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Email this8:16 pm
February 20, 2018
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It says double ur money if tsx bank index rises 50% compounded? Who gets the divvy. how taxed. Any comments on this deal
https://newsroom.bmo.com/2019-11-28-BMO-Introduces-the-BMO-Money-Multiplier-Variable-Term-Deposit
https://www.bmo.com/main/personal/investments/gic/money-multiplier/
6:54 am
March 30, 2017
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Investors own a equity linked note, not the underlying, so you do not get any dividends.
Re tax, since the payout is interest payment on a note, its considered interest income in the eyes of CRA. There is an article about the linked note interest treament change in 2016.
7:16 am
April 6, 2013
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That is confirmed on page 4 of the Information Statement. The index used is a price return index and not a total return index:
For the purposes of determining whether the Index Performance Coupon will be paid, the Index Return will be calculated using the price return of the Index, which does not reflect the value of any dividends or distributions declared on any of the constituent securities comprising the Index.
On page 1, it says there is no CDIC coverage:
- The Deposit Note is not eligible to be insured by the Canada Deposit Insurance Corporation or any other entity. Therefore, a Holder will not be entitled to Canada Deposit Insurance Corporation protection.
9:59 am
February 20, 2018
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So the fund ppn manager keeps the divvy
10:59 am
March 30, 2017
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Bud said
So the fund ppn manager keeps the divvy
money dont grow on trees so yeah they need money from somewhere to pay for the principal protection for the investors, among other fees such as their profit 🙂
1:01 pm
April 26, 2019
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When you deal with BMO marketing there is one winner and one loser.
BMO
You
6:20 am
March 30, 2017
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GICinvestor said
When you deal with BMO marketing there is one winner and one loser.BMO
You
That applies to all FIs, not just BMO to be fair. 100% principal protection is not bad for the risk averse.
Products are offered for one purpose for the bank which is to make money. Different products may suit different investors with diff risk appetite.
Can be a win-win situation.
9:49 am
February 20, 2018
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the ppn manufacturers will gain more business when they become more clear plain english transparent exacting on summary or very simple to read documentation. Spoon feed. We dont mind paying for good product.
9:21 am
February 20, 2018
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This is a Rbc ppn note is min max coupon 1.75-6% annually or 1.75-6% return spread out thru the 6yr life of the note? Annually right. Good deal maybe?
This Note is a 6 year investment designed to provide annual income based on exposure to an equally
weighted Canadian Equity Portfolio. Investors will receive a minimum coupon of 1.75%, to a maximum
of 6.00% in years 1-6 based on the price performance of a portfolio of 10 Canadian companies.
10:33 am
December 12, 2009
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Bud said
This is a Rbc ppn note is min max coupon 1.75-6% annually or 1.75-6% return spread out thru the 6yr life of the note? Annually right. Good deal maybe?This Note is a 6 year investment designed to provide annual income based on exposure to an equally
weighted Canadian Equity Portfolio. Investors will receive a minimum coupon of 1.75%, to a maximum
of 6.00% in years 1-6 based on the price performance of a portfolio of 10 Canadian companies.
This is a tricky thing the banks do. Some are better than others at displaying the guaranteed minimum total return and the guaranteed minimum annual return more transparently. That sounds like 1.75% over 6 years is the minimum total return and 6% is the maximum total return. Other than a few credit unions offering 1-1.5% as an annual minimum return, I've never seen that offered by a major bank. Suggest you read through the fine print of the offering materials. 
Cheers,
Doug
11:11 am
September 7, 2018
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Bud said
This is a Rbc ppn note is min max coupon 1.75-6% annually or 1.75-6% return spread out thru the 6yr life of the note? Annually right. Good deal maybe?This Note is a 6 year investment designed to provide annual income based on exposure to an equally
weighted Canadian Equity Portfolio. Investors will receive a minimum coupon of 1.75%, to a maximum
of 6.00% in years 1-6 based on the price performance of a portfolio of 10 Canadian companies.
Bud - Could you tell me what are the 10 Canadian companies? I presume the offering material has that info. That would be useful in determining the potential for this.
6:07 pm
February 20, 2018
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canadian.100 said
Bud - Could you tell me what are the 10 Canadian companies? I presume the offering material has that info. That would be useful in determining the potential for this.
