Products and services

Investors Group Financial Services Inc. (IGFS)

Products and Services

IGFS is a mutual fund dealer and a member of the Canadian Investment Regulatory Organization (“CIRO”), a self-regulatory organization in Canada that regulates mutual fund dealers. IGFS is permitted under provincial securities legislation to sell mutual funds and certain other types of products as described in this section. A mutual fund is an investment product which provides a convenient way for persons to invest their money. As a client, you will have access to IG Wealth Management funds which are proprietary mutual funds managed by IG Wealth Management. The mutual fund uses this money to buy different types of investments on behalf of all of the investors. A portfolio manager makes investment decisions to buy and sell investments such as stocks, bonds or other securities based on the investment objective and investment strategies of the mutual fund. When investing in a mutual fund, you purchase units or shares in the fund, where each unit or share represents a share of the total pool. IG Wealth Management funds are advised by IGFS's affiliates around the world as well as, in some instances, third party sub-advisors. The breadth and depth of the IG Wealth Management funds ensures that clients have the right mix of fixed income, balanced, domestic equity and international equity mutual funds to help them achieve their financial goals.  IGFS and its affiliate IG Wealth Management Securities Inc. (“IGSI”) are the exclusive distributors of IG Wealth Management funds. You generally cannot purchase, units or shares of IG Wealth Management funds through any other dealers. At any time, you may ask to have your account with IGFS serviced by another IG Wealth Management Advisor, who is registered in your province of residence. Generally, you many not hold your units or shares of the funds in an account with a dealer other than the IGFS if your investment is held within an RESP or RDSP account. If you decide to transfer these investments to another dealer, you may have to redeem your units or shares in IG Wealth Management funds which will be subject to any applicable redemption fees, capital gains tax and withholding taxes. Refer to the applicable Simplified Prospectus available on our website at investorsgroup.com or at sedar.com, or other product disclosures, that we may issue, for further information about IG Wealth Management funds. 

Other products that IGFS and IG Wealth Management Advisors are permitted to sell include:

  • Guaranteed Investment Certificates - an investment product which offers a fixed rate of interest for a specific term. Both principal and interest payments are guaranteed.
  • Canada Premium Bonds - an investment product issued and fully backed by the Government of Canada.
  • Provincial Savings Bonds - an investment product issued and fully backed by a provincial government.
  • Transaction Accounts - When investing in mutual funds there may be commissions, fees and expenses associated with these investments. There are no administration or account fees.  The Simplified Prospectus provides you with information about the administration and fees applicable to your account.
  • IG Advisory Accounts – You are charged an advisory fee as outlined in your IG Advisory Account Agreement. Other fees may apply as listed in the Simplified Prospectus.

Investor Group Securities Inc. (IGSI)

Products and Services

IGSI offers you services such as financial advice and order execution. We provide access to investment products such as mutual funds, equities, fixed income securities and exchange traded funds (ETFs). We are permitted under provincial securities legislation to trade in any type of security, except options or futures.   IGSI does not accept cash. All payments for purchases must be made by cheque, payable to IG Wealth Management Securities Inc. Cheques should not be made payable directly to your IG Advisor. IGSI offers non-discretionary accounts (transaction accounts and fee-based accounts) and discretionary accounts (Azure Managed Investments accounts). As a client, you also have access to IG Wealth Management funds which are proprietary mutual funds managed by IG Wealth Management. Non-discretionary accounts – your IG Advisor or Investment Representative must obtain your instructions before transactions are executed in your account. IGFS Advisors registered with the CIRO cannot facilitate trading in your account.

There are three types of non-discretionary accounts:

  • Transaction accounts – you are charged a commission for each transaction made in equity securities and certain other products at the time of the trade. Commissions are charged based on a flat rate. These rates are outlined in the Fees and Service charges brochure. There are no administration and account fees.
  • Fee-based accounts – you are charged an annual advisory fee (billed monthly) as outlined in your Fee-Based Account Agreement. These accounts are only available through an IG Advisor.
  • IG Advisory Accounts – You are charged an advisory fee as outlined in your IG Advisory Account Agreement. Other fees may apply as listed in the Simplified Prospectus. Discretionary accounts – Azure Managed Investments accounts are managed accounts where you appoint IGSI to act as your portfolio manager with full discretionary authority to buy or sell securities for your account - without your instructions. You authorize IGSI to manage (on a segregated basis) and trade (on a continuing basis), at its discretion, securities for your account in accordance with the agreed to Investment Policy Statement. You are charged an annual advisory fee (billed monthly) as outlined in your Azure Managed Investments Account Agreement. These accounts are only available only through an IG Advisor. IGSI and its affiliate, Investors Group Financial Services Inc. (“IGFS”), are the exclusive distributors of IG Wealth Management funds. Generally, you may not hold your units or shares of IG Wealth Management funds in an account with a dealers other than IGSI if your investment is held within an RESP or RDSP account.  If you decide to transfer these investment to another dealer you may have to redeem your units or shares in IG Wealth Management funds which will be subject to any applicable redemption fees, capital gains tax and withholding taxes. Refer to the applicable Simplified Prospectus available on our website at www.investorsgroup.com or at www.sedar.com, or other product disclosures, that we may issue, for further information about IG Wealth Management funds.

