Legacy Mutual Fund
Are you looking for somewhere to diversify your portfolio in a world of high inflation, low savings rates, and volatile stock markets? Legacy Investment Mutual Fund Trust invests in the stable Southern Alberta commercial and residential real estate market that shows strong growth. With an annual target yield of 8.6%, the month after your investment closes, you will start to receive a return on your investment. As an investor, you benefit from consistent cash flow from the rental of the properties and the increased value of the real estate without the hassle of owning and managing a property and tenants.
The Trust was established in Fall 2021 and now has $31.8M in real estate assets. The Trust has more than 100 years of combined senior management experience in commercial & residential real estate, capital market and operations management and strong operational partnerships with Canadian Western Bank, Braemore Property Management, The Epiphany Group and Avison Young Lethbridge. Together they are growing the business in a controlled and intentional manner, providing increased value to investors.
Five Reasons to Invest
- Diversify your portfolio and invest in an existing and curated property portfolio worth $31.8 million of combined commercial and residential real estate assets.
- Two levels of investment are offered through one investment, meeting your personal objectives – maintaining or growing a nest egg.
- Experienced team that is versatile and who have decades worth of experience between them in real estate.
- Cash, RRSP, TFSA eligibility.
- Long term investment with redemption opportunities.
Art Smith | VP of Legacy Investment Mutual Fund Trust
“We’re committed to creating sustainable value for our investors, year after year, through the efficient acquisition of commercial and residential real estate assets.”
With the volatility of the markets and the rapid increase in real estate prices across Canada, many Canadians are looking to diversify their investments and grow their savings in non-traditional ways. This remains true for everyone from younger segments of the population, 20 to 30, all the way to 60 years and older, although the end goals for the different age groups differ. What they do all have in common is a desire to diversify.
Investment in commercial and residential real estate is a great way to save and diversify with an investment with a low stock market correlation.
Traditionally the types of investment opportunities offered have been reserved for the top one percent of the population. However, by providing the investment through Equivesto, Legacy is opening the opportunity to many more Canadians.
Wealth professionals generally recommend allocating 10-15 percent of your investment portfolio to alternatives. The type of investment offers that the Legacy Trust offers through Equivesto allows you to diversify without a large amount of capital. Many Canadians are seeking this type of opportunity. In particular, in a COVID-19 economic environment.
Real estate has always been and continues to be a strong investment choice as physical land will always have value. The struggle is how to know which investments to invest in and having the capital to do so.
Solution – Legacy Fund
The Legacy Investment Mutual Fund has a strong team in place. The senior management team has decades’ worth of experience in commercial and residential real estate. This is not their first rodeo, so to speak.
The team is committed to generating sustainable, accretive growth for their clients and the fund. In addition, they already have $31.8 million in combined real estate assets.
Investing in Legacy Trust means investing in a known quotient in that, as a fund, they are established and already have assets.
Legacy is offering the opportunity for a broader range of Canadians to gain access to residential and commercial real estate investments through their current offering.
As mentioned, Legacy Trust is a diversified real estate mutual fund that holds both commercial and residential real estate assets in Southern Alberta.
*Please note, the properties in the images above are not owned by our partnerships and are solely representative of the properties our partnerships intend to acquire.
The Trust was formed to enable the growth of the real estate business by combining investor capital with the consistent cash flow generated by the properties to grow business in a controlled and intentional manner, providing increased value to the investors.
Legacy Trust provides exceptional stewardship of the assets by focusing on the process to drive certainty, consistency, and growth of the Trust and the underlying businesses. The team focuses on balance sheet strength and liquidity, along with a disciplined and mature financial model to create as predictable outcomes as possible from our assets. In turn, this provides certainty (income) to our investors.
The Trust also maintains strong banking relationships to optimize our cost of capital and provide enhanced liquidity and flexibility in our financing options. The result is a competitive advantage and allows the Trust and underlying business to react efficiently to market changes while protecting your investment.
