Faircourt Asset Management Inc. today announced the launch of the Faircourt Principal Protected ROC Deposit Notes, Series I, and the Faircourt Principal Protected Income Trust Deposit Notes, Series II.

Faircourt says the ROC Deposit Notes provide a tax efficient alternative to traditional principal protected notes. The ROC Deposit Note structure, for which BMO Nesbitt Burns has submitted a patent application, provides investors with potential tax deferred monthly distributions, in addition to the opportunity to maintain exposure and potential upside to the income trust sector, while protecting an investor’s capital if held to maturity.

The Income Trust Deposit Notes, Series II, is the second in Faircourt’s series of principal protected notes that provide exposure to a basket of income trusts providing a potential high monthly interest payment. Faircourt says this product is a good solution for registered accounts.

Both series of notes are being issued by Bank of Montreal, and employ a strategy of dynamic leverage to provide up to 200% exposure to an underlying portfolio of income trusts. The portfolio of income trusts was modeled by Faircourt, and is composed of growth oriented income trusts.

Faircourt says both products were designed to enhance an investors’ participation in the portfolio’s returns during positive periods while reducing volatility during lower performance periods.

On a monthly basis, investors in both Note issues will receive payments equivalent to 75% of the underlying portfolio’s distributions, including distributions paid on any leveraged exposure to the portfolio. Investors will also benefit from the reinvestment of the remaining 25% of the underlying portfolio’s distributions. This includes the amounts paid from the leveraged exposure to the underlying portfolio.

Over the term of either Note, investors will receive at least the original capital invested in the Notes if held to maturity, plus variable interest, if any, payable by Bank of Montreal.

All Faircourt principal protected notes are fully eligible for registered plans. ROC Series I and Income Trust Series II are available through most financial advisors until July 29, 2005. The issue price is $100 per note, with the minimum investment being $2,000.