GIC


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GIC

Guaranteed Investment Contract

A pension plan purchased through a bank or an insurance company for a lump sum in which the principal is guaranteed by the issuer. One may receive payments from a GIC either in installments or as a lump sum after retirement. A GIC provides the pensioner with a small interest rate that is not guaranteed, but the fact that the principal is guaranteed makes it a relatively low-risk investment.

GIC

Guaranteed investment contract (GIC).

A guaranteed investment contract, or GIC (pronounced gick), promises to preserve your principal and to provide a fixed rate of return when you begin to withdraw from the contract, typically after you retire.

You can invest in a GIC through a salary reduction plan, such as a 401(k) or 403(b) sponsored by your employer, provided that investment option is offered.

Because of their fixed rates, GICs are vulnerable to inflation. And you may have to pay a penalty if you decide to change from a GIC to a different investment.

Insurance companies that offer GICs assume the risk that the rate they earn on their investments will outperform the rates they've guaranteed on the GICs.

References in periodicals archive ?
Then GIC was made by mixing GIC powder with the distilled liquid supplied by the manufacturer on a sterile glass slab.
Loh Wai Keong, managing director and co- head ( Asia), GIC Real Estate, said, "GIC is confident in India's long- term growth potential and we look forward to partnering DLF to tap into the attractive opportunities of India's real estate.
The partnership with GIC is seen strengthening the capital position of Emperador to further enhance its market leadership in the country and expand its business in both the local and global markets.
Emperador chairman Andrew Tan said in a statement the partnership with GIC will strengthen the capital position of the company.
While GIC has never disclosed the total value of all its assets, the US-based Sovereign Wealth Fund Institute pegs their value at $248bn.
Despite the worsened underwriting performance for fiscal year 2011-12, GIC Re continues to show improvement in its expense ratio, mainly attributed to the decreasing trend in the net commission ratio as a result of continuous reductions in flat commission and the introduction into profit commission.
Established in 1983, GIC is a regional financial institution owned by equally by the six GCC states.
According to Al Razzuqi, GIC has had a long and strong relationship with Malaysian investors, and this issue follows a previous MR1 billion issue in 2008.
Therefore the aim of this study was to assess some of the antimicrobial and physical properties of a GIC when it is combined with SPE.
Hammond, look at the GIC as a way to save the town at least $1 million per year on health insurance premiums.
Chief executive Hisham A Al Razzuqi said that GIC made provisions for the impairment in the value of its portfolio of structured credits and structured investment vehicles (SIV).
The benefit plan is a creditor of the issuing company and therefore has credit risk, although generally the GIC issuers have high credit-quality ratings.