FWP 1 tm227891d30_fwp.htm FREE WRITING PROSPECTUS
ISSUER FREE WRITING PROSPECTUS
Filed Pursuant to Rule 433
Registration Statement No. 333-253385
March 01, 2022

GRAPHIC

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} 3ULRULWL]LQJ 3HUIRUPLQJ $VVHWV 0LQLPL]LQJ FDVK LQ WKH PRQWKO\ SRUWIROLR E\ DWWHPSWLQJ WR ýQG D YRODWLOLW\ SRUWIROLR ZLWKRXW LW RQO\ WXUQLQJ WR FDVK LI XQDEOH WR DFKLHYH WKH WDUJHW YRODWLOLW\ } 9RODWLOLW\ 0DQDJHPHQW 6\VWHP 2QFH WKH SRUIROLR LV VHOHFWHG WKH ,QGH[ DSSOLHV OHYHUDJH WR EULQJ H[SRVXUH WR YRODWLOLW\ HQDEOLQJ G\QDPLF UHDFWLRQ WR FKDQJLQJ PDUNHW FRQGLWLRQV DQG DOORZLQJ IRU H[SRVXUH JUHDWHU WKDQ } +LJKHU (TXLW\ $OORFDWLRQ 7KH ,QGH[ SURYLGHV JUHDWHU PD[LPXP DOORFDWLRQ WR GHYHORSHG DQG HPHUJLQJ PDUNHW HTXLWLHV FRPSDUHG WR VRPH RWKHU WDUJHW YRODWLOLW\ PRPHQWXP VWUDWHJLHV $9(5$*( 0217+/< $//2&$7,21 +,6725,&$/ 6,08/$7(' 'HF -DQ )HE 0RQWK $YHUDJH 63< 63/9 ,:0 444 ()$ 'HYHORSHG (TXLWLHV 0D[ 6XE WRWDO 7/7 /4' +<* 'HYHORSHG %RQGV 0D[ 6XE WRWDO ((0 (0% (PHUJLQJ 0DUNHWV 0D[ 6XE WRWDO ,<5 */' 5HDO $VVHWV 0D[ 6XE WRWDO ,QþDWLRQ 0D[ 7,3 &DVK LI QHHGHG &DVK $OO 9DQWDJH DOORFDWLRQ GDWD SULRU WR 1RYHPEHU LV K\SRWKHWLFDO 6HH 8VH RI 6LPXODWHG 5HWXUQV +6%& 9DQWDJH ,QGH[ 0RQWKO\ 5HSRUW )HEUXDU\

GRAPHIC

$9(5$*( <($5/< $66(7 &/$66 $//2&$7,21 +,6725,&$/ 6,08/$7(' 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Feb YTD) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Developed Equities Developed Bonds Emerging Markets Real Assets Inflation Cash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

