Ninepoint Flow-Through Limited Partnerships
A Tax-Efficient Way to Invest in Canadian Resource Exploration
A uniquely Canadian strategy designed to offer investors powerful tax advantages, while helping to finance resource exploration.
Why Flow-Through Investing?
1
Immediate tax deductions
Up to 100% of an investment in a Flow-Through LP may be deducted against taxable income in the year of investment.2
Potential tax credits
Additional federal and provincial investment tax credits may apply, including those related to critical minerals.3
After-tax efficiency
Flow-through investing may help investors pay less tax overall by combining upfront tax deductions with capital-gains tax treatment after rollover.How Flow-Through Funds Work
Resource exploration is a key contributor to the Canadian economy. Flow-through investing helps finance this exploration by allowing eligible exploration expenses and tax credits to flow from Canadian resource companies directly to investors, granting investors access to meaningful tax advantages.
Investment Term
Flow-through limited partnerships typically have a defined term of approximately 12–24 months before rolling into a mutual fund structure.
Explore Our Flow-Through Funds
Each year Ninepoint offers a number of flow-through limited partnerships with different duration profiles. Click below to explore prior active limited partnerships, including key features, prospectus details, and educational resources:
Who Should Consider Flow-Through Investing?
Flow-through funds may be suitable for investors who:
- Have taxable income and can benefit from deductions and credits
- Are comfortable with exposure to the resource sector
- Can commit to a defined investment term
- Typically hold these investments in non-registered accounts
- Use flow-through as part of a broader tax-planning strategy
Flow-Through Share Tax Savings Calculator
Use the calculator to estimate tax savings that could be realized with a Flow-Through investment.
One of the few remaining advanced tax planning strategies in Canada
Much like RRSPs, Flow-Through share investing allows the investor to deduct 100% of the investment against personal income in the year of investment. On termination of the Flow-Through LP, the investment is rolled into a designated mutual fund corporation. The investor may now sell the fund, where their taxable capital gain is limited to 50% of the proceeds.
An excellent wealth planning tool
In combination with the tax deferral achieved by the roll-over into a mutual fund corporation, an investor may also take advantage of any capital loss carry-forwards they have, which can be used to offset their capital gains.
Additional tax credits may apply
Depending on your province of residency, additional tax credits may be available that are not included in the calculator below.
Please be sure to consult with your Financial Advisor to determine if this type of investment is suitable for your objectives.
This calculation tool is of a general nature only and is not intended to be, nor should it be construed to be, legal or tax advice to any particular investor, and no representations with respect to the tax consequences to any particular investor are made. There are many aspects of federal and income tax laws which may be relevant to any potential investor. Accordingly, each prospective investor should obtain independent advice from a tax advisor who is knowledgeable in the area of income tax law regarding the income tax considerations applicable to investing in flow-through funds based on the investor’s own particular circumstances.
The tax calculator is updated yearly, once the federal government releases new tax rates. The calculator currently utilizes 2025 tax rates.
The Mineral Exploration Tax Credit (METC) and the Critical Mineral Exploration Tax Credit (CMETC) are mutually exclusive. Only one of these credits may be claimed in respect of a given investment, and they cannot be combined. Both credits are non-refundable federal tax credits that are available solely to individual investors and are subject to the rules and eligibility requirements set out under the Income Tax Act (Canada). Investors should consult with their own tax advisors regarding their particular circumstances.
Ninepoint Partners LP is the investment manager to a number of funds (collectively, the “Funds”). Important information about these Funds, including their investment objectives and strategies, purchase options, and applicable management fees, performance fees (if any), and expenses, is contained in their prospectus. Please read the prospectus carefully before investing. There are ongoing fees and expenses associated with owning units of an investment fund. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the fund in these documents. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. This communication does not constitute an offer to sell or solicitation to purchase securities of the Funds.
The Fund is generally exposed to the following risks. See the prospectus of the Fund for a description of these risks: Speculative Investments; Sector Risks; Lack of Operating History of the Partnership; Changes in Net Asset Values; Valuation and Liquidity of Resource Issuers; Global Economic Downturn; Tax Related Risks; Lack of Liquidity of Units; Flow-Through Share Premiums; Reliance on the Manager and/or Sub-Advisor; Conflicts of Interest; Possibility that Limited Partners may Receive Illiquid Securities on Dissolution; Financial Resources of the General Partner; Transferability of the Units; Resale Restrictions on Portfolio Securities; Short Sales; Derivatives; Lack of Suitable Investments; Cybersecurity Risk; Possible Loss of Limited Liability; Loan Facility.
The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not a resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.
The income tax considerations applicable to an investor will vary depending on a number of factors, including whether units of flow-through funds are characterized as capital property, the province or territory in which he or she resides, carries on business, or has a permanent establishment, the amount that would be his or her taxable income but for the interest in the flow-through fund, and the legal characterization of the investor as an individual, corporation, trust, or partnership.
Ninepoint Partners LP assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. The information should not be regarded by recipients as a substitute for the exercise of their own judgment or for the advice of legal and tax advisors.
The information provided is general in nature and is provided with the understanding that it may not be relied upon as, nor considered to be, the rendering or tax, legal, accounting or professional advice. Readers should consult with their own accountants and/or lawyers for advice on the specific circumstances before taking any action.