Preferred Share Offering at 4.25%*
Get a preferred share investment that automatically moves with the market!
What is a Preferred Share?
A Preferred Share is a long-term hybrid investment that blends elements of equity and debt instruments. They are sold for $10 per share, with a minimum initial purchase of $500 and a maximum purchase of $100,000. They are TFSA and RRSP eligible.
Why invest in a Preferred Share?
Westoba wants our members to share in our success! Westoba Class “B” Preferred Shares allow Westoba members to make an equity investment that provides an attractive return.
The chart below shows a comparison of the rate of return you could potentially enjoy with a Preferred Share. Please note rates are based on 2017 results.
Note: The annual dividend rate on the Class “B” Preferred Shares will not be less than 150 Basis Points above the yield on the monthly series of the Government of Canada five-year bonds for the month immediately preceding the month in which such dividend is declared.
Is this product right for you?
Preferred Shares cannot be redeemed in the first five years, so this is for investors looking for a longer term investment or wanting to diversify their portfolios. Investors must have a long time horizon and not require liquidity (access to cash) for this portion of their portfolio. It is important investors understand, accept and are comfortable with a moderate level of risk for potentially higher returns.
Important things to consider about this product are:
- while guaranteed by Westoba, preferred shares do not carry third party guarantee like Westoba’s term deposits through the Deposit Guarantee Corporation of Manitoba;
- they cannot be resold because there is no readily available market;
- there is no guaranteed rate of return; and
- dividends are paid as interest and not eligible for the dividend tax credit; and
- redemption after five years is not automatic and determined by financial performance of the credit union and subject to approval from Westoba’s Board of Directors.
Interested?… What’s the next step?
Let’s discover whether Preferred Shares are the right fit for you! A Westoba Financial Planner will set you up for financial success by reviewing your investment goals. Together, we’ll review your financial fitness and develop the best investment strategy to meet your specific needs to help you achieve your financial goals. We’ll discuss whether or not Preferred Shares are the right fit for you!
To make an appointment with a Financial Planner, call 1-877-WESTOBA or email FinancialPlanning@westoba.com.
*WCU Ltd. Preferred Share Declared Dividend 2017. Subject to change. Past results do not indicate future results.