Flow-through Limited Partnerships are actively managed portfolios of “flow-through” shares and provide investors a tax-assisted opportunity to invest in junior resource companies. By investing in one or more of the CMP® or Canada Dominion Resources™ Limited Partnerships, Canadian investors gain access to the professional management and expertise of Goodman & Company’s portfolio management team as well as significant tax benefits.
While flow-through shares are the same as any other common share of a Canadian resource company, they are unique in that qualifying exploration and development expenses may be “flowed-through” to investors of the flow-through shares. The result is that qualifying, tax-deductible expenses incurred by the resource company effectively become tax deductible expenses of the “flow-through" share investor.
When held in a flow-through limited partnership, the tax benefits of flow-through shares are passed on to limited partners.