Important announcements regarding BMO Funds
Update: January 7, 2022
In prior communications, we shared that the BMO Funds’ Board of Directors approved the planned reorganizations of several BMO Funds into corresponding Columbia Funds and that shareholder proxy statements for each reorganization were filed and mailed in October 2021. Shareholders of each such BMO Fund received a combined proxy statement/prospectus and a proxy card that included additional information about the shareholder meeting, the plan of reorganization, and the new investment advisory or subadvisory agreements applicable with respect to certain Funds.
At a joint meeting of shareholders held on January 7, 2022, shareholders of each of the BMO Funds set forth in the table below (referred to in the table below as the “Merging Funds”) approved the plans of reorganization relevant to such Funds. These reorganizations are expected to close on or about January 21, 2022. In anticipation of this, the last day for purchases and exchanges into, or redemptions from, these Merging Funds will be January 20, 2022.
The following table sets forth each Merging Fund and the corresponding Columbia Fund into which the Merging Fund will be reorganized (referred to in the table as the “Acquiring Funds”), as well as the share classes Merging Fund shareholders will receive in exchange for their Merging Fund share classes as a result of the reorganizations.
Merging Fund | Acquiring Fund |
|---|---|
BMO Large-Cap Growth (Class A, Ticker BALGX, CUSIP 09658W402) | Columbia Integrated Large Cap Growth* (Class A, Ticker ILGCX, CUSIP 19766Q106) |
BMO Large-Cap Growth (Class Y, Ticker MASTX, CUSIP 09658L745) | Columbia Integrated Large Cap Growth* (Class A, Ticker ILGCX, CUSIP 19766Q106) |
BMO Large-Cap Growth (Class I, Ticker MLCIX, CUSIP 09658L752) | Columbia Integrated Large Cap Growth* (Class Advisor, Ticker ILGFX, CUSIP 19766Q403) |
BMO Large-Cap Growth (Class R6, Ticker BLGRX, CUSIP 09658W576) | Columbia Integrated Large Cap Growth* (Class Institutional 3, Ticker ILGJX, CUSIP 19766Q700) |
BMO Large-Cap Value (Class A, Ticker BALVX, CUSIP 09658W303) | Columbia Integrated Large Cap Value* (Class A, Ticker ILVBX, CUSIP 19766Q809) |
BMO Large-Cap Value (Class I, Ticker MLVIX, CUSIP 09658L844) | Columbia Integrated Large Cap Value* (Class Advisor, Ticker ILVEX, CUSIP 19766Q866) |
BMO Large-Cap Value (Class R6, Ticker BLCRX, CUSIP 09658W568) | Columbia Integrated Large Cap Value* (Class Institutional 3, Ticker ILVHX, CUSIP 19766Q833) |
BMO Mid-Cap Growth (Class A, Ticker BGMAX, CUSIP 09658W600) | Columbia Mid Cap Growth (Class A, Ticker CBSAX, CUSIP 19765P299) |
BMO Mid-Cap Growth (Class I, Ticker MRMIX, CUSIP 09658L737) | Columbia Mid Cap Growth (Class Advisor, Ticker CPGRX, CUSIP 19766M725) |
BMO Mid-Cap Value (Class A, Ticker BAMCX, CUSIP 09658W501) | Columbia Select Mid Cap Value (Class A, Ticker CMUAX, CUSIP 19765J863) |
BMO Mid-Cap Value (Class I, Ticker MRVIX, CUSIP 09658L711) | Columbia Select Mid Cap Value (Class Advisor, Ticker CFDRX, CUSIP 19766B356) |
BMO Mid-Cap Value (Class R6, Ticker BMVGX, CUSIP 09658V438) | Columbia Select Mid Cap Value (Class Institutional 3, Ticker CMVYX, CUSIP 19765M239) |
