Desjardins eyes derivatives use in fund portfolios

Added flexibility expected to help strategies achieve investment objectives more effectively

Desjardins eyes derivatives use in fund portfolios

Desjardins Investments (DI) has announced that beginning on September 30, it may start using derivative instruments within its Melodia and SocieTerra Portfolios.

In a statement, DI said the portfolios may use investment strategies that utilize derivative instruments – including options, forwards, futures contracts, and swaps – to hedge against losses caused by fluctuations in exchange rates or values of securities.

Alternatively, they may use derivatives to gain exposure to or as a proxy for certain securities, sectors, or regions, with reduced transaction costs or enhanced liquidity.

The affected portfolios, which will only use derivatives in accordance with securities regulations, include:

  • Melodia Very Conservative Income Portfolio
  • Melodia Conservative Income Portfolio
  • Melodia Moderate Income Portfolio
  • Melodia Diversified Income Portfolio
  • Melodia Moderate Growth Portfolio
  • Melodia Diversified Growth Portfolio
  • Melodia Balanced Growth Portfolio
  • Melodia Aggressive Growth Portfolio
  • Melodia Maximum Growth Portfolio
  • Melodia 100% Equity Growth Portfolio
  • SocieTerra Conservative Portfolio
  • SocieTerra Balanced Portfolio
  • SocieTerra Growth Portfolio
  • SocieTerra Maximum Growth Portfolio
  • SocieTerra 100% Equity Portfolio

DI said one product, the SocieTerra Moderate Portfolio, was not included as it has been able to use derivative instruments since inception.


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