Canadian ActionGIC
The Canadian equity market
The return on a Canadian ActionGIC is based entirely on the performance of a key Canadian index: the Standard & Poors 601, also known as the “S&P/TSX 60”.
This index is comprised of 60 of the largest Canadian corporations, operating in 10 key industrial sectors (see graph). In fact, historical data demonstrates that the Canadian equity market offers excellent return on the longer term, comparatively better than other international equity
markets. An ActionGIC is most certainly the wisest approach to capitalize on this potential for growth in your portfolio, while fully protecting your capital.
| COMPOSITION OF S&P / TSX 60 AT APRIL 30th, 2005 |
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| CHARACTERISTICS | |
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| Minimum investment | Non registered investment: $1,000 RRSP: $500 |
| Terms available | 3 and 5 years (as per issue) |
| Maximum rate of return | As per issue |
| Eligibility to a registered plan | RRSP only (not available to RRIFs and LIFs) |
| Access to capital | No possibility of repurchase before maturity |
| Access to capital | Interest cannot be declared yearly since the return amount is known only at expiry. Therefore, interest becomes taxable in the year the investment matures (outside the RRSP). |
Higher potential for return
This GIC offers higher potential for return than other conventional investment products. Below is an example:
| EVOLUTION OF A $10,000 INVESTMENT, 3-YEAR CANADIAN ACTIONGIC VS 3-YEAR GIC |
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| With an initial investment of $10,000, the Canadian ActionGIC would have generated $1,656 more than a conventional GIC over a 3-year period. Note: The 7.14% return corresponds to a maximum rate of return of 23%*. |
| EVOLUTION OF A $10,000 INVESTMENT, 5-YEAR CANADIAN ACTIONGIC VS 5-YEAR GIC |
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| With an initial investment of $10,000, the Canadian ActionGIC would have generated $3,565 more than a conventional GIC over a 5-year period. Note: The 8.45% return corresponds to a maximum rate of return of 50%*. |
Summary
This investment product is suited for you if:
- You seek an investment vehicle that protects the initial amount of your investment;
- You seek high return potential, better than conventional investment products;
- You wish to capitalize on the Canadian equity market growth.
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 “Standard & Poor’s®“ and “S&P®” are trademarks of The McGraw-Hill Companies Inc. “TSX” is a trademark of the Toronto Stock Exchange. The Laurentian Bank and B2B Bank obtained a license for use of these trademarks. The products are not sponsored, endorsed, sold or promoted by Standard & Poor’s or the Toronto Stock Exchange. None of those parties makes any claim, guarantee or stipulation regarding the opportunity of investing in the product.
* Indicative examples based on past issues. Past performance is not an indication of future performance. The total rate of return is based on the percentage increase of the closing index on the issue date, compared with the closing index two business days before the maturity date. If the total return obtained is positive, the principal and interest shall be paid upon investment maturity, up to the maximum predetermined rate of return. Interest is payable in Canadian dollars, at maturity only as the rate of return is only known at maturity. If the total rate of return obtained is negative or nil, the fully-secured principal amount shall be paid upon investment maturity but no interest shall be paid. Full details are available in-branch.
