News Releases
Guardian Group of Funds Ltd. (GGOF) today announced the launch of Bank of Montreal GGOF C.O.R.E. Protected Deposit Notes High Yield Bond R.O.C. Class, Series 2 based on the performance of GGOF High Yield Bond Fund, which is managed by Steve Kearns of Guardian Capital LP.
The second in this series of Deposit Notes offers investors the opportunity to participate in the returns of this Fund while 100 per cent of their principal is protected if held to maturity by Bank of Montreal as issuer. The Deposit Notes make potential monthly distributions in the form of Return of Capital (R.O.C.), a more tax-efficient form of distribution than interest income. Seventy-five per cent of the distribution rate of GGOF High Yield Bond Fund will take this form, with the remaining 25 per cent of the distributions notionally invested in the Fund for growth. The deposit Notes will be available until March 2, 2007.
“The strong track record of GGOF High Yield Bond Fund makes it an excellent holding for income-oriented investors,” said Gavin Graham, Chief Investment Officer, GGOF. “High yield bonds have low correlations not merely with investment grade bonds but other income generating assets such as income trusts and dividend paying stocks. Therefore, adding high yield bonds to a portfolio not only reduces volatility but also gives superior potential for price appreciation relative to investment grade bonds. It also allows for the potential to generate positive returns in almost any market environment.”
GGOF provides investors with a full product line of 33 mutual funds, diversified by asset class, geographic region and capitalization. GGOF, with $5.98 billion of mutual fund assets under management at December 31st, 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 $288.1 billion as at October 31, 2006.
The Fund Portfolio will be comprised of Units of GGOF High Yield Bond Fund. One hundred per cent of the issued shares of the Investment Manager are wholly owned by BMO Trust Company, a wholly-owned subsidiary of Bank of Montreal.
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This information contained herein is for information purposes only and does not constitute an offer to sell or a solicitation to purchase the Deposit Notes or investment advice. Investors should read the Information Statement related to the Deposit Notes dated January 4, 2007 and discuss with their advisor before making any investment decisions. Complete information relating to the Deposit Notes, including the risks of investment and disclosure on how the return is calculated, are included in the Information Statement. The information contained herein is intended to be read in conjunction with the Information Statement and is qualified in its entirety by reference to the Information Statement. The fluctuation of the value of the Fund Portfolio will directly impact the return, if any, on the Deposit Notes at maturity. The distributions from the Fund Portfolio will directly impact the principal repaid in any year prior to maturity. In addition, the return payable at maturity will be reduced by a percentage of the amounts received prior to maturity pursuant to a formula set out in the Information Statement. It is possible that no return will be paid on the Deposit Notes. Sales prior to maturity may be subject to an early trading charge. Bank of Montreal makes no assurances, representations or warranties with respect to the accuracy, reliability or completeness of the information contained herein. Furthermore, Bank of Montreal makes no recommendations concerning GGOF, mutual funds or the suitability of investing in securities generally or the Deposit Notes in particular. No person has been authorized to give information or to make any representation not contained in the Information Statement and Bank of Montreal does not accept any responsibility for any information not contained in the Information Statement.