Example of how the return at maturity is calculated

Here's an example of how the return is calculated on the maturity date of a Guarantee Advantage® campaign.

Assumptions

  • Deposit of $10,000 on April 8, 2015
  • Basket of securities: Healthcare
  • Return zone: Minimum 3% – Maximum 16% (at maturity)
  • Investment term: 5 years and 2 days

In this example, since the cumulative growth at maturity falls between the campaign's minimum and maximum returns, the actual return of the basket of securities is used. The actual return is equal to the average of the cumulative returns of each security in the basket during each of the 3 specific Business Days – Opens a tooltip1. All of the securities have the same weighting in the portfolio.

SecurityOpening price of security (CP1)Average price of security on 3 specific Business Days (CP2)*Cumulative return (CP2 / CP1)

Bristol-Myers Squibb Co.

100

126

 1.26

Eli Lilly

100

138

 1.38

GlaxoSmithKline

100

115

 1.15

Johnson & Johnson

100

88

 0.88

Merck & Co Inc.

100

104

 1.04

Novartis AG

100

125

 1.25

Pfizer Inc

100

93

 0.93

Roche Holding AG

100

121

 1.21

Sanofi-aventis SA

100

109

 1.09

Takeda Pharmaceutical

100

133

1.33

Average for the 10 securities

1.152

Cumulative growth

15.20%

Compound annual return

2.87%

Interest before issue2 =

10 000 $ X (1 + ((1.00 % ÷ 365) x 14)) = 10 003.84 $

Amount paid to the client at maturity =

$10 003.84 X 1.152 = $11.524
- Initial Deposit = $10.000.00
= Total return at maturity = $1.524.42

1. For the April 8, 2015 campaign, the specific Business Days are: February 10, 2020, March 10, 2020 and April 8, 2020.

2. The daily interest paid prior to the Initial Date for the April 8, 2015 issue is 1.00%.

Please refer to the glossary in the Desjardins Financial Security Savings Contract for a definition of all capitalized terms used on this page.

The information on this site is for illustration purposes only and is not an indication of past performance or a guarantee of future results. Please refer to the Desjardins Financial Security Savings Contract and the current campaign's Features Table for more information. The terminology used on this site has been simplified for illustration purposes. In the event of a discrepancy between the information on this site and the information in the Desjardins Financial Security Savings Contract or the current campaign's Features Table, the documents will prevail. Please read them carefully before investing.

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