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Principal At Risk Notes
Bank of Montreal Preferred Share AutoCallable Principal At Risk Notes, Series 439 (CAD) (F-Class)
JHN6024
Product Details
TypeAutoCallable
IssuerBank of Montreal
ClassEquity
Linked toBMO Laddered Preferred Share Index ETF
CurrencyCAD
Issue DateJune 14, 2017
Maturity DateJune 14, 2022
Term5.0 Years
AutoCall Coupon (Next Call Date)16.00%
AutoCall Level100.00%
Observation DatesAnnual
Excess Participation5.00%
Barrier Protection-20.00%
Product Description
  • The Notes offer the potential for a variable return while providing contingent protection against a slight to moderate decline in the price of the units of the BMO Laddered Preferred Share Index ETF (the “Reference ETF”) over the term of the Notes. The Principal Amount is NOT protected under these Notes.
  • Issuer: Bank of Montreal.
  • Medium Term: 5-year term to maturity (subject to the Notes being automatically called by the Bank).
  • Reference ETF: The Reference ETF is an exchange traded fund that seeks to replicate, to the extent possible, the performance net of expenses, of a Canadian preferred shares index, currently, the Solactive Laddered Canadian Preferred Share Index. The investment strategy of the Reference ETF is to invest in and hold the constituent securities of the Solactive Laddered Canadian Preferred Share Index in the same proportion as they are reflected in the Solactive Laddered Canadian Preferred Share Index or securities intended to replicate the performance of the Solactive Laddered Canadian Preferred Share Index.*
  • AutoCall Feature: The Notes will be automatically called by the Bank if the Closing Price of the units of the Reference ETF is equal to or above the AutoCall Level (i.e., 100% of the Initial Price) on any Valuation Date. If the AutoCall feature is triggered, Holders will receive payment of the Principal Amount, plus a Variable Return that increases each Valuation Date. If the Closing Price of the units of the Reference ETF is never equal to or above the AutoCall Level on any Valuation Date, the Notes will not be automatically called by the Bank and there will be no Variable Return paid on the Notes.
  • Potential Variable Return: If the Closing Price of the units of the Reference ETF is equal to or above the AutoCall Level on any Valuation Date, the Notes will be automatically called by the Bank and Holders will receive a payment of a Fixed Return, plus 5.00% additional participation in the price performance of the units of the Reference ETF above the Fixed Return specified for that Valuation Date. Fixed Return in 9 months: 16.00%; 24 months: 20.00%; 36 months: 25.00%; 48 months: 30.00%; 60 months: 35.00% (or an annualized return of 21.95%, 9.54%, 7.71%, 6.77%, and 6.18% respectively).
  • Contingent Protection: If the ETF Return is negative, the Principal Amount will be protected so long as the Final Price is equal to or above the Barrier Level (i.e., 80% of the Initial Price) on the Final Valuation Date. If the Final Price is below the Barrier Level on the Final Valuation Date, the Maturity Payment will be equal to the Principal Amount reduced by the actual ETF Return (which will be a negative amount equal to the decline in the unit price of the Reference ETF), subject to the Minimum Payment Amount. The calculation and timing of the payments at Maturity may be adjusted upon the occurrence of certain special circumstances.
  • Daily Secondary Market: Provided by BMO Capital Markets (may be subject to limitations as described in the Prospectus).

Current Status
Update as ofMay 19, 2017
Remaining Term5.00 years
Current ETC
Current Bid Price historical $100.00