National Bank Launches Retirement Option Managed Portfolios – A New Tax-Efficient Income Option

Montreal, 12 October 2011 - 

National Bank Securities announces the official launch of the Retirement Option Managed Portfolios, a solution designed to generate potentially higher after-tax income.

The Retirement Option Managed Portfolios are primarily intended for investors who are in the withdrawal phase of the investment cycle or looking for additional monthly income. This option, which is integrated into our original Managed Portfolios product line, offers access to the same six investor profiles, consisting of 16 underlying funds.

This new Managed Portfolios option meets a need for simplicity and will win over many investors who are transitioning to retirement:

- Because Managed Portfolios and Retirement Option Managed Portfolios are in fact the same solution, a client can move from one to the other easily, with no tax impact, if he keeps the same investor profile;

- There is limited tax impact when the client moves from one investor profile to another. As the various profiles often contain the same underlying funds, it is not necessary to sell all the units held;

- The amount of the fixed distribution is reviewed at the start of every year in order to reflect market conditions.

Fixed distributions1, which consist in part of returns of capital, are paid monthly:

- Unlike other types of income paid by mutual funds, returns of capital are not considered income and therefore are not taxable immediately;

- This is a simple and advantageous distribution strategy that can be a very attractive option for clients who are looking to defer income taxes to a more beneficial period when their tax rate is lower.

“Retirement Option Managed Portfolios are an excellent solution to meet the needs of Managed Portfolio clients. We acted on comments from clients who are looking for an easy way to secure a stable source of income, whether they are in the withdrawal phase of the investment cycle or nearing it. Retirement Option Managed Portfolios maximize flexibility and minimize tax concerns,” stated Charles Guay, President and Chief Executive Officer of National Bank Securities. Because the transition to retirement can often be a major source of anxiety, our clients can be assured that in this regard, they have one less thing to worry about.”

With very competitive management fees and $1.4 billion in assets under management (as at August 31, 2011), Managed Portfolios benefit from a proven management approach, as demonstrated with the Lipper Award for the Global Equity Balanced category (5-year period) received this year by the Growth Managed Portfolio. To learn more about National Bank’s family of Managed Portfolios, which includes the new Retirement Option Managed Portfolios, visit www.nbc.ca/managedportfolio. You will find informative video capsules, as well as examples of how to integrate this innovative investment solution into your retirement strategy.

About National Bank of Canada
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 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. National Bank has over $153 billion in assets and, together with its subsidiaries, employs 19,217 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. To access National Bank’s financial education portal, visit www.clearfacts.ca.

Information (The telephone number provided below is for the exclusive use of journalists and other media representatives.):

Joan Beauchamp
Senior Advisor – Public Relations
National Bank
Tel.: 514-394-6500


1The distribution rate is said to be fixed because it does not vary from one distribution to another, but it is not guaranteed and may be adjusted depending on market conditions.