Do you want to achieve growth with
principal protection?
By Eunice Luis
Published in Port Credit Harbour Lights
Investors concerned with capital preservation are facing a particularly tough environment. On the one hand, the very safest investments, treasury bills and GICs, base their returns on prevailing interest rates, which are exceedingly low. On the other hand, post-2000 equity markets have been extremely volatile, leaving certain investors reluctant to invest in equities.
Is there a Middle Ground?
Yes, with FULPAY Premium AdvantageTM Mackenzie Funds-Linked Deposit Notes.
What are FULPay Premium Advantage Mackenzie Funds-Linked Deposit Notes?
These are seven-year Deposit Notes designed to generate equity-type returns, while at the same time providing 100% principal protection at maturity. It does so by using a seven-year zero coupon bond to protect the capital and a call option on the underlying funds to generate the average quarterly returns.
For the above notes, the underlying funds are equal weightings of Mackenzie Universal US Blue Chip Fund; Mackenzie Universal Canadian Growth Fund; Mackenzie Sentinel Corporate Bond Fund; Mackenzie Sentinel High Income Bond Fund; and the Mackenzie Dividend Growth Fund. If these notes are sold prior to maturity they are treated as capital gains otherwise they are taxable interest.
Who are these notes suitable for?
- Yield-squeezed retirees and Individuals in their last few years leading up to retirement, who need principal protection and who may currently hold low-yielding fixed income investments and GICs for safety.
- Individuals who are currently holding equities but want to set a floor under their nest egg by protecting their principal.
- Cash accounts: Investors fearful of re-entering equity markets given recent turmoil.
