News Releases

Guardian Group of Funds (GGOF) today announced the reopening of its popular GGOF Monthly Dividend Fund, effective with GGOF's annual prospectus renewal on or about July 5, 2006. 

GGOF Monthly Dividend Fund was launched in November 1985, making it one of the first monthly-pay income funds of its kind in Canada.  The Fund has generated an annualized return of 7.5 per cent since inception (to May 31, 2006) with low volatility. 

“The reopening of GGOF Monthly Dividend Fund is great news for advisors seeking a source of monthly dividend income for their clients,” said Gavin Graham, Chief Investment Officer, Guardian Group of Funds. “Over the past few years, funds such as this have accounted for the bulk of new fund flows.  GGOF Monthly Dividend Fund is well regarded because of its strong returns – it was one of the original monthly-pay income funds and still enjoys preferred status within the grouping.”

GGOF Monthly Dividend Fund was closed to new investors in March 2004 as a result of a diminishing supply of exchangeable or retractable preferred shares and floating rate preferred shares, which by mandate, comprise at least 50 per cent of the fund.  However, recent developments in the capital markets have seen the creation of synthetic retractable preferred shares with lower volatility than traditional perpetual preferred shares.  This evolution provides more portfolio flexibility, enabling GGOF to reopen the Fund.

GGOF Monthly Dividend Fund distributes $0.035 per month ($0.42 annually).   Distributions are tax-advantaged, as the entire income stream is eligible for the Dividend Tax Credit.   The Fund will have $400 million in assets when it reopens, of which at least 50 per cent will be in preferred shares.  The Fund currently maintains at least 50 per cent of its assets in exchangeable or retractable preferred shares or floating rate preferred shares. The remainder of the Fund is invested in income trusts, high-yielding common shares and fixed income securities.

GGOF also announced today the reopening of its popular GGOF Monthly High Income Fund to new investors, also effective with GGOF's prospectus renewal on or about July 5, 2006.   GGOF capped the Fund in October 2002, at which time it opened GGOF Monthly High Income Fund II.  The original fund was capped before it became too large to permit full investment flexibility.

GGOF provides investors with a full product line of 27 mutual funds, diversified by asset class, geographic region and investment style. GGOF, with $5.9 billion of mutual fund assets under management at May 31, 2006, offers its funds exclusively through financial intermediaries.

GGOF is a member of BMO Financial Group and part of the organization's Private Client Group. BMO's Private Client Group provides integrated wealth management services in Canada and the United States and had total assets under management and administration and term investments of $272.8 billion as at April 30, 2006.

Sales commissions, service fees, management fees and expenses all may be associated with mutual fund investments. Historical performance: 1 year: 9.0%; 3 year: 11.0%; 5 year: 10.2%; 10 year: 7.6%. Please read the prospectus before investing. The indicated rates of return include changes in unit value and assume reinvestment of all distributions, and do not take into account sales, redemption or optional charges or income taxes payable by any security holders, which would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

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