Revenue and Holdings to Date
Black Elm Financial LP
- Maintained consistent revenue and NOI quarter over quarter
- Maintained a vacancy rate at 5%
- Executed the sale of one property to bring LTV closer to target of 65%
- Continued to achieve good operational cash flow to meet debt obligations, take advantage of growth opportunities, or pay out to investors
- Operating well within bank covenants
Epiphany Perpetuity LP
- Revenue increases due to acquisitions of new properties during Q2
- Maintained a vacancy rate of 0%
- Effective cost management illustrated through the consistent operating cost to revenue KPI
- No additional assets acquired
- Improvement in operating cash flow to meet debt obligations, take advantage of growth opportunities, or pay out to investors
- Operating well within bank covenants
Legacy Investment Trust
- The Trust was launched in September 2021
NOTE: You will need your Bank Account Number, Transit Number, and Institution Number to Invest.
Legacy Investment Mutual Fund Trust is raising up to $50,000,000 via Offering Memorandum, with an inital raise of up to $10,000,000.
Please note - There is no minimum raise amount for this offering.
Target Return: There is a Target Return on Investment of 12-15% , with an Annual Yield up to 8.6% for Class A Units
Class F Target Return: Target return of 14-17%, with an annual yield up to 10.6%
Minimum investment: $504 for 112 Class A Units, $50,004 for 11,112 Class F Units
Price per Uint:
$4.50 per Unit for the first 2,222,222 Units ($10,000,000)
$4.75 per Unit for the next 2,105,263 Units ($10,000,000)
$5.00 per Unit for the following 6,000,000 Units ($30,000,000)
Securities offered: Class A Units or Class F Units
Distributions: Distributions will be paid out quarterly, as income or a return of capital. Legacy Investment offers a Dividend Reinvestment Plan (DRIP), which allows your dividends to be reinvested into the trust on a monthly basis. If you are interested in participating in the DRIP, please select DRIP when signing your investment forms.
Closings: Legacy Investment Trust will have monthly closings on the 15th of each month, with distributions accruing on the 1st day of the following month.
Redemptions: The units can be redeemed upon demand one year after purchase. A small redemption fee will apply to years 2 through 5 of Class A Unit holders.
Net Asset Value (NAV): The Net Asset Value of the trust is calculated quarterly in accordance with IFRS Section IAS 40 Investment properties and IFRS 3.
Please refer to the attached Legacy Investment Term Sheet or Offering Memorandum for further details regarding the terms and conditions of this investment.
TFSA/RRSP Eligible: Equivesto and Legacy Investment have partnered with a 3rd party Trust company to offer this to investors. To hold your investment in a TFSA/RRSP is optional and comes with additional paperwork and an ANNUAL FEE. If you are interested in holding your investment in a TFSA/RRSP, email Equivesto for more details and next steps. Visit our Learning Centre to learn more.
This offering is not exclusive to Equivesto, and Legacy Investment Mutual Fund Trust can and will raise capital from other sources and Exempt Market Dealers. The amount raised on Equivesto is not necessarily reflective of the total amount raised by the issuer as part of this Offering Memorandum.
How do I open an account?
Opening an account on Equivesto is an easy process. Head here: https://equivesto.com/investors to learn more about the process. To create an account, go to https://portal.equivesto.com/signup, enter your information and then complete the full application through the link in the email that you will receive. Investing in private companies is regulated, not like buying a book on Amazon, so you will have to answer some specific questions, similar to when opening an account on Questrade or going to the bank to invest in a mutual fund. Your information is secured with bank level security and kept private, and only seen by Equivesto.
Does Equivesto accept investments from foreign investors or Canadians living abroad?
Equivesto is an Exempt Market Dealer in Canada and is for Canadian investors who reside in Ontario, British Columbia, Alberta or Nova Scotia. Equivesto can only accept investment from those who are permanent Canadian residents who reside in the four provinces that we are licensed in. To learn more about investing on Equivesto, please access our learning centre.
