Equity Monetization Strategies

Recognizing your needs

How it Works:

An equity monetization strategy is a diversification tool, which can enable qualified investors to reduce exposure to single, publicly-listed equity positions in a tax-efficient manner without disposition of the stock.

  • The value of your investment is hedged for a specified term and a specified price
  • Your account is structured according to your unique circumstances
  • It can be used as collateral for a fixed rate loan, providing an efficient method to access funds

Improved Flexibility and Liquidity

Effectively restructure your equity holding, allowing for improved flexibility and liquidity.

The Advantages of Equity Monetization

  • Elimination of stock market risk of your equity holdings without selling the securities outright
  • Maintain voting rights and continue to receive potential future dividends from your securities
  • Ability to obtain cash proceeds from your stock today while deferring taxes until maturity of the hedge, at which time the strategy can be rolled over for further deferral
  • Benefit from any price appreciation of your shares during the term up to the forward price, while remaining fully hedged against any price depreciation of the shares throughout the term of the transaction

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Contact a Scotia Private Client Group Centre