Fixed Income
Money market instruments, GICs and bonds should be considered alongside equity investments and real estate as part of an optimized investment portfolio solution. Generally income-oriented securities are considered to be of lower risk than equity alternatives, but may offer correspondingly lower fixed returns.
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Cash equivalents
Money Market instruments may be issued by governments, banks or corporations and are generally issued with maturities of less than one year. Bonds, debentures and coupons with fewer than 12 months to maturity may be considered money market alternatives...more -
Guaranteed Investment Certificates
A GIC is a form of deposit note issued by a Canadian bank or trust company. GICs are offered in various formats; from cashable to compound interest. Variable interest offerings are also available. Both principal and interest is guaranteed by the issuing bank or trust company...more -
Debt instruments – Bonds
Bonds and debentures are debt instruments issued by governments or corporations to finance activities and/or operations. Usually with a term to maturity of more than one year, both represent a promise to pay principal and interest, however only bonds are actually secured by physical assets (equipment or property.) Debentures on the other hand and are not specifically secured by physical assets though debentures may have a residual claim on assets...more -
Annuities
Annuity contracts are often considered by investors seeking a regular and consistent income, guaranteed for a specific term or more often, for life. Annuity income payable outside a registered account setting is taxed more favorably than other traditional income alternatives, as income payable is comprised of a combination of earnings and return of capital...more -
Equity-income – Preferred Shares
A form of equity, preferred shares also represent an ownership, however preferred shares carry a par value and dividend rate which often is more favorable than that offered by other traditional fixed income oriented investment alternatives...more
