Citibank Canada and Triax Advanced Strategies Inc., a wholly owned subsidiary of Triax Capital Holdings Ltd., are launching GPR (Guaranteed Principal Repayment) Hedge Fund Notes.

The notes are issued by being issued by Citibank Canada. The offering is scheduled to close on or about November 30. The subscription price is $10 per note, with a minimum initial investment of $5,000.

The notes offer guaranteed repayment by Citibank Canada of the $10 subscription price at maturity on Nov. 30, 2011.

According to Citibank and Triax, the offering hopes to achieve a volatility of returns of less than one-third of the volatility of the returns of major North American equity markets, and to achieve returns substantially independent of the returns of major North American fixed income and equity markets.

The return on the notes will be linked to the performance of a dedicated portfolio of hedge funds selected, monitored and actively managed by Chicago- based Mesirow Advanced Strategies, Inc. The targetted compound annual rate of return is 10%.

Mesirow acts as a fund of funds manager of hedge funds and created its first fund of funds in 1990. Mesirow manages in excess of $3 billion in hedge funds on behalf of a variety of institutional clients in various jurisdictions.

National Bank Financial Inc. and Merrill Lynch Canada Inc. are the lead agents for the offering. The syndicate also includes RBC Dominion Securities Inc., TD Securities Inc., CIBC World Markets Inc., Scotia Capital Inc., HSBC Securities (Canada) Inc., Desjardins Securities Inc., Canaccord Capital Corp., Yorkton Securities Inc., Raymond James Ltd. and Trilon Securities Corp.