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AGF Funds Inc. today unveiled Bank of Montreal AGF Elements(TM) RetirePlus(TM) Notes Series 1 ("Deposit Notes"), an investment solution that will benefit Canadians preparing for or already enjoying their retirement.
The Deposit Notes, issued by the Bank of Montreal, offers investors reliable cash flow with adjustments for inflation. Investors will also benefit from potential tax advantages, unlimited growth potential based on the returns from the AGF Elements Portfolios and automatic reallocation to a progressively more conservative portfolio.
"Working with Bank of Montreal, we are pleased to provide these Deposit Notes to investors as another avenue to access our popular AGF Elements Portfolios," said Randy G. Ambrosie, President of AGF Funds Inc. "As Canadians face longer retirements, they will continue to demand investment solutions that will provide them with guaranteed cash flow as well as protection against inflation."
<< Two different Deposit Notes are available to investors: - 15-Year Note - Beginning immediately, monthly distributions at an annual rate of 6.6% of the initial principal, adjusted to inflation*. The Deposit Notes will mature on October 6, 2023. - 20-Year Note - Beginning in year six, monthly distributions at an annual rate of 6.6 % based on the initial principal or the value after the 5-year growth period, whichever is greater, adjusted to inflation*. The Deposit Notes will mature on October 6, 2028. >>
With a high initial equity weighting (100% equity for the 20-Year Note and 80% equity, 20% fixed income for the 15-Year Note), AGF Elements RetirePlus Notes offer investors greater growth potential. Every five years, the allocation shifts to a more conservative AGF Elements portfolio to help reduce risk.
<< AGF Elements RetirePlus Notes invest in the underlying AGF Elements Portfolios: ------------------------------------------------------------------------- Year Year Year Year 1-5 6-10 11-15 16-20 ------------------------------------------------------------------------- 15-Year AGF Elements AGF Elements AGF Elements Term Growth Balanced Conservative Portfolio Portfolio Portfolio ------------------------------------------------------------------------- 20-Year AGF Elements AGF Elements AGF Elements AGF Elements Term Global Growth Balanced Conservative Portfolio Portfolio Portfolio Portfolio ------------------------------------------------------------------------- >>
"Advisors and investors have responded favourably to our AGF Elements Portfolios since we launched this managed asset program in 2005. It was only natural to provide Deposit Notes that invest in Elements so that advisors would have even more options to help their clients meet their retirement income needs while tapping into this attractive program," added Ambrosie.
The terms of the offerings are set out in the Information Statements dated August 18, 2008 relating to the Deposit Notes.
The Deposit Notes are available until October 3, 2008.
<< * Up to $99 per deposit note; inflation adjustment ceases on the occurrence of an extraordinary event or capital preservation event. >>
About AGF Management Limited
AGF Management Limited is one of Canada's premier investment management companies with offices across Canada and subsidiaries around the world. AGF's products and services include a diversified family of more than 50 mutual funds, the evolutionary AGF Elements portfolios, the Harmony asset management program, AGF Asset Management Group services for institutional and high-net-worth clients, as well as AGF Trust GICs, loans and mortgages. With approximately $48 billion in total assets under management as of July 31, 2008, AGF serves more than one million investors. AGF trades on the Toronto Stock Exchange under the symbol "AGF.B".
Please note: AGF Elements(TM) RetirePlus(TM) Notes are not suitable for investors requiring a guaranteed or positive return on their investment, investors who are looking for an income stream over and above a return of capital, or investors with a short-term time horizon.
Investments in the AGF Elements RetirePlus Notes are not mutual fund investments. They are investments in principal protected deposit notes issued by Bank of Montreal and constitute direct, unconditional obligations of Bank of Montreal. Variable return, if any, at maturity is based on the Fund Portfolio Value (and notional fixed annuity) less deposit balance. Details regarding risk factors are contained in the Information Statements dated August 18, 2008, which can be obtained through your financial advisor. These investments do not represent deposits insured under the Canada Deposit Insurance Corporation Act.
The above is for information purposes only and is not, and under no circumstances shall be construed as, an offer to sell or a solicitation to by the Deposit Notes or as investment advice. The Fund Portfolio is comprised of notional investments only, meaning that investors will not have any direct or indirect ownership interest in any of the underlying AGF Elements Portfolios. An investment in AGF Elements RetirePlus Notes is subject to certain risks, which investors should consider. Investors should read the related Information Statement carefully before investing and discuss their suitability with their investment advisor.
The Deposit Notes may not be suitable for all types of investors; the prices and value of the Deposit Notes may fluctuate and/or be adversely affected by a number of factors. The fluctuation of the value of the Fund Portfolio will directly impact the return, if any, on the Deposit Notes at maturity. It is possible that no return will be paid on the Deposit Notes. Sales prior to maturity may be subject to an early sales charge.
Bank of Montreal makes no assurances, representations or warranties with respect to accuracy, reliability or completeness of information contained herein. Furthermore, Bank of Montreal makes no recommendation concerning AGF Funds Inc., the AGF Elements Portfolios or the suitability of investing in securities generally or the Deposit Notes in particular. No person has been authorized to give any information or to make any representation not contained in the Information Statement relating to the Deposit Notes and Bank of Montreal does not accept responsibility for any information not contained in the Information Statement.
"BMO Capital Markets" is a registered trademark of Bank of Montreal used under license. "RetirePlus" is a trademark of BMO Nesbitt Burns Corporation Limited used under license.
SOURCE: AGF
contact AGF Corporate Communications: Lucy Becker, Vice-President, (416) 865-4284, Lucy.Becker@agf.com; Karen Danylak, Director, (416) 865-4308, Karen.Danylak@agf.com; Karen Archer, Media Relations Manager, (416) 865-4295, Karen.Archer@agf.com
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