manager determines that (i) conditions exist which render impractical the sale of assets; or (ii) which impair the ability of the Manager to determine the value of the assets of the MIC or the portfolio; or (iii) the suspension is in the best interests of the shareholders of the MIC as a whole.

Accordingly, there is no guarantee that CareVest MIC will retract any or all of the shares at any time. Once submitted to CareVest MIC, a retraction request is irrevocable without the MIC’s express consent.

17. What fees are charged on retraction?

There are no fees associated with retraction of Class A Shares.

18. Am I guaranteed to get my retraction proceeds in a certain amount of time?

No, there is no guarantee that CareVest® MIC will retract any or all of the shares at any time. CareVest MIC will not accept for retraction on any Monthly Retraction Date shares representing more than 1% of the average number of shares outstanding during the 90-day period immediately preceding the applicable Monthly Retraction Date. CareVest MIC may suspend the retraction of shares for any period not exceeding 180 days during which the Manager determines that (i) conditions exist which render impractical the sale of assets; or (ii) which impair the ability of the Manager to determine the value of the assets of the MIC or the portfolio; or (iii) the suspension is in the best interests of the shareholders of the MIC as a whole.

Once submitted to CareVest MIC, a retraction request is irrevocable without the MIC’s express consent.

19. How is the retraction price calculated?

The retraction price is the NAV per Class A Share as at the relevant retraction date.

20. Will I receive a physical share certificate after my investment?

No. CareVest® MIC operates under a Direct Registration System that allows its shares to be owned, reported and transferred electronically without using a physical share certificate. Instead of receiving a physical share certificate to represent your shares, your shares are held in your name and recorded electronically in the books and records of CareVest MIC.

CareVest MIC believes direct registration is the safest and most convenient way to hold your Class A shares. However, you may request a physical share certificate from CareVest MIC representing any or all of your Class A shares. You will be required to safeguard and present the physical share certificate to CareVest MIC to facilitate any dealings with your shares and may be charged a fee and/or required to get a surety bond and provide an indemnity to CareVest MIC in order to replace a lost, stolen or destroyed share certificate.

21. Does CareVest® MIC pay a fixed distribution?

No. Although CareVest® MIC currently intends to pay out all of its net income and net realized capital gains as dividends to shareholders, distributions will fluctuate and shareholders of the MIC are entitled to receive such dividends, if any, as the directors in their sole discretion may declare. Any amount of dividends will depend upon numerous factors, including results of operations, cash requirements, financial condition, contractual restrictions, business opportunities, provisions of applicable law and other factors which may be beyond the control of CareVest MIC or Carecana™ Management Corp. If the Directors of CareVest MIC determine that it would be in the best interests of the MIC, they may reduce or suspend for any period, or altogether cease indefinitely, paying dividends on the Class A Shares.

Historical performance of CareVest MIC, including dividend history, is publicly available at the website of Carecana Management Corp., the investment fund manager, at www.carecanacorp.com. Historical performance of the MIC is not indicative of future performance.

22. How are the dividends paid by CareVest® MIC taxed?

For most shareholders, dividends other than capital gains dividends which are paid by CareVest® MIC on the Class A Shares will be included in shareholder’s income as interest income. Capital gains dividends will be treated as realized capital gains of shareholders, and will be subject to the general rules relating to the taxation of capital gains.

Since the dividends, other than capital gains dividends, received are taxed as bond interest, the normal gross up and dividend tax credit rules will not apply to dividends paid by CareVest MIC to an individual and trusts on a Class A Share and shareholders that are corporations will not be entitled to deduct the amount of dividends paid by the MIC from their taxable income.

This is not intended to be and should not be interpreted as legal or tax advice. You should consult with your own tax advisor regarding the income tax consequences to you of acquiring, holding and disposing of the Class A Shares including the application and effect of the income and other tax laws of any country, province, state or local tax authority.

23. How does the Dividend Reinvestment Plan (DRIP) work?

CareVest® MIC shareholders can elect to receive cash dividends or reinvest all of the cash dividends in additional shares of the same series under the MIC’s Dividend Reinvestment Plan (“DRIP”).

The purchase price of the Class A Shares under the DRIP is currently the Net Asset Value (“NAV”) per share of the fund. A participant may request to terminate his or her participation in the DRIP at any time. Requests to terminate participation in the DRIP will be processed in respect of the dividend declared on the last business day of the third month following the month in which the completed form is received by CareVest MIC and that dividend will be paid in cash directly to the registered shareholder on or about the 15th day of the fourth month.

