Saskatchewan investors purchased $63.5 million in Labour-Sponsored Venture Capital Corporations (LSVCC) funds this tax year.
LSVCC's can be purchased through the two leading funds, Golden Opportunities Fund Inc. and SaskWorks Venture Fund Inc. The funds invest in small- and medium-sized businesses in the province to help companies grow and create jobs.
"Through LSVCC investments, Saskatchewan residents have the opportunity to support local business in the province while at the same time receiving a substantial tax credit," Enterprise Minister Ken Cheveldayoff said. "Fund sales are up over $3.5 million from last year, largely due to increased marketing and good work by the major funds in the province."
"As the province's first LSVCC, with the longest track record of success, we hold ourselves to the highest operating standards and financial disclosure in the industry," Golden Opportunities President and CEO Grant Kook said. "This has enabled the fund to continue its very positive fund raising pace in 2010 with more than $25 million in new share capital from more than 3,200 new shareholders across Saskatchewan. Since inception Golden Opportunities Fund has invested more than $173 million in 92 companies across this province impacting approximately 3,000 jobs. With strong liquidity in cash and marketable securities and an abundance of investment opportunities we are excited about continuing our impact on our provincial economy while maximizing shareholder returns."
"SaskWorks had another record setting RRSP season this year with $38.5 million invested this year by shareholders," SaskWorks President and CEO Randy Beattie said. "This year we attracted more than 2,600 new investors to our fund and we are the fastest growing and top performing labour-sponsored fund in the province. Last year we invested $39 million into businesses in the province and we are encouraged by the continued strong deal flow in 2010 so far."
The LSVCC funds and the legislation fall under the Invest in Saskatchewan Program, which provides a tax incentive to promote and encourage investment in registered pool and employee funds. On the first $5,000 invested, investors are eligible to receive federal and provincial tax credits that total 35 per cent. The Employee Investment Program also provides the opportunity for employees to invest in the company they work for and receive the same tax credits.
