AAT Progressive GICs

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AAT Progressive GICs
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Market-linked InvestmentsAAT Progressive GICs

• Address a growing segment of the market
• Projected 83 increase in the principal
  protected market over the next five years (and)
  market-linked GICs and linked notes will likely
  be the fast growers within this category.
• Investor Economics, Household Balance Sheet
  Report, 2005 Edition
• Can be an essential part of a diversified
  portfolio
• Designed to fulfill the need of an investor
  looking for safer, more predictable assets for
  their portfolios, but with the potential for an
  enhanced return
• Available exclusively through Deposit Brokers,
  Advisors and Financial Planners
• Offered in Nominee Name only exclusively through
  FundSERV
• Offers an upfront sales commission of 50bps per
  year

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AAT Return Generating GIC
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Product Overview

• 100 principal protection
• A shorter-term investment
• Minimum guaranteed rate, plus potential for
  enhanced returns
• Return tied to the performance of a diversified
  reference
• portfolio of 10 blue-chip stocks
• Return earned in each period is locked in and
  cannot be
• impacted by poor performance in another
  period
• Eligible for CDIC deposit insurance (up to
  applicable limits)

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Product Details (May07 Series)

• Term 2 years (consisting of 2 periods)
• Enhanced total return potential up to 13.5
• Minimum Guaranteed Rate 3 total return
• (or 1.49 per period compounded annually)
• Maximum additional return, Period 1 5.25
• Maximum additional return, Period 2 5.25
• Details subject to change. Refer to each
  monthly series to confirm product details.

Reference Portfolio (May 07 Series) Reference Portfolio (May 07 Series)
Corporations Holding Percentage
Sun Life Financial Inc 10
Alcan Inc. 10
Encana Corp. 10
Canadian Imperial Bank of Commerce 10
Petro-Canada 10
Barrick Gold Corp. 10
Toronto-Dominion Bank 10
BCE Inc. 10
Canadian Pacific Railway Ltd. 10
Penn West Energy Trust 10
TOTAL 100
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Features

• Features
• GIC format Earns interest income and value
  does not fluctuate
• Eligible for registered plans
• Eligible for CDIC deposit insurance (up to
  applicable limits)
• Low minimum investment of 2,000
• Non-redeemable
• Additional return (if earned) in each period is
  locked-in
• For more information on the differences between
  market-liked GICs and market-linked notes, please
  visit the AAT website and access the AAT
  Progressive GICs Frequently Asked Questions

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Benefits

• Benefits
• 100 principal protection
• Higher return potential
• Peace of mind issued by Bank of Montreal
• Manage investment risk protection from
  market corrections to help reach investment goals
  
• Diversification - exposure to a basket of
  selected Canadian equities from across various
  industry sectors