BMO Small-Cap Growth (Class A, Ticker BSLAX, CUSIP 09658V339) | Columbia Integrated Small Cap Growth* (Class A, Ticker ISGDX, CUSIP 19766Q742) |
BMO Small-Cap Growth (Class I, Ticker MSGIX, CUSIP 09658L620) | Columbia Integrated Small Cap Growth* (Class Advisor, Ticker ISGLX, CUSIP 19766Q718) |
BMO Small-Cap Value (Class A, Ticker BACVX, CUSIP 09658W709) | Columbia Small Cap Value II (Class A, Ticker COVAX, CUSIP 19765J798) |
BMO Small-Cap Value (Class I, Ticker MRSNX, CUSIP 09658L596) | Columbia Small Cap Value II (Class Advisor, Ticker CLURX, CUSIP 19766B265) |
BMO Small-Cap Value (Class R6, Ticker BSVGX, CUSIP 09658V388) | Columbia Small Cap Value II (Class Institutional 3, Ticker CRRYX, CUSIP 19766B240) |
BMO Dividend Income (Class A, Ticker BADIX, CUSIP 09658W204) | Columbia Integrated Large Cap Value* (Class A, Ticker ILVBX, CUSIP 19766Q809) |
BMO Dividend Income (Class I, Ticker MDIVX, CUSIP 09658L604) | Columbia Integrated Large Cap Value* (Class Advisor, Ticker ILVEX, CUSIP 19766Q866) |
BMO Low Volatility Equity (Class A, Ticker BLVAX, CUSIP 09658W105) | Columbia Integrated Large Cap Value* (Class A, Ticker ILVBX, CUSIP 19766Q809) |
BMO Low Volatility Equity (Class I, Ticker MLVEX, CUSIP 09658L208) | Columbia Integrated Large Cap Value* (Class Advisor, Ticker ILVEX, CUSIP 19766Q866) |
BMO Disciplined International Equity (Class A, Ticker BDAQX, CUSIP 09658W667) | Columbia Overseas Value (Class A, Ticker COAVX, CUSIP 19765M338) |
BMO Disciplined International Equity (Class I, Ticker BDIQX, CUSIP 09658W659) | Columbia Overseas Value (Class Advisor, Ticker COSVX, CUSIP 19766P884) |
BMO Corporate Income (Class A, Ticker BATIX, CUSIP 09658W733) | Columbia Corporate Income (Class A, Ticker LIIAX, CUSIP 19765N542) |
BMO Corporate Income (Class Y, Ticker MCIYX, CUSIP 09658L851) | Columbia Corporate Income (Class A, Ticker LIIAX, CUSIP 19765N542) |
BMO Corporate Income (Class I, Ticker MCIIX, CUSIP 09658L869) | Columbia Corporate Income (Class Advisor, Ticker CIFRX, CUSIP 19766M808) |
BMO Ultra Short Tax-Free (Class A, Ticker BAUSX, CUSIP 09658W790) | Columbia Ultra Short Municipal Bond* (Class A, Ticker USMBX, CUSIP 19766J235) |
BMO Ultra Short Tax-Free (Class I, Ticker MUISX, CUSIP 09658L539) | Columbia Ultra Short Municipal Bond* (Class Advisor, Ticker USMDX, CUSIP 19766J227) |
BMO Conservative Allocation (Class Y, Ticker BDVYX, CUSIP 09658L299) | Columbia Capital Allocation Conservative (Class A, Ticker ABDAX, CUSIP 19766G546) |
BMO Conservative Allocation (Class I, Ticker BDVIX, CUSIP 09658L331) | Columbia Capital Allocation Conservative (Class Advisor, Ticker CPCYX, CUSIP 19766C263) |
BMO Conservative Allocation (Class R3, Ticker BDVRX, CUSIP 09658L323) | Columbia Capital Allocation Conservative (Class R, Ticker CBVRX, CUSIP 19766G512) |
BMO Conservative Allocation (Class R6, Ticker BDVSX, CUSIP 09658L315) | Columbia Capital Allocation Conservative (Class Institutional 3, Ticker CPDHX, CUSIP 19766N400) |
BMO Moderate Allocation (Class Y, Ticker BMBYX, CUSIP 09658L166) | Columbia Capital Allocation Moderate (Class A, Ticker ABUAX, CUSIP 19766G348) |
BMO Moderate Allocation (Class I, Ticker BMBHX, CUSIP 09658L190) | Columbia Capital Allocation Moderate (Class Advisor, Ticker CPCZX, CUSIP 19766C255) |
