The Multifund GIC, a New National Bank Product
Montreal, 9 November 2001 -
National Bank announces the official launch of its Multifund GIC, a new guaranteed investment certificate. The return on this product is tied to the performance of a group of eight mutual funds that invest in Canadian and international markets and are part of three different fund families: National Bank Funds, Fidelity Investments and AGF Group of Funds.
National Bank is the first Canadian financial institution to offer a GIC made up of such a mutual fund combination. According to Jean Blouin, Vice-President, Deposit Solutions at National Bank, the product's major attraction stems from its capital guarantee and the combination of complementary expertise from three major fund players. "Based on our analyses, the product would have generated an annual compound return of 11.06% on average for the five-year period from January 1991 to September 2001. This GIC will likely achieve its maximum return, which represents a highly attractive growth potential for investors seeking optimal protection of their capital," adds Mr. Blouin.
Investors can now take advantage of this offer during National Bank's presale period. The first issue is scheduled for January 15, 2002. The new Multifund GIC is available for a five-year term, and the minimum investment is $500. The maximum return is capped at 42% over five years, or 7.26% on an annual basis.
National Bank recommends this product to all clients with a fairly conservative investor profile. The Multifund GIC can be an ideal solution for clients who have a small amount of capital available for investment and who seek to diversify their portfolio among the major asset categories, or for clients who simply wish to ease into investing in mutual funds.
Mr. Blouin is confident that this new GIC will be very popular. "The current climate of market volatility and insecurity will prompt investors to look for secure products; our clients have already expressed keen interest in this new GIC."
National Bank of Canada is an integrated group which provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world. The National Bank offers a full array of banking services, including all the investment banking services required by large corporations. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. The National Bank has assets of over $75 billion and, together with its subsidiaries, it employs over 16,600 people. The Bank's shares are listed on the Toronto Stock Exchange.
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