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Return Calculation Methodology
Total Return for the Term (Guaranteed Rate)
(Additional Return, Period 1)
(Additional Return, Period 2)
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Return Calculation All Stocks Increase
PERIOD 1 PERIOD 1 PERIOD 1 PERIOD 1 PERIOD 2 PERIOD 2 PERIOD 2 PERIOD 2
Stock Beginning Price Ending Price Return Effective Return Beginning Price Ending Price Return Effective Return
1 50.00 51.00 2.00 5.25 50.00 52.00 4.00 5.25
2 50.00 53.00 6.00 5.25 50.00 55.00 10.00 5.25
3 50.00 54.00 8.00 5.25 50.00 56.00 12.00 5.25
4 50.00 51.00 2.00 5.25 50.00 58.00 16.00 5.25
5 50.00 52.00 4.00 5.25 50.00 51.00 2.00 5.25
6 50.00 55.00 10.00 5.25 50.00 52.00 4.00 5.25
7 50.00 58.00 16.00 5.25 50.00 56.00 12.00 5.25
8 50.00 52.00 4.00 5.25 50.00 53.00 6.00 5.25
9 50.00 53.00 6.00 5.25 50.00 52.00 4.00 5.25
10 50.00 57.00 14.00 5.25 50.00 54.00 8.00 5.25
Additional Return Period 1 Additional Return Period 1 Additional Return Period 1 5.25 Additional Return Period 2 Additional Return Period 2 Additional Return Period 2 5.25
Guaranteed Return Period 1 Guaranteed Return Period 1 Guaranteed Return Period 1 1.5 Guaranteed Return Period 2 Guaranteed Return Period 2 Guaranteed Return Period 2 1.5
Total Return Period 1 Total Return Period 1 Total Return Period 1 6.75 Total Return Period 2 Total Return Period 2 Total Return Period 2 6.75
Total 2-year Return Total 2-year Return Total 2-year Return Total 2-year Return Total 2-year Return Total 2-year Return Total 2-year Return Total 2-year Return 13.5
Annualized Rate of Return Annualized Rate of Return Annualized Rate of Return Annualized Rate of Return Annualized Rate of Return Annualized Rate of Return Annualized Rate of Return Annualized Rate of Return 6.536
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Return Calculation Mixed Performance
PERIOD 1 PERIOD 1 PERIOD 1 PERIOD 1 PERIOD 2 PERIOD 2 PERIOD 2 PERIOD 2
Stock Beginning Price Ending Price Return Effective Return Beginning Price Ending Price Return Effective Return
1 50.00 49.00 -2.00 -2.00 50.00 48.00 -4.00 -4.00
2 50.00 50.50 1.00 5.25 50.00 50.00 0.00 0.00
3 50.00 51.00 2.00 5.25 50.00 51.00 2.00 5.25
4 50.00 48.00 -4.00 -4.00 50.00 48.00 -4.00 -4.00
5 50.00 51.00 2.00 5.25 50.00 50.00 0.00 0.00
6 50.00 55.00 10.00 5.25 50.00 55.00 10.00 5.25
7 50.00 51.00 2.00 5.25 50.00 51.00 2.00 5.25
8 50.00 54.00 8.00 5.25 50.00 54.00 8.00 5.25
9 50.00 51.00 2.00 5.25 50.00 51.00 2.00 5.25
10 50.00 51.00 2.00 5.25 50.00 51.00 2.00 5.25
Additional Return Period 1 Additional Return Period 1 Additional Return Period 1 3.60 Additional Return Period 2 Additional Return Period 2 Additional Return Period 2 2.35
Guaranteed Return Period 1 Guaranteed Return Period 1 Guaranteed Return Period 1 1.5 Guaranteed Return Period 2 Guaranteed Return Period 2 Guaranteed Return Period 2 1.5
Total Return Period 1 Total Return Period 1 Total Return Period 1 5.10 Total Return Period 2 Total Return Period 2 Total Return Period 2 3.85
Total 2-year Return Total 2-year Return Total 2-year Return Total 2-year Return Total 2-year Return Total 2-year Return Total 2-year Return Total 2-year Return 8.95
Annualized Rate of Return Annualized Rate of Return Annualized Rate of Return Annualized Rate of Return Annualized Rate of Return Annualized Rate of Return Annualized Rate of Return Annualized Rate of Return 4.38
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Return Calculation Poor Performance
PERIOD 1 PERIOD 1 PERIOD 1 PERIOD 1 PERIOD 2 PERIOD 2 PERIOD 2 PERIOD 2
Stock Beginning Price Ending Price Return Effective Return Beginning Price Ending Price Return Effective Return
1 50.00 49.00 -2.00 -2.00 50.00 50.00 0.00 0.00
2 50.00 49.00 -2.00 -2.00 50.00 50.00 0.00 0.00
3 50.00 49.00 -2.00 -2.00 50.00 50.00 0.00 0.00
4 50.00 49.00 -2.00 -2.00 50.00 50.00 0.00 0.00
5 50.00 49.00 -2.00 -2.00 50.00 50.00 0.00 0.00
6 50.00 49.00 -2.00 -2.00 50.00 50.00 0.00 0.00
7 50.00 49.00 -2.00 -2.00 50.00 50.00 0.00 0.00
8 50.00 49.00 -2.00 -2.00 50.00 50.00 0.00 0.00
9 50.00 49.00 -2.00 -2.00 50.00 50.00 0.00 0.00
10 50.00 49.00 -2.00 -2.00 50.00 50.00 0.00 0.00
Additional Return Period 1 Additional Return Period 1 Additional Return Period 1 0.00 Additional Return Period 2 Additional Return Period 2 Additional Return Period 2 0.00
Guaranteed Return Period 1 Guaranteed Return Period 1 Guaranteed Return Period 1 1.5 Guaranteed Return Period 2 Guaranteed Return Period 2 Guaranteed Return Period 2 1.5
Total Return Period 1 Total Return Period 1 Total Return Period 1 1.5 Total Return Period 2 Total Return Period 2 Total Return Period 2 1.5
Total 2-year Return Total 2-year Return Total 2-year Return Total 2-year Return Total 2-year Return Total 2-year Return Total 2-year Return Total 2-year Return 3.00
Annualized Rate of Return Annualized Rate of Return Annualized Rate of Return Annualized Rate of Return Annualized Rate of Return Annualized Rate of Return Annualized Rate of Return Annualized Rate of Return 1.49
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Historical Results
EXAMPLE IF the AAT Return Generating GIC was
offered monthly, from Feb02 through Feb05
Source for data Bloomberg
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Additional Details

