Who Should Consider an Index-Linked Term Deposit?

• Members who are looking for a deposit with a principal guarantee that offers the potential  for a higher return than the return paid on fixed rate deposits.
• Members who are looking for an investment that carries no fees or commissions.
• Members searching for a diversified investment in Canadian corporations.
• Conservative individuals who are not willing to risk their initial investment.
• Members who are comfortable with investing their funds for a 3 or 5 year period.

Who Should Not Buy an Index-Linked Term Deposit?

• Members who are dependent upon the current income from their investments.
• Members who may need their principal before the term of the deposit has expired.
• The Index-Linked Term Deposit is not eligible as a RRIF, as the deposit is not redeemable prior to maturity and does not have a guaranteed rate of return. An RRSP Index-Linked Term Deposit is available for Members under 69 years of age for a 3 year and under 67 for a 5 year.

Member Benefits
100% Principal Guarantee.
Regardless of the performance of the S&P/TSX 60 Stock Index, the principal investment is fully guaranteed. Members will not lose any of their original investment, even in a significantly declining market.

Higher Potential Return Versus Traditional GICs.
Compared with term deposit rates over the past 12 months, the historical returns of the S&P/TSX 60 Index demonstrate an earning potential that is notably greater.

Diversified Investment.
The S&P/TSX 60 Index is a well-diversified portfolio made up of 60 large publicly traded Canadian companies.

Method of Calculation.
Interest earned will be based on the average return of the Index for the investment period. The average is calculated by adding the Month-End Closing Values of the Index for 5 years (60 months) and dividing the sum by the Total Number of Months (60). This average is then compared to the Opening Value of the Index to determine the percentage change. The averaging protects the investment from severe short-term market fluctuations.

Risks
Unlike other term deposits, there is no guaranteed return on this product. Depending on the performance of the stocks comprising the S&P/TSX 60 Index over the term, it is possible that, at maturity, the investor will receive only their principal back.

Historical Performance of the S&P/TSX 60 Index

	2002	2003	2004	2005	2006	2007
Annual Rate of Return	-14.0%	25.5%	13.8%	26.29%	19.6%	11.14%
Average Five-Year Return	2.96%	7.78%	3.70%	7.36%	14.24%	19.27%

Average return is based on a simple interest calculation representing the average of the annual returns. Historical returns are not indicative of future performance.

How is the return calculated?
The return is calculated by adding the Month-End Closing Values of the Index and dividing the sum by the Total Number of Months. It is then compared to the Opening Value of the Index to determine the percentage change (i.e. the return earned).
Example:
If, on the start date, the Index is valued at 300, the Average Month-End Closing Value over the 5 years of the term is calculated to be 420, and the Participation Rate is 125%, then the return over the life of the investment would be:

  420 - 300 x 1.25 = 0.50 or 50%
     300

The simple annual rate of return over 5 years would then be:

  50% = 10%
    5

Details of Index-Link 2008 Sales Period

Index Set Date	Last Date to Purchase	First Month of Average	Last Month of Average
January 24	January 18	January 31 2008	December 31 2012
March 6	February 29	March 31 2008	February 28 2013
April 24	April 18	April 30 2008	March 31 2013
June 5	May 30	June 30 2008	May 31 2013
October 2	September 26	October 31 2008	September 30 2013
November 13	November 7	November 30 2008	October 31 2013
December 11	December 5	December 31 2008	November 30 2013
January 24 2009	January 19 2009	January 31 2009	December 31 2013
March 5 2009	February 27 2009	March 31 2009	February 28 2014

Call Graham Clark (ext 223) or Mark Stanners (ext 214) for more details 905-575-8888

Cuurent Rates