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CA-EN Advisors

BMO Investments Inc. Announced Changes to its Mutual Fund Lineup

June 21, 2023

On June 1, 2023, BMO Investments Inc issued the following press release, detailing the changes to several of our mutual funds:

BMO Investments Inc., the manager of the BMO Mutual Funds announced changes to its fund lineup, including:

  • a proposal to merge certain BMO Mutual Funds,
  • name changes of certain BMO Mutual Funds and corresponding reduction in management fee and administration fee,
  • capping operating expenses of a BMO Mutual Fund, and
  • risk rating changes to certain BMO Mutual Funds.

 

Proposed Fund Mergers – Corporate Class Mutual Funds

Subject to obtaining securityholder approval BMO GAM proposes to merge (the “Corporate Class Mergers”) each of the corporate class mutual funds (collectively, the “BMO Corporate Class Funds”) into corresponding mutual fund trusts (each, a “Continuing Fund”).

 

Each of the BMO Corporate Class Funds is a class of BMO Corporate Class Inc. (“BCCI”), a mutual fund corporation. Each of the Corporate Class Mergers will involve the merger of a BMO Corporate Class Fund (each, a “Terminating Fund”) into a corresponding Continuing Fund as set out in the table below.

Terminating Fund
Continuing Fund
BMO Asian Growth and Income Class
BMO Asian Growth and Income Fund
BMO Canadian Equity Class
BMO Canadian Equity Fund
BMO Dividend Class
BMO Global Dividend Fund
BMO Global Dividend Class
BMO Global Dividend Opportunities Fund
BMO Global Energy Class
BMO Global Energy Fund
BMO Global Equity Class
BMO Global Equity Fund
BMO Global Low Volatility ETF Class
BMO Global Low Volatility ETF Fund
BMO Greater China Class
BMO Greater China Fund
BMO International Value Class
BMO International Value Fund
BMO U.S. Equity Class
BMO U.S. Equity Fund
BMO SelectClass® Income Portfolio
BMO SelectTrust® Income Portfolio
BMO SelectTrust® Income Portfolio
BMO SelectTrust® Balanced Portfolio
BMO SelectClass® Growth Portfolio
BMO SelectTrust® Growth Portfolio
BMO SelectClass® Equity Growth Portfolio
BMO SelectTrust® Equity Growth Portfolio
BMO Income ETF Portfolio Class
BMO Income ETF Portfolio
BMO Balanced ETF Portfolio Class
BMO Balanced ETF Portfolio
BMO Growth ETF Portfolio Class
BMO Growth ETF Portfolio
BMO Equity Growth Portfolio Class
BMO Equity Growth Portfolio

The Corporate Class Mergers will be effected on a tax-deferred basis for securityholders.

 

The independent review committee of the BMO Mutual Funds has provided its approval for each of the proposed Corporate Class Mergers. Securityholders of the Terminating Funds listed above are not required to vote pursuant to securities law. However, because of requirements under corporate law, securityholders in those Terminating Funds will vote collectively on whether to approve the sale of substantially all of the assets of BCCI.

 

BMO GAM will seek securityholder approval for the proposed Corporate Class Mergers at a meeting of shareholders of BCCI to be held on August 16, 2023. If the requisite approval is obtained, each Corporate Class Merger will be implemented after the close of business on or about August 25, 2023 (the “Effective Date”).

 

Purchases of, and switches into, securities of each Terminating Fund will be suspended at the close of business on the third business day prior to the Effective Date, except for purchases made to pre-established continuous savings plans which will be suspended as of the close of business on the fifth business day immediately preceding the Effective Date.

 

Securityholders of each Terminating Fund will have the right to redeem securities of, or make switches out of, the Terminating Fund up to the close of business on the business day immediately before the Effective Date.

 

Each Terminating Fund will be wound up as soon as reasonably possible following the respective Corporate Class Merger. If the proposed Corporate Class Mergers are not approved, the Manager will not proceed with any of the proposed Corporate Class Mergers.