BMO Moderate Allocation (Class R3, Ticker BMBQX, CUSIP 09658L182) | Columbia Capital Allocation Moderate (Class R, Ticker CBMRX, CUSIP 19766G314) |
BMO Moderate Allocation (Class R6, Ticker BMBTX, CUSIP 09658L174) | Columbia Capital Allocation Moderate (Class Institutional 3, Ticker CPDMX, CUSIP 19766N608) |
BMO Balanced Allocation (Class Y, Ticker BGRYX, CUSIP 09658L216) | Columbia Capital Allocation Moderate Aggressive (Class A, Ticker NBIAX, CUSIP 19765H792) |
BMO Balanced Allocation (Class I, Ticker BGRHX, CUSIP 09658L240) | Columbia Capital Allocation Moderate Aggressive (Class Advisor, Ticker CGBRX, CUSIP 19766B489) |
BMO Balanced Allocation (Class R3, Ticker BGRRX, CUSIP 09658L232) | Columbia Capital Allocation Moderate Aggressive (Class R, Ticker CLBRX, CUSIP 19765M528) |
BMO Balanced Allocation (Class R6, Ticker BGRQX, CUSIP 09658L224) | Columbia Capital Allocation Moderate Aggressive (Class Institutional 3, Ticker CPHNX, CUSIP 19766B224) |
BMO Growth Allocation (Class Y, Ticker BABYX, CUSIP 09658L380) | Columbia Capital Allocation Aggressive (Class A, Ticker AXBAX, CUSIP 19766G611) |
BMO Growth Allocation (Class I, Ticker BABHX, CUSIP 09658L422) | Columbia Capital Allocation Aggressive (Class Advisor, Ticker CPDAX, CUSIP 19766C248) |
BMO Growth Allocation (Class R3, Ticker BABRX, CUSIP 09658L414) | Columbia Capital Allocation Aggressive (Class R, Ticker CPARX, CUSIP 19766G579) |
BMO Growth Allocation (Class R6, Ticker BABQX, CUSIP 09658L398) | Columbia Capital Allocation Aggressive (Class Institutional 3, Ticker CPDIX, CUSIP 19766N806) |
BMO Aggressive Allocation (Class Y, Ticker BDSYX, CUSIP 09658L257) | Columbia Capital Allocation Aggressive (Class A, Ticker AXBAX, CUSIP 19766G611) |
BMO Aggressive Allocation (Class I, Ticker BDSHX, CUSIP 09658L281) | Columbia Capital Allocation Aggressive (Class Advisor, Ticker CPDAX, CUSIP 19766C248) |
BMO Aggressive Allocation (Class R3, Ticker BDSRX, CUSIP 09658L273) | Columbia Capital Allocation Aggressive (Class R, Ticker CPARX, CUSIP 19766G579) |
BMO Aggressive Allocation (Class Y, Ticker BDSQX, CUSIP 09658L265) | Columbia Capital Allocation Aggressive (Class Institutional 3, Ticker CPDIX, CUSIP 19766N806) |
* Denotes newly-registered funds created to retain the corresponding BMO Fund; all other Columbia Funds are currently in operation.
Shareholders of each Merging Fund will become shareholders of the corresponding Acquiring Fund, receiving shares of the Acquiring Fund equal in value to the shares of the Merging Fund held by the shareholders prior to the applicable reorganization. The reorganizations themselves are not expected to result in the recognition of gain or loss by the Merging Funds or their shareholders for federal tax purposes. Shareholders of the Merging Funds and the Acquiring Funds will not bear the costs of the reorganizations. Certain Merging Funds will reposition their portfolios prior to the reorganizations. Any resulting net capital gains are likely to be distributed to shareholders in early January.
Both capital gains as well as ordinary income distributions will be paid in accordance with the applicable dates below.
- Record Date: 1/18/2022
- Ex-Date and Reinvestment Date: 1/19/2022
- Payment Date: 1/20/2022
If you have any questions about this information, please call 1-800-236-3863.
