Objectives

The investment objective of Giavest MIC is to acquire and maintain a portfolio of mortgages that preserve capital and generates returns in order to permit Giavest MIC to pay distributions to shareholders.  To achieve this investment objective, Giavest MIC will use the net subscription proceeds to invest principally  in loans secured by residential mortgages and commercial mortgages primarily in Western Canada.  Such eligible investments will only occur in accordance with Giavest MIC’s investment guidelines. 

Mortgages with the following types of underlying properties will be targeted by Giavest MIC:

Giavest MIC invests in mortgages based upon the assessment of its restricted portfolio manager, that the investment is suitable and meets its investment guidelines at the time.  All properties will be evaluated on the basis of certain factors, including but not limited to, the location, quality and prospects for capital appreciation and, in the case of commercial mortgages, on prospects for income.  In addition, the credit of the borrower will also be reviewed and, where appropriate, personal covenants will be obtained.

Benefits

• Class A Shares - Historical Yields*  - see Giavest MIC Mortgage Portfolio Update
• Class B Shares Targeted Yields** - 5.50%-6.40% per annum
• Class C Shares Targeted Yields** - 5.75%-6.65% per annum
• Investment Objectives - to acquire and maintain a portfolio of mortgages that preserves capital and generates returns in order to permit Giavest MIC to pay distributions to its shareholders. Giavest MIC intends to distribute all of its net income to shareholders.
• Minimum Initial Subscription Amounts
  • Class A Shares        $10,000       
  • Class B Shares        $5,000
  • Class C Shares        $50,000
• Monthly Income Anticipated – Cash dividends by direct deposit
• Dividend Reinvestment Available – Option to reinvest dividends to acquire additional shares 
• Tax Advantages Available - Eligible for RRSPs, RRIFs, TFSAs
• Mortgage Portfolio - MIC invests in residential and commercial mortgages secured by real property
• Western Canadian Focus – Mortgages sourced in major urban centres and surrounding bedroom communities
• Transparency – Monthly investor statements available
• Private Investment Fund – Net Asset Value calculated monthly
• Quarterly Retraction Dates (subject to retraction limitations)

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

**Targeted yields paid to investors net of Giavest MIC’s fees and expenses, per offering memorandum of March 26, 2019. Assumes that Giavest MIC is able to invest in mortgages with interest rates charged to the borrower in the range of 8.00% - 9.00% per annum, with 90% investment efficiency, less 1.35% per annum manager fee (Class B shares), or 1.10% per annum manager fee (Class C shares), 0.15% per annum mortgage broker fee and estimated general and administrative expense of 0.20% per annum.

Risks

This is a speculative offering. The purchase of Class A shares, Class B shares and Class C shares involves a number of significant risk factors and is suitable only for investors who are aware of the risks inherent in investing in MICs and the real estate sector and who have the ability and willingness to accept the risk of a total loss of their invested capital, who have no immediate need for liquidity and who can withstand the effect of dividends not being paid in any period or at all. There is no assurance of any return on an investment in the Class A shares, Class B shares or Class C shares or a guarantee of invested capital. If the board of directors of Giavest MIC  determines that it would be in the best interests of Giavest MIC , it may reduce or suspend for any period, or altogether cease indefinitely, paying dividends on the Class A shares, Class B shares or Class C shares.

Moreover, the interest rates being charged for the mortgages in which Giavest MIC invests reflect the general level of interest rates and, as interest rates fluctuate, management of Giavest MIC  expects that the aggregate yield on Giavest MIC 's mortgage investments will also change which could materially negatively impact any return on investment in the Class A shares, Class B shares and Class C shares.

Service Providers

CareVest® Capital Inc. (the “Mortgage Broker”) originates and structures mortgages that it refers to the credit committee of Carecana™ Management Corp. (the “Manager”). 

The Manager’s credit committee then reviews, analyzes and approves or declines each mortgage opportunity in accordance with Giavest MIC’s investment guidelines.   The Mortgage Broker administers the mortgage investments on a daily basis.

Carecana™ Settlement Corp. (the “Funds Administrator”) administers the distribution of cash for Giavest MIC on the instructions of the Manager for the purposes of dividends, retractions and redemptions.