Landmark NBC Canadian Family Index Launch
National Bank of Canada (“NBC” or “the Bank”) is pleased to announce today that it has launched the NBC Canadian Family Index (the “Index”). Moreover, NBC has selected S&P Dow Jones Indices (“S&P DJI”), the largest global resource for essential index-based concepts, data and research as the NBC Canadian Family Index calculation agent.
Since its foundation in 1859, National Bank of Canada has been serving clients and family businesses with dedication throughout Canada. Demonstrating the Bank’s thorough understanding and desire to better cater its services to family businesses, the Bank created the NBC Canadian Family Index which tracks and measures the performance of family-controlled businesses in Canada.
The Index, which relies on transparent and objective criteria, clearly demonstrates family-controlled companies’ capacity to create value over the long run for their shareholders. Over the past 12 years, the NBC Canadian Family Total Return Index registered an annualized return of 9.07% compared to 6.55% for the S&P/TSX Composite Total Return Index. In the coming months, investment products based on the NBC Canadian Family Index will be developed, thereby enabling investors to benefit from our countries’ leading family businesses on their quest to sustained long-term success and value creation.
The Index currently includes 43 Canadian family-controlled businesses across different industries and from 6 different provinces (see Appendix for full list of family companies included in the Index). Once a year, an Index Committee formed by members from NBC and of law firm Fasken Martineau DuMoulin LLP screens for family-controlled public companies having either the founding family controlling at least 10.0%, or an individual and/or related entities controlling at least 33.3%, of the company’s voting rights (see http://www.nbfm.ca/en/products-and-services/investment-products-solutions/nbc-canadian-family-index/ for more information).
The NBC Canadian Family Index series:
- NBC Canadian Family Total Return Index (Ticker on the TSX: NBCFAMTR)
- NBC Canadian Family Price Return Index (Ticker on the TSX: NBCFAM)
- NBC Canadian Family Total Return USD Index
- NBC Canadian Family Price Return USD Index
Vincent Joli-Coeur, Vice-Chairman – National Bank of Canada, Financial Markets: “Family businesses are the cornerstone of Canada’s economy and have unequivocally demonstrated the ability to achieve long-term value creation for their shareholders. The NBC Canadian Family Index will become the reference in tracking the sustained stock market performance of Canada’s largest publically-listed family businesses.”
Éric Bujold, President, National Bank of Canada Private Banking 1859 : “Echoing the 2015 “Family Advantage” report detailing the inherent advantages of family businesses, a 2017 edition of the report will be released later this summer. The report will namely explore family businesses’ ability to deploy “patient capital”, philanthropy and the concept of Family Legacy.”
Michael Mell, Director of Custom Indices at S&P Dow Jones Indices: “A custom index allows market participants the opportunity to implement proprietary research and concepts into their own strategies and use an experienced index provider for index publication, calculation and other specialized services. We are pleased to be the custom calculation agent for the NBC Canadian Family Index series.”
 As of June 16, 2017 (latest annual rebalance date)
About National Bank of Canada
With $239 billion in assets as at April 30, 2017, National Bank of Canada, together with its subsidiaries, forms one of Canada’s leading integrated financial groups. The Bank has more than 21,000 employees and is widely recognized as a top employer. Its securities are listed on the Toronto Stock Exchange (TSX: NA). National Bank of Canada provides a full array of banking services, including retail, corporate and investment banking. Through its subsidiaries, the Bank is involved in securities brokerage, insurance, wealth management, as well as mutual fund and retirement plan management. Since its foundation in 1859, the Bank has been serving clients and family businesses with dedication through its branches across Canada. The Bank also conducts business in the United States, Europe, Asia and other parts of the world through a network of representative offices, subsidiaries and partnerships. Follow the Bank’s activities at nbc.ca or via social media such as Facebook, LinkedIn and Twitter.
Caution Regarding Forward-Looking Statements
This press release includes certain forward-looking statements. These statements are inherently subject to significant risks, uncertainties and changes in circumstances, many of which are beyond the control of the Bank. Except as required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time, by it or on its behalf. The forward-looking information contained in this press release is presented for the purpose of interpreting the information contained herein and may not be appropriate for other purpose.
S&P Dow Jones Indices Disclaimer
The S&P Index(es) (the “Index(es)”) underlying the product provider’s (the “Issuer”) investment products (the “Investment Products”) are proprietary to S&P Dow Jones Indices LLC (“S&P DJI”). S&P® and the names identifying the Index(es) are trademarks of Standard & Poor’s Financial Services LLC and have been licensed for use by S&P DJI and sublicensed for certain purposes by the Issuer. The Issuer’s Investment Products based on the Index(es) are not in any way sponsored, endorsed, sold or promoted by S&P DJI, its affiliates or licensors and those parties make no representations or warranties, express or implied, regarding the advisability of investing in securities generally or in the Investment Products particularly or the ability of the Index(es) to track general market performance.
For more information:
Vice-President, Public Affairs
National Bank of Canada