Income Portfolio: Investment Descriptions 

Updated: January 2017

Below is a list of the individual investments held in the Sample Income Investment Portfolio with a brief general description of the investment’s features, and a brief summary of the issuing/managing company.

Fixed Income

The sample portfolio is made up of the following Fixed Income investments of bonds and Guaranteed Investment Certificates (GICs):

  • General Electric Capital Canada Bond, 4.55%, matures on 17-January-2017: With more than 20 branches across Canada, GE Capital Canada is a subsidiary of GE Capital, U.S. that offers lending products, growth capital, revolving lines of credit, equipment leasing, cash flow programs, asset financing and other financial services in more than 35 countries worldwide. GE Capital Canada maintains a credit rating of “AA(+)”(as at 3rd quarter 2013) on its bonds (Note: GE Capital Canada Funding is guaranteed by GE Capital Corporation.). The bonds pay the annual interest in two equal instalments. Each year, one payment is received on the annual anniversary date of January 17 and the second payment is received on July 17. The bond can be sold in the secondary bond market at any time prior to its maturity date. Regardless of the price paid to purchase the bond, GE Capital Canada will pay the holder $4.55 for every $100.00 of par value, every year. The company can redeem the bond at any time upon giving a minimum of 30 days notice to bondholders at a bond price that is the greater of Canada Yield Price (Canada Yield +0.140%) and par value ($100.00). The CDIC does not cover this type of bond. 
  • Bank of Nova Scotia Bond, 4.10%, matures on 08-June-2017: Issued by the bank, this bond has a credit rating of “AA(low)” (July 2016) and pays its annual interest income in two equal instalments. Each year, one payment is received on the annual anniversary date of June 8 and the second payment is received on December 8. The bond can be sold in the secondary bond market at any time prior to its maturity date. Regardless of the price paid to purchase the bond, the bank will pay the holder $4.10 for every $100.00 of par value, every year. The CDIC does not cover this type of bond. 
  • TMX Group Limited Bond, 3.253%, matures on 03-October-2018: Issued by the TMX Group, which owns and operates Canada's major equity, fixed income and energy markets. This bond has a DBRS credit rating of A(high) (August 2016) and the bond pays its annual interest in two equal, semi-annual, payments (October/April). The bond can be sold in the secondary bond market at any time prior to its maturity date. Regardless of the price paid to purchase the bond, the issuer will pay the holder $3.253 for every $100.00 of par value, every year. The CDIC does not cover this type of bond.

  • Province of Nova Scotia Bond, 4.15%, matures on 25-November-2019: Issued by the province of Nova Scotia, it is supported by the province’s credit rating which at the time of purchase stood at “AA(low)” ("A(high)" as at September 2016). The bond pays its annual interest income in two equal instalments. Each year, one payment is received on the bond’s annual anniversary date of November 25 and the second payment is received on April 25. The bond can be sold in the secondary bond market at any time prior to its maturity date. Regardless of the price paid to purchase the bond, the province will pay the holder $4.15 for every $100.00 of par value, every year. The CDIC does not cover this type of bond.
  • Bell Canada Bond, 3.25%, matures on 17-June-2020: Issued by Bell Canada, Canada's largest communications company, this bond has a credit rating of “BBB(high)” (as at August 2016) and pays its annual interest income in two equal instalments. Each year, one payment is received on the annual anniversary date of June 17 and the second payment is received on December 17. The bond can be sold in the secondary bond market at any time prior to its maturity date. Regardless of the price paid to purchase the bond, the bank will pay the holder $3.25 for every $100.00 of par value, every year. This type of bond is not covered by the CDIC.
  • Empire Life Insurance Bond, 2.87%, matures on 31-May-2023: Issued by Empire Life, with total assets under management of $15.3 billion, one of Canada's largest life insurance companies. Established in 1923 and a subsidiary of E-L Financial Corporation Limited, Empire Life provides individual and group life and health insurance, investment and retirement products to Canadians. This bond has a credit rating of “A(low)” (as at May 2016) and pays its annual interest income in two equal instalments. Each year, one payment is received on the annual anniversary date of May 31st and the second payment is received on November 30th. The bond can be sold in the secondary bond market at any time prior to its maturity date. Regardless of the price paid to purchase the bond, the company will pay the holder $2.87 for every $100.00 of par value, every year. This type of bond is not covered by the CDIC.
  • Telus Corporation Bond, 3.35%, matures on 01-April-2024: Issued by Telus, one of Canada's largest and fastest growing telecommunications companies. This bond has a credit rating of “BBB(high)” (as at November 2015) and pays its annual interest income in two equal instalments. Each year, one payment is received on the annual anniversary date of April 1st and the second payment is received on October 1st. The bond can be sold in the secondary bond market at any time prior to its maturity date. Regardless of the price paid to purchase the bond, the bank will pay the holder $3.35 for every $100.00 of par value, every year. This type of bond is not covered by the CDIC.

