You get paid when the index representing Canadian banks (‘’Index’’) has remained the same or is higher on the valuation date in a given year. Note is offered by a Canadian bank and the notes are not principal protected.
You invest a sum in a note issued by a Canadian bank (the “Note”). The date the investment starts is called the valuation date (the “Valuation Date”). A year following your Valuation Date, if the Index has remained the same or is higher, the Note will be redeemed, and investors will receive all their principal plus 11% interest. If the Index is down, the investment continues for a 2nd, 3rd, 4th and/or 5th year. If at the end of any of those years the Index is positive since your Valuation Date, you will receive 11% per year and get back your capital. Example, if the Index is down for the first two years and recovers to the initial Index level on the third year, your interest payment would be 3 x 11% = 33%*.
After 5 years, your capital will be returned if the Index has not fallen more than 30% since your Valuation Date. If at end of the 5th year, the Index has decreased more than 30%, your capital is at risk and you will lose the respective percentage that the Index is down. For example, if the Index is down 39%, your loss will be 39% from your initial investment.
There are no fees or penalties to sell after holding the Note for at least 180 days.
*A person should reach a decision to invest in a Note only after carefully considering, with his or her investment, legal, accounting, tax and other advisors, the suitability of a Note in light of his or her investment objectives and the information set out in the Note’s prospectus. There is no guarantee that any of the principal amount of a Note will be paid or guarantee that any return will be paid on a Note, at or prior to maturity. Purchasers of Notes could lose substantially all of their investments in the Notes. These Notes are not designed to be alternatives to fixed income or money market investments. The Notes are not appropriate investments for persons who don’t understand the risks associated with structured products or derivatives. There is currently no public market through which Notes may be sold. There is no guarantee that any secondary market which may develop will be liquid or sustainable. Holders are not entitled to redeem their Notes prior to maturity. Consequently, the Notes should not be viewed as a trading instrument. The Notes will not constitute deposits that are insured under the Canadian Deposit Insurance Corporation Act or any other deposit insurance regime designed to ensure the payment of all or a portion of a deposit upon the insolvency of the deposit taking financial institution. A holder will not be entitled to the Canada deposit insurance corporation protection. The deposit in Notes, along with the indicated terms, are a direct obligation of the issuing Canadian bank.
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Gabriel Melkonian, BComm Finance, CIM
Senior Investment Advisor Portfolio Manager
As a graduate of Finance from John Molson School of Business at Concordia University, Gabriel has quickly established himself with a complete wealth management approach. Recognizing the benefits of pension-like portfolio management, Gabriel provides access to his clients to this costly investment style at a fraction of the cost. He also has experience working with corporate clients in aligning their wealth strategy to be tax effective and utilize options such as individual pension plans to optimize wealth. Gabriel has been working closely with young professionals and some of the highest net-worth families in the city to build a unique personalized approach to their financial needs.
514.284.1565 514.284.1578 1.800.361.4805
DISCLAIMER AND OTHER LEGAL INFORMATION
All information included herein has been compiled from sources believed to be reliable, but its accuracy and completeness is not guaranteed, nor in providing it does the author or Canaccord Genuity Corp. assume any liability. This document is for general information only and does not constitute an offer to sell or a solicitation to purchase Notes. In addition, it is not intended to provide any tax, legal or financial advice, and under no circumstances should be interpreted as a solicitation to act as a securities broker or dealer in any jurisdiction. All views are intended for general circulation only and do not have any regard to the specific investment objectives, financial situation or general needs of any particular person, organization or institution. The offering of Notes may be prohibited or restricted by laws in certain jurisdictions. Notes may only be purchased where they may be lawfully offered for sale and only through individuals qualified to sell them. All investors should consult with a qualified investment advisor or tax professional before making any investment decisions
FOR DISTRIBUTION IN CANADA ONLY
*Valid for the week of October 7, 2019, terms and rates change on a weekly basis. Please call Gabriel Melkonian for more details.”