EIM Partners Fund

WHAT CAN THE FUND DO FOR YOU?

Our experience in designing and managing portfolios for High Net Worth and affluent clients is echoed in a pooled fund product.

At Exponent Investment Management, we help clients move from active business or professional income to passive investment income more commonly referred to as retirement. In other words, we help clients live from their investments and other income sources. We call it Your State of Independence.

INCOME

The focus and need for income on the part of our clients directs our attention to companies that have a history, ability and policy of rewarding shareholders with dividend income. Thus, the EIM Partners Fund will predominantly be invested in dividend paying stocks.

GROWTH

Dividend income is important, but growth is equally important. We are looking for companies that grow their income and thus the value of their operations over time. As the profits grow, the dividend payments also tend to grow along with the share price.

WHY A POOLED FUND?

The pooled fund structure caters to the needs of some of our clients. We will apply the same investing principles we have used for over twenty years, but do so in a fund form.

The pooled fund is effectively a private mutual fund for accredited investors only, and that all clients of Exponent under a discretionary portfolio management mandate are accredited investors.The pool is best suited for these situations:

Significant family holdings that include additional small accounts: Some clients have substantial investments to deploy but will include a few or several small accounts. Using a pooled fund for the smaller accounts allows for instant diversification in one investment.

Size of portfolio to invest: Having a pool allows us to extend our service offerings to children and other family members of our clients. While the client receives the benefits of direct stock ownership in dividend paying companies, the family member or child may not be as far along in terms of capital to invest. The pooled fund allows an investor a cost effective manner to invest in our portfolios without being excluded by minimum investments many of our competitors impose.

Systematic investments or withdrawals: A subset of clients will be depositing or withdrawing funds from one or some of their investment accounts every month. It could be an RRSP, RESP, TFSA or a RRIF. In all cases, the result is the same; a transaction must transpire – a sale in the case of a withdrawal, or a purchase in the case of a deposit. A pooled fund enables us to avoid the monthly “what stock are we selling/ buying this month to fund the transaction?” decision. By selling units in the fund, we are effectively selling or buying a bit of everything thereby keeping the balance of the portfolio as intended.

*Historical performance is not indicative of future returns. See "Important Information" below for more details.

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Why Choose Exponent?

Advisor Management Fees Access To Advisor
Exponent Investment Management
0.3% - 1.6% *
- Custom Plans
- Always Available To Meet Or For A Call
- Customers First
- Help Out In Many Ways More Than Just Investing
Banks
1.5% - 3%
- Hard To Reach
- Rare To Get A Bank Advisors Even On A Phone Call - Sells You A Pre Packaged Mutual Fund
Robo Advisors
0.3% - 0.4% + Product Fee
- You Create Your Own Plan
- You Manage And Research Yourself
- No Phone Numbers Or Even An Email Address To Contact Someone For Advice

* Fees vary depending on asset size. Larger accounts get a lower fee.

THE THREE PRINCIPLES OF THE EIM PARTNERS FUND

Transparency

We will show you a snapshots of the portfolio are provided every month. On an annual basis, audited financial statements are also provided, along with an annual report of all the fund's transactions.

Clarity

The strategy and approach of the fund is the same as the one used by the portfolio manager throughout his career: dividend income and growth of both income and capital over time.

Safeguards

The fund is not able to invest in illiquid and unlisted private companies or structures. Only listed stocks and securities are permitted. The fund cannot borrow to invest. The the fund is governed by an independent investment fund manager, trustee and auditor. This structure, by its very nature, is the safeguard of the fund.

ROLES IN THE MANAGEMENT OF EIM PARTNERS FUND

Benoit Poliquin

President & Portfolio Manager

Portfolio Manager: Benoît Poliquin is the portfolio manager of the fund.

Along with members of his team, he will direct and execute the investment decisions for the fund.

Investment Fund Manager: Majestic Asset Management is the investment fund manager that takes care of the day-to-day compliance and administrative tasks that come with a pooled fund.

The investment fund manager a duty of care to the unit holders of the fund. Here are a few of the administrative duties that Majestic Asset Management is responsible for:investment restrictions

  • initial investments in mutual funds
  • conflicts of interest
  • fundamental changes
  • custodianship of portfolio assets
  • incentive fees
  • sales and redemptions of securities of a mutual fund
  • investment risk classification methodology
  • securityholder records


Custodian
: The individual investments made by the unit holders are pooled and held with the custodian of the fund. The Custodian is Aviso Wealth. The role of the custodian is to hold the securities that make up the fund and facilitate the trading of these securities.

Valuation and Record Keeping: Keeping track of the unitholders, the value of the units of the fund, and the tax reporting are provided by SGGG Fund Services Inc.

