BMO Term Investments today announced that it is expanding its family of BMO Market Linked Term Investments by introducing the BMO Dividend Fund Linked GIC.

BMO says the new GIC will allow conservative investors to participate in returns that are directly linked to the performance of BMO Dividend Fund.

The GIC is guaranteed to repay principal at maturity and allows investors to participate in the total returns of the underlying fund.

“The new BMO Dividend Fund Linked GIC is an ideal way for conservative investors to gain exposure to one of the best long-term dividend funds in the mutual fund industry, without risk of capital loss,” said Julie Sheen, vp, BMO Term Investments.

Managed by Michael Stanley, BMO Dividend Fund has consistently provided solid year-over-year returns: 15.28% over one year, 11.84% over three, 14.16 over five and 15.60% over 10 years as of December 31, 2004.

The GIC is available in registered and non-registered form. However, because the return earned on market linked GICs is treated as interest income, the new GIC lends itself particularly well to being held in a registered savings plan.