Changes to the Fixed Income component of the Meritage Portfolios


January 07, 2014

National Bank Securities Inc. (“NBS”) announces the conclusion of its periodical review of Meritage Portfolios. The volatility of returns of the Fixed Income asset class is expected to rise in the coming years, which will pose a challenge to balanced portfolios held by Canadian investors. In January 2014, the allocation to the underlying fixed income Funds held by Meritage Portfolios will change to improve their potential to generate income and growth while preserving capital in difficult market conditions.

By reducing the duration of the fixed income allocation while improving its global diversification, Meritage Portfolios will continue to provide investors with comprehensive line-up of portfolio solutions with proven investment performance. Meritage Portfolios take advantage of investment opportunities in Canadian and global bond markets by investing in mutual funds managed by third parties, namely TD Asset Management, Beutel Goodman Investment Counsel, RBC Global Asset Management and Manulife Asset Management.

Meritage Portfolios invest in third-party funds that are selected using a quantitative and qualitative approach known as the Select Rating System®. In addition to specific criteria against which the underlying funds are evaluated, the funds selected for Meritage Portfolios are chosen based on a complete complementarity analysis which aims to optimize the risk/return ratio of the investment solution. The selection and monitoring processes of Meritage Portfolios are independently reviewed by Aon Hewitt, an investment management consulting firm.

Meritage Portfolios are designed to suit the needs of investors with varying risk tolerance levels and investment horizons. Meritage Portfolios offer a complete investment solution with optimal diversification across asset classes, regions, market capitalizations, and management styles, all integrated into a “fund of funds” structure. With assets exceeding $2.7 billion, Meritage Portfolios are now amongst the most sought-after investment solutions.


Transition report - for investment advisors only


About Meritage Portfolios®

The Meritage Portfolios (the “Portfolios”) are managed by National Bank Securities Inc., a wholly-owned subsidiary of National Bank of Canada. Commissions, trailing commissions, management fees and expenses all may be associated with investments in the Portfolios. Please read the prospectus of the Portfolios before investing. The Portfolios’ securities are not insured by the Canada Deposit Insurance Corporation or by any other government deposit insurer. The Portfolios are not guaranteed, their values change frequently and past performance may not be repeated. “Meritage Portfolios®” and the Meritage Portfolios® logo are trademarks of National Bank of Canada and are used by National Bank Securities Inc.

The Select Rating System® is a registered trade-mark of National Bank of Canada, used under license by National Bank Securities Inc.


About National Bank of Canada

With $187 billion in assets as at July 31, 2013, National Bank of Canada  ( together with its subsidiaries, forms one of Canada’s leading integrated financial groups, and was named among the 20 strongest banks in the world by Bloomberg Markets magazine. The Bank has close to 20,000 employees and is widely recognized as a top employer. Its securities are listed on the Toronto Stock Exchange (TSX: NA).