Profit Lock-In Notes

Gold Price Class, Series 2

Product Summary

Inception Date September 1, 2006
Maturity Date May 19, 2015
Offering Price $10.00
Guarantee Amount $......
Market Price Per Note $......
Investment Exposure as at June 30, 2009 0%

The performance of the ONE Financial Profit Lock-In Notes, Gold Price Class is linked to Gold Bullion³. The Note offers a number of key benefits:

  • Principal & growth protected exposure to gold
  • Significant growth potential
  • Ideal hedge against inflation
  • Linked purely to bullion price rather than mining company stocks
  • Low correlation to traditional investments

Investment Details

Style Income-Oriented / 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 -0.85%
3 Months -1.28%
6 Months 2.61%
Year-To-Date 2.61%
1 Year 8.91%
Total Return since Inception -20.27%
Initial Price $10.0000
Current Price $7.9730

Underlying Investments

Index Targeted % Portfolio Allocation
Gold Bullion 100%

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.

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.

Commentary as at June 30, 2009

The ONE Financial Profit Lock-In Notes, Gold Price Class, Series 2 (the "Notes") are linked to the price of Gold Bullion (the "Portfolio"). The benefits of investing in gold bullion are that gold bullion is 1) an established inflation hedge, 2) not subject to mining company or business specific risk, and 3) has a low correlation to traditional investments. The current price of gold is US$941.00 which represents a 50.8% increase since the inception of the Notes.

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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