Tuesday, April 21, 2009
Dear Member-Partners and friends,
Since March 10th, Member-Partners have purchased more than $4,181,000 Income Priority Units!
While traditional investment sources continue to offer less, League offers more – and we have the numbers to prove it!
We compared the best GIC and Government of Canada Bond rates (source: gicdirect.com and bloomberg.com respectively) and found that the IGW REIT's new Income Priority Unit currently beats these investments by an average of 6% per annum!
Here's what we found:
More Cash Flow ...
For every *$100,000 invested in the One-Year IPUnits, Member-Partners will receive $708.33 per month – for a total of $8,500 for the year.
For a *$100,000 investment in the Two-Year IPUnits, they will receive $770.83 per month – or $9,250 for each year.
More Tax-Efficient Than Interest or Dividends...80% More!
We assume that the Income Priority Units will be 80% tax-efficient. This means that whereas distribution from a traditional interest-bearing investment would be 100% taxable, only 20% of the cash flow you receive from IPUnits are taxable. That, of course, means more money you can spend, save, or re-invest as you wish.
An After-Tax Case Comparison ...
Assuming a marginal tax rate of 44% and a tax-efficiency of 80%, the after-tax return from the One-Year IPUnits is 7.752%. The after-tax return from the Two-Year IPUnits is 8.436%.
*To get that net return from a traditional interest-bearing investment, you would have to earn 13.84% and 15.06% respectively!
More Dependability and Security ...
Distributions paid on the new Income Priority Units are fixed – not variable. They are backed by the REIT's legal obligation to pay the return for the duration of the investment. So, you can rest easy through the next couple of years knowing that the distribution from IPUnits are based on the solid returns of the REIT's tangible land, brick, and mortar investments – not some value-fluctuating piece of stock market paper - and there is a commitment to repay the issue price at maturity, so you know you'll be getting all of your original capital back when your investment term ends.
Time is Running Out!
As I indicated in a recent letter, given the prevailing interest rate and market conditions, these introductory rates-one-year @ 8.5%, two-year @ 9.25%-will not be available much longer. Accordingly, we encourage you to consider whether the time is right to invest a portion of your capital in the current series.
If you are in need of a fixed term, fixed rate, fixed value investment, the Income Priority Units were designed with investors like you in mind. Given the present environment of low interest rates and stock market volatility, the IPUnits certainly present an attractive investment option.
We at League are thrilled and proud to offer our Member Partners this new tax-efficient, fixed-income investment, and we hope you'll take advantage of the current rates of return while
they last.
Sincerely,
Emanuel.
Emanuel F. Arruda, Founding Partner
League Assets Corp.
Learn, Earn, Live, Give.™
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"There comes a time when you realize that virtually
anything is possible - that nothing is too good to be true."
- Kobi Yamada -
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