Desjardins Financial Security is launching its new Strategic Index Plus 108% product, guaranteeing a minimum yield of 8% at maturity for RRSPs.

The product features a 100% capital guarantee at death.

Additionally, the financial services firm is offering a new flexible RRSP financing program to help Canadians save for their retirement, and a three-year non-registered Index Plus Tactic hedge-fund GIC.


“The Strategic Index Plus 108% is designed for strong returns with minimal volatility. Worst-case, for every $100 invested, contributors will receive a minimum of $108 at the end of the 8-year period. We are reducing their downside risk, while still offering equity-type returns,” said Michael Aziz, regional vice president for savings products at Desjardins Financial Security.

“The three-year Index Plus Tactic is an ideal product for those interested in securing their investments from the market’s swinging pendulum, giving investors peace of mind when they’re saving for a down payment on a house or a car,” Aziz added.

The GIC offers a capital guarantee of 75% at maturity and 100% at death. The reintroduction of this sophisticated diversification tool is designed for investors who need medium- term liquidity.

“Strategic Index Plus and Index Plus Tactic are designed to return positive returns in both bull and bear markets,” said Aziz. “The diversification provided by Strategic Index Plus and Index Plus Tactic is unique in the market. Their return is linked to the performance of portfolios made of more than 65 hedge funds for Strategic Index Plus and 50 hedge funds for Index Plus Tactic.”

The annualized returns for the Strategic Index Plus, eight-year-term, was 5.12% for the campaign beginning April 1, 1999 and 6.08% for the Oct. 1, 2002 campaign. For Index Plus Tactic the return was 3.73% and 7.44% for the campaigns beginning Nov. 1, 2001 and Oct. 1, 2002 respectively (both eight-year terms).

Also new this year for the Index Plus Tactic is the taxation at maturity feature. Beginning in 2003, investors can defer tax payment until maturity of the contract instead of receiving a tax slip at the end of each year, simplifying tax calculations and payments.

Desjardins Financial Security is now offering investors RRSP financing in conjunction with Desjardins VISA’s accord D FINANCING program. This program is a second permanent credit limit, separate from the regular credit card limit. The second credit limit can only be used for RRSP products including Strategic Index Plus, Index Plus Tactic, GICs, Millennia III Segregated Funds and Maestral funds. The maximum limit is $13,500.

Strategic Index Plus 108% and the three-year non-registered Index Plus Tactic hedge fund GIC are available through Laurentian Financial Service representatives or through financial advisors across Canada.

http://www.newswire.ca/releases/January2003/21/c1882.html