INVESTOR FAQs
What is Carfinco?
Carfinco is a growth-oriented income trust that provides consumer car loans to borrowers unable to obtain financing through traditional lending sources.
What does the Fund do?
The Fund works with its partner car dealerships in a network of select independent and franchise car dealerships that offer Carfinco’s payment plan to their customers. IN order to secure a loan from Carfinco, applicants, along with the vehicle, must meet stringent credit criteria.
What is an income fund or income trust?
An income trust or income fund, such as Carfinco, is an investment trust that holds assets which are income producing. The income is passed on to the unit holders through regular distributions. An income trust operates like other publicly traded entities in that the unitholders own the organization.
Are the Fund’s units eligible for all types of investment accounts?
Yes. The Fund is a mutual fund trust. All units are eligible under the relevant Canadian statutes for RRSPs, RRIFs, RESPs and DPSPs and non registered accounts. Unitholders receive a portion of the revenues generated by Carfinco’s vehicle loan services. Investors are strongly advised to consult their financial advisor or planner to determine eligibility and tax considerations for their investment portfolio.
How does the Fund determine the cash distributions to unitholders?
Carfinco’s Board of Trustees determines the level of cash distributions based on the recent performance of the underlying business, including its financial position.
Distributable cash does not have a standardized meaning prescribed by GAAP, but is a measure generally used by Canadian open-ended income Funds as an indicator of financial performance. The Fund defines distributable cash as net earnings before interest, depreciation, amortization, income taxes, and after interest paid, capital expenditures, income taxes paid and contributions to any reserves that the Trustees of the Fund deem to be reasonable and necessary for the operation of the Fund.
The Fund's method of calculating distributable cash may differ from similar computations as reported by other similar entities and, accordingly, may not be comparable to distributable cash as reported by such entities. The Fund believes that its distributable cash is a useful supplemental measure that may assist investors in assessing the return on their investment in units.
The Fund's stated objective is to set a distribution level that is achievable over the long term and will grow in step with the growth of Carfinco.
Are cash distributions or returns guaranteed?
As an equity investment, neither potential returns nor your original investment are guaranteed and investment in the units is subject to a number of risks. For more information, please consult our prospectus.
When are cash distributions paid?
Carfinco’s distribution policy is to make distributions on a monthly basis to unitholders of record as of the 20th day of each month with distributions being paid on the final business day of each month. In certain circumstances, special one-time distributions may be issued, either in cash or in additional units.
What is the tax treatment of cash distributions?
The Canadian federal government announced in November 2005 that the tax treatment of income trusts would remain essentially unchanged from the rules in place for the preceding several years. For more information, please visit the Department of Finance website here: http://www.fin.gc.ca/news05/05-082e.html.
When did the Fund go public?
Carfinco Income Fund was formed from the predecessor company, Carfinco Inc., on November 27, 2002. The Fund’s units began trading on the TSX Venture Exchange on December 6, 2002.
Where are Carfinco’s units traded?
The Fund’s units are now traded on the TSX, Canada’s largest equities exchange.
When does the Fund release its annual and quarterly results?
The Fund operates on a December 31 year end. It is obligated under securities laws to release its quarterly financial results within 45 days of each quarter end and its annual financial results within 90 days of the year end.
What is the Fund’s ticker symbol?
The symbol is CFN.UN
Who are the Fund’s Trustees and officers?
Carfinco has seven Trustees: Tracy A. Graf, J. Daryl MacLellan, Brent Channell, Maurice Kagan, David Prussky, David Rosenkrantz and Simon Serruya.
The also Fund has two officers: Tracy Graf is President and CEO of Carfinco and Troy Graf is Vice President and CFO.
By virtue of Mr. Graf’s role as President of Carfinco, and through a consulting agreement Messrs. Prussky and Rosenkrantz have with the Fund, they are considered related to the Fund. The remaining Trustees are independent within the meaning of Multilateral Instrument 52-110 – Audit Committees.
The Trustees meet several times each year to evaluate management
Where is the head office located?
Carfinco Income Fund, 4245-97 Street, Suite 300, Edmonton, AB T6E 5Y7
Who is Carfinco’s transfer agent?
Equity Transfer & Trust Company, 200 University Avenue, Suite 400, Toronto ON M5H 4H1
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