Montreal, October 28, 2002 - The National Bank Launches the Strategic Yield Class Fund. A New Fund with Beneficial Tax Treatment
Montreal, 28 October 2002 -
The National Bank is today launching the Strategic Yield Class fund, its first fund structured as a corporation. It is a short-term investment solution that yields capital gains rather than interest, capital gains being the most attractive type of income given their preferential tax treatment.
The main advantage of the Strategic Yield Class fund is that it offers individuals and companies an instrument for managing cash resources that combines capital security and regular income, not to mention the preferential tax treatment. Managed by a team of professional portfolio managers at the National Bank, the Strategic Yield Class fund holds a portfolio of hedged equities which eliminates most of the risks associated with market fluctuations. Through this sophisticated management approach, which makes use of derivative securities (call and put options), investors receive secure, steady returns as the fund mirrors short-term interest rates while paying out capital gains.
“Today more than ever, investors need investment solutions that offer the highest possible after-tax returns. That's why the Strategic Yield Class fund will appeal to investors looking for security and liquidity in a single short-term investment vehicle which also provides income that is more advantageous from a tax standpoint,” stated Charles Guay, President and Chief Operating Officer of National Bank Securities.
Because it is structured as a corporation, which makes it eligible for capital tax purposes, the Strategic Yield Class fund will be particularly attractive to companies looking to reduce their tax burden. It is also designed for wealthy individual investors who are in a high tax bracket, have a short-term investment horizon and are looking for a non-registered investment that protects capital while providing steady income in the form of capital gains.
The Strategic Yield Class fund is available to investors as of today. They can purchase it directly from their National Bank investment advisor or by calling the National Bank Mutual Fund Advisory Service at 1-888-270-3941.
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 over $75 billion and, together with its subsidiaries, employs over 17,000 people. The Bank's securities are listed on the Toronto Stock Exchange.
Information (the following telephone number and e-mail address are intended solely for the use of journalists and other media representatives):
National Bank of Canada
Director of Public Relations
Tel.: (514) 394-8644