• Tax Treatment return, including any
  additional return if earned, is taxed yearly as
  interest income
• Interest Payment return, including any
  additional return if earned, is payable at the
  end of the term of the investment.
• Sold by mutual fund or IDA licensed
  individuals
• Monthly series
• Available continuously on a monthly series
  basis
• Any changes to product details made from series
  to series are made to reflect market conditions
• Once an investor purchases a particular series,
  the investor and the issuer are bound by the
  terms and conditions

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Investment Processing - FundSERV

• The AAT Return Generating GIC will be
• Available exclusively through FundSERV
• Assigned a fund code number which identifies the
  Series
• For the May07 series, the fund code is AAT101
• Commission will paid to the broker through net
  settlement of the transaction
• Reconciliation files sent by FundSERV will
  include these investments

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After Sales Service

• Advisors Advantage Trust, Progressive GICs Group
  Call Centre
• Telephone numbers
• English 416-359-8290 (local) or
• 1-866-404-0957 (toll free)
• Press 1 for Client Services or 2 for Dealer
  Services
• French 1-866-404-0959 (toll free)
• Hours of operation
• English 8am to 5pm
• French 9am to 5pm
• Product-related questions can be directed to your
  AAT Relationship Manager

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Broker Marketing Support

• Additional support available
• Advisors Advantage Trust web site
  (www.advisorsadvantagetrust.com)
• The following support materials will be available
  to coincide with the product launch
• Product Profile Sheet
• Term Sheet
• Series Index Value Tracker
• Historical Performance
• Client Frequently Asked Questions summary
• Broker Frequently Asked Questions summary
• AAT Return Generating GIC Calculator
• Much more

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Broker Eligibility and Sign-up

• To sell an AAT Progressive GIC
• Your dealer must have a signed Dealer Agreement
  in place with BMO Nesbitt Burns Inc., and a
  Deposit Broker Agreement and Second Amendment to
  the Deposit Broker Agreement in place with
  Advisors Advantage Trust.
• If you do not already have a Dealer Agreement in
  place with BMO Nesbitt Burns Inc, please call
• English 416-359-8290 (local)
• 1-866-404-0957 (toll free) Note
  Press 2 for Dealer Services
• French 1-866-404-0959 (toll free)
• If you do not already have a Deposit Broker
  Agreement or Second Amendment to the Deposit
  Broker Agreement in place, please call Advisors
  Advantage Trust at 1-877-469-2020
• You must hold a valid Mutual Fund Dealers
  Association of Canada (MFDA) license or
  Investment Dealers Association of Canada (IDA)
  license, or, in Quebec, an IDA license or an
  Autorité des marchés financiers license
• Individuals must be mutual funds or Securities
  licensed and the firm must have access to
  FundSERV.

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Advisors Advantage Trust
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About Advisors Advantage Trust

• Trade name of BMO Trust Company, a wholly-owned
  subsidiary of Bank of Montreal and a member of
  BMO Financial Group.
• Independently branded Bank of Montreal channel
  designed to service Deposit Brokers, Advisors and
  Financial Planners across Canada
• Issuer of high-quality Guaranteed Investment
  Certificates at rates that are competitive with
  the larger Canadian Financial Institution
  issuers in the Deposit Broker Market

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AAT Offerings

• AAT offerings include
• 1-10 Year GIC Terms (Non-Registered RRSP)
• Short-term (0-364 day) GIC Terms
• 1 Year Cashable GICs
• Escalating Rate GICs
• Return Generating GIC
• AAT also sells select BMO/BMMC products
  including
• Registered Retirement Income Funds (RRIF)
• USD Investment Certificated (up to 1 year)

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• AAT Progressive GICs are issued by Bank of
  Montreal. While
• the principal amount of an AAT Progressive GIC is
  guaranteed
• and is repaid upon maturity, there is no
  guarantee of any return
• that is linked to the performance of underlying
  assets. Changes
• in the underlying assets (i.e., indices or
  securities to which the
• performance of the GIC is linked) may affect the
  rate of return of
• the GIC. The rate of return, if any, is limited
  by its participation
• rate or maximum return.
• The Terms and Conditions for AAT Progressive GICs
  are available
• at www.advisorsadvantagetrust.com or by calling
  the
• Advisors Advantage Trust, Progressive GICs Group
  Call Centre.
• The AAT Return Generating GIC provides a
  guaranteed rate, but
• there is no guarantee that the investor receives
  any additional return
• based on the performance of the linked
  securities. The additional
• return of the AAT Return Generating GIC, if any,
  is limited
• by a cap on the additional return.