JovFunds Management Inc. today announced the launch of a bank downside protection deposit note, the Gibraltar Bear Canadian Banks Deposit Notes, Series 1, issued by Société Générale (Canada).
The notes feature an underlying portfolio built from equally-weighted common shares of Canada’s big six banks — Bank of Montreal, CIBC, Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia and National Bank of Canada.
The notes provide investors with the opportunity to capitalize on potential short-term negative performance of the portfolio. If, at maturity, the portfolio’s performance is less than 0%, the notes will provide a positive return equal to the absolute value of the negative return. If the portfolio’s performance is equal to or greater than 0%, investors will receive the principal amount at maturity.
The notes also feature a term to maturity of only 3.5 years, are 100% principal protected by Société Générale, if held to maturity, and are available for purchase from June 4 to July 27.
The maximum issue size of the notes is $25 million.
“Responding to requests, we created a unique investment product — we believe the first of its kind — for investors who are not necessarily bearish on the banks, but who want some diversification for their bank-heavy investment portfolio,” says Raj Lala, managing partner of JovFunds.
The notes are 100% RSP eligible, and the minimum investment in the Notes is $5,000.
The FundServ Code for the notes is ACC902.
JovFunds launches Gibraltar Bear Canadian Banks Deposit Notes
Notes offfer diversification for bank-heavy investment portfolios
- By: IE Staff
- June 11, 2007 June 11, 2007
- 10:15