How does the additional return work?

When your secure investment matures and the Fonds share performance exceeds the guaranteed minimum return, a portion of the extra return may be paid to you as a bonus.

The FlexiFonds secure investment combines two types of returns:

Additional returns are only paid out at investment maturity if:

  • Fonds shares appreciated in value during the investment term.
  • This value exceeds the minimum guaranteed return you have accrued.

If the Fonds share performance falls short of the guaranteed minimum return, you will still recover your initial investment and receive the guaranteed minimum return.

How are additional returns calculated?

Additional returns are calculated as follows:

(Fonds share return – Guaranteed minimum return) × Participation rate × Initial investment

Participation rate = your share of the pie

The participation rate determines the portion of the potential additional return you may receive. Longer investment terms offer higher rates, which means greater potential returns:

Term Participation rate
5 years 20%
7 years 22%
10 years 25%

Sample calculation: Additional returns

You invest $10,000 in our 5-year secure investment. Let's say that at maturity 5 years later, the value of Fonds shares has increased by 30%.* You cash out your investment and receive:

  • Your initial investment: $10,000
  • The guaranteed return for the term of the investment (17.80%): $1,780
  • The additional return based on your participation rate (20%):
    • (30% - 17.80%) x 20% x $10,000 = $244
  • Total: $12,024

*This value is provided for illustrative purposes only. Fonds de solidarité FTQ shares are not guaranteed and their value fluctuates. Past performance is not indicative of future performance.

Loss of additional returns when withdrawing from a RRIF

Additional returns only apply to funds held in the investment until the end of the term. Withdrawals made from a RRIF before maturity are not eligible. Learn more about withdrawals.

Legal Notes

Principal protected notes with enhanced return linked to the performance of the Fonds de solidarité FTQ shares are issued by the Fonds de solidarité FTQ and distributed solely in Québec by FlexiFonds de solidarité FTQ inc., a mutual fund dealer wholly owned by the Fonds de solidarité FTQ. National Bank Trust Inc. acts as the administrator and registrar of these notes. Please read the prospectus and pricing supplements before investing. These notes are not covered by the Canada Deposit Insurance Corporation nor any other government deposit insurer. The return component linked to the performance of the Fonds de solidarité FTQ shares fluctuates from one issuance to another, and past performance may not be repeated. This investment may not be suitable for all investors. We recommend that you contact your registered FlexiFonds mutual fund representative.

The rate offered on principal protected notes with enhanced return linked to the performance of the Fonds de solidarité FTQ shares may vary from one issuance to another.