Class A Investment Shares


On sale January 18, 2017 for a limited time only.

Frequently Asked Questions

What are Class A Investment Shares? Expand/Collapse

Class A Investment Shares are an exclusive investment opportunity available only to Kawartha Credit Union members. Class A Shares provide the opportunity to earn an attractive rate of return. As an equity investment, there is an element of risk, which is explained in detail in the Offering Statement (available for reading in any of our branches). We encourage you to contact your local branch to make an appointment with an Investment Specialist who can walk you through the Offering Statement and the purchase process.

Why is Kawartha selling Class A Investment Shares? Expand/Collapse

Occasionally Kawartha Credit Union offers Class A Shares to our members to strengthen our capital base which in turn allows us to grow, develop and achieve our strategic goals.

Are Investment Shares eligible for Registered Retirement Savings Plans (RRSP) and Tax-Free Savings Accounts (TFSA)? Expand/Collapse

Yes, Class A Investment Shares are eligible as non-registered or RRSP or TFSA eligible.

Who can purchase Investment Shares? Expand/Collapse

Kawartha Credit Union members who are 18 years of age and over are eligible to purchase Class A Investment Shares.

What type of investor should consider Investment Shares? Expand/Collapse

Investment Shares are suitable for people who are seeking a long-term investment, looking to diversify their investments, and who are willing to accept a moderate level of risk for potentially higher returns.

What type of investor should not consider Investment Shares? Expand/Collapse

Class A Investment Shares are not suitable for members who may need access to their funds in the short-term or who prefer minimal risk.

 

What is the purchase price of an Investment Share? Are minimum and maximum investment limits set? Expand/Collapse

Each Investment Share is priced at $1.00. The minimum investment is $5,000 (5,000 shares) and the maximum is $500,000 (500,000 shares). Previous share series purchases are excluded from these limits.

What is the sales period? How many Class A Investment Shares will be sold? Expand/Collapse

Sales begin on January 18, 2017 on a first-come, first-served basis until the desired level of shares has been reached (a minimum of $10 million and a maximum of $15 million), or until July 18, 2017 (six months from the start date)—whichever comes first.

What is the minimum dividend rate? Expand/Collapse

Dividends are not guaranteed and must be approved on an annual basis by the Board of Directors. Kawartha Credit Union plans to pay a rate which exceeds 1.25% of the simple average of the posted rate offered by the Credit Union on its 5-year term GIC as of the end of each quarter of its fiscal year. Dividends will be pro-rated in the year of purchase. Dividends can be paid in the form of: additional Class A Shares, cash, or a combination of shares and cash. There is no guarantee that a dividend will be paid each year. Dividends are non-cumulative, therefore, if a dividend is not paid in a given year, it will not be added to the next dividend.

 

How do I Invest? Expand/Collapse

Call your local branch to arrange an appointment with an Investment Specialist.

Note: Class A Investment Shares are not deposits. Dividends are not guaranteed and must be approved on an annual basis by the Board of Directors. The securities being offered are not deposits, therefore they are not insured or otherwise guaranteed by the Deposit Insurance Corporation of Ontario or any similar public agency. Dividends on these securities are not guaranteed. There is no market through which these securities may be sold. Members purchasing Class A Shares should carefully review the offering statement and any other documents it refers to.