Equi
Build
Universal Life
Investment Options
& Associated Fees
EquiBuild offers a wide range of investment options, including Guaranteed Interest Accounts, Index-Based Accounts and the Life Investment Account.
The following investment accounts and their associated current annual fees are available as of September 14, 2015.1
Guaranteed Interest Accounts
Guaranteed Interest Accounts provide capital protection and a stable income. They are suited to conservative policy owners with a short- to medium-term investment focus. Two types of Guaranteed Interest Accounts are available.
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Daily Interest Account
The daily interest rate that we credit to this account is guaranteed to be no less than 100% of the three-month CDOR (Canadian Dollar Offered Rate) reference index less 1% per year, and never less than 0%.
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Fixed-Term Accounts
Fixed-term accounts are offered in fi ve- and ten-year terms. They are credited with a fi xed interest rate for the duration of the term. The rates that we set for these accounts are guaranteed to be no less than 100% of the current return on the Government of Canada Bonds (GCB) for the same term, less 1%, and never less than 0%. We typically set higher fi xed-term account crediting rates* than the minimum guaranteed rates.
Example as at September 14, 2015:
Government of Canada Bonds Minimum Guaranteed Rate** Current Rate
5-year 0.82% 0% 1.55%
10-year 1.58% 0.58% 1.75%
* Crediting rates for the fi xed-term accounts are set weekly. For the current crediting rates offered on fi xed-term accounts, please visit the universal life insurance page at ia.ca and choose “Guaranteed Interest Accounts” for EquiBuild.
** Minimum Guaranteed Rate based on the GCB rates shown in the preceding column.
EquiBuild
Investment Options
& Associated Fees
Index-Based Accounts
Index-Based Accounts allow policy owners to take advantage of the higher potential return prospects of fi nancial markets. They provide a return equal to 100% of the total return of the fi nancial index used, less the Company’s current annual fees. These fees are subject to maximums defi ned in the contract and are presented below.
EquiBuild Account
2The EquiBuild Active Management Account offers an alternative to fl uctuating investment returns. This “smoothed investment account” provides attractive and stable long-term returns as it refl ects the returns of the iA EquiBuild Fund with assets that include bonds, equities and real estate. iA “smooths” the actual returns on the EquiBuild Fund over a period of years, signifi cantly reducing the impact of market fl uctuations as compared to year-by-year credited rates. Until December 31, 2019, the credited rate for the EquiBuild Account is guaranteed to be 4.25% (the 5.5% guaranteed return on the EquiBuild Fund less an annual fee of 1.25%). Thereafter, the EquiBuild Account rate will be set each January and will equal the smoothed return on the EquiBuild Fund less a current annual fee of 1.5%. The Company reserves the right to charge a maximum annual fee of 2%.3
Canadian Stocks (Leon Frazer)
2The Canadian Stocks (Leon Frazer) Active Management Account is based on the iA Clarington Canadian Conservative Equity Fund. The outstanding performance in this fund in the past 50+ years is due to its investment advisor, Leon Frazer and Associates, and their value approach to long-term capital growth: identifying individual companies with the best return and cash fl ow potential, primarily in the Canadian energy and fi nancials sectors as well as telecommunication services, utilities, industrials, materials and other sectors. The return on the Canadian Stocks account refl ects the returns on the iA Clarington Canadian Conservative Equity Fund – Series A. Currently, the annual fee is 0%, but we reserve the right to charge a maximum annual fee of 0.50%.1
Index-based investment options are primarily suited to policy owners with a medium- to long-term investment focus who are willing to assume a certain level of volatility in the returns on their policy investments. Two types of Index-Based Accounts are available:
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Active Management Accounts
These Index-Based Accounts have the potential for exceptional long-term growth. The interest rate credited for each of these accounts is equal to 100% of the net compound return of the underlying fund, including any net dividends, minus current annual fees. There are two Active Management Accounts available.
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Market Index Accounts
These Index-Based Accounts produce credited rates based on the returns of recognized reference indices. The interest rate credited for each of these accounts is equal to 100% of the compound return of the index, including any net dividends, minus current annual fees, as indicated in the following table:
Series V
Market Index
Account Financial Index Link Index Description Current Annual Fees Maximum Annual Fees3 Bonds FTSE TMX Canada Universe Bond Index
Steady reproduction of the Canadian bond market. It is composed of federal, provincial, municipal and corporate bonds. 1.0% 1.5% Canadian Stocks S&P /TSX 60, total return
Composed of 60 securities from Canadian companies with strong balance sheets. These securities are distributed across 10 industrial sectors and are represented on the Toronto Stock Exchange.
1.0% 1.5%
Global Stocks MSCI World,
total net return
One of the best known international indicators, it is composed of securities of companies operating primarily in North America, Europe and Asia. 1.0% 1.5% International Stocks MSCI EAFE, total net return Composed of securities of companies from a variety of industrialized countries operating in Europe, Australasia and the Far East. 1.0% 1.5% European Stocks MSCI Europe, total net return
Composed of European securities from a variety of countries, primarily from Great Britain, Germany, France and Switzerland.
1.0% 1.5%
U.S. Stocks S&P 500,
total return The best indicator of the U.S. stock market. It is composed of 500 securities from more than 10 industrial sectors.
1.0% 1.5%
U.S. Stocks / DAQ
Nasdaq 100 Securities of 100 of the largest companies on the NASDAQ that offer high-technology products and services (computer hardware, software, telecommunications and biotechnology).
F1 3 -8 82 A P D F
iA Financial Group is a business name and trademark of
Industrial Alliance Insurance and Financial Services Inc.
ia.ca
Life Investment Accounts
Life Investment Accounts offer a guaranteed fi xed monthly return until the death of the insured or until the insured turns 100, whichever comes fi rst. The fi xed monthly return is calculated on the date the investment is made in the Life Investment Account, based on market rates and the age and sex of the insured(s). These accounts may include a cash refund upon death or surrender of the policy, but have no maturity value.
1 The Company reserves the right to withdraw investment accounts at its sole discretion. However,
the Company guarantees it will always offer the Life Investment Account and the EquiBuild Account. The Company also guarantees that it will always offer at least one Fixed-Term Account, as well as
three Market Index Accounts with a maximum annual fee of 1.5%.3
2 The EquiBuild hybrid universal life policy is not a product of the external managers, and they offer
no guarantee on the returns of this policy. The policy owner has no direct or indirect rights with regard to the units in any underlying fund or any other funds of the same family.
3 If there is an increase in the cost of investment income tax as a result of a future tax change, the
Company reserves the right to review these maximum annual fees, increasing them if necessary, only to the extent required to offset the resulting increase in cost.
