Frequently Asked Questions

1. What is the Working Opportunity Fund?
The Working Opportunity Fund (EVCC) Ltd. is a labour-sponsored venture capital fund owned entirely by approximately 50,000 individual British Columbians. The Fund currently has approximately $240 million in assets and has almost half of its assets invested in small and medium sized BC businesses. The remaining assets are invested in fixed income investments for the Balanced Shares and equity and fixed income for the Growth Shares. The Commercialization Shares will be invested in early-stage, research-oriented companies and fixed income investments.

2. What is the purpose of the Fund?
The Fund's purpose is to provide a competitive long-term return for its shareholders by making equity investments in small to medium sized innovative, high-growth British Columbia companies. It also provides tax savings to residents of BC through tax credits. WOF seeks long-term appreciation on investments.

3. Is it a government fund?
No. The two levels of government facilitate the Fund's capital raising through tax credits in order to promote BC business development, but that is their only connection. The Fund is an Employee Venture Capital Corporation (EVCC) under the Employee Investment Act. The Fund is completely private and owned 100% by its shareholders.

4. Does the Fund invest only in unionized companies?
No. Whether a company is unionized or not does not enter into consideration when making investment decisions.

5. When did the Fund start?
The Fund first sold common shares to the public in January 1992. In January 2000, all previously issued common shares were exchanged for Balanced Shares on a one-for-one basis and continued the same investment strategy. In January 2000, WOF began offering Growth Shares. In February 2005, Commercialization Shares were introduced.

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About Subscribing to the Fund

1. Who is eligible to purchase shares in the Fund?
All residents of British Columbia.

2. What are the minimum and maximum amounts that can be invested?
The minimum initial investment in a single installment payment is $500; the minimum subsequent subscription is $25. There is no maximum investment; however, RRSP investments in the Fund are limited to the amount for which the annuitant is eligible. There are also yearly maximums for the tax credits. (See "About the Tax Credits" - Question #2.)

3. Does the Fund qualify as an RRSP investment?
Yes. Any British Columbian resident with taxable income may purchase shares in the Fund by means of an RRSP, thereby increasing, possibly doubling his or her tax savings.

4. What about Spousal RRSPs?
An investor may contribute to a Spousal RRSP which purchases shares of the Fund for his or her spouse. The contributor must be listed as the beneficiary of the Spousal RRSP. WOF does not hold joint accounts. Speak with your Investment Advisor for more information specific to your situation.

5. If I don't have a self-directed RRSP, how do I purchase the Fund in an RRSP?
You may open a Working Opportunity Fund RRSP by filling in the appropriate sections of the Application Form through your Investment Advisor.

6. Can I purchase Fund shares using money I already have in an RRSP?
Yes.

7. Can I purchase WOF in an RESP?
No. WOF is not available to be purchased in an RESP.

8. Can a senior with a RRIF purchase WOF shares and receive the tax credits?
A registered retirement income fund ("RRIF") is not eligible to subscribe for shares and receive a federal tax credit. If you are of RRIF eligible age, WOF can be purchased in a non-registered account with full eligibility for tax credits. Please contact your Investment Advisor for full information.

9. What is the deadline for purchasing shares in order to qualify for tax credits?
Shares may be purchased for tax credits at any time during the taxation year, or up to a deadline of 60 days into the following year. The Fund does have a yearly cap and will likely sell out before the RRSP deadline. Contact your Investment Advisor early to purchase WOF.

10. Do I have to pay for my shares all at once, or is there a payment plan?
If you purchase your shares near the deadline, you must come up with a lump sum of money. Others save money out of each pay cheque or opt for pre-authorized monthly withdrawal of funds from their bank account as explained on the Fund's Application Form. If pre-authorized withdrawal is your choice you may simply check off the box provided on the Form and fill in your information. Some employers have payroll deduction plans for their employees to purchase the Working Opportunity Fund. If applicable, this option may also be checked off on the Form. There is a minimum contribution of $25 per month under either of the above options. The pre-authorized withdrawal option is not available for Commercialization Shares.

11. Do I have to buy from an Investment Advisor?
Yes, WOF can only be sold through a licensed Investment Advisor, broker or mutual fund dealer. This is because there is much you should know about the Fund including eligibility rules, redemption restrictions, tax implications and a general awareness about the suitability and appropriate amount of this kind of investment in your RRSP portfolio mix. It is the Investment Advisor, broker or mutual fund dealer's responsibility to ensure that you receive a prospectus outlining the details of the investment.

12. What fees do I have to pay to buy shares in the Fund?
There are no fees charged to invest in the Working Opportunity Fund.

