Download Callable Class, Series 2: Payout Scenarios #3

Bank of Montreal CI C.A.P.I.T.A.L. Deposit Notes™
Callable Class, Series 2
Selling Period: February 28 to April 22, 2005
-1-
The information contained herein is not to be reproduced or distributed to the public or the press.
The information contained herein is for information purposes only and does not constitute an
offer to sell or a solicitation to buy the securities referred to herein and will be qualified in its
entirety by reference to the Information Statement relating to the securities referred to herein.
®CI Funds and the CI Funds design are registered trademarks of CI Mutual Funds Inc. “BMO
(M-Bar rounded symbol)” is a registered trademark of Bank of Montreal used under license.
“Nesbitt Burns” is a registered trademark of BMO Nesbitt Burns Corporation Limited used
under license.
-2-
Challenging Investment Environment
Market volatility:
Attention focused on safety
“I want to participate in the capital markets without risking my
hard-earned money”
Record-low interest rates:
Need for stable, higher-yielding alternatives to GICs
“current GIC rates may not cover inflation rates, let alone
reaching my financial goals”
-3-
Why Protected Notes?
They offer a response to the challenge
– Financial goals can still be achieved
– Your original investment is protected
Most popular alternative to straight-up funds*:
Sales have topped $7.7B in last two years
* Annual Dollars & Sense Survey, 2004
-4-
The Right Structure Is Key
Bank of Montreal CI
C.A.P.I.T.A.L. Deposit Notes
• Callable Class, Series 2
– Excellent alternative to fixed income products
(i.e. GICs)
Min $2,000
* In a secondary market provided by BMO Nesbitt Burns Inc. as outlined in the Information Statement
-5-
Selling period
ends April 22, 2005
-6-
Callable Class, Series 2 at a Glance
 Attractive potential return
• 10% compounded annually* return if called at 3 yrs.
or
• 100% participation if held to maturity
 100% Principal-protection if held to maturity after 6 years
 Performance Linked to:
CI Canadian Investment Fund
Signature High Income Fund
*Compounded total rate of return
-7-
Callable Class, Series 1 in Detail
$100 investment
Latest evolution in
the traditional Bank
issued, Equity-linked
Note market.
Callable by Bank of
Montreal at $133.10
per Note at the 3 year
anniversary.
100% of the return is
paid at Maturity if the
Notes are not called
+
Seller Commission
6-year option strategy
Cost of a 6-year
Zero-coupon bond
Initial purchase
Zero-Coupon bond grows
to $100 at maturity
Principal amount
($100)
At maturity
-8-
Callable Class, Series 2: Payout Scenarios
Benchmark Portfolio Level
#1: The Notes are Called After 3 Years
160
Called after 3 years at
$133.10 per note = 10%
annual compounded
return or 33.10% total
return
145
130
115
100
85
0
Years
2.5
3 years
5
6
7
6 years
8
For illustrative purposes only. The values of the benchmark
portfolio are not estimates or forecasts of the future
performance of the funds or the return, if any, on the notes.
-9-
Callable Class, Series 2: Payout Scenarios
#2 Notes Held to Maturity, Benchmark Portfolio Return is Negative
Benchmark Portfolio Level
160
145
130
115
100
Initial capital is
paid at maturity.
85
0
1
2
3
4
5
6
April 28, 2011
Years
For illustrative purposes only. The values of the benchmark portfolio are not
estimates or forecasts of the future performance of the funds or the return, if
any, on the Notes.
- 10 -
Callable Class, Series 2: Payout Scenarios
#3 Notes Held to Maturity, Benchmark Portfolio Return is Positive
160
Benchmark Portfolio Level
145
The Notes are
The notes pay
not called.
the full upside
on the
benchmark
130
portfolio. (less fees)
115
All gains
treated as
Income
at maturity
100
85
0
1
2
3
4
Years
For illustrative purposes only. The values of the benchmark portfolio are not
estimates or forecasts of the future performance of the funds or the return, if
any, on the notes.
5
6
April 28, 2011
- 11 -
Where do Callable Class, Series 2 Fit?
GIC
Notes
Security
Seg funds
Mutual Funds
Growth
- 12 -
Are You a Die-Hard GIC Investor?
Try This for a Guaranteed Minimum Return
GIC Portfolio:
$50,000
5 yr GIC @ 3.8%
At Maturity: $60,250
$100,000
$50,000
Linked Note @ 0%
$50,000
$110,250 (minimum return = 1.97%)
- 13 -
Thank you
- 14 -