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GGOF Launches New Series of Principal Protected Deposit Notes Based on GGOF Dividend Growth Fund


Guardian Group of Funds Ltd. (GGOF) today announced the launch of Bank of Montreal GGOF C.O.R.E. Protected Deposit Notes, Series 2, 3, and 4. 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 offer a number of compelling features for investors. A dynamic asset allocation strategy provides up to 200 per cent exposure to a portfolio of dividend-paying stocks in order to enhance returns. At the same time, the Deposit Notes provide investors with the comfort of knowing that 100 per cent of their principal is protected if held to maturity by Bank of Montreal as issuer. With a maximum all-inclusive 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 most suitable 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. The distribution rate will be 100 per cent of the distribution rate of the Fund and will be interest income.

The R.O.C. Class is most suitable for investors seeking regular monthly distributions and tax deferral. The distribution rate 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 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. Jones Heward manages the Fund, which has a strong long-term track record investing in a portfolio of dividend-paying stocks. The addition of a dynamic asset allocation strategy and the availability of principal protection at maturity make it that much more appealing,” said Gavin Graham, GGOF’s Chief Investment Officer. “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 high level of tax-effective returns which includes dividend income and some capital gains from the increase in the value of securities held in the Fund’s portfolio.


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