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Index-Linked Term Deposits
An index-linked term deposit is similar to a standard term deposit in that, at maturity, you are guaranteed to receive back the full amount of your deposit. However, unlike the standard term deposit, no interest rate is specified at the time of your investment. The rate of return is dependent on the increase in the stock market index to which the deposit is linked. In instances where the stock market index has decreased no interest will be paid, but as mentioned earlier, you are guaranteed to receive your full amount of the principal always.
An index-linked deposit will pay a rate of return based on the performance of one or more stock market indexes (i.e. the TSX 60) The formula for determining the rate of return may vary but most often is based on the monthly or quarterly average of the stock market indexes for the full term of the investment or the last year of the investment.
The PEI Credit Unions have been offering the Index-linked investments since 1997. Two distinct products are available; the Canadian and the Global Product.
Canadian | Global
Canadian
The Canadian Index-Linked Term Deposits offers the member a fixed term investment that will pay a return based on the S&P1/TSX 60 Index. The investment has the security of principal protection no matter what happens to the stock market, you are guaranteed the return of your principal when your deposit matures. Deposits are also RRSP eligible and have no fees or commissions. To learn more about the performance of each product, click the reference on the tables below.
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| Toronto 35 Index-Linked Term Deposits | ||||
| Series | Start Date | Start Level | 3 Year Term | 5 Year Term |
| Feb-99 | 4-Mar-99 | 348.75 | 13.95%* | N/A |
| Sept-98 | 8-Oct-98 | 302.96 | 23.47%* | N/A |
| Feb-98 | 5-Mar-98 | 383.89 | 8.05%* | 7.95%* |
| IV | 5-Mar-97 | 330.06 | 7.45%* | 13.34%* |
| Returns for series in this table have reached their maturity date and are provided for information purposes only. |
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| * indicates annualized rate of return. | ||||
1 "Standard and Poor’s®" and "S&P" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Credit Union Central of Ontario. "TSX" is a trademark of the Toronto Stock Exchange and has been licensed for use by Credit Union Central of Ontario. The Product is not sponsored, endorsed, sold or promoted by Standard & Poor’s or the Toronto Stock Exchange and neither party makes any representations regarding the advisability of investing in the Product.
Past performance of the Index does not guarantee future performance. The return on deposit will fluctuate in relation to the performance of the stocks underlying the Index. The value of the Index used to determine the return on the Index-Linked Term deposit will be determined by Credit Union Central of Ontario or its designee.
Global
The Global Index-Linked investment offers the member the opportunity to invest in a growth of various companies from around the world. The unique basket of companies, often picked from the Dow Jones Sustainability Index varies with each series. The investment has the security of principal protection – no matter what happens to the stock market, you are guaranteed the return of your principal when your deposit matures. Deposits are also RRSP eligible and have no fees or commissions. To learn more about which companies are offered in each series, click on the highlighted area to view each particular basket of companies and view how the product is performing to date.
| Global Integrity Equity-Linked Term Deposits | |||
| Series | Start Date | 3 Year Term |
5 Year Term Performance To Date |
| Dec/Jan/Feb 04 | 10-Mar-04 | N/A | Information not available. Contact Credit Union for details. |
| Dec/Jan/Feb 03 | 10-Mar-03 | N/A | 8.24% |
| Jan/Feb 02 | 7-Mar-02 | N/A | 1.36% |
| Global Index-Linked Term Deposits | ||||
| Series | Start Date | Start Level | 3 Year Term | 5 Year Term |
| Feb-99 | 4-Mar-99 | 1000.00 | 9.13%* | 3.49%* |
| Feb-98 | 5-Mar-98 | 1000.00 | 4.58%* | N/A |
| Returns for series in this table have reached their maturity date and are provided for information purposes only. |
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| * indicates annualized rate of return. | ||||
Past performance of the Index does not guarantee future performance. The return on deposit will fluctuate in relation to the performance of the stocks underlying the Index. The value of the Index used to determine the return on the Index-Linked Term deposit will be determined by Credit Union Central of Ontario or its designee.
Check with individual Credit Unions for product availability.
