Press Releases

The National Bank SMART Note: unlimited potential return

Montreal, 13 February 2006 -

·  Principal fully protected by National Bank at maturity;
·  Unlimited potential return at maturity;
·  Eligible for registered plans: RRSP, RRIF, RESP;
·  No annual management fees.*

National Bank is launching the third series of its SMART Note, a solution that offers complete principal protection and unlimited potential returns at maturity over a 7-year term.

The SMART Note contains the asset classes needed for optimal diversification of returns by capitalizing on stock, bond, currency and commodities markets. With this Note, investors looking to protect their principal can obtain the best return from three portfolios with investment strategies based on three investor profiles: moderate, conservative or growth.

This simple and transparent approach enables more conservative investors to benefit from the potential returns of a bull market, while more intrepid investors will be protected in a bear market.

Each Note costs $100 and the minimum investment is $2,000.  At maturity, on April 1, 2013, investors may be paid, in addition to their principal, a positive unlimited return corresponding to the best performance of the three managed portfolios, with no annual management fees.*

The Note qualifies for Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), and Registered Education Savings Plans (RESPs).

The SMART Note can be purchased from National Bank Direct Brokerage at 1-800-363-3511 (toll-free) or (514) 866-6755 (in the Montreal area) and from National Bank Financial at 1-800-361-8838 or (514) 875-6800 as well as through all investment advisors and financial planners in Canada.

*Dividends are not re-invested or distributed.

This communiqué is for information purposes only and does not constitute an offer to sell or a solicitation to buy the above notes.  The Systematic Maximum Allocation of Returns (SMART) Note is an investment with fully protected principal redeemable at maturity.  Any change in the benchmark portfolios which corresponds to the return on the underlying assets, will have a direct impact on the returns payable.  The notes may not generate any returns.  Investments in the notes are subject to certain risk factors.  The amended, updated information document contains all the information about this issue of notes and will be sent to investors on request. Potential buyers should consult the amended, updated information document before investing in the notes.

About National Bank
National Bank of Canada is an integrated group that 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. 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 $108 billion in assets and, together with its subsidiaries, employs 16,890 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 Department
National Bank of Canada
Tel.: (514) 394-8644