National Bank of Canada today introduced PIMCO Canadian CorePLUS Bond R.O.C. Deposit Notes Series 2, an investment solution which combines tax efficiency with performance linked to world-class bond management.

The deposit notes provide holders with semi-annual payments of up to $2.25 (4.50% per annum) in the form of return of capital, in addition to the payment at maturity of a variable return linked to the performance of the PIMCO Canada Canadian CorePLUS Bond Trust.

The principal is 100% protected over the five-year term of the deposit notes and a daily secondary market will be available.

Each deposit note costs $100 and the minimum investment is $5,000.

National Bank says the deposit notes are ideal for investors looking to benefit from a professionally managed fixed income portfolio that could bring value added performance relative to the bond market. The notes provide access to the performance of one of the world’s leading bond portfolio managers and would appeal to investors who value a tax-efficient investment solution.

PIMCO Canadian CorePLUS Bond R.O.C. Deposit Notes Series 2 are eligible RRSPs, RRIFs, Deferred Profit-Sharing Plans and RESPs.

The deposit notes are available until March 20, at National Bank Financial or from any investment and financial planning advisor in Canada, as well as National Bank Direct Brokerage.

Any change in the performance of the PIMCO Canadian CorePLUS Bond Trust will have a direct impact on the return payable. It is possible that no return will be paid.