Update: November 24, 2021
On August 11, 2021, the Board of Directors (the “Board”) of BMO Funds, Inc. (the “Corporation”) approved agreements and plans of reorganization (each a “Plan,” and together, the “Plans”) providing for the reorganization of certain series of the Corporation into a corresponding series of Columbia Funds Series Trust, Columbia Funds Series Trust I or Columbia Funds Series Trust II (each, a “Reorganization,” and together, the “Reorganizations”). The Board’s approval of each Reorganization was subject to approval by shareholders of the applicable series.
At a joint meeting of shareholders held on November 23, 2021, shareholders of each Fund approved the Plan with respect to their Fund. In addition, shareholders of each of the BMO Dividend Income Fund, BMO Large-Cap Value Fund, BMO Mid-Cap Growth Fund, BMO Small-Cap Value Fund, BMO Small-Cap Growth Fund and BMO Disciplined International Equity Fund approved a new investment advisory agreement between the Fund, and Columbia Management Investment Advisers, LLC which will take effect on or about December 16, 2021. Shareholders of the BMO Pyrford International Stock Fund approved a new investment subadvisory agreement between BMO Asset Management Corp. (“BMO AM”) and Pyrford International Ltd., which took effect on November 24, 2021, and shareholders of the BMO LGM Emerging Markets Equity Fund approved a new investment subadvisory agreement between BMO AM and LGM Investments Limited which took effect on November 24, 2021.
The Reorganizations of the BMO Pyrford International Stock Fund, BMO LGM Emerging
Markets Equity Fund, BMO Short Tax-Free Fund, BMO Short-Term Income Fund, BMO Intermediate Tax-Free Fund, BMO Strategic Income Fund and BMO Core Plus Bond Fund are expected to close on or about December 10, 2021 (the “Tranche 1 Reorganizations”). The Reorganizations of the BMO Dividend Income Fund, BMO Large-Cap Value Fund, BMO Mid-Cap Growth Fund, BMO Small-Cap Value Fund, BMO Small-Cap Growth Fund, BMO Disciplined International Equity Fund, BMO Ultra Short Tax-Free Fund and BMO Growth Allocation Fund are expected to close on or about January 21, 2022 (the “Tranche 2 Reorganizations”). The closing of each Reorganization is subject to the satisfaction of the closing conditions set forth in the agreement and plan of reorganization applicable to each Fund. Effective immediately, the Funds participating in the Tranche 1 Reorganizations may begin to reposition their portfolios in preparation for the Reorganizations.
Funds participating in the Tranche 2 Reorganizations will begin to reposition their portfolios in
preparation for the Reorganizations in January 2022. The combined proxy statement/prospectus that was mailed to shareholders of the Funds in advance of the joint meeting of shareholders included an estimate of the portfolio repositioning that was anticipated for each Fund as well as the net capital gains that could be realized due to such repositioning. Prior to the Reorganizations, each Fund will declare and pay a distribution to its shareholders, which, together with all previous distributions, will have the effect of distributing to its shareholders all of its investment company taxable income, net tax-exempt income, if any, and realized net capital gains, if any, through the closing of the Reorganizations.
In anticipation of the Reorganizations, the last day for purchases and exchanges into the Funds, or redemptions from the Funds will be December 9, 2021, for any Fund participating in the Tranche 1 Reorganizations, and January 20, 2022 for any Fund participating in the Tranche 2 Reorganizations.
Update: August 17, 2021
On August 11, 2021, the Board of Directors (the “Board”) of BMO Funds, Inc. (the “Corporation”) approved agreements and plans of reorganization (each a “Plan” and together, the “Plans”) providing for the reorganization of certain series of the Corporation (each a “BMO Fund”) into a corresponding series (each an “Acquiring Fund”) of Columbia Funds Series Trust (“CFST”), Columbia Funds Series Trust I (“CFST I”) or Columbia Funds Series Trust II (“CFST II”) (each a “Reorganization” and together, the “Reorganizations”).