 

a) Offers

Nothing contained in this Site constitutes an offer to buy or sell products or services of IG Wealth Management or any of its affiliates. All products and services are subject to the terms and conditions of any applicable applications, contracts, prospectuses and laws. IG Wealth Managements products and services and those of its affiliates are available only in Canada in those jurisdictions where they may be lawfully offered for sale. If you reside in Canada, further information about IG Wealth Management products and services may be obtained by contacting an IG Advisor or office.

b) Prospectuses

Important information about any mutual fund is contained in its Simplified Prospectus, Fund Facts document and in its Management Report on Fund Performance. This includes the fund’s investment objective, purchase options and applicable charges. You can view a copy of these documents on this website, or at www.sedar.com. All mutual funds are sold by Prospectus. This Site should not be considered an offer to sell or a solicitation to buy any mutual fund or other products or services available from IG Wealth Management.

c) Performance

Commissions, fees and expenses may be associated with mutual fund investments. Read the prospectus before investing. Mutual funds are not guaranteed, values change frequently, and past performance may not be repeated. The performance data provided assumes reinvestment of distributions only and does not take into accounts sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any government deposit insurer.

In the case of managed asset programs (such as iProfile™), commissions, trailing commissions, management fees and expenses all may be associated with mutual fund or pool investments and the use of an asset allocation service such as iProfile. Please read the Prospectus of the mutual funds or pools in which investment may be made under the asset allocation service before investing. The indicated rate(s) of return is (are) the historical annual compounded total return(s) assuming the investment strategy recommended by the asset allocation service is used and after deduction of the fees and charges in respect of the service. The return(s) is (are) based on the historical annual compounded total returns of the participating funds including changes in units, value and reinvestment of all dividends or distributions and does (do) not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder in respect of a participating fund or pool that would have reduced returns. Mutual funds and pools are not guaranteed, their values change frequently, and past performance may not be repeated.

In the case of money market funds, there can be no assurances that the fund will be able to maintain its net assets value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Past performance may not be repeated. Performance information for money market funds is an annualized historical yield based on the seven-day period ended on the date shown where the performance information is posted (annualized in the case of effective yield by compounding the seven-day return) and does not represent an actual one-year return.

d) Mutual Fund Pricing

The value of units or shares of a mutual fund are calculated as at the close of business each day (except for units in Investors Real Property Fund, which are calculated twice a month). Subject to any delays as described below, any such unit or share value (and the balances of any mutual fund or share accounts) are shown as of the close of business of the immediately preceding business day.

e) Pricing and Timing

The availability of information regarding account balances or values, or transactions on those accounts, may be delayed by one or both of:

(i) delays in the processing and posting of instructions and orders given to IG Wealth Management or to your Advisor; and

(ii) delays in the delivery to IG Wealth Management of data (including the valuation of mutual funds, stocks, bonds and account balances).

As a User, you are cautioned as a result:

(iii) not to rely on the information which is accessible or viewed on this Site for making any financial or investment decisions, including the purchase, redemption or transfer of investments; and

(iv) to note the date indicated on this Site as of which the posted information is effective.

f) Mortgage Default Insurance Disclosure:

When homebuyers provide a down payment of less than 20% of the purchase price or appraised value of their property, Federally regulated lenders, including Investors Group Trust Co. Ltd., are required by the Government of Canada to obtain Mortgage Default Insurance. Mortgage Default Insurance protects the lender in the event the mortgage borrower defaults on the mortgage agreement. In most circumstances, “default” would imply the mortgage payments have not been made.

Mortgage Default Insurance helps to ensure the lender is able to recover the outstanding principal amount of the mortgage plus expenses from the sale of the foreclosed property. This type of insurance is provided to the lender by Canada Mortgage and Housing Corporation (CMHC), Sagen or Canada Guaranty. It is not the type of insurance that protects the borrower against death, serious illness or disability.

The amount of insurance premium is determined by CMHC, Sagen or Canada Guaranty based on a calculation of the percentage of the amount borrowed and other specific factors, including:

  • Loan to value ratio
  • Amortization period
  • Owner occupied vs. rental property

The Mortgage Default Insurance premiums will be charged to the borrower and can be paid as a lump sum or added to the mortgage balance.

Each mortgage insurer has its own criteria for evaluating the borrower and the property and decides whether or not a mortgage can be insured. There may be cases when a mortgage application is approved by a lender but declined by a mortgage insurer. If this happens, the lender will not be able to provide the loan unless another insurer is prepared to insure the mortgage.

Mortgages with at least a 20% down payment are not typically required to be insured, but there may be instances where it will be required by the lender.