What is an ActionGIC?
The indexed GIC (ActionGIC) is an investment product that allows investors to take advantage of the potential of the equity markets while guaranteeing the principal 100%.
The ActionGIC offer a high return comparatively to conventional investment products but variable since it is linked to the performance of an index (equity portfolio composed of publicly traded companies).
Its performance is therefore subject to stock market fluctuations and the value of shares of participating companies. For this reason, its return is only known at maturity, as opposed to a fixed-rate GIC whose return is determined from the start.
Laurentian Bank offers its investors three ActionGICs:
They were selected based on criteria including their high Refinitiv environmental pillar and environmental innovation scores.4 They stand out through their socially responsible practices, commitment to fighting climate change, use of sustainable resources and innovation expertise.
The Canadian Sustainability ActionGIC may be attractive to investors who want to help ensure a greener future while seeking investments with high-growth potential comparatively to a conventional GIC.
The following 14 Canadian companies† make up the Canadian Sustainability ActionGIC benchmark index:
- Algonquin Power & Utilities (AQN)
- BCE Inc. (BCE)
- Boralex Inc. -A (BLX)
- Bank of Montreal (BMO)
- Canadian Tire Corporation - Class A (CTC/A)
- Canadian Imperial Bank of Commerce (CM)
- Cascades Inc. (CAS)
- Canadian Pacific Railway Ltd (CP)
- Innergex Renewable Energy (INE)
- NFI Group Inc. (NFI)
- IGM Financial Inc. (IGM)
- Stantec Inc. (STN)
- Sun Life Financial Inc. (SLF)
- West Fraser Timber Co. LTD (WFG)
The Quebec Performance ActionGIC can be an attractive investment for investors who wish to invest locally and benefit from high-growth potential comparatively to a conventional GIC and fully guaranteed principal.
The following 11 Quebec companies† comprise the Quebec Performance ActionGIC’s benchmark index:
- BCE Inc. (BCE)
- Canadian National Railway Co. (CNR)
- Cogeco Communications Inc. (CCA)
- Dollarama Inc. (DOL)
- Innergex Renewable Energy (INE)
- Metro Inc. (MRU)
- National Bank of Canada (NA)
- Saputo Inc. (SAP)
- Savaria Corporation (SIS)
- Transcontinental Inc. – CL A (TCL/A)
- Power Corporation of Canada (POW)
The Blue Chip ActionGIC can be an attractive investment for investors looking to take advantage of the growth of Canada’s top publicly traded companies and looking for an investment that guarantees the principal while offering a high-return potential comparatively to a conventional GIC.
The Blue Chip ActionGIC equity portfolio consists of the following 17 companies†:
- Royal Bank of Canada
- Toronto-Dominion Bank (TD)
- Barrick Gold Corp
- Canadian National Railway (CN)
- Manulife Financial
- Power Corporation of Canada
- Intact Financial Corporation
- Restaurant Brands International
- Rogers Communications
- Suncor Energy Inc.
- Thompson Reuters
- TransCanada Corporation
|Characteristics||Quebec Performance ActionGIC||Blue Chip ActionGIC||Canadian Sustainability ActionGIC|
|Term||6 years||5 years||6 years|
|Sales period||From January 18 to February 10, 2022|
|Maximum rate of return1||35%||22%||35%|
|Eligibility to a registered plan||TFSA, RRSP, RRIF|
|Access to principal2||No redeemable; the principal and the interests, if applicable, will be paid at 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 (for non-registered investments).
|Information statement||Current issues on sale and past issues|
This investment product is suited for you if:
- You seek an investment vehicle that guarantees the initial amount of your investment;
- You seek high-return potential, higher than conventional investment products;
- You wish to capitalize on the growth of leading Canadian publicly-traded companies (Blue Chip ActionGIC);
- You wish to capitalize on the growth of ESG-qualified Canadian companies with a sustainable impact (Canadian Sustainability ActionGIC);
- You want to diversify your portfolio with a local investment (Quebec Performance ActionGIC).
This investment product is not suited for you if:
- Your investment horizon is short-term;
- You anticipate the need to access your principal on short notice;
- You prefer to be aware of your return on investment from the outset.
Consult our FAQ’s to find out more about the ActionCIG’s.
Laurentian Bank: Laurentian Bank of Canada.
LBCFS: LBC Financial Services Inc.
GIC: Guaranteed Investment Certificate
RRSP: Registered Retirement Savings Plan
RRIF: Registered Retirement Income Fund
TFSA: Tax-Free Savings Account
*Some terms and conditions apply.
1. The return is not guaranteed and may be nil at maturity. The posted rate corresponds to the maximum rate of return. The maximum rate of return for the duration of the investment is 35% for the Quebec Performance ActionGIC 6-year term. The maximum rate of return for the duration of the investment is 22% for the Blue Chip ActionGIC 5-year term. The maximum rate of return for the duration of the investment is 35% for the Canadian Sustainability ActionGIC 6-year term. The final rate of return of a Laurentian Bank 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 final return of the reference index is determined by calculating the sum of the return for each share in the reference index during the period divided by the number of shares 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. If the total return obtained is negative or nil, the invested capital is fully guaranteed and will be remitted upon the investment’s maturity, but no interest will be paid out. If the total return obtained is positive, the invested capital and interest (up to the maximum rate of return set on the issue date) will be paid out upon the investment’s maturity, since the return will be known only at that time. This investment is eligible for a non-registered or a registered plan such as an RRSP, RRIF or TFSA. A minimum investment of $500 is required. This product is eligible for deposit insurance from the Canadian Deposit Insurance Corporation (CDIC) up to the maximum limit for coverage from the CDIC and subject to applicable conditions. The terms and conditions of this product are available at the branch. For more information, please contact an advisor. The Laurentian Bank reserves the right to modify, suspend or withdraw this offer at any time without notice.
2. The investor is provided within 2 business days between the purchase date and the issue date of the ActionGIC to cancel the investment. Investments are not redeemable before maturity. ActionGICs will not be listed on any securities exchange. No secondary market will be provided. ActionGICs are only redeemable before maturity in the event of your death or as otherwise permitted by law. In the event the ActionGIC is redeemed before maturity, your principal shall be reimbursed; however, no interest shall be paid. The Laurentian Bank 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.
4. Refinitiv, an LSEG (London Stock Exchange Group) business, is one of the world’s largest providers of financial markets data and infrastructure, serving over 40,000 institutions in approximately 190 countries. It provides leading data and insights, trading platforms, and open data and technology platforms that connect a thriving global financial markets community – driving performance in trading, investment, wealth management, regulatory compliance, market data management, enterprise risk and fighting financial crime. For more information, visit www.refinitiv.com.