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
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
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).
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