Sectoral Asset Management, a Montreal-based investment advisor, and Citibank Canada announced the launch of S.A.M. Global Healthcare Biotech Notes Series 1, S.A.M.’s first mainstream product.

The company said it is the only Canadian capital-protected structured notes product that offers exclusive exposure to the global healthcare and biotech sector.

The company said S.A.M. Notes Series 1 is a 10-year structured product that targets consistent, long-term growth and offers a competitive fee structure as well as an innovative profit lock-in feature that guarantees the holder 80% of the highest net asset value of the underlying portfolio achieved at the end of a calendar quarter. The notes holder is also guaranteed to recover capital at maturity. As of June 1, 2005, a secondary market will offer liquidity to holders. S.A.M.’s investment team will manage the portfolio linked to the notes.

“In terms of investment, we focus on the fundamentals, in this case the demographics of an aging society which will increasingly rely on drugs,” said CEO of S.A.M. Jérôme Pfund in a news release.”We are looking at a US$430 billion worldwide market that is expected to grow in high single digits, while one of its segments, biotech products, has a projected annual growth rate of more than 20% over the next decade.”

The Notes are considered 100% Canadian content and, as such, are RRSP-eligible. They are issued by Citibank Canada and guaranteed by Citibank N.A. The Notes can be purchased for $100 per unit (minimum purchase of 50 units) and the subscription period runs from April 1 to May 14.