GRAPHIC

5LVN UHODWLQJ WR WKH LQGH[ ã 6RODFWLYH $* PD\ DGMXVW WKH ,QGH[ LQ D ZD\ WKDW DIIHFWV LWV OHYHO DQG 6RODFWLYH $* KDV QR REOLJDWLRQ WR FRQVLGHU \RXU LQWHUHVWV ã 7KH ,QGH[ FRPSULVHV QRWLRQDO DVVHWV ã 7KH ,QGH[ PD\ QRW EH VXFFHVVIXO DQG PD\ QRW RXWSHUIRUP DQ\ DOWHUQDWLYH VWUDWHJ\ WKDW PLJKW EH HPSOR\HG LQ UHVSHFW RI WKH (7)V RU DFKLHYH LQWV WDUJHW YRODWLOLW\ ã 7KH ,QGH[ KDV D YHU\ OLPLWHG RSHUDWLQJ KLVWRU\ DQG PD\ SHUIRUP LQ XQDQWLFLSDWHG ZD\V ã 7KH ,QGH[ LV VXEMHFW WR PDUNHW ULVNV ã ,I WKH PDUNHW YDOXHV RI WKH (7)V FKDQJH WKH OHYHO RI WKH ,QGH[ DQG WKH PDUNHW YDOXH RI DQ\ OLQNHG VWUXFWXUHG LQYHVWPHQW PD\ QRW FKDQJH LQ WKH VDPH PDQQHU ã 7KH ,QGH[ PD\ SHUIRUP SRRUO\ GXULQJ SHULRGV FKDUDFWHUL]HG E\ VKRUWHUP YRODWLOLW\ ã 7KH OHYHO RI WKH ,QGH[ LQFOXGHV WKH GHGXFWLRQ RI WKH ,&( /,%25 86' 0RQWK LQWHUHVW UDWH DQG D IHH ã $Q LQYHVWPHQW OLQNHG WR WKH ,QGH[ FDUULHV WKH ULVNV DVVRFLDWHG ZLWK WKH ,QGH[ÜV PRPHQWXP LQYHVWPHQW VWUDWHJ\ ã 7KH ,QGH[ PD\ EH SDUWLDOO\ XQLQYHVWHG ã &RUUHODWLRQ RI SHUIRUPDQFHV DPRQJ WKH (7)V PD\ UHGXFH WKH SHUIRUPDQFH RI WKH ,QGH[ ã &KDQJHV LQ WKH YDOXH RI WKH (7)V PD\ RIIVHW HDFK RWKHU 3OHDVH VHH WKH ULVN IDFWRUV VHFWLRQ RI WKH UHOHYDQW RIIHULQJ GRFXPHQW IRU DQ\ +6%&LVVXHG LQYHVWPHQW OLQNHG WR WKH ,QGH[ IRU D IXOO GHVFULSWLRQ RI WKH ULVNV UHODWLQJ WR WKH ,QGH[ ,PSRUWDQW GLVFODLPHU LQIRUPDWLRQ 7KLV GRFXPHQW LV IRU LQIRUPDWLRQ SXUSRVHV RQO\ DQG LQWHQGHG WR SURYLGH D JHQHUDO RYHUYLHZ RI WKH ,QGH[ DQG GRHV QRW SURYLGH WKH WHUPV RI DQ\ VSHFLýF LVVXDQFH RI VWUXFWXUHG LQYHVWPHQWV 7KH PDWHULDO SUHVHQWHG GRHV QRW FRQVWLWXH DQG VKRXOG QRW EH FRQVWUXHG DV D UHFRPPHQGDWLRQ WR HQWHU LQWR D VHFXULWLHV RU GHULYDWLYHV WUDQVDFWLRQ %HIRUH LQYHVWLQJ LQ D VSHFLýF VWUXFWXUHG LQYHVWPHQW LQYHVWRUV VKRXOG FDUHIXOO\ UHYLHZ WKH UHOHYHDQW GLVFORVXUH GRFXPHQWV ZKLFK H[SODLQ LQ GHWDLO WKH WHUPV RI WKH LVVXDQFH DV ZHOO DV WKH ULVNV WD[ WUHDWPHQW DQG RWKHU UHOHYDQW LQIRUPDWLRQ ,QYHVWLQJ LQ ýQDQFLDO LQVWUXPHQWV OLQNHG WR WKH ,QGH[ LV QRW HTXLYDOHQW WR D GLUHFW LQYHVWPHQW LQ DQ\ SDUW RI WKH ,QGH[ 7KLV GRFXPHQW FRQWDLQV PDUNHW GDWD IURP YDULRXV VRXUFHV RWKHU WKDQ XV DQG RXU DIýOLDWHV DQG DFFRUGLQJO\ ZH PDNH QR UHSUHVHQWDWLRQ RU ZDUUDQW\ DV WR WKH PDUNHW GDWDÜV DFFXUDF\ RU FRPSOHWHQHVV DQG ZH DUH QRW REOLJDWHG WR XSGDWH DQ\ PDUNHW GDWD SUHVHQWHG LQ WKLV GRFXPHQW $OO LQIRUPDWLRQ LV VXEMHFW WR FKDQJH ZLWKRXW QRWLFH :H RU RXU DIýOLDWHG FRPSDQLHV PD\ PDNH D PDUNHW RU GHDO DV SULQFLSDO LQ WKH LQYHVWPHQWV PHQWLRQHG LQ WKLV GRFXPHQW RU LQ RSWLRQV IXWXUHV RU RWKHU GHULYDWLYHV EDVHG WKHUHRQ +6%& 86$ ,QF KDV ýOHG D UHJLVWUDWLRQ VWDWHPHQW LQFOXGLQJ D SURVSHFWXV DQG SURVSHFWXV VXSSOHPHQW ZLWK WKH 6HFXULWLHV DQG ([FKDQJH &RPPLVVLRQ IRU DQ\ RIIHULQJ WR ZKLFK WKLV IUHH ZULWLQJ SURVSHFWXV PD\ UHODWH %HIRUH \RX LQYHVW \RX VKRXOG UHDG WKH SURVSHFWXV DQG SURVSHFWXV