The Canadian financial institution says demand for capital-protected investments is being driven by investors seeking equity market exposure without taking on the full downside risk, as it focuses on product simplicity, enhanced participation and digital distribution.
Desjardins was once again a leading issuer and distributor of structured products in the Canadian market in 2025.
Capital-protected investments increasingly occupy the middle ground between traditional deposits and direct equity investing - Dominic Laurin
Dominic Laurin, market-linked product manager at Desjardins, which has been active in the market-linked guaranteed investment sector for more than 25 years, attributes the business's position to its product offering, distribution network, advisor adoption and focus on making investments easier for clients to understand.
Desjardins has also worked to simplify its product range, improve transparency and enhance the client experience through initiatives including an online acquisition journey, according to Laurin.
“Our leadership has been reinforced by a broad product offering, strong advisor adoption, an extensive distribution network, and a long-standing commitment to helping investors participate in equity market growth without putting their capital at risk,” he said.
Dominic Laurin (right) at the SRP Americas 2026 Awards in Scottsdale, Arizona on 23 September.
This approach is paying back as investors reassess the balance between capital preservation and market participation. Changing interest rate expectations, persistent volatility, geopolitical uncertainty and renewed trade tensions have all influenced demand over the past year.
When interest rates were rising sharply, traditional deposits became more attractive. As investors began looking beyond short-term yields, however, interest grew in solutions that could preserve capital while offering exposure to longer-term equity market growth.
“Capital-protected investments increasingly occupy the middle ground between traditional deposits and direct equity investing,” said Laurin.
The investment base includes retirees and pre-retirees seeking to protect accumulated savings, conservative investors cautious about market volatility and deposit investors looking for alternatives to traditional fixed-rate products. Some investors who have historically favoured guaranteed products are also considering market exposure to help meet longer-term objectives, added Laurin.
Balancing protection and participation
Desjardins continues to offer fully capital-protected investments while also addressing demand from investors prepared to accept a predefined level of downside risk in return for greater upside potential.
“This allows the institution to cater to different objectives and risk profiles rather than treating capital protection as a single, uniform requirement,” said Laurin.
For fully protected products, the challenge is to maximise participation in market appreciation without compromising the capital guarantee. Product design therefore focuses “on participation rates, the selection of underlying baskets and the institution's structuring expertise”.
The MarketLever Guaranteed Investment is one example. It offers participation rates significantly above 100%, enhancing investors' exposure to market appreciation while preserving full capital protection at maturity.
The product was developed for an environment in which future market returns could be more modest and harder to achieve. Its globally diversified investment approach is intended to increase participation in potential gains while retaining the principal guarantee at maturity.
“The objective is not simply to protect capital, but to create a more compelling risk-reward profile for investors who want the confidence of a guarantee without giving up meaningful growth potential,” noted Laurin.
MarketLever has become one of the flagship products in Desjardins' capital-protected offering. The combination of enhanced participation, diversification and a straightforward proposition has resonated with investors and advisors, according to Laurin.
Demand for diversification, shorter terms
Laurin identified several changes in investor preferences. One is a growing interest in globally diversified solutions rather than narrowly concentrated sector exposures. Against a backdrop of geopolitical uncertainty and changing market leadership, investors are looking for exposure across regions and sectors.
There is also interest in products that prioritise upside participation over a guaranteed minimum return. “While guaranteed minimum return structures continue to serve some investors, others are willing to forgo a minimum return in exchange for greater participation in market appreciation,” he said.
Investment horizons are another consideration. Desjardins has seen increased demand for shorter-term solutions, particularly products with terms of two to three years. These offer investors a shorter commitment while combining capital protection with market participation.
Transparency is also becoming more important with investors and advisors increasingly favour products that clearly explain how returns are generated, rather than structures that are difficult to understand, Laurin noted.
This focus extends to education and distribution. “Structured products can provide different combinations of protection and return potential, but investors need to understand their features and how they fit into an overall investment strategy,” said Laurin.
As a cooperative financial institution, Desjardins considers financial education central to its mission. Over the past year, it has invested in educational initiatives, including an online acquisition journey intended to help clients understand product features, compare alternatives and make informed decisions independently.
“Advisor education remains important too, with advisors helping clients assess available solutions against their objectives, risk tolerance and investment horizon,” Laurin added.
Digitisation and personalisation
Looking ahead, Desjardins sees opportunities in further digitising the investment journey and making structured products more accessible and transparent. Investors increasingly expect to be able to research products independently, access educational content and complete the acquisition process digitally.
Personalisation is another area of focus with Desjardins seeing scope to expand its market-linked offering across full principal protection, enhanced participation and partially protected solutions.
“Investors want solutions that reflect specific themes, beliefs or market views while maintaining an appropriate level of protection,” said Laurin.
Demographic trends provide another driver. As Canada's population ages and investors focus on preserving accumulated wealth, Laurin expects demand for investments combining protection and growth potential to remain relevant.
“[Our] priority is to make structured products easier to understand and integrate into broader wealth-planning conversations, while providing different ways for investors to balance downside protection with potential returns,” he concluded.