BMO Asset Management Corp. (“BAMC”), investment adviser to each of the BMO Funds, recommended that the Board approve the Reorganizations in connection with its decision to exit the mutual fund investment advisory business in the United States, including ceasing management of the BMO Funds. BAMC’s decision to exit the mutual fund investment advisory business is connected to the decision by Bank of Montreal, BAMC’s parent, to sell the entities representing its EMEA (Europe, the Middle East and Africa) asset management business to Ameriprise Financial, Inc. (the “EMEA Transaction”). To ensure that shareholders of the BMO Funds have continued access to a large and stable mutual fund platform, BAMC has proposed reorganizing the BMO Funds into the Acquiring Funds. Columbia Management Investment Advisers, LLC (“Columbia”) serves as investment adviser to each of the Acquiring Funds.
Each Reorganization is subject to the approval by shareholders of the applicable BMO Fund. The Plans provide for each BMO Fund to transfer all of its assets to the corresponding Acquiring Fund in return for shares of the Acquiring Fund and the Acquiring Fund’s assumption of the BMO Fund’s obligations, as defined in the Plans. Shareholders of each BMO Fund as of the closing date will become shareholders of the corresponding Acquiring Fund, receiving shares of the Acquiring Fund equal in value to the shares of the BMO Fund held by the shareholders prior to the applicable Reorganization. The Reorganizations are not expected to result in the recognition of gain or loss by the BMO Fund or its shareholders for federal tax purposes. Shareholders of the BMO Funds and the Acquiring Funds will not bear the costs of the Reorganizations.
The tables below show the BMO Funds and corresponding Acquiring Funds.
Proposed Reorganizations from the Corporation into CFST
BMO Fund | Corresponding Acquiring Fund |
|---|---|
BMO Disciplined International Equity Fund | Columbia Overseas Value Fund |
BMO Mid-Cap Value Fund | Columbia Select Mid Cap Value Fund |
BMO Small-Cap Value Fund | Columbia Small Cap Value Fund II |
BMO Short Tax-Free Fund | Columbia Short Term Municipal Bond Fund |
BMO Short-Term Income Fund | Columbia Short Term Bond Fund |
BMO Balanced Allocation Fund | Columbia Capital Allocation Moderate Aggressive Portfolio |
Proposed Reorganizations from the Corporation into CFST I
BMO Fund | Corresponding Acquiring Fund |
|---|---|
BMO LGM Emerging Markets Equity Fund | Columbia Emerging Markets Fund |
BMO Mid-Cap Growth Fund | Columbia Mid Cap Growth Fund |
BMO Core Plus Bond Fund | Columbia Total Return Bond Fund |
BMO Corporate Income Fund | Columbia Corporate Income Fund |
BMO Intermediate Tax-Free Fund | Columbia Intermediate Municipal Bond Fund |
BMO Strategic Income Fund | Columbia Strategic Income Fund |
Proposed Reorganizations from the Corporation into CFST II
BMO Fund | Corresponding Acquiring Fund |
|---|---|
BMO Conservative Allocation Fund | Columbia Capital Allocation Conservative Portfolio |
BMO Moderate Allocation Fund | Columbia Capital Allocation Moderate Portfolio |
BMO Growth Allocation Fund | Columbia Capital Allocation Aggressive Portfolio |
BMO Aggressive Allocation Fund | Columbia Capital Allocation Aggressive Portfolio |
BMO Dividend Income Fund | Columbia Integrated Large Cap Value Fund |
BMO Large Cap Value Fund | Columbia Integrated Large Cap Value Fund |
BMO Low Volatility Equity Fund | Columbia Integrated Large Cap Value Fund |
BMO Large-Cap Growth Fund | Columbia Integrated Large Cap Growth Fund |
BMO Small-Cap Growth Fund | Columbia Integrated Small Cap Growth Fund |
BMO Pyrford International Stock Fund | Columbia Pyrford International Stock Fund |
BMO Ultra Short Tax-Free Fund | Columbia Ultra Short Municipal Bond Fund |
Share Class Mapping
If a BMO Fund’s shareholders approve a Reorganization, the BMO Fund shareholders will receive shares of the corresponding Acquiring Fund as set forth in the table below.
