2012 Flow Through Season

As I stress every year, the best time to purchase flow through limited partnerships (FTLPs) is at the beginning of the year - not at the end!
 

Reasons to invest in FTLPs early in the year:

• If you wait until year end there is a higher probability that you are purchasing a product that went to market based on investor demand, but has lower quality flow-through issuers in the portfolio.
   
• LP's that open for purchase later in the year also run the risk that there will not be enough flow-through issues to place 100% of investors' funds. If the LP can not place all of the investors' capital, they will not get a tax deduction on 100% of their initial investment. Therefore, the intended purpose of the flow-through investment will not be met.
   
• Good quality FTLPs generally open for purchase early in the year to improve the probability of allocating 100% of investors' funds to quality resource issuers.