The National Bank of Canada launched a new issue of Advantage 8 principal-protected notes, series one, on Monday. This investment solution enables investors to benefit from 100% principal protection and the performance of a portfolio of 20 common shares from major Canadian, American, European and Japanese companies. The Notes will be on sale until June 27.
This short-term investment solution guarantees the buyer a 25% minimum return on eight of the 20 shares in the reference portfolio. Advantage 8 PPNs also offer global diversification with no currency risk.
The price of each Note is $100 and the minimum investment is $2,000. At maturity, on Dec. 30, 2008, investors will receive their principal plus an amount equivalent to the average return of the 20 shares in the reference basket, composed of a fixed 25% return on the eight top performing shares and the actual return on the other 12 shares.
Advantage 8 PPNs qualify for RRSPs, RRIFs, deferred profit sharing plans (DPSPs) and RESPs. They can also be sold before maturity, subject to market conditions and early trading charges.