BMO Fund Share Class | Acquiring Fund Share Class |
|---|---|
Class A | Class A |
Class I | Class Advisor |
Class R6 | Class Inst3 |
Class Y | Class A |
Class R3 | Class R |
Interim Advisory and Subadvisory Agreements
BAMC’s disciplined equity team (the “DE Team”) manages the (1) BMO Disciplined International Fund, (2) BMO Mid-Cap Value Fund, (3) BMO Small-Cap Value Fund, (4) BMO Mid-Cap Growth Fund, (5) BMO Dividend Income Fund, (6) BMO Large-Cap Value Fund, (7) BMO Low Volatility Equity Fund, (8) BMO Large-Cap Growth Fund, and (9) BMO Small-Cap Growth Fund (together, the “DE Funds”). The DE Team will transfer to become employees of Columbia on or about December 16, 2021. On August 11, 2021, the Board approved an interim investment advisory agreement between Columbia and the Corporation, on behalf the DE Funds that will go into effect when the DE Team transfers to Columbia, if one or more of the DE Funds have not reorganized into the corresponding Acquiring Fund as of the transfer date. Shareholders of the DE Funds will be asked to approve a new investment advisory agreement between Columbia and the Corporation in addition to being asked to approve the applicable Reorganization. The interim advisory agreement can continue in effect for 150 days or until shareholders of a DE Fund approve a new investment advisory agreement between Columbia and the Corporation.
Pyrford International Ltd. (“Pyrford”) serves as investment subadviser to the BMO Pyrford International Stock Fund (the “Pyrford Fund”) pursuant to a subadvisory agreement with BAMC. LGM Investments Limited (“LGM”) serves as the investment subadviser to the BMO LGM Emerging Markets Equity Fund (the “LGM Fund”) pursuant to a subadvisory agreement with BAMC. The change of control of Pyrford and LGM resulting from the EMEA Transaction in the fourth quarter of 2021 will trigger an assignment and termination of the subadvisory agreements for the Pyrford Fund and the LGM Fund. In order to ensure continuity of portfolio management for the Pyrford Fund and the LGM Fund, the Board approved interim subadvisory agreements between BAMC and LGM for the LGM Fund and between BAMC and Pyrford for the Pyrford Fund. Each interim subadvisory agreement will go into effect on the date that Pyrford and LGM undergo a change of control. The interim subadvisory agreements can continue in effect for 150 days or until shareholders of the Pyrford Fund and the LGM Fund approve a new subadvisory agreement. Shareholders of the Pyrford Fund and LGM Fund will be asked to approve new investment subadvisory agreements between BAMC and Pyrford and BAMC and LGM, respectively, in addition to being asked to approve the applicable Reorganization
BMO Funds Shareholder Meeting
The Board will call a joint meeting of shareholders of the BMO Funds at which shareholders of each BMO Fund will be asked to consider and vote on a Plan with respect to their BMO Fund. As indicated above, shareholders of the DE Funds will also be asked to consider and vote on a new investment advisory agreement, and shareholders of the Pyrford Fund and LGM Fund will be asked to consider and vote on new subadvisory agreements. The joint shareholder meeting is expected to take place during the fourth quarter of 2021.
Shareholders of each BMO Fund will receive a combined prospectus/proxy statement with additional information about the shareholder meeting, the Reorganizations and the new investment advisory or subadvisory agreements. Please read the proxy materials carefully, as they will contain a more detailed description of the proposals.
Original message: April 12, 2021
BMO Asset Management Corp. (the “Adviser”), the investment adviser to each Fund, is part of BMO Financial Group (“BMO”). On April 12, 2021, BMO announced that it has reached a definitive agreement with Ameriprise Financial, Inc. (“Ameriprise”) to sell the entities that represent BMO’s EMEA (Europe, the Middle-East and Africa) Asset Management business. Separately, in the U.S. BMO and Ameriprise have agreed to work together to facilitate the transition of investment advisory services for certain mutually agreed upon BMO Funds, contingent upon the approval of the Funds’ Board of Directors and shareholders. Additional information will be provided to Fund shareholders once it becomes available.