Guardian Group of Funds Ltd. is launching the Bank of Montreal GGOF C.O.R.E. Protected Deposit Notes High Yield Bond R.O.C. Class, Series 3 and 4, which are based on the performance of GGOF High Yield Bond Fund.

Investors in the deposit notes will obtain 100% exposure to the potential distributions and capital appreciation of GGOF High Yield Bond Fund, which is managed by Steve Kearns of Guardian Capital LP. Kearns has managed the GGOF High Yield Bond Fund, the second largest active Canadian high yield bond fund, since its inception in January 1999.

These new deposit notes offer investors the opportunity to participate in the returns of this fund while 100% of their principal is protected if held to maturity by Bank of Montreal as issuer.

The deposit notes make potential monthly distributions in the form of return of capital, a more tax-efficient form of distribution than interest income. Seventy-five per cent of the distribution rate of GGOF High Yield Bond Fund will take this form, with the remaining 25% of the distributions notionally invested in the fund for growth. Series 3 of the deposit notes will be available until May 11 and series 4 will be available until June 29.