Press Releases

The National Bank Multi-managed GIC: a one-of-a-kind RRSP solution

Montreal, 25 January 2005 -

National Bank is proud to present the newest member of its family of guaranteed investment certificates, the Multi-managed GIC.  In addition to fully protecting the invested principal, this innovative new product assures investors of a minimum 5% yield at maturity, regardless of market conditions. Moreover, with the Multi-managed GIC, National Bank is introducing a formula for sharing risk and return with the investor, a first in the banking industry.

“The Multi-managed GIC is a one-of-kind solution and a big plus for investors seeking a secure investment with a higher potential return than a conventional GIC,” explained Jean Blouin, Vice-President – Retail Credit and Investment Solutions. “An investor who chooses the Multi-managed GIC is guaranteed a total minimum yield of 5%, even when the market is on the downside. If the managers succeed in achieving a higher return, the yield for the investor will also increase. The potential return is unlimited”*Mr. Blouin explained.

With the Multi-managed GIC, assets are allocated among liquidities, bonds and equities to ensure optimal diversification. Investors also benefit from the advantages of alternative management, a lever normally reserved for institutional investors.

National Bank will top up the total return over five years of the Multi-managed GIC by 5% if the annualized return is less than or equal to 3%. In exchange, National Bank, which shares the risk with the investor, keeps 1/5 of any annualized return in excess of 6% – a negligible amount compared to what National Bank offers if the market declines.

For example, if a Multi-managed GIC generates a total return over 5 years of 15%, or 2.83% on an annualized basis, the return on an investment of $1,000 would be $200, representing the 15% return plus the rate bonus of 5% paid by National Bank when the annualized return is below 3%. Conversely, if the Multi-managed GIC generates a total return over 5 years of 40.26%, or 7% on an annualized basis, the same investment would earn $389.72, representing a return of $402.60 less an amount of $12.88, or 1/5 of the return in excess of 6%, that is kept by National Bank.

The minimum investment for a Multi-managed GIC is $500. This product can only be purchased as part of a registered retirement savings plan (RRSP) and is 100% eligible as Canadian content. The Multi-managed GIC can be acquired through National Bank’s branch advisors and is also available via National Bank Personal Internet Banking Solutions ( or TelNat Telephone Banking Solutions (1-888-483-5628).

Investors can obtain additional information about the Multi-managed GIC from National Bank advisors or the Bank’s website at under the heading Personal Services > Investment Solutions > Deposit Products.

* The initial amount invested is 100% guaranteed and repayable at maturity.  The variation in the benchmark index, which corresponds to the variation in the portfolio return, will have a direct impact on the interest payable.  Management fees of 2.9% per year will be deducted each month from the benchmark index. If the total return over 5 years is more than 33.822%, or 6% on an annualized basis, the portion of the return exceeding 33.822% will be reduced by 20%. However, if the total return over 5 years is less than or equal to 15.927%, or 3% on an annualized basis, a 5% bonus will be added to the total return.

About National Bank
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 customers 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 nearly $89 billion in assets and, together with its subsidiaries, employs close to 16,500 people.  The Bank’s securities are listed on the Toronto Stock Exchange (NA: TSX).  For more information, visit the Bank’s website at

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

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