News Releases
Guardian Group of Funds Ltd. (GGOF) today announced the launch of Bank of Montreal GGOF C.O.R.E. Protected Deposit Notes, Series 5, 6, and 7. The Deposit Notes are based on the performance of GGOF Dividend Growth Fund, which is managed by Michael Stanley of Jones Heward Investment Counsel Inc.
The Deposit Notes feature a dynamic asset allocation strategy that provides up to 200 per cent exposure to a portfolio of dividend-paying stocks in order to enhance returns. The Deposit Notes also provide investors with 100 per cent principal protection if held to maturity by Bank of Montreal as issuer. With a maximum annual fee of 2.60 per cent, the Deposit Notes are competitively priced and are available in three classes for greater choice in meeting individual investor needs:
Total Return Class is suited for investors seeking long-term capital growth. All the Fund Portfolio distributions will be notionally reinvested.
Yield Class is ideal for investors seeking regular monthly income. Distributions will be 100 per cent of the Distribution Rate of the Fund and will be treated as interest income for income tax purposes.
R.O.C. Class is suitable for investors seeking regular monthly distributions and tax deferral. Distributions will be 100 per cent of the Distribution Rate of the Fund and will be R.O.C. (Return of Capital), which is tax deferred until maturity or when the Deposit Note is sold.
Each series has a 6-year term.
“GGOF Dividend Growth Fund is an excellent core holding for investors seeking long-term capital growth. Michael Stanley of Jones Heward manages the Fund, which has a strong long-term track record investing in a portfolio of dividend-paying stocks,” said Gavin Graham, GGOF's Chief Investment Officer. “The addition of a dynamic asset allocation strategy and the availability of principal protection at maturity make it that much more appealing. With their very competitive pricing and availability in three different classes, the Deposit Notes have been structured to be of interest to as wide an investor audience as possible.”
GGOF Dividend Growth Fund
GGOF Dividend Growth Fund provides investors with the opportunity to benefit from dividend-paying stocks that have historically outperformed non-dividend-paying stocks over the long term. Dividend-paying stocks have historically provided the growth needed to generate long-term returns that outpace inflation and taxes. The Fund's goal is to generate a relatively high rate of return which includes dividend income and some capital gains from the increase in the value of securities held in the Fund's portfolio.
Guardian Group of Funds
GGOF provides investors with a full product line of 35 mutual funds, diversified by asset class, geographic region and capitalization. GGOF, with $6.1 billion of mutual fund assets under management at October 31, 2007, offers its funds exclusively through financial intermediaries.
GGOF is a member of the BMO Financial Group and part of the organization's Private Client Group. The 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 $277 billion as at July 31, 2007.
The above is for information purposes only and is not, and under no circumstances shall be construed as, an offering of the Deposit Notes or as investment advice. The information contained herein is intended to be read in conjunction with the related Information Statement and is qualified in its entirety by reference to the applicable Information Statement.
The fluctuations in the value of, and the return on, the Fund Portfolio will directly impact the distributions and return, if any, on the Deposit Notes. And in the case of R.O.C. class and Yield Class, the Distribution on the Fund Portfolios will impact the distribution of the Deposit Notes. It is possible that no return will be paid on the Deposit Notes. The return, if any, on the Deposit Notes will be reduced by applicable fees and sales prior to maturity may be subject to an early trading charge as set out in the applicable Information Statement. Investors should read the Information Statement carefully before investing and discuss the suitability of the Deposit Notes with an Investment Advisor before making any investment decisions.
Bank of Montreal makes no assurances, representations or warranties with respect to the accuracy, reliability or completeness of information contained herein. Bank of Montreal makes no recommendations concerning the GGOF Dividend Growth Fund, mutual funds or the suitability of investing in securities generally or Deposit Notes in particular. In connection with the issue and sale of Deposit Notes by Bank of Montreal, no person has been authorized to give any information or to make any representation not contained in the Information Statements relating to the Deposit Notes and Bank of Montreal do not accept any responsibility for any information not contained in the Information Statements.
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