*IPS Defined Outcome Investments use a diversified basket of defined maturity coupon bonds where the coupon is reinvested in the bond pool on a monthly basis. This means the yield to maturity (YTM) and the discount rate are not 100% accurate and may cause tracking error in the notes. Although DOI’s contain a diversified portfolio of bonds, they also contain default risk as well as risk to changes in the discount rate.
Any statistics regarding the performance of DOI’s are hypothetical. The hypothetical payoff profile is assuming that the investor holds the product for the full duration. If the DOI is liquidated early, results may vary. The hypothetical performance measures are obtained using the best available information at the time of designing the DOI. This is neither an offer to sell nor a solicitation to buy any securities. The exact payoff profile of any product will depend on market conditions when purchasing or selling the underlying assets in the DOI. Please consult an investment advisor before making any investment decisions.
IPS Defined Outcome Investments invest in exchange listed options to gain equity market exposure. Options can be highly volatile investments, one should consult a professional before investing in options. The IPS DOI’s invest in a basket of highly diversified high-yield corporate bonds. The hypothetical payoff profile of the DOI is assuming that none of the debt held defaults. While diversifying the debt has been shown historically to help mitigate default risk, past performance is not a guarantee of future results. If one or more of the companies held in the basket of high yield corporate debt defaults, the performance of the DOI may vary.