An innovative new principal-protected note offering the upside potential of investing in energy… with 100% principal protection at maturity.
Main Characteristics
- Issuer: BMO Capital Markets
- Issue Date: On or about December 1, 2006
- Maturity Date: October 30, 2015
- Selling Period: Until November 24, 2006
- FundSERV Code: JHN1100
Why Energy? Why Now?
World oil prices have been rising strongly since 2004, driven in part by increases in Chinese and Indian demand for crude oil and refined petroleum products.
China is now the world’s second-biggest consumer of oil and India the fifth, (ENI World Oil and Gas Review 2006).
Between 2010 and 2015 China could have the largest car market in the world according to David Thomas, head of China distribution for Ford. Since the global transport sector accounts for 50 percent of petroleum products consumption (IFP Panorama 2005), oil markets are expected to be tight.
Oil is a finite resource, and the ability of oil-producing nations to increase supply to meet demand is currently in doubt. Currently, one-third of the world’s oil production is in decline (January 2004 issue of Petroleum Review).
Energy companies are expected to be the prime beneficiary of these trends.
Documentation
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 September 18, 2006, which can be obtained through your financial advisor or on www.generation-invest.com. This summary is issued for information purposes only to provide an overview of the Bank of Montreal Generation Capital Integrated Energy Protected Deposit Notes Series 1 and does not constitute investment advice or an offer to sell or a solicitation to purchase the Deposit Notes. An investment in Generation Capital Integrated Energy Protected Deposit Notes is subject to certain risks, which investors should consider. Investors should read the related 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 Energy Portfolio will directly impact the return, if any, of 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.
Copyright © 2010 Generation Capital Inc. Limited Market Dealer.
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