B4 - Sunday, September 2, 1984 - North Shore News

OOD IDEAS never die, they just fade away
to be revived another day.

ard riches?

PONE cven higher rates. This has
pulled investment money out

of stocks and into interest-

interest rates.
It’s also of interest that if
interest rates go up _ this

creates the potential for a
capital gain as the price of the

money

paying vehicles, such as

shares rise.

This paraphrasing of an appearance in the market short-term deposits.
old theme probably appliesto _ place. talks Thus one antidote, as some ,
an investment instrument $$$ : - _ companies see it, is to offer
known as Floatifig Rate Their history is somewhat : School of Management

Preferreds, which have been
showing up in the market-
place again this year.

In simple terms, they are
preferred shares whose divi-
dend yield is tied to the bank
prime rate, floating up and
down with it. Some invest-
ment brokers look upon it as
an alternative to short-term
deposits and its basic appeal
is to investors who are seek-
ing income.

Keith MacDougall of
McLeod Young Weir drew
my attention to the floating
rate preferreds and their re-

interesting. According to my
information, they were first
issued some years ago by the
Toronto-Dominion Bank and
Seco-Cemp Litd., a holding
company of the Bronfman
family (they of the whisky
wealth who over the years
have spread their investments
into many other enterprises
and fields of endeavour.)

This year a batch of new
issues has appeared.

Their re-surfacing is not
surprising. The stock market
has been living in dread for
some time now of high in-
terest rates and the spectre of

by
Bill Ryan

Life
(no guarantee)
Male

$582.77

Female
$548.71

735.41 655.68

(10-yr. guar.)
Male
$562.24 $538.65

625.00

Any of the above options are available on a 4% increasing basis

Growth Formula

RETIREMENT ANNUITY RATES AND R.R.L.F. ILLUSTRATIONS—AUGUST 1984
MONTHLY INCOMES BASED ON $50,000 OF PROCEEDS

Life Life
(15-yr. guar.)
Male

$540.17

Female Female

$523.91

$97.07 575.20 563.74

REGISTERED RETIREMENT INCOME FUND (R.R.L.F.)
{illustrations for age 71 based on a fully administered plan earning 12.75% interest

throughout.

Tables prepared by Solguard Annuity Consulting Services Lid

BEAT THIS

Joint Life Fixed Term
(10-yr. guar.) (to age 90)

M&F/M M&F/M
$516.24 $513.95

568.52 564.06

Year Max. Min. Year Max. Min. Pow ne Seg Steen]
| $227.98 $380.49 11 $700.20 $673.40 Rates can change from day to day
2 255.05 402.84 12 783.35 712.96 and vary depending on amounts.

3 285.34 426.51 13 876.38 784.85 Anyone wishing an exact figure or

4 319.22 451.57 14 980.45 799.20 =the free brochure ‘‘A Guide to

5 357.13 478.09 15 1,096.88 846.15 Selecting Your R.R.S.P. Maturity

6 399.54 506.18 16 1,227.13 895.86 Options’’, may telephone Solguard

7 446.98 §35.92 17 1,372.85 948.50 at 688-9577 or write them at Ste.

8 500.06 5617.41 18 1,535.88 1,004.22 1205 - 675 W. Hastings St., Van- ’

9 $59.45 600.74 19 1,718.26 1,063.22 couver, B.C. V6B IN2. ery m not sure
10 625.88 636.04

floating rate preferreds which
are linked directly to interest
rates.
$$$

Among the companies
which have put out floating
rate preferreds this year are
the Bank of Nova Scotia,
Trilon Financial Corp.
(Brascan and London Life),
Canadian Imperial Bank of
Commerce and Mercantile
Bank. Scotia Bank and
Trilon issued their shares
with a par value of $25 and
the dividend is 70 per cent of
the prime rate. Par value of
the Commerce preferreds was
$100-one-half of prime plus
an adjustment factor.

The Mercantile issue is at-
tractive, offering a couple of

what we might call ‘‘perks.’’*

It pays 73 per cent of the
prime rate and adds a
guarantee that it will never

_pay less than 8% per cent

(although many would agree
that it will be a long time
before the bank prime rate
sees 11% per cent again, if

keep in mind is that the
floating rate preferreds pro-
vide a dividend that qualifies
for the DIVIDEND TAX
CREDIT; hence the pre-tax
yield presently is something
like 14 per cent and that’s
very competitive with current

what | want,
but Pil know
when I see it?)

We counsel you when you have
difficulty expressing your per
sonality in the way you design,
decorate or furnish your home
ot office We don't superimpose
our tastes over yours Instead
we talk with you to try to tind the

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COMPUTER SYSTEMS

Due to curriculum changes additional seats are

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program.

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APPLY NOW! for entry to this important program
beginning in September, 1984.

Prerequisites to the program are graduation
from Grade 12 with a B average or better, or
relevant experience. Preference will be given to

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mathematical subjects.

achievement in

For program and admission information

please contact:

Frank Senior

BCIT Computer Systems

434-5734 local 785

or
Ruth Archides

Admissions, Office of the Registrar
434-5734 local 419

ever.) | +964 + +9 8 4

61 590.92 555.61 567.73 543.25 532.90 527.39 520.77 517.21 $$$ 2 ——

62 600.70 562.95 573.30 548.19 547.05 530.88 524.23 520.02 To break it down for the : —
63 609.40 569.88 578.84 553.16 550.34 534.45 $28.76 523.93 novice investor, the prime
64 621.30 575.20 584.78 558.41 553.57 537.78 533.30 527.86 rate today is 13 per cent, —

65 630.62 582.31 591.14 563.98 558.31 542.75 538.12 532.66 hence 73 per cent of 13 per

66 644.98 591.60 596.99 568.71 561.21 546.31 543.46 536.21 cent is 9.49 per cent. That

67 660.40 600.19 601.16 573.54 564.23 549.78 548.80 540.81 equates to an annual divi-

68 677.05 612.50 606.29 578.56 567.05 553.18 553.15 546.05 dend of $2.37, or 59 cents

69 695.03 625.80 612.80 684.77 569.80 556.47 558.49 552.02 paid quarterly.

70 714.14 640.16 618.12 591.12 572.22 559.66 563.89 558.88 An important point to

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2634 Granville, Van
1645 Marine Dr West Van
1452 Lonsdale Ave North Van

tbh boaitt

1 6 Og
GPP OV ts
985 7487

For intormation and registration please call
986-1911, local 213.

Gua ranty