National Bank Securities Inc., the manager of the National Bank Mutual Funds, and Altamira Investment Services Inc., the manager of the Altamira Mutual Funds have announced that the independent committee of the funds has pre-authorized, a program of purchases, sales and continued holdings of the common shares of National Bank of Canada by the funds.

This authorization follows a decision made by the Canadian securities regulatory authorities to permit the funds to invest in the common shares of the Bank provided that an independent committee monitors these investments.

The mandate of the independent committee is to review at least once per quarter, transactions made on behalf of the funds to invest in common shares of the bank in order to be satisfied that the decisions to buy, sell and hold common shares of the bank represent the business judgment of the portfolio manager — uninfluenced by considerations other than the best interests of the funds, and that the decisions were made free from any influence of the bank.

National Bank Securities Inc. and Altamira Investment Services Inc., the managers of the Funds, and National Bank Financial Inc., an unrestricted practice broker, are wholly owned by the bank. Natcan Investment Management Inc., the portfolio manager of the Funds, is majority owned by the Bank.

Although draft National Instrument 81-107 respecting Independent Review
Committees for Investment Funds is not yet in force, National Bank Securities Inc. and Altamira Investment Services Inc. established an independent review committee in 2004.

In addition to monitoring the Funds’ transactions in the common shares of the Bank, this independent committee also acts in compliance with conditions of various orders issued from time to time by the Canadian securities regulatory authorities.