Class A Investment Share sales have now ended

What are Class A Investment Shares?

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 call your local branch or our Contact Centre (1-855-670-0510) to make an appointment to discuss the Offering Statement and purchase process in detail.

Why is Kawartha selling Class A Investment Shares?

Occasionally Kawartha Credit Union offers Class A Shares to our members to strengthen our capital base. This enables us to grow, develop and achieve our strategic goals.

What are the benefits of purchasing Class A Investment Shares?

  • Class A Shares are a legal share in the company and form part of Kawartha’s capital base.
  • These shares earn an attractive rate of return (4-7% since 2006). Kawartha has established a consistent record for payment of dividends.
  • Class A Shares are a unique investment opportunity that are made available exclusively to Kawartha Credit Union’s members.
Are Investment Shares eligible for Registered Retirement Savings Plans (RRSP) and Tax-Free Savings Accounts (TFSA)?

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

Who can purchase Investment Shares?

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

There is an age restriction of 66 years of age on the purchase of Class A Shares because of RRIF requirements. Holding Class A Shares in a RRIF is a temporary solution to allow member to receive their final dividend payout when they turn 71 years of age. Members will be required to sell/transfer their Class A Shares when they turn 71 and receive their final dividend payout.

What type of investor should consider Investment Shares?

Class A Investment Shares are suitable for members 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?

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?

Each Investment Share is priced at $1.00. The minimum investment is $10,000 (10,000 shares) and the maximum is $500,000 (500,000 shares). Previous share series purchases are excluded from these limits. Note that funds cannot be direct deposited into a share account. Funds must first be deposited into a chequing or savings account, TFSA HISA or RRSP Variable HISA.

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

Sales begin on October 25, 2021 on a first-come, first-served basis until the desired level of shares has been reached (a minimum of $20 million and a maximum of $25 million).

What is the minimum dividend rate?

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?

Call your local branch or our Contact Centre (1-855-670-0510) to arrange an appointment with an Investment Specialist. They will walk you through the Offering Statement and provide details on the purchase process.

How many times have Class A Investment Shares been sold?

Kawartha has issued six Class A Investment Share Offerings: April 1997, May 2001, March 2004, May 2007, March 2012 and March 2017.

How many years has the dividend been paid on Class A Investment Shares?

Kawartha has paid dividends every year since the first issue of shares in 1997 and all have been paid in cash dividends.

Note: Class A Investment Shares are not deposits and are therefore not insured by the Financial Services Regulatory Authority of Ontario (FSRAO) or otherwise guaranteed any similar public agency. Dividends on these securities are not guaranteed and must be approved on an annual basis by the Board of Directors. 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 to which it refers.