 

In advance of the meetings, a notice-and-access document will be sent to securityholders of record on or about July 11, 2023. The notice-and-access document will describe the various ways in which securityholders can obtain a copy of a management information circular that contains full details of the proposed Corporate Class Mergers. The notice-and-access document and management information circular will also be available on SEDAR.

Proposed Fund Mergers – Trust Funds

Subject to obtaining securityholder approval, the Manager proposes to merge (the “Trust Mergers”) two mutual fund trusts (the “BMO Trust Funds”) into a corresponding mutual fund trust (each, a “Continuing Fund”). Each of the Trust Mergers will involve the merger of a BMO Trust Fund (each, a “Terminating Fund”) into a corresponding Continuing Fund as set out in the table below.
Terminating Fund
Continuing Fund
BMO Bond Fund
BMO Core Plus Bond Fund
BMO Tactical Global Bond ETF Fund
BMO Fixed Income ETF Portfolio

The Trust Mergers will be effected on a taxable basis for securityholders.

 

The independent review committee of the BMO Mutual Funds has provided its positive recommendation for each of the proposed Trust Mergers. BMO GAM will seek securityholder approval of each Terminating Fund at special meetings of securityholders to be held on August 16, 2023. If the requisite approval is obtained, each Trust Merger will be implemented after the close of business on or about September 15, 2023 (the “Effective Date”).

 

Each Terminating Fund will be wound up as soon as reasonably possible following the respective Trust Fund Merger. If the merger of BMO Tactical Global Bond ETF Fund is not approved, BMO Tactical Global Bond ETF Fund will be terminated on or about September 15, 2023.

 

Purchases of, and switches into, securities of each Terminating Fund will be suspended at the close of business on the third business day prior to the Effective Date, except for purchases made to pre-established continuous savings plans which will be suspended as of the close of business on the fifth business day immediately preceding the Effective Date.
Securityholders of each Terminating Fund will have the right to redeem securities of, or make switches out of, the Terminating Fund up to the close of business on the business day immediately before the Effective Date.

 

In advance of the meetings, a notice-and-access document will be sent to securityholders of record of each Fund on or about July 11, 2023. The notice-and-access document will describe the various ways in which securityholders can obtain a copy of a management information circular that contains full details of the proposed Trust Mergers. The notice-and-access document and management information circular will also be available on SEDAR.

Name Changes and Management Fee and Administration Fee Reductions

Effective May 30, 2023, the Manager has changed the names of certain of its BMO Mutual Funds as set out in the table below.
Old Name
New Name
BMO FundSelect® Income Portfolio
BMO Managed Income Portfolio
BMO FundSelect® Balanced Portfolio
BMO Managed Balanced Portfolio
BMO FundSelect® Growth Portfolio
BMO Managed Growth Portfolio
BMO FundSelect® Equity Growth Portfolio
BMO Managed Equity Growth Portfolio
BMO Canadian Large Cap Equity Fund
BMO Canadian Smart Alpha Equity Fund

In connection with the name changes, the Manager has reduced the management fees on Series A, Series F, and Advisor Series of each of BMO Managed Income Portfolio, BMO Managed Balanced Portfolio, BMO Managed Growth Portfolio and BMO Managed Equity Growth Portfolio and Series A, Series T5, and Advisor Series of BMO Canadian Smart Alpha Equity Fund as set out in the table below, effective May 30, 2023.

