|
A Complete Line of Financial Instruments
Diversification is the key to a successful investment strategy. National Bank Financial is perfectly positioned to help you diversify your portfolio with various kinds of securities in different financial markets.
The following is a brief review of the main types of investments and services to which you have access through an account with us.
The table below shows the principal investment vehicles available through our firm. How you use and interpret this information will depend on your particular investor profile, of course. We recommend using it as a checklist when discussing your strategy with your National Bank Financial Investment Advisor.
Each vehicle is explained in greater detail below.
Retirement Savings Plans (RSPs) and Retirement Income Funds (RIFs)
Technically speaking, these are not actually investments themselves, but "envelope plans" that can hold a great variety of investments and shelter them from taxes. RSPs and RIFs are essential instruments for anyone who wants to ensure a comfortable retirement. A recognized expert in the field, National Bank Financial manages more than $12 billion in retirement savings assets and offers three types of RSPs: the Fully Guaranteed Investment RSP, a no-fee RSP that holds 100%-guaranteed fixed-income securities; the Transition RSP, which can contain both guaranteed securities and mutual funds; and the Portfolio RSP, a self-directed RSP that offers maximum flexibility and control. Simply choose the solution that best meets your financial objectives!
Locked-in Retirement Accounts (LIRAs) and Life Income Funds (LIFs)
LIRAs and LIFs are similar to RSPs and RIFs, but for individuals who have accumulated assets in an employee pension fund. Some employee funds allow you to withdraw your accumulated contributions when you leave the employer, and transfer them to a LIRA, tax free. Unlike an RSP, you cannot withdraw the funds from a LIRA; however, this can still be an advantageous solution because you retain control over your investments and do not have to be tied to a previous employer. When you retire, all assets in a LIRA must be transferred to a LIF, which, like a RIF, is a vehicle for paying out retirement income. RSPs, RIFs, LIRAs and LIFs are all available through our Investment Advisors, making National Bank Financial the perfect place to centralize your retirement planning.
Education Savings Plans (ESPs)
Like retirement savings plans (RSPs), education savings plans (ESPs) are "envelope plans" in which your investments can grow in a tax-sheltered environment. Income tax is payable only when the funds are withdrawn. The difference is that RSPs are designed for retirement income, while ESPs are used to finance the post-secondary education of individuals you designate as beneficiaries, usually your children or grandchildren. Here, too, National Bank Financial offers a number of solutions, one of which will be just right for you.
Fixed-Income Securities
This asset class encompasses a wide range of products with the rate of return and value at maturity guaranteed by the issuer. Guaranteed investment certificates (GICs) are probably the most common. However, there are also bonds, savings bonds, stripped coupons and other securities issued by government and other government-guaranteed organizations, which offer a three-fold advantage over GICs. First, they are not limited to a maximum term of 5 years. Government-issued fixed-income securities are available with terms of 30 days to 30 years, which is very useful when considering long-range investment projects, such as saving for retirement. Second, they are guaranteed unconditionally and without limit by the issuer, whereas GICs and other deposit certificates are covered by deposit insurance up to only $60,000 per issuer. Third, and perhaps most important, they can be re-sold at any time. Many of the world’s most senior corporations also issue bonds. Although corporate bonds are perceived as carrying more investment risk than government-issued or guaranteed bonds, they can also play a useful part in building your portfolio.
Stocks
Stocks are shares of publicly owned companies, bought and sold on stock exchanges; the category also includes related products. Through its offices in London, Geneva and New York, as well as via strategic alliances with a number of global partners, National Bank Financial has access to all the major financial markets around the world. In Canada, we are members of the Montreal, Toronto, Alberta and Vancouver stock exchanges, and we have a seat on the Toronto Futures Exchange and the Winnipeg Commodities Exchange. In addition to the Investment Industry Regulatory Organization (Canada), we belong to the Securities Industry Association (United States) and the Securities and Futures Authority (United Kingdom).
We have 140 investment and corporate banking professionals working out of Toronto, Montreal and Calgary, who are highly regarded by issuing corporations. This helps ensure priority access for our clients to the best new share issues.
Mutual Funds
Mutual funds represent an ideal way to diversity your holdings without having to invest huge sums of money. For as little as $500, you can purchase units of a fund that invests in a well-diversified portfolio of securities. Some funds buy mainly bonds and other debt securities (fixed-income funds), other focus primarily on stocks (equity funds), and still others are called "balanced" funds because of the mix of securities in their portfolio. A number of funds also operate internationally, which allows you to diversity your investments geographically. With more than 4,000 funds available in Canada, choosing the right one is not easy. In fact, there are almost as many mutual funds in Canada as there are companies listed on the Toronto Stock Exchange! But don’t worry: your Investment Advisor makes it his or her business to study the content and performance of mutual funds, and will help you identify those most appropriate for your portfolio.
National Bank Financial Baskets
"Baskets" are model portfolios designed by our Investment Committee, in which you can invest for a reasonable fee. With a single order to buy, you acquire a diversified selection of securities (stocks, bonds, coupons, etc.). This innovative approach offers you the best of two worlds: you do not have to purchase stocks one at a time, or have to make do with units in a mutual fund, yet you enjoy the advantages of both. You also obtain considerable savings on transaction costs, and benefit from professional management. National Bank Financial offers an assortment of baskets: the Top 15 Basket (Canadian stocks), the U.S. Basket, the Growth Basket, the Dividend Basket, the Bond Basket, the Stripped Coupon Basket and the Asset Allocation Basket. This last option is a diversified portfolio featuring a solid mix of stocks, fixed-income securities and cash securities. All our baskets are managed on a discretionary basis by our expert teams.
Made-to-Measure Financial Package
Our Made-to-Made Financial Package is available exclusively to our clients, and features specific additional advantages on National Bank services, including extra return, reduced fees, etc.
FullAccess ServiceTM
FullAccess ServiceTM offers you anytime, anywhere access to the cash balance in your account. With personalized cheques, an exclusive client card (like a bank debit card) and an optional prestige credit card, you can make deposits and withdraw money from your National Bank Financial account as if it were a regular bank account. You also earn slightly higher interest than the already excellent rate we pay normally. Certain criteria apply.
Discretionary Portfolio Management Services
Clients whose assets have reached a certain level can delegate complete management of those assets to a team of investment experts. Following an initial meeting, at which we help you identify your investment objectives, investment horizon and investor profile, the discretionary management team takes over the daily management of your portfolio, keeping you informed on a regular basis. National Bank Financial offers a number of discretionary management options. Ask your Investment Advisor for details!
Retirement Forecaster
Retirement Forecaster is an exclusive software program we have developed to help you and your Investment Advisor determine the kind of retirement income you can expect, based on your current or anticipated savings patterns and the type of investments you make. Retirement Forecaster’s "what if" capabilities enable you to make truly enlightened decisions about your future.
Insurance Services
Protecting your income and ensuring your estate’s transfer to your heirs according to your wishes should be part of your investment strategy. Your Investment Advisor and the experts at our insurance subsidiary, NBF Financial Services, work as a multidisciplinary team to provide you with professional counsel on the issues of income protection and estate planning.
Annuities
While a retirement income fund (RIF) is usually the preferred option for converting your accumulated RSP capital to an income stream, in certain situations, annuities may provide a number of benefits. We offer a complete line of annuities via NBF Financial Services.
Other Services
A variety of other services are available through National Bank Financial, all of which are designed to meet specific financial needs or strategies. These include the purchase of foreign currencies, transactions on options markets, and futures contracts. If you have any questions about a service that is not listed here, please ask your Investment Advisor.
|