13. What is the Fund's commission structure?
When you buy shares, you pay no commission to your dealer. Instead, WOF pays a commission to your dealer. While you do not pay these commissions, the Fund pays them and this will decrease the net asset value and indirectly affect the value of your investment. Refer to WOF's prospectus for further details on the commission structure.

14. Does the Fund pay interest or dividends?
Although the Fund may declare capital gains dividends from time to time out of monies legally available for dividends as may be appropriate, to date no dividends have been paid by the Fund on any shares. The Fund may capitalize annually certain amounts of its interest and other investment income and capital gains to the extent necessary to obtain a refund of the tax otherwise payable. This may have tax implications for shareholders holding their WOF shares in non-registered accounts. Refer to the following "About the Capital Gains Dividend" section for more information. WOF Commercialization Shares also provide dividends to investors, although these dividends are structured differently. Refer to "About the WOF Commercialization Shares" for more information.

15. How do I earn money on my investment?
The objective of the Fund is to provide its shareholders with an increase in share value over time, i.e. by capital appreciation.

16. What determines the value of the shares?
You buy and sell shares in the Fund at the price determined each week by dividing the net asset value of the Fund by the total number of shares held by its shareholders. The Fund's net asset value and, therefore, its share price, fluctuate with the value of its investments. The price per share is determined each Friday. For example, purchases made any time between Monday January 10 and Friday January 14 will be priced at the Friday, January 14 value. Balanced, Growth, and Commercialization Shares are priced separately each week.

17. Is the Fund listed on a stock exchange?
No. The Fund is not listed on a stock exchange. It is a private corporation owned by its shareholders. The share price should be listed within the mutual fund sections of most major newspapers. The Fund's Balanced, Growth, and Commercialization share prices are also updated weekly on our Share Prices page.

18. What has changed about holding foreign content in my WOF RRSP?
Under the Canada Tax Act, investors in funds such as WOF are able to increase their foreign content holdings by a ratio of $3 foreign content to $1 eligible Canadian investment above the normal 30% cap to a maximum of 50% of their total self-directed RRSP book value. For more information refer to the Fund's Prospectus and talk with your Investment Advisor.

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About the Tax Credits

1. What value of tax credit does an investor receive?
Investors receive 15% of their investment back in tax credits from the BC Government and 15% of their investment back in tax credits from the Federal Government; a total of 30%.

2. Are there maximum tax credits in any one year, or in a lifetime?
Yes. The BC Tax Credit limit is $2,000 in any one year, with no lifetime limit. The Federal Tax Credit limit is currently $750 per year, also with no lifetime limit. Tax credits for purchases made in the first 60 days of the calendar year can be used for either the current year, the prior year, or split between the two years.

3. Is the tax credit deducted from my taxable income or my income tax payable?
The tax credit is deducted directly from your income tax payable - so it is not diluted in any way.

4. Can I receive tax credits if I am repaying my RRSP under the New Home Buyers Plan?
Yes. You have up to 15 years to reimburse your RRSP for money borrowed to buy a home and if you purchase Working Opportunity Fund shares when you repay your RRSP account, you are eligible to receive the 30% tax credits. You will not receive the RRSP contribution deduction of course, because you have already received it prior to using the money to buy a home. WOF cannot be redeemed for a house down-payment through the New Home Buyers Plan.

5. How do I claim my tax credits on my tax form?
If you subscribed to the Fund last year or within the first 60 days of this year you are eligible for BC Employee Venture Capital Corporation (EVCC) and Federal Labour Sponsored (LSIF) Tax Credits. In order to benefit from all the tax savings, the following forms are required:
i) British Columbia EVCC 30 Tax Credit Certificate (issued by the Province, it is evidence of your entitlement to claim both the EVCC and the Federal (LSIF) credits.) NOTE: The Federal government does not issue a certificate. Make sure that you retain a copy of the EVCC certificate for your files as you may need it again.
ii) General Income Tax Guide and Return (the simplified tax return form does not have a line for claiming the Federal (LSIF) Tax Credit.) NOTE: when you receive your tax credit certificate, you will also receive instructions on how to claim part of a tax credit this year and part next year.

6. What happens if there is an error in my tax credit certificate?
Contact your broker or Investment Advisor who made the purchase for you. They will take the necessary steps to resolve the error.

