ENCASA FINANCIAL INC. Investment Funds for Social Enterprise

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1 ENCASA FINANCIAL INC. Investment Funds for Social Enterprise

2 WHO IS ENCASA? The Social Housing Investment Program enables housing providers to effectively invest capital reserves and operating dollars, such as last month s rents and member deposits. The Program is administered by Encasa Financial Inc. (Encasa). Encasa Financial Inc. (formerly SHSC Financial Inc.) is a registered Investment Fund Manager, created specifically to manage the investment of pooled capital reserves of non-profit and co-operative housing providers. In October, 2014, the investment base of Encasa was broadened through an expansion of its ownership. Under the new ownership model, Housing Services Corporation (HSC) retains 40% of Encasa s issued and outstanding shares and three new partners the Co-operative Housing Federation of Canada (CHF Canada), the Co-operative Housing Federation of BC (CHFBC) and BC Non-Profit Housing Association (BCNPHA) have each acquired 20% of the outstanding shares. Encasa pools capital for hundreds of providers and has more than $476 million in our mutual funds, as of December 31, ENCASA BOARD OF DIRECTORS Howie Wong, CEO Housing Services Corporation Tony Roy, Executive Director BC Non-Profit Housing Association Nicholas Gazzard, Executive Director Co-operative Housing Federation of Canada Thom Armstrong, Executive Director Co-operative Housing Federation of BC 1

3 MAKING YOUR MONEY WORK FOR YOU Encasa offers a proven range of investment opportunities, tailored specifically to the needs and goals of housing providers. Working with the portfolio adviser, RBC Global Asset Management Inc. (RBC GAM), Encasa has developed three distinct, low-fee mutual funds, all designed to minimize risk, maximize results, and, ultimately improve the financial well-being of our participants. The distributor of the Social Housing Investment funds is PH&N Investment Services (PH&N). PH&N Investment Services is a trade name used by Phillips, Hager and North Investment Funds Ltd., a wholly-owned subsidiary of Royal Bank of Canada. Encasa offers flexibility your invested money is NOT locked in and can be withdrawn at any time. Encasa can help you invest in a diversified manner to meet your short- and long-term capital needs, and help you determine the best use of funds, along with providing you with assistance if you desire it. Customer service and support tailored to the housing sector We offer housing-specific investment and professional money management, and hands-on customer support. We are extremely pleased to be part of the Program. It offers excellent pricing and excellent professional investment advice. Deborah Filice, President, Institute of Housing Management & Director of Housing for City of Brantford/Brant County 2

4 THE BENEFITS OF INVESTING WITH ENCASA By choosing to invest with Encasa, providers join a group of more than 850 existing non-profit and co-operative housing organizations. All investments call for a small minimal initial contribution of at least $1,000, featuring low fees, and are supported with an outstanding level of personal customer service. The benefits of the Social Housing Investment Program include: A range of short- and long-term mutual funds Access to professional portfolio management and individual advice Low Management Expense Ratios (MERs) Funds designed to meet providers needs and interests Funds overseen by a board where providers are represented The opportunity to link investments with education and training to meet providers needs Specialized communications to support the program Investment returns that have consistently outperformed GICs and traditional sector-permitted investments Quarterly Economic Outlook and Fund Commentary from Phillips, Hager & North Investment Management. Quarterly Account Statement with summary of transactions, current market value as well as Investment Rate of Return The program provides enough options to give you choices whether you are big or little but at the same time, it s not so complicated that you have to struggle with your decisions Jim Steele, CEO, Windsor Essex Community Housing Corporation 3

5 ASSET ALLOCATION RESOURCES The Asset Mix Calculator and the Investment Portfolio Selector, which can help you make the most responsible investment decisions, based on your capital plans, are available at It is important to review your investment choices annually, updating them to reflect any changes in the condition of your building(s) or in your capital plan. 4

6 ASSET ALLOCATION RESOURCES Asset Mix Calculator The Asset Mix Calculator is an electronic tool for providers who want to invest capital reserves and who have confidence in their building condition assessments. When you enter three specific numbers into the electronic version of the Asset Mix Calculator, it recommends an appropriate investment fund allocation tailored to your capital requirements. In other words, it recommends what percentage of your capital reserves to place in each of the three Social Housing Investment Funds. A printed version of the Asset Mix Calculator is available for providers who cannot use the electronic version. You can follow the step-by-step instructions in the printed version to obtain the same investment mix that the electronic Asset Mix Calculator would have recommended based on your capital requirements. 5

