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Transcript
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 -