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Blue Chip ActionGIC

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With the Blue Chip ActionGIC, it’s possible to ride on the performance of leading players on the Canadian market, while fully protecting your principal.

What is a Blue Chip?

Blue Chip refers to as a well-established, financially-stable publicly-traded company with worldwide activities. Such companies have established themselves as leaders in their field.

Due to the capricious nature of the stock market, these companies can see their value fluctuate over certain periods, no matter how solid their foundation. This is where the Blue Chip ActionGIC comes into play, because it guarantees your principal while allowing you to bank on a high growth potential.

The Blue Chip ActionGIC is comprised of an equity basket including shares from 17 companies†:
Scotiabank
Royal Bank of Canada
Toronto Dominion Bank (TD)
Canadian National Railway (CN)
Manulife Financial
Fortis
Power Corporation of Canada
Intact Financial Corporation
Loblaw’s
Rogers Communications
Barrick Gold Corp
Suncor Energy
Telus
Thomson Reuters
Restaurant Brands International
TransCanada Corp
Saputo

†The Bank reserves the right to modify the list of companies included in the portfolio at any time before the expected date of issue of this investment. Furthermore, if an extraordinary event occurs during issue, the Bank reserves the right (without being obligated) to make certain adjustments to the benchmark portfolio (including its composition or the weight attributed to each security) or to any other variable as we determine to be appropriate in order to preserve as nearly as practicable the economic equivalent before the extraordinary event in question occurred.

They are key players in diversified sectors of the Canadian economy. Why not draw on their growth potential?
 

Characteristics 3-year term 5-year term
Sales period From February 5
to February 28, 2019
From January 28
to February 22, 2019
Minimum investment

$500

$500

Maximum cumulative return1 18% 46%
Annual maximum rate of return 5.672% 7.863%
Eligibility to a registered plan RRSP, RRIF and TFSA
Access to principal2 No possibility of repurchase before maturity
Interest payments3 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).
Information statement Current issues on sale and past issues

ActionGICs have certain characteristics that distinguish them from fixed-rate GICs (traditional GICs): they do not provide any return or income prior to maturity. Their return is tied to the performance of an index. There is no guarantee that this index will appreciate over the term of the ActionGIC and therefore no guarantee that investors will receive any amount at maturity other than the repayment of the initially invested principal. 


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 growth of leading Canadian publicly-traded companies.

This investment product is not suited for you if:

  • You anticipate the need to access your principal on short notice;
  • You prefer to be aware of your return on investment from the outset.

 

Legal Notice and Special Offer Terms

Existing investment accounts are offered by Laurentian Bank of Canada (“Laurentian Bank”) or LBC Financial Services Inc. (“LBCFS”). LBCFS is a wholly owned subsidiary of Laurentian Bank and a separate legal entity from Laurentian Bank, B2B Trustco and all other issuers or mutual fund companies whose products it distributes. Newly opened investment accounts will be offered by LBCFS. Every Laurentian Bank advisor is also a licensed LBCFS mutual fund representative. LBCFS’s liability is limited to the conduct of its representatives in the performance of their duties for LBCFS.

1. Rates can be modified at all times and without prior notice. Simple interest paid at maturity. Return is not guaranteed and may be nil at maturity. The final rate of return of a Laurentian Bank Blue Chip ActionGIC is calculated based on the performance of the reference index between the issue date and the maturity date of the investment. The value at maturity is obtained by calculating the average value of the index at closing, on the three dates for the calculation of the reference index as specified in the purchase agreement. The total return of the reference index is determined by calculating the total return for each share in the reference index during the period divided by the number of securities making up the reference index. Since the rate of return of this investment depends on the performance of a reference index comprised of securities, any fluctuations in the reference index will affect the investment’s final rate of return. Past performance is not an indicator of future performance. This product is eligible for insurance under the Canadian Deposit Insurance Corporation (CDIC) up to the maximum limit for coverage from the CDIC and subject to applicable conditions. This offer cannot be combined with any other offer.
2. The depositor is provided with an extended period between the purchase date and the issue date of the ActionGIC to cancel or modify the investment. Investments are not redeemable before maturity. ActionGICs will not be listed on any securities exchange. No secondary market will be provided. GICs are only redeemable before maturity in the event of your death or as otherwise permitted by law. In the event the GIC is redeemed before maturity, your principal shall be reimbursed; however, no interest shall be paid. The Laurentian Bank Blue Chip ActionGIC is non-cashable prior to maturity under the Home Buyer’s Plan (HBP) or the Lifelong Learning Plan (LLP).
3. If the ultimate return obtained is negative or nil, the investment is fully guaranteed and returned at maturity, and no interest shall be paid out. 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. Some conditions apply. Please contact an advisor for more details.

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