7. I received a confirmation and a tax credit certificate but where's my RRSP Receipt?
The confirmation of a share purchase is sent out by the Fund to the subscriber and copies to the Investment Advisor of record. The tax credit certificate is sent out separately by the Province, directly to the shareholder. RRSP receipts are sent out separately by the agent or trustee of your RRSP account. If you opened a Working Opportunity Fund RRSP account (not a self-directed with a brokerage house or mutual fund dealer) then the Receipt would come from Co-operative Trust and that mailing is managed by the Fund, so WOF's Client Services should be able to tell you when it was issued and sent. For self-directed RRSP accounts, contact your Investment Advisor.

8. What if the tax credits I claim are higher than my income tax payable? Can I carry the part I didn't use over to the next taxation year?
Unused tax credits cannot be carried forward or back. If you purchase shares in the Fund within the period January 1 - March 1 (or February 29 in a leap year), you do not have to claim your tax credit on the previous year's tax return as most people do. You can claim it on the tax return for the calendar year in which you purchased it. Shares purchased between March 2 (March 1 in leap years) and December 31 must use these credits for the calendar year.

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About the Fund's Series of Shares

1. What are the different types of shares?
Balanced, Growth, Financial Services, GIC and Commercialization Shares.

2. What is the difference between the different types of Shares?
The venture portfolio of Balanced, Growth, Financial Services and GIC Shares is identical – investments in growth-driven entrepreneurial BC companies. The second portion of the asset mix differs depending on which shares are chosen. Click here for details on the non-venture holdings of each series.
Commercialization Shares consist of a portfolio of early-stage, research-oriented venture investments and fixed income investments.

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About the WOF Commercialization Shares

1. What are the Working Opportunity Fund Commercialization Shares?
The Working Opportunity Fund Commercialization Shares were introduced in February 2005 as an alternative investment option for investors. These Shares offer investors the additional benefit of dividends of up to 25% over three years along with the tax credits offered by the Fund and invest primarily in earlier stage, research oriented BC companies.

2. What is the dividend income?
The Fund has a policy to pay dividends totaling approximately 25% of the purchase price of 2010 issued WOF Commercialization Shares during 2010 through 2013. The precise timing of the dividend payments within that period has not been set, and will ultimately be decided by the Board.

3. How will the dividend income be paid?
The dividend income will be paid out in cash within the investor's account.

4. When will the dividend appear in investors' accounts?
The dividends will be paid out to investors' accounts promptly after being declared and paid by the Fund.

5. How will the dividend income be treated for tax purposes?
The dividend will be a taxable dividend paid in cash. RRSPs and RRIFs are of course not subject to tax on taxable dividends. In non-registered accounts, the dividends will mean a T5 must be issued to the shareholder.

6. Can this distribution be used to buy more shares of the Fund?
Yes. There is no automatic re-investment plan, so you will need to initiate a new purchase through your Investment Advisor.

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About Share Class Switches Between Balanced and Growth Shares

1. Can I switch between Balanced, Growth, and Commercialization Shares?
Shareholders can switch between different share classes within the same series.
Series 1 Balanced Shares (888, 890, 892) and Series 1 Growth Shares (889, 891, 893) can be switched between each other.
Series 2 Balanced Shares (141, 142) and Series 2 Growth Shares (151, 152) can be switched between each other as well as the Fund's Series 2 Income (161, 162), Financial (171, 172), Resources (181, 182) and Diversified (191, 192) Shares. WOF Commercialization Shares are not eligible for switching.

2. How do I switch?
Contact your Investment Advisor to request a switch that can be placed any time during the calendar year. A maximum of four switches per account can be placed within a calendar year.

3. Can I switch only some of my shares between the different series?
Yes. You can switch some or all of your existing shares within the same Series (1 or 2). If you switch only some of your total units, the shares will be switched based on the earliest of the purchase dates in that account..

4. How are switches between the different series priced?
The Fund is priced weekly. The price of the switch will be based on the price released on the Friday following receipt of the switch request.

5. How much does it cost to switch between the different series?
Nothing. There are no fees for switching shares.

6. How are partial switches processed?
Switches are processed according to the "First In, First Out" (FIFO) system. For an example of how switches are processed, please click here to view WOF's Share Processing Policy document in PDF format.

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About the Capital Gains Dividend

1. When is there a capital gains dividend?
There are capital gains dividends when the Fund's Board of Directors decides to capitalize the Fund's earnings. No cash or additional shares are paid out. Instead, the Fund's retained earnings are capitalized into share capital. For shareholders holding WOF shares in a non-registered account, tax may have to be paid in respect of the deemed capital gains dividend, even though no cash distributions were paid out by WOF. Only non-registered account holders have tax implications for the current year. Therefore, non-registered account holders will receive notification of any impending capital gains dividends in December, prior to the capital gains dividend. The T5 reporting slip for capital gains dividends is mailed to non-registered account holders in February. Registered account holders are not affected until they redeem their shares after the eight-year hold period.

