Corporate Cash Management - Financial Products We Utilize

 

 

Corporate High Interest Savings Account (HISA).

 

Account holders can transfer out or deposit additional cash at any time.  This allows excess cash to earn a higher rate of interest without requiring the corporation to manage T-bills or buy Money Market funds.  A variable annual interest rate is applied to all funds in the account.  Interest is calculated on the total daily closing balance and paid monthly. Rates are subject to change without notice and our team will monitor the market on your behalf and inform you when better rates become available.

 

  • Interest rates will vary and are dependent on the initial account opening dates and best market rates available at that time.

  • Access to capital is available online at your discretion.There are no minimum hold times and cash can be transferred in and out of these accounts the day it is required.

  • The CDN$ HISA’s that we utilize are protected by Canada’s Deposit Insurance Corporation (CDIC).

  • Accounts are available in CAD$ and USD$.

  • No fees when using internet and telephone banking services.

 

 

Corporate Guaranteed Investment Certificates (GIC’s).

 

  • GIC Interest rates are generally higher than HISA’s offer.Our team continually surveys the market for best available GIC rates at all times.

  • Access to capital is available within 10 business days of request.Once the GIC is sold the funds will be electronically transferred to the corporate account you designate.

  • All Guaranteed Investment Certificates (GICs) are covered by Federal or Provincial insurance coverage depending on the institution from where they were purchased. Chartered Banks and Trust Companies are federally insured and Credit Unions are provincially or corporately insured. Deposit insurance is automatic and does not require special application.

 

 

How GIC interest returns are calculated

 

GIC’s are classified a fixed income investment as they commonly offer a fixed maturity date, and a fixed interest rate or rate of return. When you invest in a GIC, your investment earnings are predetermined, and your principal investment will be returned or reinvested on a specific date in the future.

 

 

We utilize corporate cashable GIC’s

 

With this type of GIC, investors have access to the GIC principal and can cash a portion of, or all of the GIC prior to the maturity date. There are no restrictions or penalties that apply.

 

Our clients have a number of options for the calculation and payment of the interest income they earn on their GIC’s.

 

  1. Annual Interest: Interest is calculated as simple interest and paid once a year on the annual anniversary date of the GIC. Simple interest is calculated by taking the principal amount of the GIC and multiplying it by the GIC’s stated interest rate.

  2. Annual Compound Interest: With this option, the GIC’s interest income is calculated as simple interest on the annual anniversary date and the interest amount is then added to the GIC’s principal amount. In the following 12 months, the GIC principal and accumulated interest to date, will earn the GIC’s stated annual interest return. No annual interest payments are made to the investor. On the GIC's maturity date, the investor will receive their original principal plus all calculated compounded interest income.

  3. Monthly/Quarterly/Semi-Annual Interest Payments: With this option our clients can receive their earned interest in periodic installments. This is an attractive option for corporations that wish to use the interest income to help support their regular expenses.

 

 

Liquid Derivative Investments (LDI)

 

  • Offered through Guarantee Advantage

  • A unique term deposit featuring a guaranteed minimum return or principal guarantee at maturity.

  • Risk free access to securities of many well established publicly traded corporations within the term deposit.

  • Offers full liquidity and can be surrendered (fully or partially) prior to your chosen maturity date**.

  • Principal Deposit is guaranteed through Assuris.

  • Click here to see how LDIs work

 

**Early surrenders will cancel the principal deposit guarantee and could result in a negative return. An early surrender of a LDI may result in the loss of some of your principal investment.  We highly recommend that our clients only use a LDI when they are 100% confident that the invested amount will not be needed prior to the maturity date.

 

Principal Guarantee’s within the LDI.  What is Assuris?

 

The LDI is offered through Desjardins Financial Security Life Assurance Company.  Every life insurance company authorized to sell insurance policies in Canada is required, by Federal, Provincial and Territorial regulators, to become a member of Assuris.  Assuris members are regulated in Canada, for both financial soundness and market conduct, by the Federal and Provincial regulators. 

 

Assuris maintains a current Liquidity Fund of at least $100 million. This provides immediate cash to meet Assuris' obligations in any future insolvency before assessing Members. In the event of a failure, Assuris will assess Members for the necessary funds to cover the cost of providing Assuris protection to policyholders. Assuris' assessment system is designed to have the financial capacity to raise sufficient funds to deal with any failure.

 

Source: April 11, 2016

http://www.assuris.ca/Client/Assuris/Assuris_LP4W_LND_WebStation.nsf/page/Assuris+Funding!OpenDocument&audience=policyholder

 

 

Facts about the integrity of Desjardins:

 

  • $248.1 billion in total assets

  • $1,959 million in surplus earnings after taxes and before member dividends

  • Top cooperative financial group in Canada

  • Tier 1A capital ratio of 16.0%, among the best in the banking industry

  • Excellent credit ratings: AA (DBRS), A+ (Standard and Poor's), Aa2 (Moody's), AA- (Fitch)

  • Founded in 1900 by Alphonse and Dorimène Desjardins

  • Named 7th Corporate Citizen in Canada by Corporate Knights (2015 ranking)

  • Third Most Socially Responsible financial institution according to Maclean’s (2015 ranking)

  • Ranked first in North America in Bloomberg’s World's 20 Strongest Banks in 2015

 

All Products and Services Provided by Element Integrated Financial Solutions, unless noted otherwise. Insurance Provided Through Customplan Financial Advisors Inc. & Peak Insurance Services. Mutual funds and/or approved exempt market products are offered through Investia Financial Services Inc. Investia Investor Privacy Policy. This site respects the confidentiality policy. Its use is subject to the conditions of the legal notice.  Formal complaints to the Mutual Fund Dealers Association can be made here.

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