Why is the investment only 80% RRSP eligible, with the remaining 20% being an open investment?
It was purposely structured in this manner for tax efficiency. By structuring the offering with 20% of the equity invested as an open un-registered holding, investors are able to receive some annual tax deductions and in the future when the investment is sold, any capital gains flow outside of the RRSP to the open investment unit thereby ensuring maximum tax efficiency with the favorable capital gains treatment.