Money matters. People matter more.

Transcription

1 Money matters. People matter more. 1

2 Important Note This material is for information purposes only and does not constitute an offer to sell securities. An offer can only be made through the Offering Memorandum and the appropriate exemption documents provided to prospective purchasers through a registered securities dealer. This information is inherently limited in scope and does not contain all of the applicable terms, conditions, limitations, risks and exclusions of the investments described herein. Prospective purchasers should read the Offering Memorandum before considering investing in this security. This material is in no way a complete description of the proposed investment and is in all respects subject to the provisions of the Offering Memorandum. This Offering may be subject to potential risks associated with the investment, including market, liquidity and investment return risk. Please consult the Offering documents for further information regarding these potential risks. In order to be eligible for subscription in this Offering, individuals must satisfy the criteria required for suitability mandated by the appropriate securities laws in their jurisdiction of residence. Please contact your investment dealer for more information. 2

3 What are SecureCare Bonds? True asset supported bonds. Supported by income producing assets. Assets are insured against default. Insured credit receivables. 3

4 SecureCare Bonds History* Bond sales began in November ,691 current Bondholders. $50 million of Bonds outstanding. $3.75 million Bondholder interest paid or accrued. $3.85 million Bonds redeemed. $4.96 million Bonds renewed. Perfect record of interest and redemption payments. All assets performed with no insurance claims. * SecureCare Investments Inc. 4

5 SecureCare Bonds Terms * 5 year 44% 1 year 37% 3 year 19% * SecureCare Investments Inc. 5

6 1, 3 and 5 year fixed terms Definite exit strategy! 6

7 SecureCare Bond yields 7% for 1 year 8% for 3 years 9% for 5 years Monthly distributions or Monthly compounding paid annually 7

8 SecureCare Bond yields 8

9 Monthly Compounded paid Annually Effective Annual Yield 7.23% for 1 year term 8.30% for 3 year term 9.38% for 5 year term 9

10 Eligible for self-directed registered plans RRSP LRSP RESP RRIF LIF LIRA TFSA 10

11 Eligible for self-directed registered plans Application in progress 11

12 No offering fees or MER s A typical big Canadian equity fund might have an MER in the low 2 percent range. Popular bond funds have MERs in the 1 to 1.5 per-cent range. Let's Stop Hiding the Cost of Mutual Fund Fees By Rob Carrick, The Globe and Mail Wednesday, Sep. 28, 2011 Bondholders always get paid first. 12

13 SecureCare buys TFS Assets Early in 2011, SecureCare Investments made a deal with TFS to buy some of its stream of insured credit receivables, in order to provide safe assets and cash flow for SecureCare Bondholders. 13

14 Key Personnel Peter Johannes, B.Sc., AMP President Peter has 25 years of experience in mortgage and real estate sales and finance and holds an Accredited Mortgage Professional designation from the Canadian Association of Accredited Mortgage Professionals. Mr. Johannes has built and successfully operated a mortgage investment corporation. He has worked as a senior executive and president of a group of investment companies, structuring exempt market investment products. Peter has received extensive education in investment, finance and compliance, including completing courses at The Investment Funds Institute of Canada. Ingrid Johannes Managing Director Ingrid has 26 years of sales, service and administration experience. She has served as mortgage underwriting officer and, over seventeen years, has held senior roles as manager in mid-sized health care centers. Ingrid and her staff were routinely responsible for billing, collections and reconciliation of accounts totaling $1 million each month, as well as electronic health records management and systems maintenance. Jason Priest, BA, CFA, FRM, CFP Fund Manager Jason began his career as a Financial Planner with one of Canada's largest insurance companies and quickly developed a specialty in investments and financial markets. He earned Canadian Investment Manager (CIM) and Certified Financial Planner (CFP) designations in 2001, Derivatives Market Specialist (DMS) in 2003, became a Chartered Financial Analyst (CFA) in 2004 and obtained a Financial Risk manager (FRM) designation in Mr. Priest is a member of the CFA Institute and the Global Association of Risk Professionals (GARP) and has extensive analytical and risk assessment experience, particularly for fixed income investments. Linda Palmer, CSC Advisor Relations Manager Linda has over 24 years in financial service and support, completing the Canadian Securities Course and several other finance related programs. She has worked with TD Greenline Investor Services, provided client support with Richardson Greenshields and, most recently, worked as a Freedom 55 Account Representative. 14

15 J. Priest Investment Management Inc. Registered Portfolio Manager Jason C. Priest UDP, CCO Jason Priest, BA, CFA, FRM, CFP Fund Manager Jason began his career as a Financial Planner with one of Canada's largest insurance companies and quickly developed a specialty in investments and financial markets. He earned Canadian Investment Manager (CIM) and Certified Financial Planner (CFP) designations in 2001, Derivatives Market Specialist (DMS) in 2003, became a Chartered Financial Analyst (CFA) in 2004 and obtained a Financial Risk manager (FRM) designation in Mr. Priest is a member of the CFA Institute and the Global Association of Risk Professionals (GARP) and has extensive analytical and risk assessment experience, particularly for fixed income investments. 15

