Desjardins Group today announced the launch of a new structured investment product called Global Equity Term Savings. The new product will allow investors to benefit from the performance of 20 of the 50 largest-cap companies in the world.
“We have developed a yield calculation method for this product that is both innovative and highly advantageous for investors. Thus, by applying a floor value, we raise the yield of underperforming stocks. This product also offers a potential annual yield of 8% for the current issue from June 12 to September 12, 2006,” said Bernard Fortin, director, Business Development at Desjardins
Global Equity Term Savings provides a 100% capital guarantee on three-year investments. The yield is based on the performance of a diversified basket of 20 blue-chip international stocks, allocated on a sector and geographic basis. Fifty% of the portfolio consists of U.S. stocks, with the remainder divided between Europe and Asia.
“Canadian investors are usually too heavily weighted in Canadian stocks. In fact, a recent study showed that Canadian equities make up 89% of an RRSP,” said Fortin. “What’s more, the relatively low rates offered by bonds and other monetary products have spurred investors to look for new quality financial products with both a better return potential and lower risk.
Desjardins Group is a Canadian leader in structured investment products and has been active in this sector for eight years. With some $7 billion outstanding, it holds about 70% of the Quebec market and 30% of the Canadian.
Desjardins Group launches new structured product
Global Equity Term Savings product consists of 20 blue-chip global stocks
- By: IE Staff
- June 15, 2006 June 15, 2006
- 09:35