How do I get in touch with an Equivesto representative?
You can email Equivesto to reach a representative who will answer any questions about investing or creating an account. Email address: firstname.lastname@example.org.
Who can invest in Legacy?
Anyone who’s primary residence is in B.C., Alberta, Ontario, or Nova Scotia can invest through the Equivesto Portal. Equity crowdfunding democratizes access to investing in private companies, which traditionally has been reserved for high net worth investors. Equivesto, like any financial advisor, will determine how much each individual is allowed to invest safely.
What if I am not an accredited investor?
If you do not qualify as an accredited investor, you are still able to invest as long as you qualify as either a retail or eligible investor. You can learn more about the investor types on Equivesto here.
What income verification documents are acceptable to confirm my accredited status?
To show that you are an accredited investor, you must provide proof of income over $200,000 per year or over $1 million in net financial assets excluding real estate. You can learn more about the documents and requirements to qualify as an accredited investor here.
Which documents do I need to prove my identity?
To register as an investor on Equivesto, you will fill out an application that provides Equivesto with personal information such as your name, date of birth and address. This will allow Equivesto to verify your identity. If there is additional information that is needed, an Equivesto representative will contact you and ask for a Government-issued photo ID, please.
How do I invest?
Once you have created a profile on Equivesto, filled out the full application and your account has been approved by an Equivesto representative, you can invest by accessing the Legacy campaign page at https://portal.equivesto.com/offering/legacymutualfund and clicking Ready to Invest. This will bring you through investment process and require you to provide your banking information to complete the investment. You can learn more about the investing process on Equivesto here.
What am I actually investing in?
As a Mutual Fund we pool investors money to buy assets that individual investors wouldn’t normally have access to purchase. When it comes to Legacy, you are investing in the Trust's real estate assets. You can learn more about the investment opportunity by viewing the campaign page here.
How much can I invest?
Equivesto will let you know your maximum investment limit based on your investor type. You can then determine how much you want to invest from a minimum of $500 up to your maximum investment limit. You can learn more about investment limits on Equivesto here.
How can I fund my investment?
To invest on Equivesto, you will need to provide your banking information including your bank account number, transit number and institution number. If you would like to make your investment RRSP or TFSA eligible, you will need to be investing over $2,500. If you would like to invest over $2,500 and make your investment RRSP or TFSA eligible please contact an Equivesto representative at email@example.com. There are fees related to investing via TFSA/RRSP, but no fees for investing directly.
Where can I find all the documentation for the investment offering?
All the documentation for investing can be found on the campaign page at https://portal.equivesto.com/offering/legacymutualfund. You can always speak with a representative if you need more information by contacting firstname.lastname@example.org.
What else do I need to know about this investment?
Please review the campaign page at https://portal.equivesto.com/offering/legacymutualfund and the Offering Memorandum which is attached to the campaign page for all of the information about this investment opportunity. Investors are only able to see attached documents, like the offering memorandum after they have started creating an account. Your account does not need to be approved to see the attached documents.
What is the Trust's target yield?
The first tranche of Class A Units has an annual yield of up to 8.6%, with a total target annual return of 12% to 15%.
The first tranche of Class F Units has an annual yield of up to 10.6%, with a total target annual return of 14% to 17%.
How do I get liquidity?
You can cash in anytime after the first year and you will be paid quarterly dividends.
What is a Distribution Reinvestment Plan (DRIP)?
A DRIP is a program that allows investors to reinvest their cash dividends into additional shares or fractional shares of the underlying stock on the dividend payment date.
I am looking for my money to grow, what should I consider?
The Trust offers good returns for those looking to grow their investments or savings, despite being higher risk. You can choose to reinvest your dividends to benefit from compounding on your investment.
I am looking for an income from my principal. What should I consider?
