Desjardins recognized as the leading issuer of principal protected products in Canada and North America
After taking home seven awards at the SRP Americas 2024 gala on September11, including the prestigious Best House, Capital Protection award for the Americas, Desjardins stood out once again, this time at the SPi Canada2024 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 March31, 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 Groupis the largest cooperative financial group in North America and the sixth largest in the world, with assets of $444.3billion as at June30, 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
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