Principal At Risk Notes
Bank of Montreal S&P/TSX Composite Low Volatility Index Twin Win Buffer Principal At Risk Notes, Series 16 (CAD) (F-Class)
|Bank of Montreal|
|S&P/TSX Low Volatility Index|
|June 14, 2017|
|June 14, 2023|
| None |
Maturity Return Profile*
* The return profile above is provided for illustration purposes only. This graph demonstrates the payment on the Principal At Risk Notes based on a specific return on the reference asset. There can be no assurance that any specific return will be achieved on the Principal At Risk Notes.
- The Notes are designed to provide investors with the opportunity for an enhanced return when the Index Return is positive and a positive return if the Index Return is equal to or above the Buffer Level, while reducing the downside risks with partial protection that “buffers” any negative performance of the Reference Index below the Buffer Level over the term of the Notes.
- Issuer: Bank of Montreal.
- Medium Term: 6-year term to maturity.
- Reference Index: The price return version of the S&P/TSX Composite Low Volatility Index is designed to measure the performance of the 50 least volatile stocks within the S&P/TSX Composite Index. Constituents are weighted relative to the inverse of their corresponding volatility, with the least volatile stocks receiving the highest weights. The Reference Index is designed to serve as a benchmark for low volatility or low variance strategies based on the S&P/TSX Composite Index, which is the headline index and the principal broad market measure for the Canadian equity markets.
- Upside Participation: 240% participation (or 2.40 times the Index Return) where the Index Return is positive.
- Downside Participation above Buffer Level: 100% participation in the absolute value of any negative Index Return where the Final Level is equal to or above the Buffer Level on the Final Valuation Date.
- Buffer Level: 80% of the Initial Level of the Reference Index.
- Protection Buffer: 20%, meaning a Holder would sustain incremental losses from a decline in the Reference Index below the Buffer Level.
- Maximum Payment Amount: There will be no cap or maximum payment amount on the Notes.
- Minimum Payment Amount: $20.00 per Note.
- Daily Secondary Market: Provided by BMO Capital Markets (may be subject to limitations as described in the Prospectus).
|May 19, 2017|
Bid Price (i) may be subject to an Early Trading Charge (equal to a percentage of the Principal Amount), (ii) on the date of sale may be at a discount from the maturity payment that would be payable if the Principal At Risk Notes were maturing on such date, and (iii) reflects the most recent price available. The Bid Price may fluctuate and/or be adversely affected by a number of factors, including certain factors discussed in the Offering Documents.
Past performance is not indicative of future performance and returns, if any, will fluctuate with any change in value of the reference asset(s). This information should not be construed as an estimate or forecast of the performance of the reference asset(s) or of the return that a holder may realize.
The above summary and the other material on this website is for information purposes only and does not constitute an offer to sell or a solicitation to purchase Principal At Risk Notes. Investors should read the Base Shelf Prospectus and applicable Prospectus Supplement and/or Pricing Supplement (collectively, the “Offering Documents”) which set out the specific terms and risk factors associated with an investment in the Principal At Risk Notes carefully and discuss the suitability of the Principal At Risk Notes with their investment advisor before making any investment decisions. The offering and sale of Principal At Risk Notes may be prohibited or restricted by laws in certain jurisdictions. Principal At Risk Notes may only be purchased where they may be lawfully offered for sale and only through individuals qualified to sell them. For a copy of the applicable Offering Documents, click on the link above.
Amounts, if any, paid to holders of Principal At Risk Notes will depend on the performance of the reference asset(s) described in the applicable Offering Documents. Bank of Montreal does not guarantee that holders will receive an amount equal to the amount invested in the Principal At Risk Notes and does not guarantee that any return or distributions will be paid on the Principal At Risk Notes (other than any minimum amount that may be stipulated in the applicable Offering Documents). Since the principal amount of the Principal At Risk Notes will not be guaranteed and will be at risk, holders may not receive any amount at maturity (other than any minimum amount that may be stipulated in the applicable Offering Documents) and holders could lose substantially all of their investment in the Principal At Risk Notes. Please see the Offering Documents for complete details, including the precise formula for determining the return, if any, on a Principal At Risk Note.