The guarantee – bringing security to retirement

G5|20 Series is guaranteed to distribute annual cash flow amounting to 5% of the protected value of the investment for 20 years.
  • Investors have an extra level of comfort and security, knowing that Bank of Montreal provides a guarantee to fully protect the fund’s annual cash flows of 5% over 20 years.

  • In a worst-case scenario where losses could not have been contained preemptively by the dynamic risk management overlay and asset mix changes, assets will be moved into a protection portfolio comprised of fixed-income securities and designed to pay all guaranteed future cash flows to investors.

  • If there is a shortfall in the protection portfolio, the bank will guarantee full payment of all remaining cash flows to investors.

  • G5|20 Series, with its ongoing active management, fixed-income allocations and active hedging strategies, is designed to significantly reduce the likelihood that adverse market conditions would require a shift of assets into the Protection Portfolio. The Protection Portfolio and the guarantee will ensure that sufficient assets will always be available in the fund to make all current and future Guaranteed Distributions.