The National Bank launches a Mutual Fund Portfolio-Linked Note

Montreal, 21 January 2004 - 

The National Bank has launched a Mutual Fund Portfolio-Linked Note, a comprehensive investment solution with guaranteed capital and an unlimited potential return.

Investors can benefit from sound diversification with this note as its performance is based on seven mutual funds that include Canadian and international equity and fixed income funds. It is priced at $100 per note and the minimum investment is $500.

At maturity in 2011, investors will receive the minimum redemption price of $100 plus an unlimited return based on the added value of the benchmark portfolio ($100 X the value at maturity compared with the value at issuance). In addition, the National Bank may, at its option, redeem the note at mid-term (4 years) at a price of $136.05, which represents an annual compound return of 8%. This security is negotiable after one year at market value.

"The Mutual Fund Portfolio-Linked Note is a turnkey solution that offers excellent return potential. It serves very well as the sole holding in a portfolio if you have a long-term investment horizon and low risk tolerance. In addition, investors can benefit from the expertise of four major investment firms: National Bank Securities, Altamira, Mackenzie and CI," said Jean Blouin, Vice-President – Credit and Investment Solutions at the National Bank.

This note is eligible for Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs) and Registered Education Savings Plans (RESPs). It is available through advisors at National Bank branches, National Bank Financial, National Bank Discount Brokerage and the National Bank Securities Advisory Service at 1-888-270-3941. It can also be purchased via the FundSERV settlement systems.

Investors can obtain more information about this portfolio-linked note through the National Bank's website at www.nbc.ca under Personal Services/ Investment Solutions/Deposit Products.

About the National Bank of Canada

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 retail, corporate and investment banking. 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 $82 billion and, together with its subsidiaries, employs close to 17,000 people. The Bank's securities are listed on the Toronto Stock Exchange (NA:TSX). For more information, visit the Bank's website at www.nbc.ca.

Information :

(the telephone number and e-mail address provided below are for the exclusive use of journalists and other media representatives):

 

Denis Dubé
Manager, Public Relations Department
National Bank of Canada
Tel.: (514) 394-8644
E-mail: denis.dube@nbc.ca