RBC Principal Protected Guaranteed Return Enhanced Yield LEOS Series 214
BCE Inc.
The Bank of Nova Scotia
Brookfield Property Partners L.P.
Canadian Imperial Bank Of Commerce
Capital Power Corporation
Company Name
Enbridge Inc.
IGM Financial, Inc.
Power Corporation of Canada
Riocan Real Estate Investment Trust
TransAlta Renewables Inc.
http://www.rbcnotes.com see anythin worth buyin
6:59 pm
December 12, 2009
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Bud said
RBC Principal Protected Guaranteed Return Enhanced Yield LEOS Series 214
BCE Inc.
The Bank of Nova Scotia
Brookfield Property Partners L.P.
Canadian Imperial Bank Of Commerce
Capital Power Corporation
Company Name
Enbridge Inc.
IGM Financial, Inc.
Power Corporation of Canada
Riocan Real Estate Investment Trust
TransAlta Renewables Inc.http://www.rbcnotes.com see anythin worth buyin
Bud, while that's a principal protected note and market-linked and market-indexed GICs are a type of principal protected note, two things of that PPN:
(1) It's not a deposit instrument for the purposes of the CDIC Act. Translation: it's not CDIC insured; and,
(2) It's manufactured by RBC Capital Markets and sold, principally, to institutional investors (i.e., non-profit organizations, governments, municipalities, pension funds perhaps, and others) and to high net-worth clients through RBC Dominion Securities, their full-service investment advisory business. It is not sold through RBC Royal Bank or RBC Direct Investing;
For market-linked or stock-indexed GICs, you want this website:
https://www.rbcroyalbank.com/investments/gic-rates-arent-high-enough.html#marketsmart
Click on RBC MarketSmart GICs.
See the information statement. It looks like, though, as I suspected, that's a minimum total return, not a minimum annual return.
Also, RBC may guarantee the principal, which is fine, but it's not guaranteed by CDIC. Not all PPNs are CDIC insured.
Nonetheless, thanks for pointing out that rbcnotes.com website. Hadn't seen that before.
Cheers,
Doug
1:46 pm
April 15, 2020
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Doug said
Bud, while that's a principal protected note and market-linked and market-indexed GICs are a type of principal protected note, two things of that PPN:
(1) It's not a deposit instrument for the purposes of the CDIC Act. Translation: it's not CDIC insured; and,
(2) It's manufactured by RBC Capital Markets and sold, principally, to institutional investors (i.e., non-profit organizations, governments, municipalities, pension funds perhaps, and others) and to high net-worth clients through RBC Dominion Securities, their full-service investment advisory business. It is not sold through RBC Royal Bank or RBC Direct Investing;For market-linked or stock-indexed GICs, you want this website:
https://www.rbcroyalbank.com/investments/gic-rates-arent-high-enough.html#marketsmart
Click on RBC MarketSmart GICs.
See the information statement. It looks like, though, as I suspected, that's a minimum total return, not a minimum annual return.
Also, RBC may guarantee the principal, which is fine, but it's not guaranteed by CDIC. Not all PPNs are CDIC insured.
Nonetheless, thanks for pointing out that rbcnotes.com website. Hadn't seen that before.
Cheers,
Doug
Start small and build over years. Set goal. Pick 4-5 quality blue chip stocks. For starters. A large Canadian bank. A Canadian utility. Now pick your last 2-3 from other sectors. Have fun.
7:03 pm
April 6, 2013
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cruzinalong said
Start small and build over years. Set goal. Pick 4-5 quality blue chip stocks. For starters. A large Canadian bank. A Canadian utility. Now pick your last 2-3 from other sectors. Have fun.
That's more likely to produce a good return than the RBC Principal Protected notes.
The minimum annual payment is 1.75%. The maximum annual payment is 6%.
However, the calculation of each annual payment is rather funky. One can get a 6% payment in a year only when all 10 shares are above its initial price, just before the annual payment date.
Each payment's percentage is the average of the adjusted percentage change of each of the individual share's prices from the issue date. Before being averaged, the percentage change of each share is adjusted so that (1) any negative percentage change is no worse than -10% and (2) any positive percentage change is replaced with +6%!
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