National Bank Securities clients benefit from elimination of foreign content limit
Now that the federal budget has received Royal Assent and the foreign content cap has been lifted, National Bank Securities Inc. is immediately passing the benefits on to its clients. The new ruling requires no action by National Bank Securities clients. National Bank Securities will no longer monitor the foreign content in registered accounts, and investors will be able to invest internationally without restrictions.
The National Bank Global Equity RSP Fund, National Bank Global Technologies RSP Fund and National Bank Future Economy RSP Fund, all of which are clone funds, used to have to invest in forward contracts to circumvent the foreign content limit. The cancellation of these derivatives on July 4 will translate into savings for unitholders. As a result, these RSP funds will be fully invested in the underlying funds and will generate equivalent returns.
National Bank Securities will close these clone funds on September 30, 2005. Unitholders will receive the equivalent value of their investment in the corresponding underlying funds (Global Equity Fund, Global Technologies Fund and Future Economy Fund) and will therefore directly hold units in these funds. Until these RSP funds are eliminated on September 30, no new purchases of these funds, other than through Systematic Investment Plans, will be allowed.
In addition, the investment strategy will be changed for four other RSP funds: National Bank Global RSP Bond Fund, National Bank International RSP Index Fund, National Bank American RSP Index Fund and National Bank Protected Global RSP Fund. These funds use an alternative investment strategy in order to respect the foreign content limit. While the funds’ investment objectives will not change, their strategies will be modified so that the fund managers can fully invest the assets of each fund in foreign securities rather than use derivatives, which will yield savings.
“The passing of this new ruling gives Canadian investors new investment options and should add momentum to the return potential of their portfolios,” says Charles Guay, President of National Bank Securities. “We are putting all essentials into play so that our clients benefit fully and optimally.”
Clients can obtain more information from any branch of National Bank of Canada, or by calling National Bank Securities Advisory Service at 1‑888‑270‑3941, Monday through Friday from 8:0 a.m. to 8:00 p.m., or visiting www.nbc.ca.
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 close to $100 billion in assets and, together with its subsidiaries, employs nearly 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 provided below is for the exclusive use of journalists and other media representatives):
Manager, Public Relations
National Bank of Canada
Tel.: (514) 394-8644