BMO Expands Line-up of GICs for Investors Looking for Exposure to Equity Markets and Protection from Volatility

BMO responds to investors who want shorter-term investments with guaranteed rates, potential for higher returns, regular income and global exposure

BMO Bank of Montreal today announced it has expanded its line-up of BMO Progressive GICs in response to growing investor demand for options that will protect and grow their investments. These principal protected, equity-linked Guaranteed Investment Certificates provide investors with the potential for higher market-linked returns, while guaranteeing their original investment.

“Inherent in these investment options are three key features that every type of investor needs: risk management, safety of principal and diversification,” said Julie Sheen, Vice President, BMO Term Investments. “BMO Progressive GICs are ideally suited to satisfy the needs of a variety of investor profiles: for conservative investors who want to diversify their portfolio by gaining access to the equity market without risk to their initial investment; for growth-oriented investors who want to maintain exposure to equity markets but want to reduce risk; and for investors looking to supplement their income.

“We received quite a bit of interest in the first series of BMO Progressive GICs from a broad range of investors, including those who were looking for a way to save for something specific, like a car, home renovations, a trip or their child’s education,” noted Sheen.

BMO Progressive GICs are also well suited for boomers who are approaching retirement and are focused on preserving the money they have invested over the years. Both retirees and pre-retirees are increasingly reluctant to put their investment principal at risk since they will have less time and fewer resources to recoup losses from market volatility.

“We’re taking the best of a GIC, which offers 100 per cent investment protection, and we’re adding in a safe way for investors to potentially grow their investments through stocks, stock indices or mutual funds,” said Sheen.

“While some investors are hesitant to invest in the equity markets, others put most of their savings into equities. The first group could be missing out on the earnings potential of the markets, while the other group of investors may be taking on too much risk given their particular circumstances. BMO Progressive GICs provide all investors with a risk-free way to grow their money.”


Latest series of BMO Progressive GICs
BMO Progressive GICs are sold in a series. Each month, a new series will be available and at the end of each month, the sales period for the current series will close. All GICs within the series have a low minimum investment of $1,000, no fees and most are CDIC insured up to applicable limits.

“We are continuing to enhance our Progressive GICs based on the positive response we received to the first series launched in December. Investors told us that they are looking for shorter-term investments with guaranteed rates, as well as the potential for higher returns, regular income and some global exposure. Our new GICs address all of these elements,” said Sheen.

BMO Select GIC - For the combined benefit of principal protection plus the opportunity to participate in the growth of a select, high-performing sector of the market. A 3.5 year term investment that provides 100 per cent participation in the growth of the S&P/TSX Banks Index up to 25 per cent, with 100 per cent principal protection.

BMO Income Enriched GIC - For a guaranteed rate of return plus the opportunity for significantly enhanced income through participation in the potential growth of a diversified portfolio of companies. A 3 year term investment that provides income diversification, the potential for significantly enhanced income of up to 19.5 per cent, depending on the performance of a diversified portfolio of global companies, and includes a 2.5 per cent guaranteed rate.

BMO Growth GIC - For the combined power of principal protection and participation in the potential growth of a select portfolio of equities. A 4 year term investment that provides a diversified solution, maximizing the potential of the market. This investment offers 100 per cent participation in the positive performance of a select portfolio of investments, up to 35 per cent, with 100 per cent principal protection.

“Investment professionals at BMO Bank of Montreal will work with investors to understand their particular circumstances to determine which investments will work best for them,” added Sheen.