Auditing: The year-end audit services are provided by KPMG.

Download the portfolio Statement

FEES

The safeguard provided by the structure of the EIM Partners Fund does cost money. The cost of this structure is approximately 0.6% on an annualized basis for the E series of the fund, a series reserved exclusively for Exponent Investment Management clients. This cost is borne by the fund itself. As the fund grows, many of the administrative costs will diminish and the goal is to continue to make the EIM Partners Fund cost competitive.

For Exponent clients custodied with Aviso Wealth, there are no fees associated with buying or selling units in the fund. The portfolio manager will be receiving a performance fee if the value of the fund units experience a return of 6% on annualized basis. There is no performance fee payable if the unit price of the fund is below previous values. This is known as a high watermark. What it means for unit holders is that the portfolio manager is incentivized to grow the unit value but not at the expense of unnecessary risk. The performance fee is 10% of the return between 6% and 12% and 15% of the return above 12%. Please consult the fund’s offering documents for more details.

FAQ

Why a fund when I can use an Exchange Traded Fund that offers lower management costs?
We will never be as competitive as funds that have hundreds of billions of dollars under management as operating costs are directly linked to assets under management. We are offering a one decision portfolio at a competitive price. The fund is an extension of the investment management and financial planning service offering of the firm for clients who wish to delegate the day-to-day management of their portfolio. You will retain transparency, clarity, and safeguards with the added benefit of choosing an experienced advisor. No robots, call centers or recent graduates will come anywhere near your affairs. We WANT you to call or email us. Serving clients is what we do and your financial independence is what we strive for.
I do not want mutual funds, why should I consider the EIM Partners Fund?
We are stock nerds. We understand why someone would rather own stocks directly. In most cases, a portfolio of stocks is more advantageous. However sometimes, a pooled fund will be more cost effective as it can provide the liquidity and diversification required in one transaction. We agree it is not for everyone all the time.
Do I have to be a client of Exponent Investment Management Inc. to invest in the fund?

Important Information

This web page is for informational purposes only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of securities. The information contained herein is in summary form for convenience of presentation. It is not complete, and it should not be relied upon as such.

The information set forth herein was gathered from various sources which both Majestic Asset Management LLC and Exponent Investment Management Inc. have made every every effort to validate both the authenticity and accuracy of said information.  These efforts and monitoring activities are ongoing. This web page is provided to you on the understanding that, as an accredited investor, you will understand and accept its inherent limitations and you will not rely on it in making or recommending any investment decision. Any investment in a private fund, including the EIM Partners Fund (the “Fund”), is subject to various risks; such risks should be carefully considered by prospective investors before they make any investment decision. Please refer to the Fund’s offering memorandum for more information of the risks related to an investment in the Fund. The information in this web page should not be considered legal, tax, investment, financial, or any other professional advice and each prospective investor should obtain its own legal, tax, investment, financial, or any other professional advice before investing in a private fund. An investment in the Fund is not guaranteed, its value changes frequently, and past performance may not be repeated. Investment losses do and may occur, and investors could lose some or all of their investment in the Fund. Commissions, fees, and expenses may be associated with Fund investments.

This web page reflects general information about the Fund. There can be no assurance that any information included herein will not change or be adjusted to reflect the environment in which the Fund will operate. Historic performance is not indicative of future returns. Conclusions and opinions do not guarantee any future event or performance. Investments in the Fund has not been and will not be recommended or approved by any Canadian or provincial securities commission or regulatory authority. The foregoing authorities have not passed upon the accuracy or determined the adequacy of this summary.

The information presented in this web page is not intended for persons that are citizens of, domiciled or resident in, or entities registered in a country or jurisdiction in which its distribution, publication, provision or use would violate current laws and regulations. In Canada, the distribution of this document and any other document relating to the distribution or marketing of any investment in the Fund, is made and will be made only to accredited investors (as defined in National Instrument 45-106 – Prospectus Exemptions) or pursuant to another applicable prospectus exemptions. This web page is not an offering memorandum, prospectus, advertisement, or public offering of any financial instrument. All information contained in this web page regarding the Fund is qualified in its entirety by the information contained in the offering memorandum prepared in connection with the distribution of the Fund and the constituting documents establishing the Fund (the “Offering Documents”). Investment objectives, risks, charges, and expenses should be considered carefully. This and other important information can be found in, and is subject to the Offering Documents. Should any of the descriptions or terms in this web page be inconsistent with the Offering Documents, the Offering Documents shall prevail.

By reading this web page, you agree to be bound by the foregoing limitations.

Additional information is available upon request.

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