Saskatchewan Government Growth Funds

Under the current Immigrant Investor Program, investors make an $800,000 five-year loan to the Government of Canada.  The Government of Canada then transfers the money to the province where the immigrant will be moving to.  There is no risk that the $800,000 will not be returned after five years.

The program was not always this risk-free.  In Saskatchewan, for example, the investment, which at the time was $250,000, went to the Saskatchewan Government Growth Fund Corporation.  Its purpose was to create and manage investment funds, with the goal being that these funds would ultimately make money for the investors.

Eight Saskatchewan Government Growth Funds were created.  Most did not make money.  According to the Saskatchewan Government Growth Fund’s website:

SGGF I: All of the investors were redeemed in 1998, and the Fund was wound up in 2009.

SGGF II: During 2005, the Fund’s remaining investments were liquidated. The proceeds of these disposals were used to pay the senior-ranking liabilities of the Fund and then to make a payment of $47,250 to the 31 investors who had not received a payment on their Bond. The accumulated deficit of the Fund at December 31, 2009 is $7.8 million. The Fund has no other sources of cash from which to make further payments to investors. It is not expected that any further cash distributions will be available to Bond holders. The Fund is in the process of being wound up.

SGGF III: All notes issued by SGGF III have matured. All investors have received at least $165,000 since the maturity of their notes. As a result of investment losses, the remaining ivestments in SGGF III are not expected to generate sufficient cash to make any significant further payments to investors.

SGGF IV: All notes issued by SGGF IV have matured. All investors have received $242,000 since the maturity of their notes. As a result of investment losses, the Fund is unable to repay the full principal amount to investors. The Fund is in the process of being wound up.  Bearing in mind the costs of the liquidation and dissolution, it is anticipated that an additional payment of approximately $500 will be made to investors once the liquidation has been completed.

SGGF V: All notes issued by SGGF V have matured. All investors have received $235,000 since the maturity of their notes. As a result of investment losses, the Fund is unable to repay the full principal amount to investors. The Fund is in the process of being wound up.  Bearing in mind the costs of the liquidation and dissolution, it is anticipated that an additional payment of approximately $300 will be made to investors once the liquidation has been completed.

SGGF VI: All notes issued by SGGF VI have matured.  All investors have received $238,000 since the maturity of their notes. As a result of investment losses, the Fund is unable to repay the full principal amount to investors. If the assumptions underlying current forecasts of cash flows from investments prove to be correct, additional payments to investors may be possible in 2010. The current forecast projects that the total payment to investors could be in the range of $239,000 to $243,000.

SGGF VII: All notes issued by SGGF VII have matured.  All investors have received $226,500 since the maturity of their notes. As a result of investment losses, the Fund is unable to repay the full principal amount to investors. If the assumptions underlying current forecasts of cash flows from investments prove to be correct, additional payments to investors may be possible in 2010. The current forecast projects that the total payment to investors could be in the range of $233,500 to $235,500.

SGGF VIII: All notes issued by SGGF VIII have matured.  All investors have received $218,500 since the maturity of their notes. As a result of investment losses, the Fund is unable to repay the full principal amount to investors. If the assumptions underlying current forecasts of cash flows from investments prove to be correct, additional payments to investors may be possible in 2010. The current forecast projects that the total payment to investors could be in the range of $230,000 to $235,000.

Our office has recently become aware of individuals who have been said to owe money for investments made under the program. If you are such an individual, please contact our office. We believe that we can help.