VXSSOHPHQW LQ WKDW UHJLVWUDWLRQ VWDWHPHQW DQG RWKHU GRFXPHQWV +6%& 86$ ,QF KDV ýOHG ZLWK WKH 6(& IRU PRUH FRPSOHWH LQIRUPDWLRQ DERXW +6%& 86$ ,QF DQG DQ\ UHODWHG RIIHULQJ <RX PD\ JHW WKHVH GRFXPHQWV IRU IUHH E\ YLVLWLQJ ('*$5 RQ WKH 6(&ÜV ZHE VLWH DW ZZZVHFJRY $OWHUQDWLYHO\ +6%& 6HFXULWLHV 86$ ,QF RU DQ\ GHDOHU SDUWLFLSDWLQJ LQ WKH UHODWHG RIIHULQJ ZLOO DUUDQJH WR VHQG \RX WKH SURVSHFWXV DQG SURVSHFWXV VXSSOHPHQW LI \RX UHTXHVW WKHP E\ FDOOLQJ WROOIUHH +6%& %DQN SOF DQG 6RODFWLYH $* 7KH ,QGH[ LV WKH H[FOXVLYH SURSHUW\ RI +6%& %DQN SOF DQG LWV DIýOLDWHV ZKLFK KDV FRQWUDFWHG ZLWK 6RODFWLYH $* WR DGPLQLVWHU PDLQWDLQ DQG FDOFXODWH WKH ,QGH[ 7KH ,QGH[ LV QRW HQGRUVHG E\ 6RODFWLYH $* RU LWV DIýOLDWHV RU LWV WKLUG SDUW\ OLFHQVRUV &DOFXODWHG E\ 6RODFWLYH $* DQG LWV UHODWHG VW\OL]HG PDUNV DUH VHUYLFH PDUNV RI 6RODFWLYH $* DQG KDYH EHHQ OLFHQVHG IRU XVH E\ +6%& %DQN SOF DQG LWV DIý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ýQDQFLDO LQVWUXPHQWV RU FDUU\LQJ RXW DQ\ ýQDQFLDO WUDQVDFWLRQ OLQNHG WR WKH ,QGH[ RU G DQ\ RWKHU PDWWHU &DOFXODWLRQV PD\ EH EDVHG RQ LQIRUPDWLRQ REWDLQHG IURP YDULRXV SXEOLFO\ DYDLODEOH VRXUFHV 7KH ,QGH[ $GPLQLVWUDWRU DQG WKH ,QGH[ &DOFXODWLRQ $JHQW KDYH UHOLHG RQ WKHVH VRXUFHV DQG KDYH QRW LQGHSHQGHQWO\ YHULýHG WKH LQIRUPDWLRQ H[WUDFWHG IURP WKHVH VRXUFHV DQG DFFHSW QR UHVSRQVLELOLW\ RU OLDELOLW\ LQ UHVSHFW WKHUHRI 8VH RI VLPXODWHG UHWXUQV 7KH ,QGH[ ZDV ODXQFKHG RQ 1RYHPEHU DQG WKHUHIRUH KDV OLPLWHG KLVWRULFDO SHUIRUPDQFH $V D UHVXOW OLPLWHG DFWXDO KLVWRULFDO SHUIRUPDQFH LQIRUPDWLRQ LV DYDLODEOH IRU \RX WR FRQVLGHU LQ PDNLQJ DQ LQGHSHQGHQW LQYHVWLJDWLRQ RI WKH ,QGH[ ZKLFK PD\ PDNH LW GLIýFXOW IRU \RX WR HYDOXDWH WKH KLVWRULFDO SHUIRUPDQFH RI WKH ,QGH[ DQG PDNH DQ LQIRUPHG LQYHVWPHQW GHFLVLRQ WKDQ ZRXOG EH WKH FDVH LI WKH ,QGH[ KDG D ORQJHU WUDGLQJ KLVWRU\ +\SRWKHWLFDO EDFNWHVWHG SHUIRUPDQFH SULRU WR WKH ODXQFK RI WKH ,QGH[ SURYLGHG LQ WKLV GRFXPHQW UHIHUV WR VLPXODWHG SHUIRUPDQFH GDWD FUHDWHG E\ DSSO\LQJ WKH ,QGH[Ü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ýW RI KLQGVLJKW +RS\WKHWLFDO EDFNWHVWHG UHVXOWV DUH QHLWKHU DQ LQGLFDWRU QRU D JXDUDQWRU RI IXWXUH UHVXOWV 7KH K\SRWKHWLFDO EDFNWHVWHG SHUIRUPDQFH RI WKH ,QGH[ SULRU WR 1RYHPEHU FDQQRW IXOO\ UHþHFW WKH DFWXDO UHVXOWV WKDW ZRXOG KDYH RFFXUUHG KDG WKH ,QGH[ DFWXDOO\ EHHQ FDOFXODWHG GXULQJ WKDW SHULRG DQG VKRXOG QRW EH UHOLHG XSRQ DV DQ LQGLFDWLRQ RI WKH ,QGH[ÜV IXWXUH SHUIRUPDQFH +6%& RSHUDWHV LQ YDULRXV MXULVGLFWLRQV WKURXJK LWV DIýOLDWHV LQFOXGLQJ EXW QRW OLPLWHG WR +6%& 6HFXULWLHV 86$ ,QF PHPEHU RI 1<6( ),15$ DQG 6,3& k +6%& 86$ ,QF $OO ULJKWV UHVHUYHG $OO UHVRXUFHV 6RODFWLYH +6%& %ORRPEHUJ IURP -DQXDU\ WR )HEUXDU\ ,668(5 )5(( :5,7,1* 35263(&786 )LOHG 3XUVXDQW WR 5XOH 5HJLVWUDWLRQ 6WDWHPHQW 1R 0DUFK +6%& 9DQWDJH ,QGH[ 0RQWKO\ 5HSRUW )HEUXDU\