Latest News

23 October 2017 Agcapita’s Investment Thesis Confirmed by New Report   » read more
23 October 2017 Institutional tax-exempt investors increase farmland investments 11%   » read more
3 May 2016 Strong agricultural sector sustained farmland values in 2015   » read more
6 April 2016 Agcapita Founder on BNN   » read more
4 April 2016 Agcapita Founder in Exempt Edge Magazine   » read more

 
 

FAQs

 

How Can I Subscribe to Agcapita’s Monthly Briefing?

Please click here to be taken to our subscription form.

What is an Eligible Investor?

A person whose (i) net assets, alone or with a spouse, in the case of an individual, exceed $400,000(1), (ii) net income before taxes exceeded $75,000 in each of the two most recent calendar years and who reasonably expects to exceed that income level in the current calendar year, or (iii) net income before taxes, alone or with a spouse, in the case of an individual, exceeded $125,000 in each of the two most recent calendar years and who reasonably expects to exceed that income level in the current calendar year.

What is an Accredited Investor?

Three of the more common categories within which persons may fit in order to qualify as an accredited investor are: (i) an individual who, either alone or with a spouse, beneficially owns financial assets (primarily being cash and securities) having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000; (ii) an individual whose net income before taxes exceeded $200,000 in each of the two most recent years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent years and who, in either case, reasonably expects to exceed that net income level in the current year; or (iii) an individual who, either alone or with a spouse, has net assets of at least $5,000,000.

What is a Mutual Fund Trust?

A mutual fund trust is a unit trust in which all holdings and transactions in the units comply with the prescribed conditions governing in particular the number of unit holders and the dispersal of ownership of the units. If a trust becomes a mutual fund trust within 90 days after the end of its first taxation year, it may elect to be treated as such from the beginning of that taxation year. Classified by Canada Revenue Agency as a “flow-through entity”, this structure allows the taxable income earned inside the trust to be treated such that taxable income flows through to the individual unitholder and be treated at the individual tax rate, which is often lower than the highest marginal tax rate at which it would be taxed if the fund held on to it.

How is Agcapita Structured?

Agcapita is a mutual fund trust (“Trust”) with Trust Units (“Units”). The Units are entitled to return of invested capital and subject to management’s profit participation, to the growth in the value of the farmland portfolio. Click for link to structure diagram.

What is the Minimum Investment?

The minimum investment is currently $5,000.

What is a Limited Partnership?

A Limited Partnership is a business entity consisting of a General Partner, who manages the business, and Limited Partners, who enjoy rights to the partnership’s cash flow, but are liable only to the extent of their investment.

Is the Investment RRSP Eligible?

Yes – Units in the Trust may be purchased with funds from any eligible plan – including RRSP, RESP, TFSA etc.

What Kind of Track Record Does Agcapita Have?

Agcapita was founded in late 2007. The Agcapita investment team has over 50 combined years of experience in fund management.  The field team has extensive experience in farming and agriculture related businesses.  Agcapita was the first and is still the only RRSP eligible farmland fund in Canada.

Can Units Be Resold?

Subject to complying with certain statutory and contractual transfer restrictions investor may sell Units if they so choose. However, Agcapita expects that investors are looking for a growth investment with a long-term horizon.


 
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