National Bank launches three new mutual funds

National Bank Securities Inc., a wholly owned National Bank of Canada subsidiary, is announcing the launch of three new no-load mutual funds: the National Bank Global Technologies RSP Fund, the National Bank Future Economy RSP Fund and the National Bank Sector Rotation Fund. The subsidiary received the necessary regulatory approval today to begin distribution of the new funds.

The first two funds are what is commonly called in the industry clone or mirror funds. The funds' objective is to ensure higher long-term growth of capital by investing in forward contracts, which are directly linked to the return generated by the National Bank Global Technologies Fund and the National Bank Future Economy Fund (underlying funds), which were launched in July and are managed by Stephen Gauthier of Pictet Canada. In contrast to the underlying funds, the clone funds are 100% RRSP-eligible even if their portfolio is invested abroad. In this way, unitholders can maximize the international content of their portfolio.

"Investors are increasingly aware of the benefits of foreign investments and as a result, the demand for RRSP-eligible international funds is on the rise. National Bank's two new clone funds will most certainly meet a real need among investors," explained National Bank Securities President, Yves G. Breton.

The National Bank Global Technologies RSP Fund assets will be invested in companies specializing in office automation, electronics, scientific instruments, software, semiconductors, computer services and systems and telecom systems – in short, everything related to high tech and telecom. The National Bank Future Economy RSP Fund will focus mainly on sectors likely to benefit from the rapid growth of certain segments of the population and from new spending trends. Those sectors include financial services, technology, telecom, health and recreation. The two new funds will bring the total number of National Bank 100% RRSP-eligible international funds to six.

Finally, the third fund launched by National Bank is, as its name indicates, a sector rotation fund. The fund's assets will mainly be invested in Canadian stocks. The fund manager, Natcan Investment Management Inc., will steer investments toward industry sectors that offer the best growth potential, based on economic conditions. The fund manager will therefore have plenty of options in the choice of sectors, allowing him to benefit fully from all stages of the economic cycle and from the upward momentum of certain sectors.

These three new products, which bring the total number of the National Bank family of funds to 39, belong to the "Specialized Funds" category and require a minimum investment of $500. National Bank Securities would like to remind investors that this type of fund has a high level of volatility and their inclusion in an investment portfolio must be limited (from 5% to 15% only). Investors are advised to consult their financial advisor in determining what portion best suits their investor profile.

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