Mackenzie Financial Corporation and BMO Financial Group will issue two new MSP ArMADA Protected Deposit Notes on Nov. 5 for maturation in 2012.

As well as principal protection at maturity, the deposit notes will provide income and growth potential through exposure to Mackenzie Maxxum Dividend Fund, the companies said.

The fund’s lead manager is Bill Procter, who joined Mackenzie in 1994 and has over 30 years of investment experience. According to Globe HySales, the Fund has outperformed the Globe Canadian Dividend Peer
Index in eight of the past 10 calendar years.

The deposit notes provide a varying degree of exposure, up to 125% of their net asset value, to the performance of the fund. The degree of exposure will be determined by a dynamic asset allocation strategy designed to ensure principal protection. Beginning in May 2006, holders will receive semi-annual distributions equal to two thirds of the positive total return on the deposit notes’ exposure to the fund. The remaining one third of any such total return will remain invested within the deposit notes, providing growth potential.

Two versions of the Deposit Notes are offered for sale: Maxxum Yield Class, Series 1, which will characterize semi-annual distributions as interest income, and Maxxum Yield R.O.C. Class, Series 1, which will treat distributions as returns of capital, providing investors with unique tax planning opportunities for both registered and non-registered accounts.

The deposit notes will be offered through financial advisors until October 28. The minimum investment is $2,000.