Meadowbank Asset Management Products

By: Meadowbank Asset Management  09-12-2011
Keywords: Foreign Currency Risk

3 Year Term

100%
Principal Protection

up to 10%
Annual Coupon

Looking for Global Exposure!

RBC Global Innovators Yield Deposit Notes, Series I

Designed to actively capture the growth of globally-competitive innovators in a diverse range of sectors related to economic growth and the environment

KEY FEATURES
Coupon:
Year 1
: Guaranteed 6% coupon; Years 2 to 6: Maximum potential annual coupon of 10%; zero risk of loss
Principal Guarantee: 100% principal protection
Portfolio: 100% diversified, global exposure; no foreign currency risk
Term: 6 years ; due January 31, 2013
FundServ Code: RBC 902

INVESTMENT HIGHLIGHTS

  • Return linked to the upside performance of a well-diversified, equally-weighted basket of 20 Global companies that provide products and services for air, water and ground pollution control; alternative/renewable energy; and energy conservation
  • 100% principal protection guaranteed by Royal Bank of Canada at maturity
  • 100% RSP eligible
  • No foreign currency risk

THE OPPORTUNITY

  • Global economic growth and development is putting increasing strain on the world’s environment and energy resources.  Over the longer term, a diverse set of innovative companies that provide products and services that address the underlying problems are expected to benefit from increasing demand. 
  • As public awareness of  problems such as global warming, peak oil supply and water shortages continue to grow; governments, corporations and consumers are likely to spend more on products and services that are perceived to be “environmentally friendly”, thereby enhancing the value of companies that provide such products and services.
  • The basket comprises of stocks that are diversified across different sectors, reducing concentration risk and overexposure to any specific sector. This reduces overall portfolio risk.

Keywords: Foreign Currency Risk

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