Laurentian Bank unveils new GIC
Montreal-based Laurentian Bank of Canada has launched Income ActionGIC, a product with a guaranteed minimum return and the potential for high yields. As with conventional guaranteed investment certificates, the principal invested in an Income ActionGIC is fully secured; however, unlike the fixed returns available on conventional GICs, Income ActionGIC offers a guaranteed minimum return of 8% over a five-year term, plus the possibility of higher returns based on the performance of the S&P/TSX 60 index. Income ActionGIC is well suited to clients seeking to take advantage of growth potential in the Canadian stock market while enjoying the assurances of protected capital and a guaranteed minimum return, Laurentian Bank says. Income ActionGIC is eligible for RRSPs, RRIFs and TFSAs.
Fund merger at Capital International
Toronto-based Capital International Asset Management (Canada), Inc. will merge Capital International Global Small-Cap Fund into Capital International Global Equity Fund. The global small-cap fund is already closed to new investors. The proposed merger will be effective on or about April 20, 2009, subject to approval by regulators and the unitholders of Capital International Global Small-Cap. Unitholders of the global small-cap fund will benefit from the greater economies of scale offered by the global equity fund, the company says, which has a larger asset base and lower management fees. The funds have complementary global mandates that seek to provide exposure to global growth companies of different sizes. If the merger is approved, unitholders of Capital International Global Small-Cap will receive equivalent units of Capital International Global Equity. If the merger is not approved, Capital International Global Small-Cap fund will be terminated on or about April 20, 2009. Portfolio management and the transition team for Capital International Global Small-Cap will be overseen by Richard Havas and Habib Annous.
Sun Life enhances CI insurance
Toronto-based Sun Life Financial Inc. has expanded its critical illness insurance coverage to include acquired brain injuries, and has also introduced a conversion option. Acquired brain injuries include damage to the brain after birth caused by traumatic injury, anoxia (absence of oxygen) or encepha-litis (inflammation of the brain). The long-term care conversion option allows customers who have CI insurance to convert this coverage to LTC insurance. So, policyholders’ future insurability for LTC insurance is protected and guaranteed, regardless of their health. The LTC policy also offers an unlimited benefit period, which means lengthy claims are covered. If specific CI insurance policies include the option for return of premium on cancellation, policyholders can receive the amount they have paid in CI insurance premiums when they convert to the LTC product. Additional coverage features include loss of independent existence — an inability to care for oneself, either physically or as a result of cognitive decline — as an optional benefit. This is to protect against events not included in covered illnesses, but which prevent someone from carrying out the routine activities of daily living.
New brand for Scotiabank
Toronto-based Bank of Nova Scotia has launched its new Canadian insurance brand, ScotiaLife Financial, which offers comprehensive creditor, travel, life and health insurance. The new brand will provide customers with affordable and convenient solutions for all their insurance needs, says the company. In addition, ScotiaLife Financial has added a new Web site (www.scotialifefinancial.com) that provides Canadians with information on its existing and new product offerings. ScotiaLife Financial also has launched its new term product, ScotiaLife Term 1 Insurance. This new life insurance product provides customers the opportunity to obtain flexible, affordable group insurance coverage ranging from $50,000 to $1 million.
O’Leary launches global income fund
Toronto-based O’Leary Funds Management has filed a final prospectus for the initial public offering of O’Leary Global Income Opportunities Fund. The offering is expected to close on Feb. 27; the IPO proposes to issue $150 million of fund units at a price of $12 a unit. Each unit consists of one transferable trust unit and one trust unit purchase warrant. The fund has been created to invest globally, primarily in publicly traded, investment-grade corporate bonds, convertible debt securities, preferred shares and dividend-paying equities securities of issuers having market capitalizations of at least $1 billion each. The fund’s investment objectives are to maximize total return for unitholders and to provide unitholders with monthly distributions initially targeted at 6¢ per trust unit, or 72¢ a year, representing an annual cash distribution of 6% based on the $12 per unit issue price.
@page_break@Compiled by Clare O’Hara (cohara@investmentexecutive.com).