Market-linked guaranteed investments (MLGIs)

What is the difference between term savings, market-linked guaranteed investments and mutual funds?

With term savings, your principal and interest are guaranteed for the investment’s whole term. You know the interest rate you’ll get for the term in advance.

A market-linked guaranteed investment can get you a potentially higher return than regular term savings. Your principal is guaranteed, but the interest you earn varies based on market performance. With certain market-linked guaranteed investments, part of your return can be guaranteed, but you won’t know the total return until the end of the term.6

Your principal and returns aren’t guaranteed with mutual funds. Their risk levels and return potential depend on the type of fund we offer.

• Fixed-income funds carry a low to moderate level of risk. Their returns are generally stable, but more limited.
• Growth funds are often more volatile. They carry a higher risk, but can also provide higher returns.
• Balanced funds have a moderate level of risk. Their return potential is lower than growth funds, but they’re usually more stable.

How can I track the returns on my market-linked guaranteed investments?

You can track your market-linked guaranteed investment returns on AccèsD from a web browser. This feature isn’t available in the mobile app.

1. Log in to AccèsD.
2. On the AccèsD home page, under Savings and investments, select the Options button for the investment you want to track.
3. Select the Information and returns link.

You can also use our return tracker. You’ll need to select the investment’s term, issue date, amount invested and frequency of interest payments.

How do I renew a market-linked guaranteed investment?

A few days before your MLGI matures, you’ll receive a notice in your AccèsD message box or by mail. You can renew your investment as is, invest more money or choose a new investment.

If you want to renew your investment as is, you don’t need to do anything. Unless you tell us otherwise, we’ll automatically reinvest your funds in a similar investment with a similar term.

If you want to renew your current MLGI and invest more money or renew it as a new MLGI, you can get help from an advisor or do it yourself on AccèsD.1 See how to renew your MLGI online.

Is the interest I earn on my market-linked guaranteed investment taxed?

If you hold your MLGI in a registered plan, like an RRSP, TFSA or FHSA, the interest you earn is not taxed.

If you hold your MLGI in a non-registered plan, the interest is taxed when the amount is confirmed (based on market performance).

• For MLGIs without a minimum guaranteed return, the interest is taxed at maturity since it fluctuates according to market performance throughout the term.
• For MLGIs with a minimum guaranteed return, the annual guaranteed part of the return is taxed every year, and the variable part is taxed at maturity.

Can I redeem my market-linked guaranteed investment before maturity?

You can redeem certain market-linked guaranteed investments at specific times during the term. MLGIs with a 4- or 5-year term can generally be redeemed once a year, starting in the third year.

However, redeeming funds during the investment’s term negatively impacts your potential return. The redemption or conversion value may also be lower than the amount you invested.

See the investment agreement for the conditions and restrictions that apply.