Royal Bank of Canada Launches New Investment Product with Capped Value
Royal Bank of Canada is offering a new investment product that tracks the performance of the Market Measure, with a capped value to limit potential losses.
The notes will provide a positive return equal to the absolute value of the percentage decline in the value of the Market Measure if it does not decline by more than 20.00%. If the Market Measure declines beyond this point, investors will experience a loss, with 80.00% of their principal at risk.
The product's returns are also limited to the return represented by the Capped Value, which may be less than a comparable investment directly in the Market Measure. Positive returns due to depreciation of the Market Measure will be capped at 20.00%, and any decline beyond this point will result in a loss.