News Releases

BMO Term Investments today announced that it is expanding its family of BMO Market Linked Term Investments by introducing the BMO Dividend Fund Linked GIC. As the first bank in Canada to link a GIC to a professionally managed dividend fund, BMO's Dividend Fund Linked GIC will allow conservative investors to participate in returns that are directly linked to the performance of the award-winning BMO Dividend Fund.

"By investing in a market linked GIC, such as a fund linked GIC, consumers can enjoy the safety of guaranteed principal with the potential to earn higher returns than a traditional GIC," said Julie Sheen, Vice President, BMO Term Investments. "The new BMO Dividend Fund Linked GIC is an ideal way for conservative investors to gain exposure to one of the best long-term dividend funds in the mutual fund industry, without risk of capital loss."

Professionally managed by seasoned fund manager, Michael Stanley, the BMO Dividend Fund has consistently provided solid year-over-year returns: 15.28 per cent over one year, 11.84 per cent over three, 14.16 over five and 15.60 per cent over 10 years as of December 31, 2004.

The BMO Dividend Fund Linked GIC is guaranteed to repay principal at maturity and allows investors to participate (at a set participation rate) in the "total returns" of the underlying fund. The "total return" calculation benefits clients by allowing them to notionally participate in the capital appreciation and reinvested dividends, if any, from the BMO Dividend Fund.

The BMO Dividend Fund Linked GIC is available in registered and non-registered form. However, as the return earned on market linked GICs is treated as interest income, the BMO Dividend Fund Linked GIC lends itself particularly well to being held in a registered savings plan this RRSP season.

This innovative product represents the combined expertise of several specialists within BMO Financial Group, including BMO Investments Inc. and BMO Nesbitt Burns' Structured Products Group. BMO Dividend Fund Linked GICs are exclusively available from BMO Bank of Montreal, BMO Harris Private Banking, BMO InvestorLine and BMO Nesbitt Burns.

BMO Term Investments is part of BMO Financial Group's Private Client Group. The Private Client Group provides integrated wealth management services in Canada and the United States and has total assets under management and administration and term investments of $271 billion at October 31, 2004.

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