Principal Protected Notes (PPNs)
Principal Protected Notes (PPNs) are products which guarantee a full return of their principal amount at maturity, while providing the opportunity to benefit from the performance of equity markets. Conservative investors who seek equity market exposure but have low risk tolerance are well suited to PPNs.
PPNs can be effective alternatives to GICs and other fixed income instruments. Returns can be paid through periodic fixed or variable coupon payments over the life of the note, or as a single payment at maturity. PPNs can be linked to a variety of underlyings investments including indices, single stocks, portfolios of shares, industry sectors, commodities and currencies.