First Canadian Securities® comparison to other flow-through funds

First Canadian Securities® (Offering Memorandum) vs. Other Flow-Through Funds

First Canadian Securities® flow-through securities (available by Offering Memorandum) are a cut above similar, competing products.  Here are some significant differences among flow-through investment products:


Other Flow-Throughs

First Canadian Securities

Tax Credit

Minimum 15 %, and as high as 32 %, resulting in an equivalent tax deduction in 2019 of  117 % to 164 %;  all First Canadian Securities® super flow-through funds are 100 % invested in mining exploration

Sometimes NIL, and in any event, no more than 15 %, because typically oil/gas (which allows no tax credit) is mixed in with mining; equivalent tax deduction is typically 100 % to 115 %

Ongoing Fees to  General Partner

NIL. General Partner only gets fee at back-end, and only after investors are paid back 100 % of their investment, providing maximum motivation to deliver investment returns

Others get, every year, a percentage of Partnership’s net assets, even if they decline, just like mutual funds, which cuts into returns to investors, and provides less motivation for the fund to choose the best possible investments

Targeted for 2020

Partnership Dissolution

Targeted up to 2021 -- more than 1 year later!

Senior Technical Analyst

Legendary senior technical analyst Horst Mueller of Mueller Behavioural Analytics advises First Canadian Securities® to augment the fundamental analysis performed on each investment by Senior Portfolio Manager Andrew Cook of Palette Investment Management Inc.; Mr. Mueller is exclusive to First Canadian Securities®

Other funds don't have their own experienced senior technical analyst to provide technical analysis on both the buy and sell sides, and just focus on fundamental analysis

Stock Exchange Listing & Investment Liquidity

100 % of First Canadian Securities® investments must be in companies listed on stock exchanges

Only 0 % - 90 % of others’ investments must be in companies listed on stock exchanges; up to 100 % can be invested in less liquid private companies

Hold Periods & Investment Liquidity

100 % of First Canadian Securities® investments must be in companies with no more than a 4 month hold period

No maximum hold period restrictions; this means that some investments could have a 1 year hold or longer, especially private companies

Investor Disclosure

First Canadian Securities® has a very detailed Offering Memorandum

Some others offer no Offering Memorandum at all, just a Subscription Agreement

Eligibility Across Canada

Investors from all 10 provinces and 3 territories are eligible to invest in First Canadian Securities®

Many others are restricted to Ontario, B.C. & Alberta

Front-End Costs

The front-end expenses (e.g., commissions and  costs of issue) are capped at 10 % with First Canadian Securities®, which means that 90 % goes into the ground (i.e., is invested in mining company shares)

The front-end expenses are often 15 % or more, which means only 85 % (or even less) goes into the ground.

Participation of Watts, Griffis and McOuat*


WGM is able to help access extraordinary opportunities for First Canadian Securities®


WGM is exclusive to First Canadian Securities®

*Watts, Griffis and McQuat are blue-chip geological and engineering consultants for over 40 years, and highly respected in the mining industry


First Canadian Securities® commits in writing to try to not pay premiums of more than 10 %

Others are deliberately vague about the premiums they pay, often because they pay huge premiums of 35 % or more, especially in oil & gas flow-throughs