Desjardins Financial Security has introduced two new index-linked investments that let investors participate in market growth and protect their funds from a market slump.

The Dynamic Index allows investors to redeem their funds in whole or in part on the yearly anniversary date, an option not available in the index-linked investment market.

“Essentially, with the Dynamic Index, investors can realize positive returns in the market on a yearly basis,” said Michael Aziz, regional VP of saving product sales for DFS. “This allows them to protect their gain from any subsequent market drop. Dynamic index guaranteed value increases with market appreciation for the year and it does not drop even if the market sours because the valuation is not reset during any downturns. In effect, an investor gets a minimum 100 per cent maturity guarantee of the initial deposit, over a seven year term.”

The return of the Dynamic Index is based on the S&P 500, Aziz added.

Additionally, DFS is launching the Classic Index. The returns generated from this index-linked-term investment are based on the fluctuations seen in a basket of international stock indices comprised of the EURO STOXX 50, the FTSE 100 and the Nikkei 225. The Classic Index has a maturity guarantee of 100% of the initial deposit, over a five-year term.

Both index-linked investments are redeemable, have no management fees, are potentially creditor proof and are available as registered and non-registered products. They require a minimum deposit of $500 before any of an investor’s money is invested in the product. A pre-authorized contribution of $25 a month is also available for both.

Along with the launch of the two index-linked products, DFS has added seven new segregated funds to the Millennia III fund family. The new funds offer complementary management styles and are managed by leading global fund managers including such companies as AllianceBernstein, Fidelity Investments Canada, Jarislowsky Fraser and AIM Trimark. All funds are available as registered and non-registered products.

The new funds are:

  • Mortgage Fund, managed by Desjardins Asset Management;
  • Jarislowsky Fraser Global Balanced Fund, managed by Jarislowsky Fraser;
  • Trimark Canadian Fund, managed by AIM Trimark Investments;
  • Maestral Quebec Growth Fund, managed by Maestral Funds with the assistance of sub-advisor Montrusco Bolton, a specialist in Quebec securities;
  • Bissett Multinational Growth RSP Fund, managed by Bissett Investment Management;
  • Fidelity International Growth RSP Fund, managed by FidelityInvestments Canada; and
  • American Equity Value Fund, managed by AllianceBernstein.