CLOSE

Fund Series Explained

Key information about our fund series offering

About the series offered

NBI Funds are offered in one or more series of units, as described in the following paragraphs. See the 'Fund details' section of each fund to find out which series are offered. Your choice of series will have an impact on the fees you pay, and on the compensation your dealer receives. Please see Fees and Dealer compensation for more information.

 

Advisor, T and T5 Series

These series are offered under one of the following three sales charge options:

  • Initial sales charge: In this case, you pay an initial sales charge which you negotiate with your dealer or broker when you purchase securities of a Portfolio. There are no fees when you purchase securities through National Bank Investments Inc.

  • Deferred sales charge (“DSC”): In this case, you pay a redemption fee if you ask for your securities to be redeemed within 6 years of purchase. No fee is payable at the time of purchase.

  • Low sales charge: In this case, you pay a redemption fee if you ask for your securities to be redeemed within 3 years of purchase. No fee is payable at the time of purchase.

The distinction between Advisor, T and T5 Series units is based, in particular, on the distribution policy.

T and T5 Series units are intended for investors looking to obtain regular fixed monthly distributions. For more information, please see the Distribution policy of the fund concerned.

 

F, F5 and FT Series

These series are offered to investors who hold a fee-based account with a dealer who has entered into an agreement with us. These investors pay their dealer annual compensation based on the asset value of their account, instead of commissions on each trade. They are also offered to certain other groups of investors, for whom we do not incur significant distribution expenses.

These series were created for investors taking part in programs where their dealer was charging fees for services, and which did not require us to incur distribution expenses. We can reduce our management fees for these series since our distribution expenses are lower.

Your dealer is responsible for deciding whether you are eligible to subscribe for and continue to hold F, FT or F5 Series units. If you are no longer eligible to hold units of these series, we can convert them into Advisor, H, T or T5 Series units (under the initial sales charge option) of the same fund upon 30 days’ notice, or redeem them.

The distinction between F, FT and F5 Series units is based on the distribution policy. F5 Series units are intended for investors looking to obtain regular fixed monthly distributions. Please see the section under the funds concerned called Distribution policy for more information.

 

Investor Series

These securities are offered to all investors on a no-load basis, which means that you do not pay any fees when you buy, switch, convert or redeem your securities through National Bank Investments Inc., or National Bank Direct Brokerage Inc. You have to pay fees if you buy, transfer or redeem your securities through another dealer.

The distinction between these series lies in the minimum investment required.

 

H & FH Series

The hedged series provide flexibility to invest in foreign equity markets while hedging foreign currency exposure.

How does a currency hedge work?

When the portfolio manager purchases foreign securities, foreign currency forward contracts are used for hedging purposes.

What is the impact for investors when switching from a non-hedged series to a hedged series?

Reducing the transaction cost*

  • Old regime : switching to a separate fund with hedged series. The portfolio manager trades securities between the two funds, resulting in transaction costs.

  • New regime : switching to a hedged series within the same fund. The portfolio manager only buys forward contracts. This aims to reduce fund turnover and transaction cost.

Tax impact to consider

  • When switching from a non-hedged series to a hedged series, switches are done at market

  • There is a fiscal impact (selling price- Cost price)

  • When switching from a hedged series to another hedged series (or from a non-hedged series to another non-hedged series), switches are done "at cost."

  • There is no fiscal impact (cost price only)

* H and FH Series units are referred to as “hedged series” and securities of the other series are referred to as “unhedged series”.

icon-cadenas-ferme-login-14x19.png

Log in to access more information on the H & FH funds

Open padlock icon