Carevest MIC Retraction DRIP Shares

In case you were enrolled in the CareVest MIC and have elected to redeem, or retract, your shares, you may have flat-lined when receiving a cheque this week from Valiant Trust.

I have been wondering about the redemption timelines, fees and - most importantly - the NAV price per share and discount (aka loss) that would be applied.  When my first cheque arrived the total was for a couple dollars - hardly the 5 to 10% of principal that I was expecting per month!  Ouch!  Earlier Carecana folks told me redemption would be over 10 to 14 months, so I thought the NAV price was down to pennies on the dollar.

The problem is that the first cheque came with no documentation.  Whew!  Valiant quickly clarified that the first cheque was for fractional shares only - those accrued during the DRIP program ..ahhhhh!  Breathe.  Today the partial redemption cheque arrived from Valiant for 10% of the whole shares (including original principal and accrued whole DRIP shares).  This time the cheque came with a letter explaining how many shares the cheque was for.  That's better !  The Class A Share NAV is $9.90.  Best of all : no additional deferred sales charges are being applied (which I was expecting for redemptions within a two year period).  Still, there is a 10% penalty on the NAV.

One you quit the DRIP program, you can get the distributions over the redemption period deposited with EFT to your bank account.  Any ideas for an alternative to the Carevest MIC?  With today's TSX plunge I expect there is always going to be an appetite for these exempt products - too bad CareVest did not stick to the private MIC model.