Profit Lock-In Notes

Income Trust LEADERS™ Class, Series 2

Product Summary

Inception Date September 1, 2006
Maturity Date May 19, 2015
Offering Price $10.00
Total Guarantee Amount (includes distributions paid to date) $......
Market Price Per Note $......
Total Distributions $......
Investment Exposure as at June 30, 2009 8%

The performance of the ONE Financial Profit Lock-In & Cashflow Notes, Income Trust LEADERS™ Class is linked to 18 of the leading income trusts trading on Toronto Stock Exchange and 5 high dividend-yielding stocks on S&P/TSX 60 Index³. The Note offers a number of key benefits:

  • Principal & growth protected exposure to dynamic Income Trust sector
  • Potential for superior investment income in a fully guaranteed investment
  • Diversified across some of the largest, most liquid, highest yielding Income Trusts
  • Exposure to the largest, highest dividend-paying common stocks
  • Diversified across industry sectors

Investment Details

Style Index-Linked / Profit Lock-In / Principal-Guaranteed
Guarantor BNP Paribas S.A. (Rated AA by S&P)
Administrator ONE Financial
Leveraged return potential Yes, up to 200% investment exposure
Liquidity Weekly
RSP eligibility 100%
Performance as at June 30, 2009
Returns as at June 30, 2009
1 Month -2.26%
3 Months -10.47%
6 Months -8.65%
Year-To-Date -8.65%
1 Year -3.54%
Total Return since Inception -16.65%
Total Distributions to-date $0.5009
Current Price $7.8340

Underlying Investments

Indices Targeted % Portfolio Allocation
18 income trusts trading on Toronto Stock Exchange 70%
5 high dividend-yielding stocks on S&P/TSX 60 Index 30%

Family Features

ONE Financial Profit Lock-In Notes™ and Profit Lock-In & Cashflow Notes™ are Canada's Only Family of Guaranteed Linked Notes. They offer complete switchability, daily profit lock-in and enhanced income and growth potential.

Switchability

At any time, you can switch between the 3 classes of notes in the family in response to changing market conditions or personal investment objectives.

Automatic Daily Profit Lock-In

Daily Profit Lock-In guarantees not only 100% of your initial capital, but also 100% of any growth your investments achieve².

Enhanced Performance Opportunities

Up to 2X exposure to the underlying investments.

Commentary

The ONE Financial Profit Lock-In & Cashflow Notes, Income Trust LEADERS Class, Series 2 (the "Notes") are linked to a portfolio of 18 income trusts trading on the TSX and five dividend-paying stocks from the S&P/TSX 60 Index(the "Portfolio"). Each of the companies selected for the Portfolio were chosen based on ONE Financial's passive investment methodology called LEADERS (Large-cap Equities with Attractive Distributable Earnings, Re-balanced Systematically) according to size, liquidity, and yield. Since the inception of the Notes, the S&P/TSX 60 is down 8.2%. The price of the Notes will not track the performance of a static portfolio invested since inception of the Notes according to the Portfolio's targeted allocation, and is affected by many inter-related factors including:

  • the Portfolio's "Dynamic Asset Allocation" feature,
  • the performance of each of the indexes in the Portfolio,
  • changes in the level of interest rates,
  • time remaining until the Notes' maturity date, and
  • market demand for the Notes.

The difference between the performance of the Notes and the performance of a static portfolio invested according to the Portfolio's targeted allocation can largely be attributed to the Portfolio's "Dynamic Asset Allocation" feature. This feature is designed to both protect the Portfolio's net asset value (or "NAV") on the downside, and pursue potentially leveraged returns on the upside.

Exposure to the indexes is adjusted regularly and systematically according to a nondiscretionary re-weighting procedure. Generally, as the value of the Portfolio increases, the Portfolio will potentially leverage its investments according to the targeted allocation up to a maximum of 200% of its NAV in order to pursue enhanced returns, and as the value of the Portfolio decreases, it potentially (i) de-leverages its investments in order to protect its NAV, and (ii) if the exposure is less than 100%, reallocates its investments from the indexes to a greater weighting in a BNP notional bond. Although the Portfolio will not directly track the performance of an investment in the underlying indexes according to a static allocation during the term of the Notes, if the Portfolio is expected to provide solid, consistent performance throughout the term, then investors should benefit from the strong potential for leveraged returns at maturity.

Purchase

This Note is not available for purchase at this time.

The Guarantor

BNP Paribas

BNP Paribas was established in 1848, and according to rankings published in July 2005 by The Bank, is the sixth largest banking group in the world and the largest in Europe based on total assets of approximately CAD $1.7 trillion (approximately the size of the Canada's five largest banks combined). As one of the world's leading diversified financial institutions BNP Paribas is present in over 85 countries, and has approximately 100,000 employees worldwide.

The BNP Paribas Group is organized around three core businesses: Retail Banking, Corporate & Investment Banking and Private Banking & Asset Management. Through its 2,200 branches across France and worldwide, BNP has more than twenty million individual and small business customers and 50,000 corporate customers.

BNP Paribas' long term debt ratings are: AA with a stable outlook from Standard & Poor's, Aa2 with a stable outlook from Moody's, and AA with a stable outlook from Fitch.

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