Mackenzie Financial Corp. has launched its third CIBC FULPAY Mackenzie Funds-Linked Deposit Note, a debt instrument that features a 100% return of principal at maturity guaranteed by CIBC, and the potential to deliver equity-like returns through a link to the performance of three leading Mackenzie funds.

Series 3 is available through brokers and financial planners for a limited time starting November 3 until December 12, 2003.

Mackenzie launched its first deposit note on March 24 and its second on August 25, with total sales exceeding $110 million.

The hybrid security has the potential to generate returns in the equity market linked to the performance of a portfolio consisting of equal weightings of three Mackenzie funds: Mackenzie Ivy Foreign Equity Fund, Mackenzie Cundill Canadian Security Fund and Mackenzie Maxxum Dividend Growth Fund.

It also provides principal protection for the investor’s original investment at the end of the six-year term. At maturity, an investor will receive their principal plus interest (if any) generated by the Note’s link to the three funds. Due to the performance of the funds, it is also possible that no interest may be payable at maturity.

For investors who wish to sell the investment prior to maturity, CIBC World Markets will maintain a secondary market for the notes (but reserves the right not to do so in the future). The principal, however, is only protected if the note is held to maturity.

The notes qualify as Canadian content for RRSPs, RRIFs, and DPSPs. A minimum $5,000 investment is required.

http://www.newswire.ca/en/releases/archive/November2003/03/c8024.html