TORONTO, Jan. 15, 2003 – Investors seeking consistent long-term returns, decreased volatility and investment diversity can now strengthen their portfolio with the NL Income Conglomerate Fund and NL Real Estate Income Fund, two new income trust funds added to National Life’s family of segregated funds.
“Like bonds, income trusts are based on businesses that produce a predictable, stable income and distribute profits to unitholders of the trust rather than reinvest them into the company,” says Brenda Moore, Director of Marketing, Retirement & Investment Products. “They also perform like equities, so that in addition to regular income payments, investors can potentially realize capital gains or losses from the market value of the income trust units.”
The NL Income Conglomerate Fund consists of income trust units in the petroleum, gas, gas pipeline, public services, and real estate sectors. The Fund also invests in common stocks and fixed income securities from corporations and governments in Canada. The NL Real Estate Income Fund is made up of income trust units of Canadian companies primarily from the real estate sector, as well as short-term fixed income securities issued and guaranteed by the federal and provincial governments. *
Professionally managed by Industrial Alliance Insurance and Financial Services Inc., NL Income Trust Funds offer an excellent opportunity for long-term income and capital appreciation. The level of income generated by these funds make them a sound investment and the perfect complement to any diversified portfolio.
“The key benefit to investing in segregated income trust funds rather than individual trusts is that investors have the added advantage of diversifying their holdings across many different trusts,” says Brenda Moore. “In the case of the NL Income Conglomerate Fund, this benefit extends across several different industries.”
* Note: The allotment of returns generated by each fund is reflected in the unit value.
The Advantages of Income Trust Investing
Diversification: Investing in a fund rather than an individual income trust allows diversification across many different trusts and, in the case of the NL Income Conglomerate Fund, several different industries.
Preferential Tax Treatment: Some types of trusts, such as royalty trust, income trusts and REITs, may be able to provide investors with higher after-tax returns.
Regular Income, Lower Volatility: By investing in a group of high quality trusts, bonds and other fixed income investments, the funds are able to take advantage of a steady stream of regular income, even during down markets.
Professional Management: The NL Real Estate Income Fund and the NL Income Conglomerate Fund are professionally managed by experts with experience in fixed-income investment.
Guaranteed Peace of Mind: The NL Income Conglomerate Fund is covered by our UltraFlex II 100% guarantee upon death or maturity. The NL Real Estate Income Fund is covered by our UltraFlex II specialty fund guarantee of 75% upon death or maturity.
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About UltraFlex II
UltraFlex II is an enhanced variable annuity product, offering Guaranteed Investment Accounts and a wide selection of best-of-class segregated funds covering all major asset classes, geographic regions, industry sectors and management styles. Additional key benefits include competitive maturity and death guarantees, creditor protection and probate protection. UltraFlex II funds are managed by top-rated advisors including some of the most respected names in the industry including AGF, Dynamic, Fidelity, State Street, and Talvest.
About National Life:
National Life has been a strong performer in the financial services industry for over a century, offering individual insurance, group life & health insurance, and retirement & investment products across Canada and in parts of the Caribbean. With a reputation for service excellence and product innovation, National Life works in partnership with top independent brokers and consultants to provide long-term wealth management solutions and health benefit plans to clients.
National Life has been rated “A” (Excellent) by A.M. Best Company, the oldest insurance rating agency in the world. First rated in 1992, we have maintained an “A” rating each year. National Life is a member of the Industrial Alliance Group of Companies, which is the sixth largest life and health insurer in Canada, based on assets.