National Bank unveils its new Advantage 8 Plus GIC
National Bank has unveiled the first issue of its new Advantage 8 Plus GIC, available from January 9 to March 7, 2008. This investment solution combines principal protection to maturity and exposure to a benchmark portfolio composed of common shares in 20 leading Canadian, U.S., European, Japanese and Australian companies.
- Principal fully protected by National Bank at maturity
- Minimum initial investment of $500
- 5-year term
- Minimum guaranteed return at maturity
National Bank’s Advantage 8 Plus GIC lets investors take advantage of an innovative structure that automatically assigns a 50% return on the eight best performing stocks in the benchmark portfolio, regardless of whether their actual return was over or under 50%. In addition, it provides global diversification without currency risk.
The minimum investment required is $500. At maturity, i.e., on March 14, 2013, the investor will receive, in addition to his principal, a return corresponding to the average return of the 20 stocks in the benchmark portfolio (subject to a maximum of 50%).1 The return of the GIC is then determined by automatically assigning a return of 50% to the eight stocks with the highest returns, while the performance of the 12 other stocks in the benchmark portfolio is calculated according to their actual returns. Because of the minimum guaranteed return, the return at maturity will be at least 13.14%, which is equivalent to an annual compound return of approximately 2.50%.
The Advantage 8 Plus qualifies for registered retirement savings plans (RRSP), registered retirement income funds (RRIF), deferred profit-sharing plans (DPSP) and registered education savings plans (RESP). It is also eligible for CDIC deposit insurance.2
This investment solution can be purchased from advisors in National Bank branches. Investors and clients of National Bank can also purchase National Bank GICs directly through TelNat telephone banking solutions at (1‑888‑483-5628), National Bank Direct Brokerage (www.nbdb.ca or 1‑800‑293‑6637) and through any investment advisor or financial planner in Canada.
Advantage 8 Plus – Compound interest
1The Advantage 8 Plus GIC is an investment that is fully principal protected by National Bank at maturity. The change in the benchmark portfolio’s return has a direct impact on the interest payable. If the benchmark portfolio does not yield at least 13.14% at maturity, the GIC will not produce any variable return. It is therefore possible that no variable interest will be paid. No management fees are applied. The return generated by the benchmark portfolio does not take into account the payment of dividends or distributions on the common stocks included in the benchmark portfolio.
2The Advantage 8 Plus GIC is a deposit eligible for deposit insurance from the Canada Deposit Insurance Corporation (CDIC), subject always to maximum coverage limitations and provided the deposit is made in accordance with the conditions set out by the CDIC as outlined in its “Protecting Your Deposits” brochure (available online at www.cdic.ca or by calling 1‑800‑461‑7232).
About 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. National Bank has more than $113 billion in assets and, together with its subsidiaries, employs 16,863 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.):
Senior Director – Public Relations
National Bank of Canada