AGF Funds Inc. today unveiled Bank of Montreal AGF Elements RetirePlus Notes Series 1. AGF says the deposit notes, issued by the Bank of Montreal, offer investors reliable cash flow with adjustments for inflation.

Investors will also benefit from potential tax advantages, unlimited growth potential based on the returns from the AGF Elements Portfolios and automatic reallocation to a progressively more conservative portfolio, AGF adds.

Two different deposit notes are available to investors.

The 15-Year Notes, beginning immediately, offer monthly distributions at an annual rate of 6.6% of the initial principal, adjusted to inflation. These deposit notes will mature on Oct. 6, 2023.

The 20-Year Notes, beginning in year six, offer monthly distributions at an annual rate of 6.6 % based on the initial principal or the value after the five-year growth period, whichever is greater, adjusted to inflation. These deposit notes will mature on Oct. 6, 2028.

With a high initial equity weighting (100% equity for the 20-Year Note and 80% equity, 20% fixed income for the 15-Year Note), AGS says the deposit notes offer investors greater growth potential. Every five years, the allocation shifts to a more conservative AGF Elements portfolio to help reduce risk.

“Advisors and investors have responded favourably to our AGF Elements Portfolios since we launched this managed asset program in 2005. It was only natural to provide Deposit Notes that invest in Elements so that advisors would have even more options to help their clients meet their retirement income needs while tapping into this attractive program,” says Randy Ambrosie, president of AGF Funds Inc.

The deposit notes are available until October 3.