The Desjardins Group recently launched its Profile Guaranteed Investment Portfolios, which are market-linked guaranteed investments.
Desjardins is offering the retirement income product in four pre-defined portfolios based on financial services, consumer staples, health care, or equity indices. Depending on investors' risk tolerance, they can choose between a number of asset allocations, including secure, stock market secure, balanced income, and balanced growth.
These portfolios will pay the investor a fixed monthly distribution equal to 5% of the initial deposit for five years. The capital is 100% guaranteed and results are tied to investment performance. A minimum guaranteed annual rate of return is offered in all of the portfolios except for the Equity Guaranteed Investment Portfolio.
The portfolios are being offered for a limited time, from June 7 to Sept. 4. Funds will be invested on Sept. 14, but monthly distributions may begin in June and will be made on the 15th of every month. Jean-Rémy Deschênes, Wealth Management Business Coordinator and Mutual Fund Representative at Desjardins Financial Services Firm Inc., says that there may be future offerings, depending on demand.
He adds that this new product is tailored towards investors who are nearing or in retirement and want a regular, stable income. The minimum deposit is $5,000, but those who invest $25,000 will receive a bonus amount that will be announced on June 7. The investor will also receive a 1% interest during the pre-investment period. The product is available for both non-registered and registered funds, including registered retirement income funds (RRIFs) and life income funds (LIFs).