7 ASSET ALLOCATION RESOURCES The Model Investment Portfolio Selector The Model Investment Portfolio Selector is for providers who want to invest capital reserves but do not have a building condition assessment, or are not comfortable with the one that they have. It is also for providers who need to decide how to invest money other than capital reserves. The Model Investment Portfolio Selector presents five model portfolios. Each model investment portfolio has a different percentage of money in each of the three Social Housing Investment Funds. For each model investment portfolio, a series of statements has been provided. These statements describe typical situations that would lend themselves to the investment mix shown in the pie chart accompanying that particular model. By identifying the statement(s) that most closely reflect your expectations about when the money will be needed, you can find the model that is best suited to your particular circumstances. How a model investment portfolio can help you make good investment decisions: Some providers find it difficult to develop portfolio allocations. The Model Investment Portfolio Selector gives you a starting point that you can adapt to better reflect your individual circumstances. How to assess whether these models perform well over time: Encasa reports the performance for these model investment portfolios in Capital Ideas and on 6

8 HOW THE INVESTMENT PROGRAM WORKS Capital Plan & Capital Budget Asset Allocation Tools (Asset Mix Calculator, Model Portfolio Selector) Canadian Short-Term Bond Fund Low Risk 1 to 5 Year Horizon Canadian Bond Fund Low Risk 5 to 7 Year Horizon Canadian Equity Fund Medium Risk Beyond 7 Year Horizon 7

9 Social Housing Canadian Short-Term Bond Fund This fund invests primarily in high-quality short-term debt obligations issued or guaranteed by the Canadian government, financial institutions and Canadian corporations that conduct themselves in a socially responsible manner. Risk level: low Social Housing Canadian Bond Fund The investment objective of the Fund is to provide investors with relatively high yields and stability of capital by investing in a well-diversified portfolio of fixed income securities issued primarily by Canadian governments and corporations that conduct themselves in a socially responsible manner. To achieve the Fund s investment objective, the portfolio adviser invests primarily in high-quality Canadian corporate and government bonds. The Fund may also invest a portion of its assets in foreign bonds. The average term to maturity of the portfolio typically falls between five and 12 years. Risk level: low Social Housing Canadian Equity Fund The investment objective of the Fund is to provide investors with long-term capital growth by investing primarily in a diversified portfolio of common shares of Canadian companies, which are chosen primarily for their growth potential and because they conduct themselves in a socially responsible manner. The Fund may, from time to time, invest a portion of its assets in non-canadian securities where such an investment is consistent with the investment objective of the Fund. Risk level: medium 8

10 A BRIGHT FUTURE WITH ENCASA Encasa has already helped hundreds of non-profit and co-operative housing organizations maximize their investments, strengthening the sector as a whole in the process. To find out if Encasa is right for you or to arrange a consultation, please do not hesitate to contact us. Ontario and Eastern Canada B.C. and Western Canada John Osmond - Manager, Client Services josmond@encasa.ca P: ext 237 P2: C: F: Dawn Bowles - Investment Liaison, Western Canada dbowles@encasa.ca P: ext 312 C: F: Visit us online at Disclaimer Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Rates of return, unit prices and distributions are for series A units of Social Housing Investment Funds. The indicated rates of return are the historical annual compounded total returns, including changes in unit values and reinvestment of all distributions; they do not take into account sales, redemption, distribution or optional charges, or income taxes paid by any unitholder that would have the effect of reducing returns. Mutual funds are not guaranteed or covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer and their values change frequently. Past performance might not be repeated. There can be no assurances that the fund will be able to maintain its net asset value per unit at a constant amount or that the full amount of your investment in the fund will be returned to you. Encasa is the program administrator for the Social Housing Investment Program and the fund manager of the Social Housing Investment Funds. RBC Global Asset Management Inc. (RBC GAM) is the portfolio adviser for all Social Housing Investment Funds. RBC GAM and PH&NIF are indirect, wholly-owned subsidiaries of Royal Bank of Canada. PH&N Investment Services is a registered trademark of Royal Bank. Used under Licence.