Guardian Group of Funds Ltd. (GGOF) today announced the launch of Bank of Montreal GGOF C.O.R.E. Protected Deposit Notes, Series 5, 6, and 7.

The deposit notes are based on the performance of GGOF Dividend Growth Fund, which is managed by Michael Stanley of Jones Heward Investment Counsel Inc.

“GGOF Dividend Growth Fund is an excellent core holding for investors seeking long-term capital growth. Michael Stanley of Jones Heward manages the fund, which has a strong long-term track record investing in a portfolio of dividend-paying stocks,” says Gavin Graham, GGOF’s chief investment officer. “The addition of a dynamic asset allocation strategy and the availability of principal protection at maturity make it that much more appealing.”

GGOF Dividend Growth Fund provides investors with the opportunity to benefit from dividend-paying stocks that have historically outperformed non-dividend-paying stocks over the long term. The fund’s goal is to generate a relatively high rate of return which includes dividend income and some capital gains from the increase in the value of securities held in the fund’s portfolio.

The deposit notes feature a dynamic asset allocation strategy that provides up to 200% exposure to a portfolio of dividend-paying stocks in order to enhance returns.

The notes also provide investors with 100% principal protection if held to maturity by Bank of Montreal as issuer.

With a maximum annual fee of 2.60%, the notes are available in three classes:

  • Total Return Class is suited for investors seeking long-term capital growth. All the Fund Portfolio distributions will be notionally reinvested.
  • Yield Class is suited for investors seeking regular monthly income. Distributions will be 100% of the distribution rate of the fund and will be treated as interest income for income tax purposes.
  • R.O.C. Class is suitable for investors seeking regular monthly distributions and tax deferral. Distributions will be 100% of the distribution rate of the rund and will be R.O.C. (return of capital), which is tax deferred until maturity or when the note is sold.

Each series has a six-year term.