Press Releases

National Bank Securities Inc. has established an independent committee to monitor investiments in the common shares of National Bank of Canada

Montreal, 28 February 2005 -

National Bank Securities Inc., the manager of the National Bank Mutual Funds (the “Funds”), announced today that it has established an independent committee to review the Funds’ purchases, sales and continued holdings of the common shares of National Bank of Canada (the “Bank”).  The creation of this committee follows a decision made by the Canadian securities regulatory authorities to permit the Funds to invest in the common shares of the Bank as long as an independent committee monitors these investments.

The mandate of the independent committee is to review decisions made on behalf of the Funds to invest in common shares of the Bank in order to be satisfied that the decisions to buy, sell and hold common shares of the Bank represent the business judgment of the portfolio manager, uninfluenced by considerations other than the best interests of the Funds, that the decisions were made free from any influence of the Bank and without taking into account any consideration relevant to the Bank or its associates or affiliates.  National Bank Securities Inc., the manager of the Funds, and National Bank Financial Inc., an unrestricted practice broker, are wholly owned by the Bank.  Natcan Investment Management Inc., the portfolio manager of the Funds, is majority owned by the Bank.

In addition to monitoring the Funds’ transactions in the common shares of the Bank, the independent committee will also act in compliance with conditions of various orders issued from time to time by the Canadian securities regulatory authorities.

The initial members of the committee are Jean Durivage, Yves Julien, André Godbout and Jean-François Bernier.  All members of the independent committee are not employee, director, officer or associate of the Bank, National Bank Securities Inc. and Natcan Investment Management Inc. or an associate of an affiliate of the above mentioned corporations.

Each member of the independent committee receives a fee plus expenses for each meeting of the independent committee that the member attends.  This fee will be allocated among the Funds in a manner that is considered by the independent committee to be fair and reasonable to the Funds.

National Bank Securities is a wholly owned subsidiary of National Bank of Canada, which offers a complete suite of investment solutions to individual and commercial investors.

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 more than $90 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

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

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