Introducing Desjardins Structured Notes
Investment solutions designed to deliver higher return potential in different market views while your initial investment stays safe.
Year after year, structured notes, also known as market-linked notes, have been gaining in popularity among investors. That’s because structured notes offer an alternative to traditional investments that can be used to diversify a portfolio while offering a distinct risk/return profile from fixed-income or growth products.
Desjardins, a leader in the Canadian structured product market with over 20 years of experience in the field, is pleased to introduce principal protected notes. These investment solutions are designed to take advantage of a potential return for specific market views while offering investors the peace of mind of knowing that their principal is 100% guaranteed at maturity.
What are principal protected structured notes?
They are investments made up of two key components:
- One component guarantees that your initial investment will be returned to you at maturity.
- A second market-linked component offers the possibility (not a guarantee) of a return based on the performance of the note’s underlying asset and other product-related features:
- The underlying asset (or reference portfolio) may be a basket of stocks, stock market indexes, etc.
- The features can vary and include elements such as term, participation rate, return formula, etc.
Fully guaranteed principal
The advantages of principal protected structured notes
In addition to providing sector and/or geographic diversification, these investment products combine the following benefits:
1. Security
- Principal 100% guaranteed at maturity
2. Market return potential
- Higher return potential than traditional fixed-income products like guaranteed investment certificates (GICs)
- Unique market exposure provided by the structure of the note
3. Liquidity and flexibility
- Redeemable at any time (with certain conditions, fees may apply)
- Various terms
- Minimum investment of $1,000
- Can be included in registered plans or held separately
Desjardins Principal Protected Notes: take advantage of different market views
Each investment product is designed or structured in a unique way to provide investors with the best possible return potential in different market views, all while guaranteeing 100% of the invested capital at maturity.
Some of the products are also designed to provide income flow during the term through guaranteed or contingent coupons.
Desjardins makes different investments available based on market conditions while taking investors’ needs into account.
For example:
Stable or moderately bullish market
| Structuring element chosen | Purpose of structuring |
|---|---|
| Enhanced participation rate: 150% |
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Anticipated short-term market correction followed by a recovery
| Structuring element chosen | Purpose of structuring |
|---|---|
| Return formula: Optimal start |
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Emerging market potential
| Structuring element chosen | Purpose of structuring |
|---|---|
| Basket of securities selected by Desjardins experts: 14 equities from a variety of sectors in the emerging markets (China, Taiwan, South Korea, Mexico, India, etc.) |
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An investment in principal protected notes may not be suitable for all investors. Important information about principal protected notes is contained in the Information Statement. Investors are strongly encouraged to read attentively the documentation related to a note issuance before investing. The documentation related to a note issuance in particular is available on the summary page of each issuance available on the website www.desjardinstructurednotes.comThis link will open in a new tab. . The offering and sale of notes may be prohibited or restricted by laws in certain jurisdictions in Canada and notes are not offered for sale outside Canada. Notes may only be purchased in the jurisdictions where they may be lawfully offered for sale.