Canadian Growth ActionGIC
Perhaps mutual funds appeal to you but involve risks that you’re not quite willing to take? How about getting the best of both worlds: capitalizing on mutual fund growth potential while fully protecting your capital. It’s possible with the new Canadian Growth ActionGIC.
Without risking your capital
A Canadian Growth ActionGIC is a guaranteed investment with a return based on the performance of a reference index between the issue date and maturity date. The reference index is based on a portfolio mainly comprised of IA Canadian Conservative Equity Funds and partly of debt securities1. Such an investment allows you to ride on the growth potential of IA Canadian Conservative Equity Fund, which offer one of the most attractive long-term
returns and lowest risk in its class, without putting your capital at risk. In addition, there is no maximum return. Interesting, wouldn’t you say?
The Canadian Growth ActionGIC is a wise choice when integrating mutual fund growth potential in your portfolio!
Higher potential returns
This GIC allows you to benefit in part from the performance IA Canadian Conservative Equity Funds. This fund have a 50-year track record under the management of Leon Frazer & Associates2, one of the most respected fund managers.
| The fund’s returns at December 31, 2005 are outlined below: | |||||
| 1 year | 3 years | 5 years | 10 years | 55 years | |
| Fund return | 20,9% | 17,0% | 10,3% | 15,0% | 10,1% |
| The return on investment associated with the funds varies and past results are not indicative of future results. | |||||
| CHARACTERISTICS | |
| Minimum investment | RRSP and non-RRSP:$500 |
| Term available | 5 years |
| Maximum rate of return | Unlimited |
| Eligibility to a registered plan | RRSP only (not available to RRIFs and LIFs) |
| Eligibility to HBP and LLP | Not eligible |
| Access to capital | No possibility of repurchase |
| Access to capital | The ultimate rate of return of a Laurentian Bank Canadian Growth ActionGIC is calculated based on the reference index performance between the issue date and the maturity date. The starting index at issue is established using the closing quote of the reference index on the issue date. The index at maturity is calculated using the closing quote of the reference index ten business days before the maturity date. If the ultimate return is negative or nil, the investment is fully guaranteed and returned at maturity, and no interest shall be paid out. If the ultimate return is positive, interests, after deduction of some portfolio management fees, is paid to the investor only at maturity, since the result is not known until that moment.Because the return of this product is tied to the performance of a reference index, it’s impossible to predict future return. |
| Interest payment and taxable interest | Interest cannot be declared yearly since the return amount is known only at maturity. Therefore, interest becomes taxable in the year the investment matures (outside the RRSP). |
summary
This investment product is suited for you if:
- You’re interested in mutual fund growth potential, but prefer not to risk your capital;
- You seek a type of investment that protects your initial investment;
- You’re looking for high return potential, better than conventionnal investments;
- You want to benefit from the growth potential of IA Canadian Conservative Equity Fund.
This investment product is not suited for you if:
- You anticipate the need to access your capital on short notice;
- You prefer to be aware of your return on investment from the outset.
1 The proportion of this Fund in the overall calculation of the reference index is not fixed and may vary throughout the issue.
2 Leon Frazer & Associates Inc. (« Leon Frazer ») and the fund manager, Industrial Alliance Fund Management Inc. (“IA FM”), are corporations distinct from the Bank. Please refer to the simplified prospectus containing important information on the IA Canadian Conservative Equity Fund.
