Laurentian Bank is offering a new structured investment aimed at savers seeking to obtain higher yields than cash investments in their investment vehicles while preserving their capital. SRP data shows that this is the first time that the Canadian provider has used a managed fund as the underlying for one of its structured products.
The Canadian Growth ActionGIC is a guaranteed capital investment linked to the Mackenzie Canadian All Cap Dividend Class Series LB, a fund investing in a broad range of assets including Canadian dividend-paying securities and preferred shares. The product offers a maximum return of 12% for a term of three years.
For the individual investor, this vehicle provides an opportunity to benefit from the performance of handpicked Canadian companies while offering the peace of mind of knowing that their capital is guaranteed. The wide variety of securities held makes for a diversified portfolio, an optimised potential return and reduced risk.
"This investment is particularly interesting for clients whose profiles do not include the holding of mutual funds or securities," said Bianca Dupuis, assistant vice president of investment and transactional product management at Laurentian Bank. "The product becomes even more attractive when combined with our bonus promotion of up to 2% on all guaranteed investment certificates transferred to Laurentian Bank."
The Canadian Growth Action GIC is eligible for both registered accounts and non-registered accounts with a minimum investment of CAD500 (USD484.80).
According to SRP data, Laurentian Bank currently has 32 live structures in the Canadian market.