Bison Prime Introduction
Bison Prime Mortgage Fund ("Bison Prime"), an open-ended mutual fund unit trust, was established in January 2006. Bison Prime was created for the purpose of preserving invested capital and providing investors with a consistent moderately high rate of interest income by investing in a diversified portfolio of conservative commercial mortgages in specific markets currently under serviced by traditional lending institutions. Mortgages are oriented towards primary asset class properties located in major Canadian urban markets and restricted to a maximum of 75% of a property’s value upon origination.
Bison Prime is sold through an offering memorandum and is available to:
- Residents of British Columbia, Nova Scotia, New Brunswick or Newfoundland, who are provided with an offering memorandum and must complete a risk acknowledgment form
- Canadians qualified as accredited investors in accordance with National Instrument 45-106, or
- Residents of Ontario investing a minimum of $150,000
Facts of the Fund
| Managed By | Trez Capital Management Partnership |
| Asset Class | Mortgage Fund |
| Inception Date | January 2006 |
| Net Asset Value | $10 per Unit |
| Purchase | $10 per Unit. Closings may occur from time to time as subscriptions are received. |
| Minimum Investment | 200 Units ($2,000) |
| RRSP/RESP/RRIF/TFSA Eligible | Yes |
| Retraction Rights | Retractable on demand (with 30 days notice) subject to a declining retraction penalty of 5% (declining at a rate of 1% per anniversary of investment) |
| Tax Consequences | Distributions are taxed as income from Canadian sources |
| Management Fee | The Manager receives an asset management fee of 1.5% of the average annual gross assets plus an incentive fee of 10% of the net income payable quarterly in arrears. |