Press Releases

National Bank Canadian Opportunities Fund approved for short selling

Montreal, 5 July 2004 -

National Bank Securities is pleased to announce that its Canadian Opportunities Fund can now include short selling in its investment strategy, making it one of the rare funds in Canada to offer this privilege normally reserved for high net worth or institutional investors.

This change to its investment strategy will take effect in September, after the regulatory notice period. To minimize risk, short selling will be subject to several restrictions, including a cap equal to 10% of the Fund's total net assets.

“Short selling,” noted Charles Guay, President and Chief Executive Officer of National Bank Securities, “gives investors two advantages over the traditional management approach.   They will be able to take advantage of market opportunities to increase the Fund's potential return and better control portfolio risk”.

According to Jacques Chartrand, Senior Vice-President – Canadian Equity at Natcan Investment Management, this change will be a perfect fit with the Fund's investment strategy. “In addition to tapping the growth potential of various sectors of the economy with no restrictions, the Fund will now be able to use short selling to capitalize on the weakness of certain securities that have an unfavourable short-term outlook.”

It should be pointed out that the Canadian Opportunities Fund, which will be marking its fifth anniversary in December, has an enviable track record.

National Bank Securities, a wholly owned subsidiary of National Bank of Canada, offers investors a full family from close to 50 mutual funds, which currently represent over $6.3 billion in assets. National Bank Mutual Funds are available at National Bank's branches and through most investment dealers across Canada.

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 close to $84 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