24. Why don’t you quote a percentage yield?

Distributions from CareVest® MIC are paid based on a dividend per share in dollars. This represents the actual cash flow you receive as a shareholder, and reporting dividends this way is in line with industry standard practices. The calculation of yield as a percentage is subject to numerous assumptions, many of which are particular to the individual shareholder. An example would be that some shareholders may calculate a yield based on their historic cost base, while others would calculate a yield based on the current NAV. Another example would be the decision to annualize the monthly dividend on a simple basis (multiplying by 12) or to compound the returns. Our position is that we want to quote information that includes as few assumptions as possible, allowing investors to complete their own calculations to determine which yield best applies.

25. When do you pay dividends? What are the scheduled dates?

Subject to the discretion of the board of directors, CareVest® MIC generally declares dividends monthly. The current distribution schedule is as follows:

  • Dividend Declaration Date: On or about the last business day of the month when declared
  • Dividend Record Date: Last business day of the month
  • Dividend Payment Date: On or about the 15th day of the month following the Record Date

The Dividend Declaration Date is the date on which any dividend declared by CareVest MIC is announced. The Dividend Record Date is the date on which all shareholders of record as at that date are entitled to the dividend. The Dividend Payment Date is the date on which funds are distributed.

Declaration of dividends will continue to be at the sole discretion of the directors of CareVest MIC.

26. What type of reporting will I receive from members of the CareVest® group of companies?

There is a certain amount of transaction reporting that registered shareholders will receive from members of the CareVest® group of companies, including:

  • Carecana™ Management Corp. – Retraction Confirmation Report and Annual Statement for those shareholders that do not have a dealer of record.
  • CVC™ Market Point Inc. – For transactions where CVC Market Point acts as the dealer, a Trade Confirmation Report after each trade and a Quarterly Statement only if a purchase transaction occurred during the quarter.
  • Carecana Settlement Corp. - direct deposit recipients will receive their CareVest® MIC payments under the name of Carecana Settlement Corp. or a similar name

27. How can I stay up-to-date on how my investment is performing?

News and historical performance of CareVest® MIC is currently posted on the website of Carecana™ Management Corp., the investment fund manager, at www.carecanacorp.com.

28. Who do I contact if I have Investor Relations questions about CareVest® MIC?

You may contact the Carecana Investor Relations department with questions regarding CareVest® MIC operations as follows:
Carecana Investor Relations
Toll Free: 1-855-278-3611
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

29. Who do I contact for administrative shareholder needs (i.e. address changes, transfer requests, etc.)?

You may contact Carecana Investor Relations with questions regarding CareVest® MIC shareholder related administration, such as address changes, change of banking information, retraction requests, transfer requests and information about the dividend reinvestment. Please refer to our Shareholder Administration page.

30. How do I invest in CareVest® MIC?

CareVest® MIC is not currently selling shares. If you are interested in purchasing one of the CareVest® products currently available for sale, please contact CVC™ Market Point Inc. (www.cvcmarketpoint.com).

Shareholder Administration

Registered shareholders of Valmor™ and CareVest® mortgage investment corporations may complete the following forms. If you are a beneficial shareholder and hold your shares through an intermediary such as a broker, dealer, financial institution, trustee or other nominee, you must contact your intermediary directly to provide instructions relating to your shares. We are only able to accept instructions from registered shareholders.

 

Administration Forms

Address/Email Change Form
Electronic Delivery Consent Form
Opt-Out of Financial Statements Form

Dividend Forms

Direct Deposit Form
Dividend Instruction Form
Dividend Reinvestment Plan

Transfer Forms

Transfer Request Form
In-Kind Contribution Request Form (for in-kind contributions into RRSPs, TFSAs, RESPs)
Declaration of Transmission (for death of an individual shareholder)
Name Change Form (Examples: due to marriage, divorce or legal name change)

Sample Corporate Resolutions

Corporate Resolution
Corporate Resolution of Sole Director

Privacy Policy

CareVest Group Privacy Policy
Canadian Horizons Privacy Policy

Return Completed Forms to:
Carecana™ Management Corp.
1800, 555-4th Avenue SW
Calgary, Alberta T2P 3E7
Attention: Transfer Agent Department
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Fax: (403) 262-9520

If you have any questions, please contact Carecana Investor relations toll free at 1-855-278-3611 or send an email to This email address is being protected from spambots. You need JavaScript enabled to view it.

The issuers referred to herein are connected and related issuers of Carecana™ Management Corp.
This website is for informational purposes only and does not constitute an offer to sell or a solicitation to buy securities in any jurisdiction. Any offering of securities will be conducted in specified jurisdictions using offering documentation prepared in accordance with applicable law. Past performance may not be indicative of future performance. Commissions, and trailing commission, management fees and expenses may all be associated with investment funds. Please read the relevant offering documentation before investing.

General Office

1800, 555 - 4th Ave S.W.
Calgary, AB T2P 3E7

tel 403-648-3613
fax 403-262-9520
toll free 1-855- 278-3611

e-mail: investor@carecanacorp.com

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