NatBank to terminate Protected Funds line

National Bank Securities has announced that it will terminate its National Bank Protected Funds, on or about June 21, 2012.

The decision affects the bank’s Protected Canadian Bond Fund, Protected Canadian Equity Fund, Protected Global Fund, Protected Balanced Growth Fund and Protected Retirement Balanced Fund.

The funds were created in 1998, but since then new products have been developed that meet the same needs, the bank says.

The funds were closed to new purchases back in 2005; now total assets under management and the number of unitholders have declined to a point where the bank feels safe in killing off the lineup.

The securities of the Protected Funds will be liquidated at the close of business at 4 p.m. on or around June 21, 2012. The securities of any unitholders remaining on the termination date will be redeemed at their net asset value.

The redemption proceeds will automatically be deposited in the Canadian Dollars Altamira High-Interest CashPerformer, a high-interest savings vehicle offered by National Bank Securities.

Some unitholders with guarantees that have not matured as at the termination date will receive a termination indemnity from National Bank Securities in addition to the net asset value of their securities. The indemnity will be paid to unitholders whose securities have declined in value since the reference date of their securities.

Staff

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