Class A Investment Shares Series 6

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WFCU Credit Union’s Class A Investment Shares - Series 6 give you the opportunity to invest directly in one of Ontario’s largest and most respected credit unions.

WFCU Credit Union’s Class A Investment Shares - Series 6 are targeted to outperform traditional term deposits each year and, unlike other shares bought or sold on equity markets, there are no fees associated with the ownership of WFCU Credit Union’s Class A Investment Shares - Series 6.


FAQ

What is an Investment Share?
Investment shares are issued by WFCU Credit Union and used to raise capital and provide an exclusive opportunity for members to invest directly in the credit union. Investment shares earn non-cumulative dividends, declared by the Board of Directors

Who can become a Member?
Membership is open to anyone living or working in Ontario.

Who can purchase Class A Investment Shares Series 6?
Class A Investment Shares Series 6 are available to individual Members (age 18+) as well as corporations, partnerships and formal trusts.

What is the share value?
Shares have a fixed par value of $1.00; this does not change, since there is no open market for these shares and they are not listed on any stock exchange. They can only be purchased from or sold back to the credit union.

Are there any fees or commissions?
Unlike other shares bought or sold on equity markets, there are no fees or commissions associated with the purchase or management of Class A Investment Shares.

What is the amount of shares a Member can purchase?
The minimum amount of shares a Member can purchase is $500 (500 shares) and the maximum amount is $800,000 (800,000 shares).

How long is the investment term?
WFCU Credit Union’s Class A Investment Shares Series 6 do not have a defined term.

Are shares eligible as registered products?
Class A Investment Shares Series 6 are eligible for Registered Retirement Savings Plans (RRSP) and Tax Free Savings Accounts (TFSA)

What is the planned dividend rate on my shares?
Dividends on the Series Class A Shares are declared at the discretion of the Board of Directors, subject to certain restrictions. For the first three years, the Board of Directors anticipates dividends equal to the WFCU Credit Union posted 5-year term deposit rate as at May 31, 2017 which was 1.45%, plus 1.05% for a total dividend rate of 2.50%. For the first two years the Board of Directors anticipates declaring a special dividend to the holders of the Series 6 Class A Shares within 30 days of the anniversary of the share issue. The planned dividend rates for these special dividends is 1.50% for the first year, for a total of 4.0% and 1.00%, for a total of 3.5% for the second year calculated on the balance of Series 6 Class A Shares held. These special dividends are contemplated to be paid in the form of additional Series 6 Class A Shares. Thereafter, the annual dividend rate will be based on the Credit Union’s review of recent term deposit rates which would translate to the same annual dividend as on Series 1-5 Class A shares.

When are dividends declared?
Dividends are declared each Fall and paid within 30 days of the anniversary date of your investment.

How are dividends paid?
Dividends are paid in the form of additional shares, or cash, or partly in cash and partly in shares.

How are Class A Investment Shares Series 6 redeemed?
Investment share redemption is at the discretion of the Board of Directors. To access funds held in Class A Investment Shares Series 6, members can submit a redemption request (partial or full) through their branch, for the Board’s consideration. The Series 6 Class A Shares can be redeemed at any time after the fifth year of the issue date of the Series 6 Class A Shares, subject to the satisfaction of the conditions as outlined in the WFCU Credit Union Articles of Incorporation and any amendments thereto.

Are shares eligible for deposit insurance?
Class A Investment Shares Series 6 are not eligible for deposit insurance by the Deposit Insurance Corporation of Ontario (DICO).

How do I complete a purchase of Class A Investment Shares Series 6?
Visit a branch or call our Member Contact Centre (1-866-592-2226) to obtain a copy of the Offering Statement. Members are required to read the Offering Statement before purchasing shares. Click here to view the Offering Statement online.


PURCHASING SHARES

Visit on of WFCU Credit Union’s 9 retail locations, call 519-974-WFCU or email info@wfcu.ca to have a WFCU Credit Union staff member contact you

Who is allowed to purchase the shares?
Class A Investment Shares Series 6 are available to individual Members (age 18+) as well as corporations, partnerships and formal trusts.

Who can become a Member?
Membership is open to anyone living or working in Ontario.

What is the purchase price of an Investment Share?
Each Investment Share is priced at $1.00 Canadian.


Dividends on the Class A Investment Shares - Series 6 are declared at the discretion of the Board of Directors, subject to certain restrictions. The special rate of 4.00% is for year one only. The anticipated rate for year two is 3.50% and 2.50% for year three. Thereafter, the annual dividend rate will be based on the Credit Union’s review of recent term deposit rates which would translate to the same annual dividend as on Series 1-5 Class A shares. Members are required to read the Offering Statement before purchasing shares. Terms and conditions apply.
 

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