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Principle Protected Notes
Greater earning power with a principal guarantee
Principal-protected notes are fixed term investments that guarantee their principal when held to maturity. Unlike other fixed term products, however, PPNs are linked to potentially higher performing investments such as mutual funds, equities, and commodities.
Investors who would like to benefit from good market performance without the risk of losing their principal may find these notes a suitable portfolio choice.
How PPNs compare to other fixed term investments:
| FEATURE |
GIC |
BOND |
PPN |
| Principal guaranteed at maturity |
Yes |
Yes |
Yes |
| Guaranteed interest |
Yes |
Yes |
No |
| Optional income stream |
Yes |
Yes |
Yes |
Liquidity - principal is guaranteed only if held to maturity |
No |
Yes |
Yes |
| Opportunity for capital gains tax treatment |
No |
Yes, in some cases |
Yes |
| RRSP eligible |
Yes |
Yes |
Yes |
Your Rice Financial advisor will help you determine if PPNs are suitable for your portfolio. For more information on these notes and other investment and insurance opportunities, visit your advisor.
Principle Protected Notes (PPNs) are not similar to GICs or Segregated Funds. Commissions, management fees, structuring costs, guarantee fees and redemption fees may be associated with PPNs. Please read the Information Statement and any Information Supplements before investing. Returns are based on the underlying investment and are not guaranteed. In no way does an investment in a PPN reflect a direct investment in the underlying asset. The principal is guaranteed only at maturity. Prior to maturity the values may change frequently and the past performance of the underlying investment(s) may not be repeated. PPNs have a complex structure and Investors should consult, to the extent necessary, their own independent tax, financial and related professionals as to the merits of investing in PPNs. The nature and construction of a PPN makes them suitable for Investors with a long term time horizon.
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