Series of Securities of BMO Managed Income Portfolio (formerly, BMO FundSelect® Income Portfolio)
Previous Annual Management Fee
New Annual Management Fee Effective May 30, 2023
Series A
1.95 %
1.55 %
Series F
0.95 %
0.55 %
Advisor Series
1.95 %
1.55 %
Series of Securities of BMO Managed Balanced Portfolio (formerly, BMO FundSelect® Balanced Portfolio)
Previous Annual Management Fee
New Annual Management Fee Effective May 30, 2023
Series A
1.95 %
1.55 %
Series F
0.95 %
0.55 %
Advisor Series
1.95 %
1.55 %
Series of Securities of BMO Managed Growth Portfolio (formerly, BMO FundSelect® Growth Portfolio)
Previous Annual Management Fee
New Annual Management Fee Effective May 30, 2023
Series A
1.95 %
1.55 %
Series F
0.95 %
0.55 %
Advisor Series
1.95 %
1.55 %
Series of Securities of BMO Managed Equity Growth Portfolio (formerly, BMO FundSelect® Equity Growth Portfolio)
Previous Annual Management Fee
New Annual Management Fee Effective May 30, 2023
Series A
1.95 %
1.55 %
Series F
0.95 %
0.55 %
Advisor Series
1.95 %
1.55 %
Series of Securities of BMO Canadian Smart Alpha Equity Fund (formerly, BMO Canadian Large Cap Equity Fund)
Previous Annual Management Fee
New Annual Management Fee Effective May 30, 2023
Series A
2.00 %
1.55 %
Series T5
2.00 %
1.55 %
Advisor Series
2.00 %
1.55 %

In addition, the Manager has reduced the fixed administration fee for each of BMO Managed Income Portfolio, BMO Managed Balanced Portfolio, BMO Managed Growth Portfolio and BMO Managed Equity Growth Portfolio from 0.20% to 0.15%.

Capping Operating Expenses

Effective immediately, BMO GAM has capped the operating expenses of each series of BMO Asian Growth and Income Fund to 0.25%.

Risk Rating Changes

Effective immediately, the risk rating of each of the funds listed in the table below has been changed as set out in the table below. There is no change to the investment objectives, strategies or management of these funds associated with the new risk rating.

 

The risk rating changes are based on the standardized risk classification methodology mandated by the Canadian Securities Administrators and an annual review by the Manager to determine the risk level of its publicly offered mutual funds.

Fund
Previous Risk Rating
New Risk Rating
BMO AscentTM Conservative Portfolio
Low
Low to Medium
BMO Asian Growth and Income Class
Low to Medium
Medium
BMO Asian Growth and Income Fund
Low to Medium
Medium
BMO Conservative ETF Portfolio
Low
Low to Medium
BMO Dividend Class
Low to Medium
Medium
BMO Dividend Fund
Low to Medium
Medium
BMO Global Dividend Class
Low to Medium
Medium
BMO Global Dividend Fund
Low to Medium
Medium
BMO Greater China Class
Medium
Medium to High
BMO Greater China Fund
Medium
Medium to High
BMO Monthly Dividend Fund Ltd.
Low to Medium
Medium
BMO Nasdaq 100 Equity ETF Fund
Medium
Medium to High
BMO North American Dividend Fund
Low to Medium
Medium
BMO Retirement Balanced Portfolio
Low
Low to Medium
BMO SelectTrust® Conservative Portfolio
Low
Low to Medium
BMO SIA Focused North American Equity Fund
Medium
Low to Medium
BMO Sustainable Conservative Portfolio
Low
Low to Medium
BMO Tactical Global Equity ETF Fund
Medium
Low to Medium
BMO USD Conservative ETF Portfolio
Low
Low to Medium

Disclosures

Commissions, management fees and expenses (if applicable) all may be associated with investments in mutual funds. Trailing commissions may be associated with investments in certain series of securities of mutual funds. Please read the fund facts, ETF facts or simplified prospectus of the relevant mutual fund before investing.  Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Distributions are not guaranteed and are subject to change and/or elimination. For a summary of the risks of an investment in the BMO Mutual Funds, please see the specific risks set out in the simplified prospectus.

BMO Mutual Funds are managed by BMO Investments Inc., which is an investment fund manager and a separate legal entity from Bank of Montreal.

 

BMO Corporate Class Funds are classes of BMO Corporate Class Inc., managed by BMO Investments Inc., a financial services firm and separate entity from Bank of Montreal.

 

 

Nasdaq®, Nasdaq 100 Index ®, Nasdaq 100 ®, NDX are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by BMO Investments Inc.  The Product(s) have not been passed on by the Corporations as to their legality or suitability.  The Product(s) are not issued, endorsed, sold, or promoted by the Corporations.  THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

 

 

®/™Registered trademarks/trademark of Bank of Montreal, used under licence.

 

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