Mackenzie Financial Corp. has launched MSP ArMADA protected deposit notes, available in two versions: Maxxum Yield Class Series 1 and Maxxum Yield R.O.C. Class Series 1. The notes will be linked to the performance of Mackenzie Maxxum Dividend Fund and will mature on or about Nov. 5, 2012. Beginning in May 2006 and on a semi-annual basis, investors will receive distributions equal to two-thirds of the positive total return (if any) on the notes’ exposure to the fund. The remaining one-third of any total return will remain invested in the notes. For the Yield Class notes, any semi-annual distributions will be interest income; for the R.O.C. notes, the distributions should be characterized as return on capital for tax purposes. Mackenzie says the notes give investors unique tax-planning opportunities for both registered and non-registered accounts. The notes are fully protected at maturity by Bank of Montreal. Redemption fees begin at 6.95% in the first year and decline to zero after Year 3. Commissions are 4.75%, with a 0.25% trailing commission (for the first six years only). Minimum investment is $2,000.
Mackenzie and BMO introduce two deposit notes
- By: Lara Hertel
- November 2, 2005 June 1, 2019
- 12:25