National Bank launches the Global SMART Note – Series 1

Montreal, 18 January 2007 - 
  • Principal fully protected by National Bank at maturity
  • Unlimited potential return at maturity
  • Optimal geographic allocation return

National Bank is launching a first series of the Global SMART Note, available until March 9, 2007. This investment solution combines principal protection (100% at maturity) and performance driven by a portfolio that offers unlimited potential return at maturity (8-year term).

With the Global SMART Note, investors benefit from global diversification across three regions: the United States, Europe and Asia/Pacific. The regional baskets are further diversified by asset class with 50% in equities, 30% in bonds and 20% in currencies and commodities. The geographic regions are the same for each portfolio, but the weighting for each geographic basket varies (see table below) to provide investors with enhanced diversification.

Weighting of the different Global SMART Note portfolios

United States

50% United States

25% Europe

25% Asia/Pacific

Europe

25% United States

50% Europe

25% Asia/Pacific

Asia/Pacific

25% United States

25% Europe

50% Asia/Pacific

Each note costs $100, with a minimum initial investment of $1,000. At maturity, on March 9, 2015, investors will receive, in addition to their principal, a return, if applicable, equal to the product of the initial $100 per note and the sum of the weighted returns of the baskets of the top-performing portfolio (i.e. the best perfoming portfolio).

The Global SMART Note was designed for investors who want to diversify internationally while benefiting from overweighting in a specific region, as well as investors who seek higher returns at a time when interest rates are low.

The Global SMART Note qualifies for Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), Deferred Profit Sharing Plans (DPSPs) and Registered Education Savings Plans (RESPs). It can be sold before maturity, subject to on market conditions and early trading charges.  

The Global SMART Note can be purchased from National Bank branches, from National Bank Financial by calling 1‑800‑361‑8838 (toll free) or 514‑879‑2222 (in the Montreal area), from National Bank Direct Brokerage by calling 1‑800‑363‑3511 (toll free) or 514‑866‑6755 (in the Montreal area) and through all investment advisors and financial planners in Canada. 

This communiqué is for information purposes only and does not constitute an offer to sell or a solicitation to buy the above notes.  The Systematic Maximum Allocation of Returns (SMART) Note is an investment with fully protected principal redeemable at maturity.  Any change in the benchmark portfolios which corresponds to the return on the underlying assets, will have a direct impact on the returns payable.  The notes may not generate any returns.  Investments in the notes are subject to certain risk factors.  The amended, updated information document contains all the information about this issue of notes and will be sent to investors on request. Potential buyers should consult the amended, updated information document before investing in the notes.

About National Bank
National Bank of Canada is an integrated group that 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. National Bank offers a full array of banking services, including 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. National Bank has close to $116 billion in assets and, together with its subsidiaries, employs 16,972 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 provided below is for the exclusive use of journalists and other media representatives):

Denis Dubé
Director – Public Relations Department
National Bank of Canada
Tel.: (514) 394-8644