Press Releases

MSCI Hedge Invest, Series 1 launch

ONE Financial Introduces the Next Step in Hedge Fund Investing: Indexation Innovative Product Offers Portfolio Enhancement Through Link to MSCI® Hedge Invest Index, Plus Unique "Double Guarantee" Feature

Toronto, Ontario - November 3, 2003

ONE Financial today launched the ONE Financial MSCI Hedge Invest Index Notes™, Series 1 (the "Notes"), a guaranteed investment offering returns linked to the MSCI Hedge Invest Index, an index of 74 hedge funds representing a broad range of strategies. The Notes also offer a unique double guarantee - 100% principal protection and a 10% guaranteed minimum return at maturity.

"ONE Financial is delighted to be the first to offer Canadian investors the next step in hedge fund investing - a principal-guaranteed index-based product," said Jeffrey O'Brien, Chief Executive Officer of ONE Financial.

"Investors are increasingly appreciating the benefits of investing in indexes, including diversification, low fees and access to an entire asset class through a single investment. With the ONE Financial MSCI Hedge Invest Index Notes™ Canadian investors will now have access to an index representative of the strategies in the entire hedge fund universe through a single investment, plus the added benefits of our unique double guarantee and enhanced participation in the positive returns linked to the index."

"Like our previous products, the Notes are aimed at investors who are looking for a safer way to earn attractive returns on their investments," O'Brien explained. "Investors today want capital protection and the potential for enhanced equity-like returns and that's what our products deliver."

The Notes are issued by Société Générale (Canada) and the principal and minimum 10% return at maturity are guaranteed by its parent Société Générale, one of the world's largest banks. The Notes are available through financial advisors across Canada until December 15th for a minimum investment of only $2,000.

When the Notes mature in approximately nine years, investors will receive their principal, plus the greater of a 10% return and up to 150% enhanced participation in the positive performance (based on the adjusted average monthly net asset value) of a fund linked to the index.

Positive Performance Potential in all Market Environments

The Notes offer all of the benefits of hedge fund investing, including a general reduction in overall portfolio risk and the potential for stable, consistent growth. Because hedge fund managers have access to a wider range of portfolio management techniques than those available to traditional mutual fund managers, hedge funds generally have the potential to achieve positive returns in all stock market environments.

The Notes' performance is linked to the performance of the MSCI Hedge Invest Lyxor Tracker Fund (the "Fund"), whose investment objective is to track the performance of the MSCI Hedge Invest Index. The Fund's pro-forma historical performance between November 30th, 1993 and August 31st, 2003 was 15.5% per annum, with 25% of the volatility of the S&P 500 stock market index. Investors in the Notes will benefit from the stable and superior performance potential of the 74 established hedge fund managers, across 11 broad investment processes, which currently comprise the index.

The Notes also offer a tax-efficient structure that defers taxes on growth above the guaranteed maturity return, and they qualify as Canadian content for RRSPs, RRIFs, RESPs, and DPSPs.

Creating Wealth Through Innovation

Designed to provide conservative investors with a safe, attractive alternative to traditional stock market and GIC investments, the Notes represent another first for ONE Financial in the Canadian marketplace. Last year, the company was one of the first in Canada to offer principal-guaranteed hedge funds with a $2,000 minimum investment and, earlier this year, the company's All-Star Portfolio Notes™ were first to offer Canadians a basket of top-performing mutual funds with both a double guarantee and the opportunity for enhanced exposure. ONE Financial is now at the leading edge once again as the first to offer Canadian investors access to the next step in hedge fund investing - a hedge fund index with a double guarantee.

ONE Financial continues to build its reputation by developing innovative products that offer Canadian investors superior growth potential, while limiting their risk exposure.

Details about the risks of investing in the Notes, and complete disclosure on how the return on the Notes is calculated, are contained in the Notes' Information Statement that is available from financial advisors on request.

About ONE Financial

ONE Financial is a dynamic, specialized investment products firm that was formed in 2001 to meet the growing demand from individuals and their advisors for more innovative investment solutions. With roots in private client advisory channels, the company's vision is to provide financial advisors and their clients with truly superior and unique investment strategies that were previously unavailable in the Canadian marketplace. The company has raised approximately $100 million since the launch of its first product in 2002.

Important Information

The MSCI Indexes are the exclusive property of Morgan Stanley Capital International Inc. ("MSCI"). MSCI and the MSCI index names are servicemarks of MSCI or its affiliates and have been licensed for use for certain purposes by Société Générale ("SG"). The financial securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such financial securities. The Information Statement contains a more detailed description of the limited relationship MSCI has with SG and any related financial securities. No purchaser, seller or holder of this product, or any other person or entity, should use or refer to any MSCI trade name, trademark or servicemark to sponsor, endorse, market or promote this product without first contacting MSCI to determine whether MSCI's permission is required. Under no circumstances may any person or entity claim any affiliation with MSCI without the prior written permission of MSCI. This document should be read in conjunction with the Information Statement. In the event of any inconsistency between this document and the Information Statement, the Information Statement shall govern.