Structured investment products - Other Products

Money Digest, Jan, 2003

Structured investment products. As an example, the Pro-AMS trust is a structured product that has two primary objectives: (1) To return at least $2.1875 per share per year, which is equal to an 8.75% annual return on the issue price of $25. This 8.75% will be capital gains rather than interest, which means it is taxed favourably, making the 8.75% equal to 12.0% on an after-tax basis; and (2) to return at least the issue price of $25 to investors when the trust is terminated on December 31, 2012.

We have written about these and many other new products in past issues of Money Digest. We will keep our readers informed of attractive new products that come on to the market from time to time. Some of these new products are very innovative and may help you in planning your financial future.