The proverbial phrase is, “If you dance with the devil.”
So far as the rest? Feel free to fill it in to your liking.

Because I live in New York and because of my individual situation in general, I’m not a student nor do I care to be a student of investing in flow-through shares. However, so far as understanding the Fancamp sell-side, reading about Marquest’s modus operandi is very illuminating.

Presently, Marquest has five “Super Flow-Through Limited Partnerships.” One of the five has a general Canadian tax orientation. The other four offer Provincial tax credits in addition to the Canadian tax benefits as a whole.

Provincial angle or not, the “partnerships” are identical in so far as how they are being promoted. An example of one of these partnership funds follows. As is true of them all, it contains the same five answers to the same question, “WHY OWN THIS FUND?”

http://marquest.ca/home?path=funds&fund=MAV1405

Concern #1) Over and over again, the emphasis is on taxes, not on the quality of any particular equity or even the nature of the equities in general. Even the category of the companies is given in terms of the categorical tax benefits, “resource companies engaged in mineral exploration, development or production in Canada with a view to achieving capital appreciation and maximizing the tax benefit of an investment in the units.”

Concern #2) All the companies in the funds have “short hold periods”: There are “no private companies, only resource companies listed on TSX, TSXV, CNSX or other stock exchanges, with short hold periods.”

Concern #3) One of the highlighted main selling points of the funds is the fact that they will be liquated in short order (without any regard to the individual investment logic of any of the equities in them). “At dissolution, proceeds will be rolled over on a tax-deferred basis into an RRSP-eligible corporate class mutual fund.”