Toronto - Canadian investors can benefit from two new classes of principal protected investments that generate potential returns based on the performance of two mutual funds.
The Bank of Montreal Manulife Investments Protected Deposit Notes are unique investments issued by Bank of Montreal that are linked to the performance of two mutual funds – the Elliott & Page Core Canadian Equity Fund and the Elliott & Page Dividend Fund, managed by Manulife Mutual Funds, a division of Elliott & Page Limited. The Total Return Class Deposit Notes provide full principal protection at maturity by Bank of Montreal. The R.O.C. Class Deposit Notes provides investors with 100 % principal protection over the term of the Deposit Note by Bank of Montreal.
Assets invested in the Deposit Notes are initially allocated equally between the two underlying funds. As markets fluctuate, investors may benefit from the Deposit Notes’ dynamic allocation strategy. This strategy responds to market conditions by increasing exposure to the funds when equity market performance is positive and reducing exposure to the funds and allocating assets to a notional bond portfolio when equity market performance is negative. In this way, the Deposit Notes have the potential to enhance investors’ returns and provide downside protection over time.
“With the recent announcement concerning the taxation of income trusts, many investors are unsure if they should now invest in established companies that pay dividends for income purposes, or in growing companies that have the potential to generate capital gains for additional tax efficiency,” says Bob Tillmann, Vice President, Marketing and Business Development at Manulife. “With these two classes of Deposit Notes, people have a choice. They can invest in a tax efficient manner in both types of companies in a single investment with distribution of principal, or they can invest for growth. Plus, they get the security of knowing their original principal is protected.”
The Bank of Montreal Manulife Investments Protected Notes, R.O.C. Class, provide income-oriented investors with monthly distributions in the form of repayments of principal and potential long-term capital growth. Additional features of the R.O.C. Class include:
The Bank of Montreal Manulife Investments Protected Notes, Total Return Class, Series 1 and Series 2, provide growth-oriented investors with the opportunity to have equity market exposure without placing their principal investment at risk. Additional features of the Total Return Class include:
To help investors benefit from market participation, the Bank of Montreal Manulife Investments Protected Deposit Notes, allow investors to access the professional management of the two underlying mutual funds:
The Bank of Montreal Manulife Investments Protected Deposit Notes, Total Return Class, Series 1 and 2 and R.O.C. Class, Series 1 are sold by advisors licensed by the Investment Dealers Association of Canada and licensed mutual fund dealers. Series 1 of the Total Return Class are available for purchase until March 16, 2007 and Series 2 of the Total Return Class is available for purchase until April 20, 2007. The R.O.C. Class, Series 1 is available for purchase until March 16, 2007. Details regarding this investment product, including a discussion of risk factors relating to the Deposit Notes, are contained in the Information Statements that can be obtained from your financial advisor.
The 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 Statements related to the Deposit Notes dated January 15, 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 related Information Statement. 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 Information Statement. The fluctuation of the value of the Fund Portfolio will directly impact the return, if any, on the Deposit Notes at maturity. It is possible that no return will be paid on the Deposit Notes. For the R.O.C. Class Notes, if the repayment of principal exceeds returns on the Fund Portfolio, the value of the Fund Portfolio will decline, which may adversely affect returns and the amount payable to investors at maturity. 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 Manulife Investments, 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 related Information Statement and Bank of Montreal does not accept any responsibility for any information not contained in the related Information Statement.
Manulife Investments is the brand name describing certain Canadian subsidiaries and operating divisions of Manulife Financial Corporation offering wealth management products and services. Manulife Financial is a leading Canadian-based financial services group serving millions of customers worldwide. Assets under management by Manulife Financial and its subsidiaries exceeded Cdn $381 billion as at September 30, 2006.
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For Manulife Financial - Tom Nunn, Assistant Vice President, Media Relations