CI Mutual Funds Inc. and Skylon Advisors Inc. today announced the launch of a new series of Bank of Montreal CI C.A.P.I.T.A.L. Deposit Notes, Callable Class.

The firms say they are responding to strong investor demand. “With the first Callable Class notes posting aggregate sales of nearly $200 million and reaching their cap well in advance of the scheduled closing date, we are making Series 2 available right away because investors clearly want the protection and growth potential offered by CI C.A.P.I.T.A.L. Deposit Notes,” said David McBain, president and CEO of Skylon Advisors, which developed and is marketing the notes in co-operation with CI.

The Series 2 notes are issued by Bank of Montreal and provide 100% principal protection at maturity along with a total return over a six-year period linked to the performance of CI Canadian Investment Fund and Signature High Income Fund. Each fund was named the best in its category at the 2004 Canadian Investment Awards in December.

“Investors in the notes get exposure to the returns of two great funds while the principal protection feature allows them to participate in the markets without the worry of losing capital,” said Mr. McBain.

CI Canadian Investment Fund is managed by Kim Shannon. Signature High Income Fund, managed by Ben Cheng and Matt Shandro, invests in a diverse portfolio of high-yielding securities ranging from income trusts to corporate bonds.

Bank of Montreal can redeem the notes after three years at a price that will give investors the equivalent of an annual compounded rate of return of 10%. If the notes are not redeemed, they will mature on or about April 28, 2011, and investors will be repaid their principal and interest, if any, based on the value of the portfolio of CI funds. There are no restrictions over the full life of the notes on their growth potential, such as averaging features or caps on returns.

The notes are fully eligible for registered plans. Series 2 is available through most financial advisors and is on sale until April 22. The issue price is $100 per note, with the minimum investment being $2,000.

Information about the notes is also available at www.cifunds.com/capitalnotes.