The Trust offers quarterly dividends that you will receive to provide income whilst maintaining your principal. Consider what level of income you are seeking, and based on the estimated returns, you can plan the level of investment you require. When signing your investment documents during the transaction process, you can choose the type of income you would like to receive from a tax perspective. If you have a question about this, please contact email@example.com
What are the fees and ongoing expenses associated with this fund?
There are no fees to invest on Equivesto and purchase units in this Mutual Fund. There may be fees relating to TFSA, RRSP and DRIP. Please contact Equivesto about these additional fees at firstname.lastname@example.org.
What are the risks of investing in the fund?
The risks relating to this fund are similar to direct investing in property, such as decreased value in properties, greater unoccupancy rate and increased cost for property maintenance. The management has attempted to mitigate these issues by having a diverse portfolio of properties from location and type. By having an effective management model for managing property maintenance costs, reducing tenant churn, and maintaining property value increase. There are many risks beyond these, please refer to item 8 of the offering memorandum which is attached on the campaign page at https://portal.equivesto.com/offering/legacymutualfund.
How will I get updates on the fund, and how frequently?
You will receive quarterly updates on the performance of the Trust via email.
How can I invest through my RRSP or TFSA?
Investments over $2,500 are eligible for TFSA and RRSP. Equivesto works with Western Pacific Trust and Olympia Trust to set up the RRSP/TFSA investment. Please contact Equivesto at email@example.com if you are interested in investing through an RRSP or TFSA. There are fees associated with investing via TFSA/RRSP. There is a one time transaction fee of $75, and an annual account fee of $145. If you already have an account with Western Pacific or Olympia Trust, you will not need to pay the annual fee again.
Can I invest with an entity or just as an individual?
You can invest as an entity as long as you can provide all legal documents requested by Equivesto. To do so, when signing up, please choose I am a company on the first page of the investor application form.
What compliance has been done on Equivesto and Epiphany?
Equivesto is governed by the Securities Commissions in each province that they are licensed in and is registered as an Exempt Market Dealer. You can view our registration at https://www.securities-administrators.ca/registration/are-they-registered/#check-registration. Epiphany (The Trust) has gone through the compliance and due diligence process that Equivesto requires and follows legislative parameters. Visit our learning centre to learn more about the checks Equivesto does on companies.
What is Equivesto's due diligence process?
As an Exempt Market Dealer, Eqiuvesto completes thorough due diligence on the issuer, the company documents and all key team members. Equivesto still suggests that you do your own due diligence before investing by reviewing the offering memorandum, reviewing the campaign page and by completing your own research. As part of our due diligence, Equivesto completes full background checks on the company, as well as verifying the statements they are making as part of their offering. For example, if A founder says they have a law degree, Equivesto has to verify that they do have a law degree for them to be able to make that statement on the campaign page.
How can I redeem my investment?
Anytime after the first year. Please request directly through Equivesto.
How does Equivesto get paid?
Equivesto doesn’t charge any fees to investors and gets 7% of the total amount raised by the Trust. The Trust pays Equivesto directly, as an investor you do not have to pay any fees to invest.
How does Epiphany get paid?
By the Trust increasing in value and rents outpacing expenses monthly.
How often will I receive payments?
In regards to the redemption fee, where is is deducted from?
That’s a great question
The redemption fee starts at 9% in year one, as each year passes the fee reduces, until its eventually zero. The progression is as follows:
- Year 1 – 9%, Year 2 – 7%, Year 3 – 5%, Year 4 – 3% and Year 5 and after – 0%
For example – if you purchased 1000 Class A units at $4.50 for $4500.
If you redeemed the Class A units in year 2 ( 7% ) the outcome would be:
Redemption fee calculation: ( 1000 Class A Units x $5 redemption price ) = $5000 x 7% = $350
Redemption value = $5000 ( 1000 Class A Units x $5 redemption price ) - $350 ( redemption fee ) = $4650