Alterna - Canadian Index

Alterna’s MarketTracer® Term Deposit - Canadian Index at a glance
Sales Period:	Currently unavailable
Index	S&P/TSX60
Term	3 or 5 years (non-redeemable)
Minimum Investment	$500
Principal Guaranteed	Yes
Cap on Returns	None. Alterna doesn’t cap your return, so if the market does well, so do you
Market Participation	75% for the 3 year term, or 125% for the 5 year term
Plan Eligibility	RRSP and TFSA

Example of Return Calculation (5 Year Term) *

Initial Investment of $10,000 with Initial Index Level of 585.

The average growth of the S&P/TSX60 Index over the term of the deposit is 662.50. The Participation Rate is 110%.

At maturity, the investor will receive:

[(Average Growth of Index – Initial Index Level) ÷ Initial Index Level]

[(662.50 – 585) ÷ 585] = 0.1325

0.1325 X Participation Rate X Initial Investment

0.1325 X 1.10 X $10,000 = $1,458 + Initial Investment

Total Amount Received

= $1,458 + $10,000

= $11,458 for a total of 14.58%

Should the Average Growth of the Index be lower than the Initial Index Level, the Return on the MarketTracer Term Deposit will be 0.00% and the investor will receive only their principal investment at the end of the term.

* The above is for informational purposes only and is not indicative of actual performance.

Example of Return Calculation (5-Year Term)*

Definitions:

Cumulative Total Return of Index: Addition of the closing levels of the index on each Valuation date of the investment.

Initial Index Level: The closing level of the index on the start date of the MarketTracer.

Participation Rate: The percentage of the return of the MarketTracer that you will receive.

Interest Paid: The interest paid will be based on a percentage (gross up) of the average monthly growth of the S&P/TSX60 over the term of the deposit.

Index: S&P/TSX60 Index.

Arithmetic Average: Means the sum of the stock price index value of an Index on each of the Valuation Dates between the Index Set Date and the Maturity Date, divided by the number of Valuation Dates.

Index Set Date: The date on which the starting value of the Index is established.

Participation Rate: Leverage ratio by which the percentage growth of the Index (as per the averaging formula) is multiplied.

Index Business Day: Means any day on which commercial banks are open for business in Toronto and is (or, but for the occurrence of a Market Disruption Event, would have been) a trading day on the Toronto Stock Exchange and the Related Exchange, other than a day on which trading on the Toronto Stock Exchange or the Related Exchange is scheduled to close prior to its regular weekday closing time.

Valuation Time: At the close of trading on the related stock exchange.

Valuation Date: Means the 8th day of each month (or the following Index Business Day) for each month during the Term, unless there is a Market Disruption Event on any one of those Valuation Dates.

Legal

S&P® and TSX™ are registered trademarks of Standard & Poor’s Financial Services LLC and the Toronto Stock Exchange and have been licensed for use by Alterna Savings.

The product is not sponsored, endorsed, sold or promoted by Standard & Poor’s or the Toronto Stock exchange and neither Standard & Poor’s nor the Exchange Partner makes any representation regarding the advisability of investing in the Product.

Alterna refers to both Alterna Savings and Credit Union Limited (operating as Alterna Savings) and CS Alterna Bank (operating as Alterna Bank).

Alterna Bank is a wholly-owned subsidiary of Alterna Savings.

At Alterna Savings, eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA). Eligible deposits (not in registered accounts) are insured up to $250,000 through the Financial Services Regulatory Authority (FSRA).