Features

The Better Earth Portfolio includes a range of key features that make it a solid financial option

• Guaranteed capital investment
• Options between 3 and 5 year terms
• Minimum $500 investment
• Insured by Canadian Deposit Insurance Corporation
• Available in registered and non-registered formats
• Interest paid at maturity
• Income taxed at maturity if investment is non-registered
• Protection from exchange rate fluctuations
• Held by League Savings & Mortgage

The rate of return is calculated on the performance of a selected group of companies in various sectors based on their environmental awareness. Each of these companies have implemented initiatives to reduce the environmental impact of their operations by either reducing their greenhouse gas emissions or water consumption.

FAQs - Frequently Asked Questions

Is this investment right for me?

This investment may be right for you if you:

• Seek capital protection
• Wish to diversify your portfolio
• Have an investment horizon of 3 years, 5 years, or longer
• Don't plan to withdraw your investment prior to maturity

• Agree to forgo a guaranteed return to benefit from a higher potential return than that offered by term savings

How does this solution differ from conventional term savings?

This guaranteed investment differs from conventional term savings in that it does not provide a predetermined return. The guaranteed investment’s return is determined only at maturity, dependent on the performance of the security basket. As well, as a socially responsible investment, it is invested solely in securities committed to environmentally sustainable operations.

How are the companies represented in this investment selected?

A five-step selection process ensures that the companies chosen display excellent financial health, and environmental commitment:

Financial Analysis
Investment managers select companies that earn top marks in in-depth financial analysis, covering financial soundness, risk, profitability, and outlook for growth.

Exclusion Screening
Any companies in tobacco, nuclear and arms industries are removed from the list.

Environmental assessment
NEI Investments—a Canadian leader in SRI—measures five environmental-performance indicators:

• Environmental policy
• Initiatives to reach environmental objectives
• Disclosure concerning environmental impact of its activities
• Procedures for supervising and monitoring progress toward objectives
• Environmental standard the company requires suppliers to follow

Recommendation of Environmental Advisory Group
Experts specializing in a variety of fields, including biology, law, environmental management and ethics review the investment assessments report and recommends whether to include them in the security basket.

Inclusion in the security basket
From among the companies that qualify, securities offering the best financial prospects are selected, taking into account geographic and sector diversification.

Can the companies selected for the securities basket be changed?

Once the companies are selected they remain in place for the duration of the investment term.

What registered and non-registered formats is the portfolio available in?

Registered plans: TFSA, RRSP, LIRA, locked-in RRSP.
Non-registered plans: Non-registered debentures.

How are returns calculated?

Returns are based on the market performance of the selected companies.

As well, between your investment’s purchase and issue date, your capital will yield a 1.00% interest rate per year.

Between the issue date and the maturity date the return is based on the variation in the price of the 15 equal-weighted equity securities, as previously listed.

In order to mitigate the effects of potential security downturn immediately at maturity, we take into account the average monthly prices for each security during the term’s final 3-month period.

This investment does not entitle the holder to dividends and distributions paid by the companies in the portfolio. Investment returns are not affected by exchange-rate fluctuations, even if security prices are published in foreign currencies.

Returns based on security price could be nil at maturity. Your capital is guaranteed at maturity.

How can I keep track of my investment's performance?

Market performance is updated regularly. For more information on the performance of your Better Earth series, plese contact your LSM or Coastal Financial Credit Union representative.

Return information is presented for information purposes only.

What happens when my investment matures?

A reminder will be sent to you by mail just prior to maturity.

Can I redeem my investment before the maturity date?

Withdrawal is not permited prior to maturity.

What happens during market upheavals?

The product manufacturer reserves the right to determine the appropriate measures to be taken in such circumstances. For example, if trades are suspended as a result of a significant stock-market downturn, the manufacturer could choose to postpone the date at which the investment’s starting level is taken into account.