Tuesday, April 21, 2009
Greetings Member-Partners,
The best measure of a company's performance is the willingness of its customers to refer their friends and colleagues. In statistical circles, this is known as a company's "Net Promoter Score". The higher the score, the more likely the company will be around for a long time.
To find out how we "score", we sent each of our 1,400 Member-Partners a survey card. Let me say right off: we are so very delighted and encouraged by your responses! They indicated that League will indeed be around for a long, long time. (I have scanned all the replies, and posted them online-with names blocked out-at www.league.ca/pdf/2009survey.pdf)
These were the questions:
- On a scale of 1-10, how likely is it that you would recommend League to a friend
or colleague?
- What was the most important reason for the score you gave?
- Is there anything we can do to serve you better?
The Survey Results ...
Here's what you told us:
- 81% promote League actively – You are already referring League to your friends and colleagues.
- 15% are passively satisfied – You are happy with League, but do not actively refer others.
- 4% are not the promoting kind – You are unlikely to refer League because, as a rule, you just don't recommend investments to others – despite the fact you have confidence in League.
These are outstandingly positive results! And they explain why we're signing on new Member-Partners every day. A big "thank you" goes to all you League promoters!
I examined the reply cards one by one to find out why you gave us the score you did. Here's what I found:
- 38% cited "Investment Performance"
Mentioned were return on investment, consistency, low volatility,
growth, distributions, tax-efficiency, the DRIP program, tangible asset base, diversity
- 21% cited "Confidence in Leadership"
Mentioned were confidence in League's leaders, transparency ("nothing is hidden"), principles, honesty, ethics ("you do what you say" and "you delivered what you promised"), accountability, and the most commonly used word was "integrity".
- 19% cited "Communications"
Mentioned were frequency of communications, updates, and reporting in "plain language".
- 16% cited "Service"
Mentioned were service, professionalism, respect, friendly, efficient, organized, accurate, and available.
- 7% cited various other "Positive Virtues"
Mentioned were League's Credo, low minimum investment,
and the fair compensation and fee structure.
Your Concerns, Suggestions ...
It's interesting to note that 80% of all respondents said they couldn't think of a single thing we could do to improve. That is truly amazing! But, as I did with last year's survey, I will attempt to answer the concerns and comments we did receive. If I do not answer to your particular satisfaction, please call and speak with one of League's Members Services Managers. They are expertly trained by our VP of Member Services, David Yan, to help you get the answers you need.
And now, in answer to your comments and requests...
Lower cost third-party registered plan providers
As many of you know, Olympia Trust is currently League's main provider of RRSP and Tax-Free Savings Account services. We are currently talking with several other trust service providers to offer more choices for administering RRSP, RESP, LIRA RRIF and TFSA funds. As it turns out, Olympia's fees are in line with the others we've approached. Not only that, Olympia can now do electronic transfers. This means that investments made from your registered plans can be done simply and efficiently in only a fraction of the time - in as little as one week.
Of course, we will continue our talks with alternative trust service providers, and encourage you to speak with your present provider and introduce them to League. If and when we bring a new registered plan partner on board, I will immediately notify all our Members.
Less paper
League is committed to keeping you informed. And that means a lot of paper and postage. That's why we now include postage-paid response cards with each quarter's "State of the Units" and "Highlights" booklets, we've given you the option of receiving our correspondence electronically.
Recently we mailed you four cards on one double-perforated sheet. Two of them ask us to send a Blue Book to a friend or colleague on your behalf. One takes you off our mail lists completely, and the other is for you to update your contact information and let us know your mail/email preference. I urge you to make use of these postage pre-paid cards. It helps you and it helps us.
Members login and statement refinements
I admit it. There is definitely room for improvement in the Members Login area of our website. I had hoped that by now we could offer a more user-friendly layout for both our paper and online account statements, as well as tools such as personalized graphs and tables that would make tracking your investment's performance easier. Although we are making significant progress in that direction, it is a tediously slow process.
Currently we are working to connect our custom-built proprietary database with the Yardi system that we began investing in more than a year ago. Transitioning to this new accounting platform while developing a software bridge, and constantly adding new administrative features to our current platform, is absorbing the majority of our programmer's time. But in the next few weeks, we hope to launch our new website, and along with it some small improvements to the Member's area interface. In time, we plan to offer a truly world-class online experience for all our Member-Partners.
In the meantime, if you have specific requests or suggestions, and perhaps examples of something you've seen done particularly well by another company, we'd love to hear about it. Send an email to info@league.ca and we will carefully consider your suggestions.
