BMO Investments Inc. Announces Merger of BMO 2020 Target Date Funds

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TORONTOApril 23, 2020 /CNW/ – BMO Investments Inc., the manager of BMO LifeStage Plus 2020 Fund and BMO Target Education 2020 Portfolio (collectively, the “Terminating Funds”) today announced that these funds are approaching their June 30, 2020 target end date. Each of the Terminating Funds will be merged into the corresponding mutual fund (collectively, the “Continuing Funds”) as set out in the chart below. 

Terminating Funds Continuing Funds

BMO LifeStage Plus 2020 Fund

BMO Money Market Fund

BMO Target Education 2020 Portfolio

BMO Target Education Income Portfolio

Each of the mergers will be effected on a tax-deferred basis, effective after the close of business on or about July 3, 2020.  The Terminating Funds will be wound up as soon as reasonably possible following their respective merger.

The Independent Review Committee of the Terminating Funds and the Continuing Funds has reviewed the potential conflict of interest matters related to each of the proposed mergers and has approved these mergers after having determined that the proposed mergers, if implemented, would achieve a fair and reasonable result for each of these funds.

BMO LifeStage Plus 2020 Fund is designed to pay investors the Guaranteed Maturity Amountat its target end date as long as it is not redeemed prior to its June 30, 2020 target end date. Unitholders of each series of BMO LifeStage Plus 2020 Fund will receive units, on a dollar-for-dollar basis, of BMO Money Market Fund (either Advisor Series, Series A or Series M if a unitholder held $150,000 or more in the BMO LifeStage Plus 2020 Fund). 

Unitholders of each series of BMO Target Education 2020 Portfolio will receive units, on a dollar-for-dollar basis, of the equivalent series of units of BMO Target Education Income Portfolio.

BMO LifeStage Plus 2020 Fund has been closed to all new purchases effective November 25, 2008. Purchases of, and switches into, units of BMO Target Education 2020 Portfolio, including under any pre-authorized contribution plan, will be suspended at the close of business on May 8, 2020.

Disclosures

1 In order to receive the highest daily locked-in value (the “Guaranteed Maturity Amount”), investors must remain invested in BMO LifeStage Plus 2020 Fund until its target end date. If an investor redeems any of his or her units of the fund prior to the target end date, the investor will receive the price per unit based on the relevant series’ net asset value next determined after BMO Investments Inc. receives the redemption request, which may be less than the Guaranteed Maturity Amount. Please read the fund’s simplified prospectus before investing and for important information regarding the Guaranteed Maturity Amount.

®/™Registered trade-marks/trade-mark of Bank of Montreal, used under licence.

BMO Global Asset Management is a brand name that comprises BMO Asset Management Inc., BMO Investments Inc., BMO Asset Management Corp., BMO Asset Management Limited and BMO’s specialized investment management firms.

BMO Mutual Funds are managed by BMO Investments Inc., which is an investment fund manager 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 fund 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. In case of BMO Money Market Fund, note that mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the Fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Distributions are not guaranteed and are subject to change and/or elimination. For a summary of the risks of an investment in BMO Mutual Funds, please see the specific risks set out in the simplified prospectus.

 

About BMO LifeStage Plus Funds

BMO LifeStage Plus Funds are products designed to protect a customer’s investment provided that the customer remains invested in a fund until its target end date. 

About BMO Target Education Portfolios

BMO Target Education Portfolios are products designed to meet the needs of investors who are saving money for the purpose of funding a post-secondary education.

About BMO Financial Group

Serving customers for 200 years and counting, BMO is a highly diversified financial services provider – the 8th largest bank, by assets, in North America. With total assets of $880 billion as of January 31, 2020, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.

SOURCE BMO Financial Group

For further information: Media Contact: Colleen Hamilton, Toronto, [email protected], (416) 867-3996