Laurentian Bank of Canada is once again offering investors exposure to the economic growth potential of China with a principal-protected note.

Available until April 15, the China Objective Note allows investors to take advantage of the Asian economy growth through 30 internationally recognized corporations based in 11 countries, excluding China. These corporations with significant market capitalization and current presence in China have publicly announced their intention to expand their operations in the country.

Laurentian says the note is an ideal investment product for portfolio diversification by industry sector and by geographic location. It carries stocks of various corporations based in 11 countries on three continents, operating in eight different industry sectors. With the overweight position in the industrial products, basic consumption and information technology sectors, and a moderate weight exposure in the energy, financial services and telecommunications sectors, the note offers better diversification than the S&P/TSX composite index. Moreover, portfolio performance would not be affected by any currency fluctuations, which reduces risk.

The principal amount is guaranteed at maturity by Laurentian Bank of Canada.

The note is offered in terms of five and 10 years, and features a maximum return of 65% for a five-year term and unlimited return for the 10-year term. There is no management fee.

The minimum initial investment is $1,000, and the note is eligble for registered and non-registered accounts.

“We renew the offer of this product that was designed for investors looking to tap into the growth potential of China’s economy, risk-free. For the past 10 years, China’s economy has grown by an average of 9%. According to many economists, it is just the beginning of China’s economy boom. They predict that at this rate China, now ranked sixth in the world, will become the second largest world economy by 2016,” says François Barrière, vp, business development, foreign exchange and international services.