BMO Guardian Monthly Dividend Fund Ltd.

BMO Guardian Monthly Dividend Fund Ltd.

A preferred approach to income and cash flow

As a growing number of Canadians turn to investment income to increase their monthly cash flow, it is important to consider what's left after tax. Maximizing tax-efficient dividend income from your investments can be the answer.

THE BEST WAY TO MAXIMIZE TAXABLE MONTHLY INCOME IS TO PAY LESS TAX

Tax-efficient dividend income

Source: taxtips.ca. Shown for a taxable Ontario Investor in 2010.

Why are dividends important now?

? Increasing demand for investment income to replace employment income

? Traditional income investments can have negative returns after tax and inflation

? Dividends drive total return when markets are in moderate growth and interest rates are low

Where can Canadians invest for dividend income?

There are two primary investments Canadian investors can use to generate dividend income:

Preferred shares

? Pay a regular, stated dividend ? Lower risk

Dividend-paying common shares

? More volatile as dividends can fluctuate ? Offer greater potential for price appreciation

BMO Guardian Monthly Dividend Fund Ltd.

The preferred approach

RELIABLE DISTRIBUTIONS

Reliable distributions over the last 15 years, plus fully eligible for the dividend tax credit.

BMO Guardian Monthly Dividend Fund Ltd.

Reliable income

? A minimum of 50% of the Fund is always invested in preferred shares of Canadian companies

? Over 20 year history of regular monthly distributions

? Monthly distribution of 3.5 cents

Tax efficient

? 1 00% dividend income ? Income eligible for dividend

tax credit

Stable

? Focus on high-quality dividend investments

? Low exposure to rate-sensitive preferred shares

? History of low volatility

Guardian Capital LP

? More than $14 billion assets under management ? One of Canada's longest established independent investment counselling

firms dating back to 1962

? Regarded to be one of Canada's leading income and cash flow specialists

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1Risk is measured with Standard Deviation. Standard Deviation is an annualized statistical measure of risk of a fund or portfolio's performance around its average. It is calculated based on a fund's monthly returns over 3 (short term), 5 (medium term) and 10 (long term) years. The greater the standard deviation, the greater the fund's volatility. Source: Morningstar Canada. All data as of December 31, 2010.

Managing the Fund Kevin Hall, CFA, is the lead manager of the BMO Guardian Monthly Dividend Fund Ltd. He, along with the Equity Income Team including, John Priestman,

Ted Macklin and Michele Robitaille, provides extensive investment industry experience, navigating both up and down market cycles.

To learn more, please speak with your financial advisor.

BMO Guardian Funds refers to certain mutual funds and/or series of mutual funds offered by BMO Investments Inc., a financial services firm and a separate legal entity from Bank of Montreal. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus of the mutual fund before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. All logos of other companies are the property of those respective companies. ? Registered trade-mark of Bank of Montreal, used under licence.

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