2. What are the tax implications of a capital gains dividend?
There are tax implications in the year of the capital gains dividend for non-registered account holders only. If you are a non-registered account holder, talk with your investment advisor or accountant about the tax implications to you of the capital gains dividend. When calculating the taxable capital gain on the redemption of shares (after the eight-year hold is completed), all capital gains dividends declared during the eight-year hold period will be added to the adjusted cost base (ACB) of the shares thus reducing the final capital gain on the investment. Talk with your Investment Advisor or accountant for more detailed information.

3. How is the capital gains dividend calculated?
The taxable amount of the capital gain in WOF is divided among shareholders based on their shareholdings as a percent of total shares issued.

4. Why haven't I received cash or shares in payment of the dividend?
This is a deemed capital gains dividend rather than an actual dividend, so no cash is paid. Unlike many mutual funds, no shares are issued either since the issuance of new shares in payment of the dividend would result in an eight-year hold on the new shares.

5. How do I avoid being taxed again when my shares are redeemed if I don't receive more shares?
In calculating the taxable capital gains on the redemption of your shares, all capital gains dividends declared during the eight-year hold period would be added to the original cost base, thereby adjusting the adjusted cost base (ACB) of your shares by the amount of the deemed dividend. This would reduce your final capital gain.

6. What capital gains amounts have there been in prior years?
There have been the following capital gains over the life of the Fund:

Year	Capital Gains Dividend per Share
1994	$0.0262
1998	$0.3837
1999	$1.9343

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About Redemption and Reinvestment

1. How long do I have to leave my money in the Fund?
Generally, for eight years from the date of each investment.

2. When can I redeem and/or reinvest my WOF shares?
WOF shares are eligible for redemption and reinvestment as follows:
Redemption — 8 years from the date of purchase. However, if the shares' eighth anniversary falls within the second 30 days of the calendar year, you are permitted to redeem up to 30 days before that anniversary date.
Reinvestment — 8 years less 1 month from the date of purchase.

Example 1 - First 30 day purchase
Purchase on January 27, 2003
Eligible to redeem on January 27, 2011
Eligible to reinvest on December 27, 2010

Example 2 - Second 30 day purchase
Purchase on February 27, 2003
Eligible to redeem on January 28, 2011
Eligible to reinvest on January 27, 2011

Example 3 - Non-second 30 day purchase
Purchase on March 30, 2003
Eligible to redeem on March 30, 2011
Eligible to reinvest on February 29, 2011

3. How do I redeem my WOF shares?
Your Investment Advisor will generally advise you that your shares are eligible for redemption in advance of your redemption date. Contact your Investment Advisor to complete the necessary paperwork.

4. Can I reinvest my shares of the Working Opportunity Fund?
Yes. If your shares are eligible for redemption (see 2. above), you can redeem and reinvest in WOF to receive another tax credit on that amount, keeping in mind the yearly tax credit limits. There is no fee for reinvesting in the Fund. When reinvesting you can also choose whether you want to reinvest into the Balanced Shares, Growth Shares, Income Shares, Financial Shares, Resources Shares, Diversified Shares, Commercialization Shares, or split your investment between the types of shares. If you are interested in reinvesting, contact your Investment Advisor to discuss these options and complete the necessary paperwork. Your Investment Advisor will be able to advise you of when your investment is eligible for redemption and reinvestment.

5. Can I redeem my Working Opportunity Fund RRSP through the New Home Buyers Plan?
No. Shares of WOF cannot be redeemed until eight years after the date of purchase.

6. Will any capital gains be generated from my redemption or reinvestment of WOF?
Potentially. If the redemption or reinvestment price is greater than the adjusted cost base of the shares at the time of redemption or reinvestment, capital gains will be generated. This has immediate tax implications for shares held in non-registered accounts.

7. Are there any other circumstances that would allow me to take it out before the end of the eight-year hold?
Yes, in addition to the redemption circumstances listed under question 2 above, shares may be redeemed early if the shareholder becomes bankrupt, disabled and permanently unfit for work, suffers an involuntary loss of employment, or dies. We call this an "early redemption". An early redemption fee of $75 per redemption is payable in those cases. All early redemptions occurring within 5 years of a shareholder's purchase date(s) are subject to a full repayment of the federal and provincial tax credits. To facilitate this payment, the amount the shareholder will receive on the redemption will be net of the federal and provincial tax credit repayment. Please contact the Fund for more information.

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