How it works


How the guaranteed cash flow is calculated

The value of the fund units will fluctuate with market conditions throughout the fund’s lifespan. Investors have the flexibility to redeem units at any time – at the current market value. The 5% cash flow payments are guaranteed on units held on the anniversary date. If any units are redeemed, the guaranteed cash flows would continue to be payable on the remaining unit balance. The remaining units would continue to participate in the market.

The chart is for illustrative purposes only and assumes there are no fund redemptions during the five-year accumulation phase. It is not intended to illustrate the performance of any portfolio.

*The Guaranteed Asset Value is an amount that is determined after five years, on the fund’s anniversary date. The Guaranteed Asset Value is the greater of the amount investors paid for their fund units or the net asset value on the anniversary date. The guaranteed annual cash flow distributions are 5% of this amount.