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Labour Sponsored Investment Funds

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Labour Sponsored Investment Funds (LSIFs) are corporations sponsored by labour organizations designed to invest in small and mid-size Canadian businesses subject to the following criterion:

  • Less than 500 employees
  • Less than $50 million in assets at the time of investment
  • Maximum $15 million investment

LSIFs now account for approximately 40% of all venture capital raised in Canada. LSIFs are a way to try to reduce risk and enhance potential returns. A typical LSIF investor reduces the risk exposure of investing in venture capital by holding a diversified portfolio of small- to mid-size companies. LSIFs may specialize in certain sectors of activity, such as biotechnology or information technology. They also differ in the investment stage of companies.

LSIF Tax Benefits

Since venture capital supports technologies important to Canada's long-term economic well being, federal and provincial governments offer tax credits to Canadians who invest in LSIFs. The Federal Government offers a 15% tax credit on a maximum LSIF investment of $5,000 each year. Most provincial governments across the country offer an additional 15% tax credit on eligible LSIF investments, creating a total federal and provincial tax credit of 30%. The Ontario Government offers a 20% tax credit on research oriented investment funds (ROIF) LSIFs, generating a total of 35% in tax credits. If investors redeem their LSIF investment within 8 years, then the tax credits will be clawed back by the governments.

The LSIF Advantage

LSIFs offer a diversified portfolio of venture capital to investors who have a long-term investment horizon and a willingness to assist in the development of Canada's highest growth industrial sectors. Investors looking for the potential of higher returns and tax benefits ought to take a closer look at LSIFs. However, it is important to remember that due to the nature of the companies being invested in, this asset class has an inherently higher level of risk associated with it.

For more information, contact an Investment Representative at 1-800-465-5463.

The following Labour Sponsored Investment Funds are available from TD Direct Investing.

APV100 Algonquin Power Venture Fund I
ALT100 Altruista Fund Inc.
CIG559 Altura Growth Fund (EVCC) Inc.
UAL100 B.E.S.T. Discovers Fund (DSC)
CIG509 BPI Ensis Growth LSVCC (DSC)
CIG508 BPI Ensis Growth LSVCC
CIG912 C.I. Covington II (DSC)
CIG917 C.I. Covington Strategic Capital Series II
CAV001 Capital Alliance Ventures (DSC)
CCP100 CCP Crown Ventures Fund Inc.
CRO001 Crocus Labour Fund (DSC)
DYN769 Dynamic Venture Opportunities
FOM001 First Ontario Fund (DSC)
FOM101 First Ontario Growth (DSC)
GOF501 Golden Opportunities Fund Inc.
WVN641 Growthworks (WV) Canadian Balanced
WVN691 Growthworks (WV) Canadian Diversified
WVN671 Growthworks (WV) Canadian Financial Services
WVN651 Growthworks (WV) Canadian Growth
WVN661 Growthworks (WV) Canadian Income
WVN681 Growthworks (WV) Canadian Resource
WVN341 Growthworks (WV) Opportunity Balanced
WVN391 Growthworks (WV) Opportunity Diversified
WVN371 Growthworks (WV) Opportunity Financial Services
WVN351 Growthworks (WV) Opportunity Growth
WVN361 Growthworks (WV) Opportunity Income
WVN381 Growthworks (WV) Opportunity Resource
MFC1229 Mackenzie Vengrowth Advanced Life Sciences
MFC1899 Mackenzie Vengrowth III Investment Fund
MFC1599 Mackenzie Vengrowth Traditional Industries (LSVCC)
RGF001 Retrocom Growth Fund
ROI102 Return on Innovation (ROI) Fund Series II
TAL875 Talvest Canadian Medical Discoveries
TAL174 Talvest Canadian Medical Discoveries II (DSC)
TAL172 Talvest Canadian Sci & Tech (DSC)
TRX820 Triax Capital First Venture
TRX801 Triax Financial Ind. Opp. Sr. II
DCC100 British Columbia Discovery
FOM002 First Ontario Fund (DSC)
FSC102 Front Street Energy Growth Ser. III
MAV306 Lawrence Enterprise Series IV
MFC679 Mackenzie Vengrowth II (DSC)
PGF103 Pender Growth Fund VCC
TRX503 Triax E2 Venture Fund II
TRX103 Triax Growth Fund DSC III
TRX403 Triax New Generation Biotech Equity III
TRX703 Triax Venture Partners Equity III
CIG6924 Venturelink Brighter Future Eq. IV
CIG6934 Venturelink Diversified Inc. IV
CIG6914 Venturelink Financial Services IV
CIG6904 Venturelink Fund, Series IV
WOF141 Working Opportunities Bal.
WOF151 Working Opportunities Growth
WVN610 Working Ventures (DSC)
WVN630 Working Ventures Opportunity

This list is subject to change. Certain funds are not available in every province. For complete information and confirmation of availability, including details of inclusions or exceptions with respect to our pricing programs, please contact an Investment Representative at 1-800-465-5463.