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Investment Equity Share FAQs


What are "equity shares"?
Equity shares are issued by the credit union to raise capital and provide an exclusive opportunity for members to invest directly in the credit union. They fund capital projects like new branches, renovations, computer system upgrades and other projects designed to improve the client service we provide. Equity shares earn non-cumulative dividends, declared at the discretion of the Board.
Why did BlueShore Financial decide to offer this type of investment?
Issuing equity shares provides an opportunity for a win/win situation for both members and the credit union. Class C Investment Equity Shares have a consistent track record of competitive dividend returns, and are targeted to outperform the yield available through traditional term deposits. This gives members a secure, low risk investment option as part of a diversified portfolio, not subject to market volatility. For BlueShore Financial, the shares provide an opportunity to increase our capital base, providing an important funding source for future growth and new initiatives.
Are Investment Equity Shares available only at specific points in time (e.g. set issue dates)?
No. Class C Investment Equity Shares are a permanent part of our investment product suite, and available for members to purchase at any time. Much like a savings account, members will be able to make an initial purchase of equity shares, then add more over time at their discretion.
Does owning equity shares entitle me to special voting rights?
Only Class A Membership Shares carry the right to vote at a general meeting of the members. Holders of Class C Investment Equity Shares are entitled to vote on the special rights and restrictions attached to these shares, as well as on a substantial asset sale or credit union amalgamation. In those circumstances, each holder of Class C Investment Equity Shares is entitled to one vote, regardless of the number of shares held.
Who can purchase Class C Investment Equity Shares?
BlueShore Financial members who are at least 19 years of age and residents of British Columbia are eligible to purchase Class C Investment Equity Shares. There are provisions for business members to purchase these shares, as well as non-members.
Can a business member buy Class C Investment Equity Shares?
Yes, under the same terms and conditions - i.e. as a long-term investment, with no set maturity date or term duration.
Can Investment Equity Shares be held as collateral or otherwise used as security on a loan?
Only liquid assets, like term deposits, can be held as collateral on a loan. Class C Equity Shares are not a liquid investment, so they do not qualify for use as collateral on a loan.
How do I complete a purchase of Class C Investment Equity Shares?
The first step is to review the FAQs and the Disclosure Statement to become familiar with the product features. Then call or visit to your branch to speak with a financial advisor or financial services associate. Share purchase requires completion of a Subscription Agreement; investors are issued a share certificate as confirmation.
What is the Disclosure Statement?
The Disclosure Statement outlines the terms and conditions relating to the sale of this product. It is important that prospective investors become familiar with the product features and consult with an BlueShore Financial advisor before purchasing.
What is a share certificate?
A share certificate is essentially a purchase receipt outlining the details relating to the share purchase (e.g. number of shares purchased, type of shares (RRSP, TFSA, non-registered), etc.).
What type of investor might be most interested in this product?
Class C Investment Equity Shares are a good option for those with a long-term investment horizon (e.g., estate planning), seeking higher returns on an investment alternative not subject to market volatility, where access to liquid funds is not a concern.
What if I change mind after purchasing Class C Investment Equity Shares?
Members can cancel the agreement to purchase the equity shares by sending a notice to the credit union within five (5) business days of the date the Subscription Agreement was signed and received by the credit union.


Product Features

How long do I need to hold Class C Investment Equity Shares?
Unlike traditional term deposits, there is no set term length or maturity date for Class C Investment Equity Shares. They are a long-term investment that can be redeemed only upon request, at the discretion of the Board of Directors.
What is value of each equity share?
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.
Is there a minimum or maximum share purchase?
The minimum purchase is 1,000 shares ($1,000) per account. Non-registered, RRSP and TFSA investments are considered to be separate accounts. The minimum amount for subsequent purchases is $500. Clients can own up to a maximum of 500,000 shares ($500,000) outright or jointly held with other members. Purchases over 250,000 shares require approval from the credit union.
Can Investment Equity Shares be held within registered plans?
Yes. They can be held within RRSP and TFSA plans.
What about RRIF eligibility?
The credit union does not actively sell a RRIF version of the Class C Investment Equity Shares. Members who have purchased Class C Investment Equity Shares as part of their RRSP portfolio will be able to convert them to RRIF Class C Investment Equity Shares at the appropriate time.
Are there any fees or commissions associated with this product?
No. Unlike other shares bought or sold on equity markets, there are no fees or commissions associated with the purchase or management of Class C Investment Equity Shares.
Are Class C Investment Equity Shares covered by the Credit Union Deposit Insurance Corporation (CUDIC) deposit guarantee?
No. The credit union deposit guarantee is designed to cover member deposits and a deposit by definition is repaid upon demand. Class C Investment Equity Shares are considered to be an equity investment in the credit union and are not redeemable on demand, but rather at the discretion of the Board of Directors. They are a safe, secure investment option, backed by the financial stability of the credit union.



When are dividends paid?
Quarterly, on March 31, June 30, September 30 and December 31.
Do dividends track an external benchmark, such as the Prime rate or a specific market index like the TSX?
No. Dividends are set by the Board of Directors and are not tied to any external benchmark. It is the credit union’s intention to ensure Class C Investment Equity Shares provide a premium rate of return.
Where can I find the track record of dividends on Class C Investment Equity Shares?
Please see our full record of declared dividends.
How are dividends treated for tax purposes?
Dividends relating to these equity shares are treated as interest income for tax purposes.
What options are available for how dividends are paid?
Investors can choose to have their dividends compound (reinvested in additional shares) or pay out in cash to an BlueShore Financial chequing or savings account each quarter to supplement income. Members can modify how dividends are paid at any time, as their needs change.
What are non-cumulative dividends?
Non-cumulative dividends mean that if the Board does not declare a dividend during a particular period, that the right to receive that dividend is extinguished and does not carry forward to subsequent periods.


Redemption & Transferability

How are Class C Investment Equity Shares redeemed?
Unlike savings accounts where funds are repaid on demand, equity share redemption is at the discretion of the Board of Directors. To access funds held in Class C Investment Equity Shares, members can submit a redemption request (partial or full) through their branch, for the Board’s consideration.
What happens to the shares a member owns in the event of their death?
It’s been the credit union’s practice to redeem all the shares owned by the member or, in the case of jointly held shares, to apply the right of survivorship.
Can a member transfer Class C Investment Equity Shares to another member?
No. Shares are non-transferable.
What happens to the existing share certificate if subsequent share purchases are made?
Nothing. A new share certificate is issued for each subsequent purchase of equity shares.
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