16 Key Personnel - TFS Stephen McDonald President, TFS Management Inc. and TFS RT Inc. Steve has been active in the factoring industry for the last six years. He brings 26 years of experience in sales and executive management in the technology sector and has facilitated well over $100 million of receivables contracts, involving businesses in 15 different countries. Steve is the President of both TFS management Inc. and TFS RT. Sandra Simmons, Hon. B.A., CGA - CFO, TFS Management Inc. With an honours degree in accounting and a Certified General Accountant designation, Sandra is an expert in dealing with the accounting and administrative needs of private and public companies. She has been in charge of TFS financial operations for the last 6 years. Prior to that Sandra was the Director of Accounting for InterTAN in Canada and Manager of Accounting for EP Canada. Joe Healy, Credit Manager, TFS Management Inc. Joe has over 20 years of credit and risk management experience. He has served as VP for a leading international commercial finance company, responsible for over $100 million of assets and VP for an international bank in charge of loan management and underwriting. Peter Nunes, BBA, MBA, SVP Business Development, TFS Management Inc. Peter has over twenty years of experience in international trade, operations, banking and factoring/asset based lending. He was VP of Global Trade Finance at Regions Bank and holds an MBA in Strategic Management from Dowling College in New York. 16

17 Fund Administrator Beginning in October 2013, SecureCare Bond funds will be administered by CommonWealth Fund Services in Toronto. Founded in 2007 and a subsidiary of Caledon Trust Company, CommonWealth has grown to over $2 billion of assets under administration, servicing both Canadian domiciled and offshore investment funds. They were recognized in Global Custodian s 2012 Hedge Fund Administration survey as the highest rated Canadian-founded administrator. 17

18 7 year old Canadian company. Financed over $830 million worth of transactions. Estimated more than 5,200 individual transactions. Excellent performance record with no bad debts. Perfect payment history. TFS Toronto office 18

19 Factoring (buying Credit Receivables) As a Factor, TFS helps small to medium businesses with their cash flow challenges by buying their invoices (credit receivables) for payments due from their large credit worthy customers in 30 to 120 days. 19

20 Factoring Payment Terms Net 60 Days 20

21 Factoring at up 3% to per 90% month of invoice amount Payment Terms Net 60 Days after 60 days Payment Terms Net 60 Days 21

22 Funding TFS Exempt Market Dealer SecureCare Bondholders Payment Terms Net 60 Days 22

23 Why do businesses use factoring? Bank financing unavailable or a hassle. Factoring is fast and convenient. Business prefers not to tie up their credit. Business is growing quickly. Manufacturer has special orders and needs capital. Factoring sometimes required to get business. Factoring financing grows with the business. TFS handles all receivables collection. Factoring is a complete financial package that combines working capital financing, credit risk protection, accounts receivable bookkeeping and collection services. 23

24 Services Factoring supports Agriculture Manufacturing Retail 24

25 Factoring is a growth industry The factoring market world wide was almost $3 trillion annually* in 2012, over $154 billion in North America* and growing each year. $3,500 $3,000 Worldwide Receivables Financing Volume $2,500 $2,000 $1,500 $1,000 $500 $ * Factors Chain International 25

26 When the economy is up Companies are in growth mode Need more capital Require money quickly Rely on factoring 26

27 When the economy is down Companies are in survival mode Sources of capital dry up Customers want longer terms Rely on factoring 27

28 Countries where TFS does business Toronto Miami 28

29 TFS Credit Receivable End Debtors TFS deals with a long list of factor transaction Customers (end debtors), including some of the North America s best know retailers. Customers pay amounts due for Credit Receivables directly to TFS. Here are just some of the Customers that TFS has received payments from: Lowe s Home Improvement Direct Energy Walmart Canada Bell Mobility Pratt and Whitney Walgreens Alpha Cappuccino Shoppers Drug Mart Rona Inc. US Air force 29

30 Some current Credit Receivables include Arrow Electronics Hi-tech electronics Italpasta Gourmet coffee beans Soriana LCD TV s C & G Engines Jet engine parts Seventh Avenue Computer tablets 30

31 Protecting Credit Receivable Payments TFS insures the payment of all credit receivables it finances with policies, either through Lloyd s of London or Euler Hermes Canada. Insurance policies always cover 5% more than the finance cost. TFS has had no insurance claims in the past 5 years. 31

32 Credit Receivables financed Process Credit Receivables Insurance Policy Management Inc. Credit Receivables held in trust Insurance Policy Coverage is assigned RT Inc. - Registered Trust Credit Receivables are sold General Security Agreement PPSA Registration Tax Deferred Plans Payments and Reports to Bondholders T5 Investor Payment and Reporting System RRSP, RRIF, TFSA, RESP Bondholders 32

33 Credit Receivables Insurance Policy Management Inc. RT Inc. - Registered Trust SecureCare Bonds use a structure similar to Canada Mortgage Bonds Canada Mortgage Trust Mortgages Insurance Policy 5 year SecureCare Bond 9.00% Bondholders Bondholders 5 year Canada Mortgage Bond 1.75% 33

34 Bondholder Risk Mitigation 34

35 Why SecureCare Bonds? Invest in quality insured credit receivables. Managed by a team of proven risk managers. Market independent and recession resistant. Stable and predictable return. Simple, end-of-term investment exit strategy. Monthly interest payments. Registered plan eligible (RRSP, RRIF, RESP, TFSA). Terms as short as one year or as long as five. Solid Stable Simple 35

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37 Money matters. People matter more. 37