ABOUT THREE POINT CAPITAL WEALTH MANAGEMENT INC.
Three Point Capital Wealth Management is an Exempt Market Dealer (EMD) which is a company that can offer securities that are not sold under a prospectus (i.e. prospectus-exempt securities) to qualifying investors.
We help prospective purchasers of Three Point Capital Corp resident in British Columbia or Alberta to understand the features and risks of Three Point Capital Corp. We also determine if a prospective investor is eligible to make a purchase and if a purchase would be suitable for them. Three Point Capital Corp. is a prospectus-exempt security.
Three Point Capital Wealth Management (the Exempt Market Dealer) is a company that is related to Three Point Capital Corp. (the Issuer) and Three Point Capital Management Corp. (the Manager), as it has certain directors, officers and employees in common with those other ThreePoint companies.
For more information about how these companies are related, see the Relationship Disclosure Information document (RDI) below.
THE THREE POINT CAPITAL WEALTH MANAGEMENT TEAM
Ryan Lee, UDP, Dealing Representative
Marylyn Needham, Chief Compliance Officer, Dealing Representative
Danica Trentalance, Dealing Representative
To check if a person is registered to sell securities in Canada, visit National Registration Search and search by the individual’s name or firm name.
ABOUT THE SECURITIES WE OFFER
We currently only offer the securities of Three Point Capital Corp., a related company. As the companies are related, it is important to us that you realize we do not offer any other investment securities beyond those of Three Point Capital Corp. The RDI document will fully explain this relationship.
THE INVESTMENT OBJECTIVES OF THREE POINT CAPITAL CORP.
The primary investment objective of Three Point Capital Corp. is to provide its shareholders with a stable monthly dividend secured by careful investment in residential mortgage loans that adhere to the company’s disciplined underwriting policy.
The company aims to achieve their investment objectives by demonstrating discipline in the details. They strive to ensure their residential mortgage loans are made within communities where the stability and liquidity of real estate is high and to borrowers that represent an acceptable level of risk with a significant amount of equity to contribute.
As a Mortgage Investment Corporation, the company focuses primarily on residential mortgages secured in the first position and distributes all net earnings every year by way of dividends to shareholders.
Dividends are declared and paid monthly. Three Point Capital Corp. delivered a return of 7.08% to shareholders in 2017, 7.17% in 2018, 7.03% in 2019 and 6.28% in 2020, net of all expenses including management fees. The company offers the choice of monthly cash dividend payments or dividend reinvestment program (DRIP) that allows shareholders to automatically reinvest their dividends in new shares of Three Point Capital Corp. and enjoy the benefit of compounding interest.
The monthly dividend distributed is currently 5% p.a., paid monthly, with a top-up dividend paid to each shareholder of record on the last day of the fiscal year (December 31st) to match the actual yield earned by the company as confirmed by their Auditors (Grant Thornton).
Under Section 130.1 of the Income Tax Act, taxable dividends paid to shareholders are taxed as interest income. As a Mortgage Investment Corporation, the company does not pay any income taxes, provided that they distribute all of their taxable income each year. In effect, they flow interest income earned on investments in mortgages through to shareholders.
REGISTERED PLAN ELIGIBILITY
The shares of Three Point Capital Corp., a mortgage investment corporation (MIC), are qualified investments for deferred income plans including registered retirement savings plans (“RRSPs”), registered retirement income funds (“RRIFs”), tax-free savings accounts (“TFSAs”) and registered education savings plans (“RESPs”).
The company qualifies as a MIC and is restricted from any activity that would result in it failing to qualify as a MIC. To qualify as a MIC, the company must satisfy the requirements in subsection 130.1(6) of the Income Tax Act throughout the taxation year. The company’s only undertaking can be the investing of funds; it is not permitted to manage or develop real property.
Three Point Capital Wealth Management has engaged Fundamental Research Corporation to provide continuous analyst coverage on the MIC. This report is paid for by Three Point Capital Wealth Management and is available for download here.View Report >
THREE POINT CAPITAL CORP. OFFERING MEMORANDUM, FACT SHEET & CORPORATE VIDEO
An offering memorandum (OM) is a legal document that states the objectives, risks and terms of an investment involved with a private placement. This document includes items such as a company’s financial statements, management biographies, a detailed description of the business operations and much more. An offering memorandum serves to provide prospective investors with information on the offering that can aid them in determining whether a certain investment is of interest to them.
The Three Point Capital Crop. Offering Memorandum (OM) can be viewed here.
Three Point Capital Corp. has also provided a FACT SHEET that summarizes some of the detail contained in the Offering Memorandum (OM) and is updated quarterly. Most notably, the FACT SHEET shows the current quarterly composition of the Three Point Capital Corp. mortgage portfolio, the audited past performance of Three Point Capital Corp. which is net of the management fee, the way in which dividends are paid (monthly), the liquidity of the investment (monthly, subject to Sec. 5.1 of the OM), the management fee that is charged by the manager (1.95%, decreasing to 1.5% as the size of the portfolio grows), the composition of the Board of Directors and a general overview of the company. It is also important to note that there are no commissions paid when investors choose to invest in Three Point Capital Corp. and as such, there is no fee or penalty when an investor chooses to redeem.
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