More administrative personnel
I am pleased to report that we have made significant additions to our administrative staff. There are now eight accounting professionals working in our back office, including two Chartered Accountants, two Certified Management Accountants, and one Certified General Accountant. Joining Pat Minogue in the Member Services Administration area, are Atsuko Tanahara and Leticia Hansen. As they settle into their positions, I'm sure you'll notice improvement in the way your accounts are handled.
I look forward to introducing them to you individually by way of letter in the near future.
More property updates
We recognize that to investors accustomed to the adrenaline rush of the moment-by-moment ups and downs of the stock market, real estate can seem slow by comparison. If you're looking for a rush of excitement every time you check your League holdings on the computer, you'll be disappointed.
Development permits, plans from architects, approval from city councillors, and consensus from local residents take weeks or even months. And thereafter construction can take months to get started and perhaps years to complete. So there is rarely news to tell on a day-to-day, week-to-week, or even month-to-month basis.
But by means of general newsletters and periodic announcements – as well as our quarterly "State of the Units" reports – we keep you abreast of all the significant events that affect your investment, including the effects of the economic crises. If you've missed any of the announcements or updates, you can always find them at www.league.ca/updates.
More property details
Some Member Partners may still be unaware that a few months ago we provided a full-page information sheet for each property in the IGW REIT pool. However, this added so many pages to the REIT Investment Overview, we had to split it into two booklets: Part 1: The Investment Overview, and Part 2: The Portfolio Profile.
The newly-added Portfolio Profile booklet provides an overview of each property, as well as the projects we undertake to produce increases in revenue and value in each. You can download a copy by clicking here or ask your Member Services Manager to send you a printed copy.
More financial details
A few respondents requested easier-to-read cash flow statements for the IGW REIT. GAAP-compliant financial statements are included with every Offering Memorandum (OM) produced for a League investment. These statements contain cash flow statements that provide specific information about sources and uses of cash.
The 180-page IGW REIT Offering Memorandum is updated quarterly to include management-prepared financial statements, and on an annual basis to provide audited financial statements prepared by KPMG.
You will receive a copy of the Offering Memorandum along with your Subscription Agreement once we receive the Notice of Interest form signaling your interest in joining League in one of its investments. If you are already a subscriber, you can access the latest Offering Memorandum by contacting your Member Services Manager.
Additionally, annual and quarterly reports will be provided with our interim and audited annual financial statements. These reports contain management discussion and analysis of results of operations for the applicable period for the IGW REIT.
We our proud of our continued efforts toward providing reporting on the same level one would expect from a public company. We look forward to continuously building on the progress we've made thus far.
More investment options
There were some requests that League offer additional investment options and vehicles. Happily, we've already begun to do just that, the most recent being the IGW REIT's new Income Priority Units (IPUnits). In the works are a Mortgage Investment Corporation (MIC) offering, and several medium-term Real Estate Limited Partnerships (RELPs). You can read more about MICs and RELPs in the newly revised Blue Book of Real Estate Syndication. For a printed copy of the revised edition, just ask your Member Services Manager.
More services
Time and time again, we've been asked to offer an in-house or third-party leverage program –
the ability to borrow funds at a low interest rate, say 5%, with which to invest at higher returns, say 9.25%, with the difference (4.25%) being one's profit. Fact is, we would love to provide Member-Partners with this option, but with the current state of the credit markets, it just isn't feasible right now.
Another service we are considering is automatic monthly contributions. Many investors have asked to have regular amounts deducted from their bank account monthly, and used to invest
with League. Unfortunately, it will be quite some time before we can offer this service. The administrative costs of doing so are more than League can bear at its present size, and we prefer not to charge account administration fees. In time - and with your continued help in promoting League – we will reach the critical mass necessary to fund such a service. That's one of the reasons we say, any friend of yours is a friend of ours.
One request for you ...
We're listening, and we want to provide you and your family with exactly what you need and want. If you doubt my resolve, consider how long I must have spent creating this survey, waiting for the cards to return and combing through every one to make sure your voice is heard. I want you to be much more than satisfied, I want you busting at the seams waiting to tell others about League!
That's the kind of organization my partner Adam Gant and I want to run, and the kind of institution we intend League to remain.
Warmly and Sincerely,
Emanuel.
Emanuel F. Arruda, Founding Partner
League Assets Corp.
Learn, Earn, Live, Give.™
PS -- I almost forgot. We offered a per-response incentive for Members-Partners to complete the survey. I am pleased to report that your responses resulted in a significant donation to Absolute Leadership (absolute.org), one of the enterprises funded by the League Foundation, our philanthropic arm.
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"It's a funny thing about life; if you refuse to accept
anything but the best, you very often get it."
- W. Somerset Maugham -
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