How does the principal guarantee for Market Trust work?

Modified on Mon, 09 Oct 2023 at 03:30 PM

Your Market Trust principal is guaranteed to be returned to you when held until the end of your term. It is guaranteed because Market Trust allocates your deposit to cash, market investments, and guaranteed interest rate products. The combination of the allocation to the guaranteed interest rate product and its annual accrued interest is designed to guarantee your deposit by the end of the 5-year period. As a result, regardless of your market investments’ performance, your principal is guaranteed if held until the end of the term. This illustration shows what happens to a $100,000 deposit in the Market Trust program.

This is a hypothetical illustration and does not represent actual performance. Past performance is not indicative of future performance.

Guaranteed Interest Rate Product
Market Trust achieves principal guarantee by allocating a portion of your deposit to a guaranteed interest rate product. In this illustration, $77,400 is placed in a guaranteed interest rate product whose interest rate is 5.25%. The interest earned over the five-year term will grow the guaranteed interest rate product allocation to equal $100,000 by the end of the 5-year program.

Market Investments
The Market Trust program yield is based on the performance of the investments in your selected portfolio.  In this illustration, $18,650 of the Market Trust deposit is allocated to market investments.  For illustration purposes, assuming the advertised back-tested performance, the account would grow to equal $80,000** by the end of the five-year investment term.

Market Trust’s investment program allocates a small portion of your deposit to cash.  In this illustration, $3,950 has been allocated.

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