FAQ

However, as of September 28th 2010 there are Exempt Market offerings available via Offering Memorandum that may be offered by individuals that have passed the Exempt Market Products exam (or the Canadian Securities Course) and who are registered under an Exempt Market Dealer, providing investors are eligible or accredited.

Jayn Steele has passed both of these exams and is a licensed Dealing Representative of Pennant Capital Partners Inc. (Pennant), an Exempt Market Dealer. Pennant was founded by the principals of Invico Capital Corporation, an is an ssuer and portfolio manager of institutional grade exempt market investment products and is headquartered in Calgary, Alberta.

Q: How do the returns compare with more traditional investment products I've seen advertised?

A: The returns have historically been above average, regardless of market conditions.

Q: What is the minimum amount I need before I can invest?

A: Some investments have minimums as low as $5000 and many are TFSA and/or RRSP eligible. Many are also TFSA and RRSP transferable (meaning that you can transfer money from a TFSA or RRSP held elsewhere whose performance you may be unhappy with).

Q: Are these investments guaranteed? Are they safe? How do I know?

There is no such thing as a guaranteed investment. The word itself is legislated through the Bank Act and can only be used by chartered institutions in the provision of Guaranteed Investment Certificates (GICs). The guarantee in this case refers to the principle and the interest rate being offered. Ultimately, if a bank fails and the GIC investment is in excess of its Canadian Deposit Insurance Corporation (CDIC) insurable amount ($100,000), an investor could lose money.

It is worthwhile to compare the differences between limited market opportunities and what is available to most in the conventional market - such as mutual/segregated funds, stocks, bonds, treasury bills and GICs. There is risk inherent in all parts of life, and investing is no different. Ultimately, through developing your financial literacy and learning to compare the merits and drawbacks of different opportunities, and comparing the merits of various Registered Dealers, you will be empowered to make the investment choices that best suit you.

Q: My current financial advisor says this sounds risky. What should I do?

What any investor must first realise is that everyone has an opinion. The question to ask is what is this person basing their opinion on? Have they looked at any information or documentation surrounding the investment? Do they have the experience to offer such an opinion? As most Financial Advisors are either Mutual Fund or Securities (stocks & bonds) licensed, they are prevented by their associations from offering limited market opportunities as investment options. In many cases they are unaware, or lack knowledge of, the virtues of these types of investments. In some cases their own interests may have them discourage clients from looking for opportunities elsewhere.

These are some of the reasons why it is so important to educate yourself financially, investigate opportunities yourself, and understand the bigger picture. More importantly, how does the risk compare to other investments you are already comfortable with? After making objective comparisons, many people find it easier to make a decision.