Performance linked to flagship Saxon Stock Fund
TORONTO, Sept. 6 /CNW/ - Saxon Financial announced the launch of
principal-protected deposit notes linked to Saxon Stock Fund, a 1st quartile
performer for 10-, 15- and 20-year periods in the Canadian Equity Mutual Fund
category.(*) BMO Saxon Canadian Equity Protected Deposit Notes, Total Return
Class, offer up to 200% exposure to returns from Saxon Stock Fund and 100%
principal protection at maturity.
Saxon Stock Fund has delivered superior risk-adjusted returns and
excellent downside protection for over 20 years.(xx) The Fund's strong
performance record maximizes the benefits of the deposit note structure which
can use leverage to increase the exposure to the underlying Fund Portfolio.
The terms of the deposit notes are 7 years, with multiple series available for
2007 and 2008.
Saxon's Canadian equity deposit notes build on the success of earlier
offerings linked to the performance of the award-winning Saxon Balanced Fund.
Saxon also announced the launch of subsequent series of BMO Saxon Balanced
Protected Deposit Notes, with closing dates extending until April, 2008. The
Balanced deposit notes have a 5.5 year term-to-maturity, provide 100%
principal protection at maturity and up to 200% exposure to returns from a
Fund Portfolio intended to replicate Saxon Balanced Fund.
About Saxon Financial Inc. www.saxonfinancial.ca
Saxon Financial Inc. is one of Canada's most respected value-style
investment management firms. The Company has three principal lines of
business: Saxon Funds Management Limited, which manages a family of
high-performing, low-fee mutual funds; Howson Tattersall Investment Counsel
Limited, an institutional asset investment management business; and Howson
Tattersall Private Asset Management Inc., which provides private client asset
management and counselling services. Saxon Financial is listed on the TSX
under the symbol "SFI".
About Saxon Funds Management Limited www.saxonfunds.com
Established in 1985, Saxon Funds Management Limited offers a highly
respected suite of nine mutual funds: Saxon Money Market Fund, Saxon Bond
Fund, Saxon Balanced Fund, Saxon High Income Fund, Saxon Stock Fund, Saxon
Small Cap, Saxon U.S. Equity Fund, Saxon International Equity Fund and Saxon
World Growth. Managed by Howson Tattersall Investment Counsel Ltd., one of
Canada's premier value-oriented investment firms, Saxon Mutual Funds have more
than $2.4 billion in assets as of July 31, 2007. Its parent company, Saxon
Financial Inc., trades on the TSX under the symbol "SFI".
(*)Source: Morningstar PALTrak as of July 31, 2007.
The annualized compounded rates of return for Class "A" units of Saxon
Stock Fund (1 year, 3 years, 5 years, 10 years, 15 years) as of July 31, 2007
are 20.4%, 15.9%, 14.1%, 12.1% and 14.9% respectively and are not intended to
be, nor should they be construed to be, an indication as to the future returns
or volatility of Saxon Stock Fund or the potential return, if any, on the
Deposit Notes. These figures assume that all distributions on Class "A" units
of Saxon Stock Fund were reinvested in additional units of Saxon Stock Fund
and do not include any sales, redemption, distribution, optional charges or
taxes which would have reduced returns. Returns are shown after the payment of
expenses and fees of Saxon Stock Fund. The performance figures reflect the
payment of the management expense ratio of Saxon Stock Fund for the indicated
periods. In contrast, the Fund Portfolio is subject to annual fund portfolio
fees which may differ from the management expense ratio of Saxon Stock Fund.
As a result of the potential for differing fees, the performance of the Fund
Portfolio could have been lower than the past performance figures reflected
(xx) Risk-adjusted returns are measured by Sharpe Ratio, an annualized
calculation using standard deviation and excess return to determine the reward
per unit of risk. The 15-year Sharpe Ratio for Saxon Stock Fund is 0.91, the
No.1-ranked fund in the Canadian Equity Mutual Fund category for this period.
For more detail see www.morningstar.ca
The Deposit Notes are issued by and constitute direct, unconditional
obligations of Bank of Montreal. Details of certain risks of investing in the
Deposit Notes, as well as complete disclosure of how variable return (if any)
on the Deposit Notes is calculated, are contained in the related Information
Statement dated August 27, 2007, which can be obtained through your financial
advisor or by calling Saxon Client Services at 1 888 287-2966. This summary is
issued for information purposes only to provide an overview of the Bank of
Montreal Saxon Canadian Equity Protected Deposit Notes Total Return Class and
the Bank of Montreal Saxon Balanced Protected Deposit Notes Total Return Class
and does not constitute investment advice or an offer to sell or a
solicitation to purchase. An investment in BMO Saxon Canadian Equity Protected
Deposit Notes Total Return Class and the Bank of Montreal Saxon Balanced
Protected Deposit Notes Total Return Class is subject to certain risks, which
investors should consider. Investors should read the 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. "BMO Capital
Markets" is a trademark of Bank of Montreal used under license.
Bank of Montreal makes no assurances, representations or warranties with
respect to the accuracy, reliability or completeness of information contained
herein. Furthermore, Bank of Montreal makes no recommendations concerning
Saxon Stock Fund, mutual funds or the suitability of investing in securities
generally or 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 any responsibility for any information not contained in the
For further information:
For further information: Mary Savona, Vice-President, Marketing, Saxon
Funds Management Limited, (416) 227-4180, firstname.lastname@example.org; Jason
Graham or Daniel Tisch (media only), Argyle Communications, (416) 968-7311,
ext. 229 or 223, email@example.com,