 Preferred shares

The sample income portfolio has invested in the following preferred shares: 

(IGM.PR.B-TSX), DBRS Credit Rating = Pfd-2 (High) - Stable Trend 

IGM Financial Inc. is Canada’s largest non-bank mutual funds manufacturing and distribution company, with $129.7 billion in mutual funds and $6.3 billion in institutional assets under management at June 30, 2015. IGM has a diversified distribution model, which focuses on an exclusive consultant network in the Investors Group subsidiary and independent financial advisors in the Mackenzie subsidiary. A third company, Investment Planning Counsel Inc., which is held within the corporate and other segment, manages $4.1 billion in mutual funds and administers additional third party-managed assets on behalf of more than 900 financial planners. IGM is 59.9% owned by Power Financial Corporation and 3.7% owned by The Great-West Life Assurance Company. IGM Financial Inc. is a member of the Power Financial Corporation group of companies.

Influences: The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government regulations, the current credit cycle, and the company’s credit rating to name a few.

(DRIP)-The company does not offer a Dividend Reinvestment Plan for the preferred shares.

 

(WN.PR.D-TSX), DBRS Credit Rating = Pfd-3 - Stable Trend

Often called Weston's or simply Weston, is a Canadian food processing and distribution company, and one of Canada's most recognizable companies. George Weston Limited is a Canadian public company, founded in 1882. The company has two reportable operating segments: Loblaw Companies Limited and Weston Foods. The Loblaw operating segment, which is operated by Loblaw Companies Limited and its subsidiaries (President’s Choice and Joe Fresh Brands, PC Financial, Real Canadian Super Stores, etc.), is Canada’s largest food distributor and a leading provider of general merchandise, drugstore, and financial products and services. Loblaw employs more than 138,000 people making it one of Canada’s largest private employers. The WestonFoods operating segment is a leading fresh and frozen baking company in Canada and is engaged in frozen baking and biscuit manufacturing in the United States.

Influences: The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government regulations, and the current credit cycle, to name a few.

(DRIP)-The company does not offer a Dividend Reinvestment Plan for the preferred shares.

 

(CU.PR.G -TSX), DBRS Credit Rating = Pfd-2(high) - Stable Trend

Canadian Utilities Limited, an ATCO company, with more than 6,800 employees and assets of approximately $16 billion, delivers service excellence and innovative business solutions worldwide with leading companies engaged in Utilities (pipelines, natural gas and electricity transmission and distribution), Energy (power generation and sales, natural gas gathering, processing, storage and liquids extraction) and Structures & Logistics (manufacturing, logistics and noise abatement).

Influences: The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government regulations, the current credit cycle, and the company’s credit rating, to name a few.

(DRIP)-The company does not offer a Dividend Reinvestment Plan for the preferred shares.

 

(POW.PR.G-TSX), DBRS Credit Rating = Pfd-2 - Stable Trend

Power Corporation is a diversified international management and holding company that holds interests, directly or indirectly, in companies that are active in the financial services, communications and other business sectors. Power’s principal asset is its controlling interest in Power Financial Corporation, which owns controlling interests in Great-West Lifeco and IGM Financial. Through Great-West Lifeco, Power Corp. holds significant ownership interests in London Life, Canada Life, Putnam Investments and their subsidiaries. Through IGM Financial, Power Corp. holds significant ownership interests in Investors Group, Mackenzie Financial Corp and Investment Planning Council Inc.

Influences: The share’s market price can be influenced by the current economic, business and stock market cycles, the interest rate environment, government regulations, the current credit cycle, and the company’s credit rating, taxation, to name a few.

(DRIP)-The company does not offer a Dividend Reinvestment Plan for the preferred shares.

(W.PR.M-TSX), DBRS Credit Rating = Pfd-2(low) - Stable Trend

Westcoast Energy Inc. operates as a subsidiary of Spectra Energy Corp. Westcoast Energy Inc. operates as an integrated natural gas and natural gas liquids (NGLs) company in Canada. The company is involved in gathering, processing, transmission, storage, and distribution activities. Its Transmission & Processing segment transports processed natural gas from facilities primarily in northeastern British Columbia (BC) to markets in BC, Alberta, and the United States Pacific Northwest. It has approximately 2,800 kilometers of transmission pipelines in BC and Alberta, as well as associated mainline compressor stations.

Influences: The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government regulations, the current credit cycle, and the company’s credit rating to name a few.

(DRIP)-The company does not offer a Dividend Reinvestment Plan for the preferred shares.

 

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