Returns based on the performance of award-winning Saxon Balanced Fund
TORONTO, Sept. 6 /CNW/ - Saxon Financial announced today the launch of a
principal-protected note linked to the performance of Saxon Balanced Fund, the
2005 Canadian Balanced Fund of the Year. Investors in the new Bank of Montreal
Saxon Balanced Protected Deposit Notes can participate in up to 200% of the
potential returns from the award-winning fund while enjoying the safety of
100% principal protection if held until maturity. The term of the Deposit
Notes is 5.5 years.
"This new product is tailor-made for those heading for retirement,
wanting a balance between wealth preservation and growth potential," said
Allan Smith, President and CEO of Saxon Financial. "The proven performance of
Saxon Balanced Fund makes it ideally suited for the leveraged growth potential
of the principal protected note."
Leveraged growth potential
Saxon Balanced Fund's long-term performance features maximize the
benefits of the potential use of leverage. The fund has a five-year compounded
return of 9.5%, more than double that of the median of Canadian Balanced
funds(x). It has produced positive returns in 13 of the past 15 years, and has
low volatility given the high equity weighting which currently stands at 70%.
A commitment to fair pricing
"In launching the Deposit Notes, Saxon again demonstrates its commitment
to fair pricing," Smith said. "With a maximum all inclusive fee of 2.45%, the
Deposit Notes are priced well below similar products, many of which charge
2.95%. And for younger investors - or anyone comfortable with a little more
risk - Saxon Balanced Fund is still available at an MER of 1.86%."
The principal-protected note offering is the second product that Saxon
has launched this year for the advisor channel. In June, Saxon launched
F-class shares for the fee-based advisor segment, in addition to a website for
advisors, Advisor Insight.
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Saxon Balanced Fund - A Proven Performer
Compound Returns Relative to the Median of Canadian Balanced Funds(x)
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1 year 3 years 5 years 10 years 15 years
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Saxon Balanced Fund 5.1% 11.3% 9.5% 10.4% 11.6%
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Median of Canadian
Balanced Funds 3.5% 8.0% 4.7% 7.2% 8.3%
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(x)Source: Morningstar PALTrak as of July 31, 2006
>>
About Saxon Financial 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 www.saxonfunds.com
Established in 1985, Saxon Funds Management Limited offers a highly
respected suite of nine 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, one of Canada's
premier value-oriented investment firms, the funds combined have more than
$1.9 billion in assets as of July 31, 2006. Its parent company, Saxon
Financial Inc., trades on the TSX under the symbol SFI.
(xx)The above performance charts contain annualized compounded returns
(1 year, 3 years, 5 years, 10 years and 15 years) as of July 31, 2006 and
calendar year returns from 1991 to 2005 for Class A units of Saxon
Balanced Fund and are not intended to be, nor should they be construed to
be, an indication as to the future returns or volatility of Saxon
Balanced Fund or the potential return, if any, on the Deposit Notes. As
of July 31, 2006, the annualized compounded return of Class A units of
Saxon Balanced Fund since inception (December 10, 1985) is 8.2%. These
figures assume that all distributions on Class A units of Saxon Balanced
Fund were reinvested in additional units of Saxon Balanced Fund and do
not include any applicable sales, redemption, distribution or optional
charges or taxes, which would have reduced returns. Returns are shown
after the payment of expenses and fees of Saxon Balanced Fund. The
performance figures reflect the payment of the management expense ratio
of Saxon Balanced 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 Balanced 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 above.
(xxx)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
Information Statement dated August 28, 2006, 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 Balanced Protected
Deposit Notes Total Return Class, Series 1 and does not constitute
investment advice or an offer to sell or a solicitation to purchase. An
investment in Saxon Balanced Protected Deposit Notes Total Return Class,
Series 1 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. Commissions, trailing commissions, management fees and expenses
all may be associated with mutual fund investments. Unit values change
frequently and past performance may not be repeated.
