Potential, protection and diversification – in one investment solution
Probably the most important investment decision you can make is diversifying your portfolio – spreading your investments across various countries, sectors and companies. Now there's a way to diversify and invest in some of the world's best companies. The Altamira Global Blue Chip Note gives you access to 30 of the world's best blue chip companies (Canada, U.S. and international), and your principal is protected if you hold the note to maturity.
What is a principal-protected note?
A principal-protected note is a structured investment that guarantees capital preservation while providing the upside potential of stocks, bonds, commodities, mutual funds and other investment products. Notes are usually offered in series and sold in predetermined quantities. Similar to guaranteed investment certificates (GICs), notes must be held for a certain time period in order for gains to be realized.
Benchmark Portfolio
The securities included in the portfolio remain the same for the term of the note. The relative weight of each entity in the portfolio will vary based on changes in the value of the securities.
The Altamira Global Blue Chip Note offers several key benefits:
Unlimited potential return at maturity. Your potential return is unlimited at maturity if the Note is not redeemed by the issuer after four years
Principal is fully protected at maturity. Regardless of how markets perform over the eight-year term, your principal is protected if you hold the Note until maturity. The National Bank of Canada – Canada's sixth-largest bank – guarantees repayment of your principal at maturity
Access to a diversified selection of 30 leading companies. Get returns based upon a diversified basket of 30 companies without the fees associated with stock purchase or the need to perform time-consuming research
The Altamira Global Blue Chip Note might be a good investment if you have an investment horizon of eight years or more, are looking for principal protection and want to benefit from the growth potential of stock markets.
The Note has an eight-year term. However, the National Bank may redeem early after four years, at its option.
Price per Note
$100
Minimum investment
$500 (5 Notes)
Issuer
National Bank of Canada
Guarantee
The National Bank of Canada – Canada's sixth-largest bank – guarantees repayment of the client's principal at maturity in eight years. The National Bank of Canada has an A credit rating from the S&P and an A (high) from DBRS (Dominion Bond Rating Service). The notes are not insured under the Canada Deposit Insurance Corporation Act or under any other insurance regime.
Tax treatment
No income taxes are payable before early redemption, sale or maturity, so the investment grows in a tax-sheltered environment. If an investor makes an early redemption, at his or her option, the gain (or loss) will normally be classified as a capital gain (loss). Otherwise, the excess return above the principal at maturity or early redemption by National Bank of Canada will be classified as interest.
Access to funds
Notes can be sold in a weekly secondary market maintained by National Bank Financial. There is an early redemption fee for notes sold within 24 months of purchase.
Availability for sale
Available to Canadian residents only.
Suitable for
Equity portion of investment portfolio.
Please refer to the Information Statement for complete details regarding the Altamira Global Blue Chip Note.
For the daily prices, please click here. For historical prices, please contact an Altamira Advisor at 1-888-ALTAMIRA.
No income taxes payable during the holding period. The interest earned on the notes is tax-deferred until maturity or mid-term redemption at National Bank's option
Access to a secondary market. The National Bank of Canada will maintain a weekly secondary market under normal market conditions
Approximately 10% annual compounded return if the Bank exercises its redemption right four years after the issue date
For new clients, download an application form, request one by telephone or pick one up at the Altamira Investment Centre nearest you. For existing clients, contact an Altamira Advisor.
Complete the application form and return to Altamira along with a cheque.
Need help? Contact an Altamira Advisor at 1-866-351-6925 or send us an e-mail using the form below.
Important
The Altamira Global Blue Chip Note is being issued by the National Bank of Canada and is a principal-protected investment payable at maturity. The Note offers unlimited potential return over an 8-year term. National Bank will have the option to redeem the Note 4 years after issuance with a premium of 46.41% representing a compounded annual return of 10%. Therefore, a Holder of the Notes may not be able to participate fully in the increase of the Benchmark Portfolio that may have occurred up to such date. The fluctuation of the Benchmark Portfolio will directly impact the return payable. It is possible that no return will be paid at maturity. The complete information related to this issue of the Notes is included in an Information Statement which will be sent to investors prior to the closing date.
The listed 30 companies make up the initial Benchmark Portfolio, the return of which determines the return, if any, on the notes. An investment in the Notes does not constitute an ownership interest in any of these entities. None of these entities has any relationship with the National Bank of Canada in connection with the offering of Notes. They make no representation as to the soundness of purchasing the Notes. The Notes are in no way sponsored, endorsed sold or promoted by the entities. None of the entities has any obligation or liability in connection with the administration, marketing or trading of the Notes.