GGOF Expands Line-up of T Class Mutual Funds to Provide Investors with More Tax-Efficient Monthly Cash Flow Options



    With 20 GGOF T-Class Funds to choose from, it is now possible to invest
    in a variety of asset classes that generate cash flow

    TORONTO, Jan. 28 /CNW/ - Guardian Group of Funds (GGOF) today announced
the launch of additional T Class mutual funds to provide investors with more
options for regular, predictable cash flow with greater tax efficiency. In
addition to expanding the number of funds that offer T Class, GGOF is offering
investors a choice between 5 per cent and 8 per cent annual cash flow.
    "Retirees and boomers approaching retirement are looking for investments
that provide capital growth with capital preservation as well as some income
generation as they prepare to fund up to thirty years of retirement," said
Gavin Graham, Chief Investment Officer, GGOF. "Yet, it can be difficult to
find investment options that meet all of these needs. Too much emphasis on
capital preservation can result in a loss of purchasing power to inflation;
too great an emphasis on capital growth can create an uncomfortable degree of
volatility, potentially putting capital at risk and providing insufficient
income for every day needs.
    "Investors are also challenged in the current low interest rate
environment - income producing investments like traditional GICs and
government savings bonds offer low yields and even lower after-tax income,
with little potential for the growth of capital required to meet income needs
in the future," added Graham.
    T Class mutual funds offer investors an alternative to traditional
income-generating investments, providing regular, predictable cash flow,
regardless of the income generated by the underlying investments. They
generate cash flow each month by distributing, rather than selling, a
predetermined percentage of the value of the investment: since this cash flow
is not dependent on the income generated by the underlying fund, T Class funds
enable investors to draw regular cash flow, while potentially deferring
taxation.
    The unique structure of T Class units provides investors with various tax
advantages. Firstly, it allows the investor to defer taxation, effectively
controlling when to incur the tax liability. Secondly, once a gain is
realized, it is taxed at the preferential capital gains rate. T Class units
also offer a more productive use of capital - because taxation is deferred
until the investor's time of choosing, an investor needs to withdraw less
principal to produce the same after-tax monthly cash flow.
    Although a relatively new investment option, T Class funds have been
popular with Canadian investors. According to Investor Economics, assets in T
Class funds doubled to $5.5 billion in 2007.
    "With twenty investment options, GGOF's T Class Funds provide investors
with complete investment flexibility," said Graham. "It is now possible to
invest in a wide variety of asset classes, an essential part of a diversified
portfolio, while still generating much needed cash flow."

    GGOF offers the following funds in T Class units:

    GGOF Income Funds

    GGOF Monthly High Income Fund
    GGOF Monthly High Income Fund II

    GGOF Equity Funds

    GGOF Canadian Large Cap Equity
    GGOF Dividend Growth
    GGOF Enterprise
    GGOF European Equity
    GGOF Global Absolute Return
    GGOF Global Dividend Growth
    GGOF Global Equity
    GGOF Global Real Estate

    GGOF Diversified Funds

    GGOF Canadian Diversified Monthly Income
    GGOF Canadian Balanced
    GGOF Global Diversified
    GGOF U.S. Diversified
    GGOF Small Cap Growth and Income

    GGOF Solutions

    GGOF Income Solution
    GGOF Conservative Solution
    GGOF Balanced Solution
    GGOF Growth Solution
    GGOF Aggressive Growth Solution

    GGOF provides investors with a full product line of 35 mutual funds,
diversified by asset class, geographic region and capitalization. GGOF, with
$5.82 billion of mutual fund assets under management at December 31, 2007,
offers its funds exclusively through financial intermediaries.

    GGOF is a member of BMO Financial Group and part of the organization's
Private Client Group. The Private Client Group provides integrated wealth
management services in Canada and the United States and had total assets under
management and administration and term investments of $275 billion as at
October 31, 2007.





For further information:

For further information: Gavin Graham, GGOF, (416) 350-3151; JoAnne
Hayes, BMO Financial Group, (416) 867-3996; Internet: www.ggof.com

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