BMO Callable Equity Linked GIC
| BMO Callable Equity Linked GIC |
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| Rates - BMO Callable Equity Linked GIC - Series 25 |
| BMO Short Term Investment Certificate (STIC) Rate* | 1.45%
*This version of the BMO STIC is an interim investment with the principal and interest set to mature into the BMO Callable Equity Linked GICs on the Issue Date of the Series and is not available as a stand-alone investment.
**This is an annual percentage rate.
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| Guaranteed Return for the Term | No
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| Participation Rate* | If not called, 75% participation in the returns of the reference portfolio for all deposits held for the original 5 year term
*The rate at which the investment participates in the returns of the reference portfolio
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| Maximum Rate of Return for the Term* | If not called: Unlimited**
*Depending on the performance of the reference portfolio.
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| Return, if Called | 10% annual compound return, or 33.1% total return for the term |
| Term | 5 years, if not called
3 years, if called
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| Calculation Method | If the GIC is not called, the Rate of Return for the Term is based on the the following formula:
| Rate of Return for the Term | = | Percentage Change in BMO Callable Equity Linked Index | X | Participation Rate |
If the percentage change in BMO Callable Equity Linked Index is less than zero, the Rate of Return for the Term will be zero.
On the Calculation Date, the percentage change in the BMO Callable Equity Linked Index will be calculated as follows:
Percentage Change in the
BMO Callable Equity Linked Index | = | | Average Closing Value – 100 |
| | 100 |
| X | 100 |
- The Average Closing Value is the simple average of the BMO Callable Equity Linked Index on the last business day of a number of consecutive months immediately prior to the month in which the Series Maturity Date occurs. (The final index value used in the average calculation will be based on the BMO Callable Equity Linked Index on the Calculation Date, which may not be the last business day of the month). The number of months used in the average calculation is set out in the Application Form.
The BMO Callable Equity Linked Index is composed of the two indices (the sub-indices) that make up the Reference Portfolio for the Series, as outlined in the Application Form, initially on an equally weighted basis.
The value of the BMO Callable Equity Linked Index for each series will initially be set to 100. As the value of the two indices that make up the Reference Portfolio change, the value of the index will change according to the following formula:
| Return on Individual Stock | = | | Current Value of Sub Index 1 |
| | Issue Date Value of Sub Index 1 |
| X | 0.5 | X | 100 |
| | | | | | |
| | + | | Current Value of Sub Index 2 |
| | Issue Date Value of Sub Index 2 |
| X | 0.5 | X | 100 |
- The Issue Date Value of each of sub index is the
value of the sub index at market close two business days after the Issue
Date.
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The Current Value of the each of sub index is
the value of the sub index at market close on the day the BMO Callable
Equity Linked Index is being valued.
- Because the BMO Callable Equity Linked GIC is guaranteed by the Bank of Montreal, the index has been designed such that it will never fall below a value of 100.
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