Guardian Group of Funds Ltd. announced on Wednesday the launch of Bank of Montreal GGOF C.O.R.E. Protected Deposit Notes based on the performance of a fund portfolio, which is intended to replicate the total return of GGOF Dividend Growth Fund.

Investors in the deposit notes can participate in up to 200% of this performance of this portfolio, which will be managed by Jones Heward Investment Counsel Inc.

The Deposit Notes offer a number of compelling features. They use a dynamic asset allocation strategy that can provide up to 200%t exposure to dividend-paying stocks in order to enhance returns. At the same time, the deposit notes provide investors with the comfort of knowing that 100% of their principal is protected if held to maturity by Bank of Montreal as issuer. With a maximum all-inclusive annual fee of 2.60%, the deposit notes are very competitively priced and are available in three classes for
greater choice in meeting individual investor needs:

– The Total Return Class, with its six-year term, is most suitable for investors seeking long-term capital growth. All the fund portfolio distributions will be notionally reinvested;
– The Yield Class, with a 7.5-year term, is most suitable for investors seeking regular monthly income. It will provide potential distributions beginning in June 2007. The distribution rate, which will be reset every six months, equals 50% of the portfolio’s return, if any, during the preceding six-month period; and
– The R.O.C. Class, with its 7.5-year term, is most suitable for investors seeking regular monthly distributions and tax deferral. It will provide potential for regular monthly distributions in the form of return of capital beginning in June 2007 using the same distribution rate as the Yield Class.

“GGOF Dividend Growth Fund, with its strong long-term track record, is an excellent core holding for investors seeking long-term capital growth. The portfolio of dividend-paying stocks whose performance intends to replicate the total return of GGOF Dividend Growth Fund will also be managed with a similar mandate by Jones Heward. The addition of a dynamic asset allocation strategy and the availability of principal protection at maturity only serve to make it that much more appealing,” said Gavin Graham, GGOF’s chief investment officer. “With their very competitive pricing and availability in three different classes, the deposit notes have been structured to appeal to as wide an investor audience as possible.”