National Bank has unveiled the first issue of its new Advantage 8 Plus GIC, available from January 9 to March 7. The GIC combines principal protection to maturity and exposure to a benchmark portfolio composed of common shares in 20 leading Canadian, U.S., European, Japanese and Australian companies.

The new GIC products lets investors take advantage of an innovative structure that automatically assigns a 50% return to eight of the stocks in the benchmark portfolio, regardless of whether their actual return was over or under 50%. In addition, it provides global diversification without currency risk.

The minimum investment required is $500. At maturity on March 14, 2013, the investor will receive, in addition to his principal, a return corresponding to the average return of the 20 stocks in the benchmark portfolio (subject to a maximum of 50%).

The return of the GIC is then determined by automatically assigning a return of 50% to the eight stocks with the highest returns, while the performance of the 12 other stocks in the benchmark portfolio is calculated according to their actual returns. Because of the minimum guaranteed return, the return at maturity will be at least 13.14%, which is equivalent to an annual compound return of approximately 2.5%.

Advantage 8 Plus GIC qualifies for RRSPs, RRIFs, deferred profit-sharing plans and RESPs). It is also eligible for CDIC deposit insurance.

The GIC can be purchased from advisors in National Bank branches. Investors and clients of National Bank can also purchase National Bank GICs directly through TelNat telephone banking solutions at, National Bank Direct Brokerage and through any investment advisor or financial planner in Canada.