Each year Nova Scotians buy $600 million in traditional RRSPs. Less than 2% of this is reinvested back in Nova Scotia once it reaches the national and global centres of capital. Access to capital is required for community and economic development and revitalization. Recognizing the disconnect between our local need for capital and our propensity to invest our personal savings in Toronto, Montreal and New York, for more than a decade New Dawn has administered a Community Economic Development Investment Fund or CEDIF. New Dawn’s CEDIF companies are developed and stewarded based on the following Guiding Principles:
- We believe in the power of local investments. We believe in the innate capacity and potential of Cape Breton. All of the monies generated through New Dawn CEDIFs stay in Cape Breton. New Dawn does not engage with third party investment or wealth management groups. Through its CEDIFs, New Dawn connects individuals in our community looking for viable local investment opportunities with businesses and entrepreneurs in need of capital to grow or begin new operations.
- We recognize and value the financial contributions of our shareholders. We recognize and value their informed and intentional decision to invest in Cape Breton. Our shareholders are central to our investment decisions. We believe in carefully managed risk and in the right of shareholders to redeem their investment. Because of our carefully selected investees, we are proud to have a 100% redemption rate in all New Dawn CEDIF companies over the last ten years.
- We believe in local wealth creation. Local wealth creation differs in important ways from more traditional job creation indicators. Local wealth creation occurs when new or expanded business operations generate revenue that stays in our community. Although job creation is important, looking only at the number of jobs created does not tell us anything about the quality of those jobs or the flow of profit. Local wealth creation means that profits, as well as good jobs, stay here.
- We believe in investing in today and tomorrow. Access to capital is central to the reinvention and revitalization of Cape Breton. New Dawn aspires to generate, through its CEDIFs, a significant bank of Cape Breton capital that enables the growth of local businesses and economies; one that is not tethered to the distant drives and directives of national and global centres of capital. The $11 million in investments generated to date by the New Dawn group of CEDIFs, and the investment opportunity now open, manifest this aspiration.
- We believe in the importance of diverse and resilient local economies. New Dawn CEDIFs have supported local businesses in the fields of technology, innovation, arts and culture, education and software development. Investments in these companies have in turn enabled operational growth as well as debt repatriation. Supporting businesses in a number of different sectors, and supporting different initiatives within those businesses, contributes to a diverse and resilient local economy. It also helps New Dawn to manage risk and shareholder investments.
- We believe in the power of reputation. Over the last twelve years, New Dawn has administered ten successful CEDIF offerings. When taken together, New Dawn’s three CEDIF companies represent the largest share of Community Economic Development Investment Funds in Nova Scotia These companies have routinely paid dividends and met all requests for redemption. When it comes to savings, retirement planning, and investing we recognize and honour the role of trust and reputation. New Dawn is committed to maintaining and enhancing this trust and the reputation of its CEDIF program in the community.
- We believe in process and accountability. All potential New Dawn Innovation Fund investments are reviewed and approved by the Innovation Fund board. Prospective investees must meet all lending criteria, including the provision of three years of financial statements and Canada Revenue Agency Tax Returns. Following approval of a five-year investment, New Dawn CEDIF businesses must submit annual financial statements for board assessment and pay interest monthly.
- We believe in a vibrant and self-reliant Cape Breton. We believe in tangibly supporting local entrepreneurs and a fostering culture of innovation. We believe in a Cape Breton characterized by rewarding investment opportunities, a significant bank of local capital, business growth, high quality employment, and in-migration. We believe in the power of local investing to write the next chapter in the Cape Breton story.