Desjardins recognized as the leading issuer of principal
protected products in Canada and
North America
MONTREAL, Sept. 20,
2024 /CNW/ - After taking home seven awards at the
SRP Americas 2024 gala on September 11, including the
prestigious Best House, Capital Protection award for the Americas,
Desjardins stood out once again, this time at the SPi
Canada 2024 Awards for Excellence, where it was awarded the
prize for Best Principal Protected Issuer in Canada.
This prize, which is awarded by Structured Products
Intelligence, honours the best Canadian issuer of
principal-protected structured products, as determined by criteria
of innovation, sales, range of products offered and performance of
products that matured by March 31, 2024.
"Earning these distinctions for Canada and the Americas shows how important it
is for us at Desjardins to sell high-quality investment products
that provide the kind of capital protection our members and clients
need," said Benoît Bélanger, Managing Director, Structured Products
at Desjardins Group. "This prestigious recognition fuels our drive
to continue developing innovative, high-performance investment
solutions."
About Desjardins Group
Desjardins Group is the largest cooperative financial group
in North America and the sixth
largest in the world, with assets of $444.3 billion as at June 30, 2024. It
has been named one of the top employers in Canada by both Forbes magazine and
Mediacorp. To meet the diverse needs of its members and clients,
Desjardins offers a full range of products and services to
individuals and businesses through its extensive distribution
network, its online platforms, and its subsidiaries across
Canada. Ranked among the world's
strongest banks according to The Banker magazine, Desjardins
has some of the highest capital ratios and credit ratings in the
industry.
About Structed Products Intelligence
Structured Products Intelligence (SPi), a division of the WSD
Group, is a company based in London,
England, that provides market intelligence, reference data
and lifecycle information for the structured product industry. SPi
awards prizes to Canadian financial institutions that offer
structured products.
About structured products
Structured products can be broken down into two categories:
market-linked guaranteed investments (MLGIs), also called
market-linked GICs in the banking world, and structured notes.
An MLGI is a term deposit, governed by the Deposit
Institutions and Deposit Protection Act, which guarantees
capital upon maturity, as well as minimum returns when applicable.
The variable portion of the return is linked to market growth. That
means this type of guaranteed investment has a higher level of risk
than traditional fixed-rate investments. At maturity, depending on
how the markets perform, the variable return could be zero.
However, any guaranteed interest will still be paid out. There's no
way to be sure what the return on the market-linked portion will be
until the maturity date. Guaranteed investments are not direct
investments in the securities that make up the variable return
portion. This means investors are not entitled to the same rights
and benefits as shareholders, including the right to receive
distributions or dividends, or the right to vote or attend
shareholder meetings.
Principal protected notes: These are debt instruments
issued by a recognized financial institution (Desjardins) with the
initial investment guaranteed at maturity. The return potential is
higher than for traditional fixed-income securities due to stock
market exposure provided by a diversified reference portfolio made
up of company securities or exchange-traded funds (ETFs). Notes can
also be redeemed at any time under certain conditions.
Non-principal protected notes: These are debt instruments
issued by a recognized financial institution (Desjardins) with no
guarantee on the initial investment. Clients benefit from stock
market exposure through a diversified reference portfolio, as well
as different levels of protection at maturity. The potential return
is generally higher than that of principal protected notes to
offset the risk of capital loss if the reference portfolio returns
fall below a certain level. These notes can also be redeemed at any
time under certain conditions.
The variable return of market-linked guaranteed investments
(MLGIs) may be nil at maturity. However, the initial investment and
the annual guaranteed return, if any, are always guaranteed at
maturity. Please read the investment agreement before
investing.
Principal protected notes may not be suitable for all investors.
Important information is contained in the information statement and
oral disclosure document for each principal protected note.
Documents related to a particular note issuance are available on
the summary page of that issuance. Before purchasing investments,
investors should read all documents carefully and discuss the
investment's suitability with their investment advisor or dealer
representative. The notes can only be purchased in the Canadian
jurisdictions where they are legally distributed, and only from
people who are registered and authorized to sell them. Investments
in these notes carry certain risks. Returns on notes are determined
by the change in value of the underlying assets over the course of
the term. There may be no return payable to the investor. Returns
cannot be determined before maturity and past performance is not
indicative of future returns. Some notes may be subject to caps,
participation rates or other limits affecting returns. For
principal protected notes, the full principal amount is only repaid
at maturity.
Non-principal protected notes may not be suitable for all
investors. Important information is contained in the base shelf
prospectus, base shelf prospectus supplement and pricing supplement
for each non-principal protected note. Before purchasing
investments, investors should read all documents carefully and
discuss the investment's suitability with their investment advisor
or dealer representative. The notes can only be purchased in the
Canadian jurisdictions where they are legally distributed, and only
from people who are registered and authorized to sell them.
Investments in these notes carry certain risks. Repayment of the
full principal amount is not guaranteed and depends on the
performance of the reference portfolio. You could lose part or
virtually all of your initial investment. Returns on notes are
determined by the change in value of the underlying assets over the
course of the term. There may be no return payable to the investor.
Returns cannot be determined before maturity and past performance
is not indicative of future returns. Some notes may be subject to
caps, thresholds, participation rates or other features affecting
returns.
Neither principal protected notes nor non-principal protected
notes are considered insured deposits under Quebec's Deposit Institutions and Deposit
Protection Act, the Canada Deposit Insurance Corporation
Act, or any other deposit insurance plan.
SOURCE Desjardins Group