National Bank has expanded its family of guaranteed investment certificates by launching the Multi-managed GIC. In addition to fully protecting the invested principal, the new GIC assures investors of a minimum 5% yield at maturity, regardless of market conditions.

With the introduction of the GIC, National Bank is also introducing a formula for sharing risk and return with the investor.

National Bank will top up the total return over five years of the Multi-managed GIC to 5% if the annualized return is less than or equal to 3%. In exchange, National Bank, which shares the risk with the investor, keeps 1/5 of any annualized return in excess of 6%.

“The Multi-managed GIC is a one-of-kind solution and a big plus for investors seeking a secure investment with a higher potential return than a conventional GIC,” explained Jean Blouin, vp – retail credit and investment solutions.

“An investor who chooses the Multi-managed GIC is guaranteed a total minimum yield of 5%, even when the market is on the downside. If the managers succeed in achieving a higher return, the yield for the investor will also increase. The potential return is unlimited” Blouin explained.

Assets are allocated among liquidities, bonds and equities to ensure optimal diversification. Investors also benefit from the advantages of alternative management.

The minimum investment for a Multi-managed GIC is $500. The product can only be purchased as part of an RRSP and is 100% eligible as Canadian content.