News Releases
BMO Investments Inc. today announced that shareholders approved the following changes to BMO Global Balanced Class and BMO Short-Term Income Class.
BMO Global Balanced Class
The shareholders of this fund approved the proposed changes to the investment objectives at the shareholders meeting that was held on April 26, 2007. Accordingly, effective April 30, 2007, the investment objectives for BMO Global Balanced Class will be changed in order to allow the fund to invest primarily in dividend-yielding common and preferred shares of companies from around the word. The fund's name will also be changed at this time to “BMO Global Dividend Class” to reflect the change to the fund's investment objectives.
“Investors are increasingly looking outside of Canada for opportunities to participate in the stability and growth potential of large-cap blue chip firms,” said Ed Legzdins, President and CEO, BMO Investments Inc. “Investors in BMO Global Dividend Class will benefit from global equity exposure and geographic diversification in their portfolio, with an emphasis on dividend distributing equities.”
In addition, as of April 30, 2007, KBC Asset Management International Limited will become the portfolio manager for this fund, replacing Insight Investment Management (Global) Limited.
KBC is a wholly-owned subsidiary of KBC Asset Management Ltd., in Dublin, Ireland, which has been managing assets for more than 25 years and is ultimately owned by the KBC Group, a financial services provider headquartered in Brussels and publicly listed on the Euronext Stock Exchange with operations in more than 30 countries. KBC and related companies had more than $26 billion in assets under management as of December 31, 2006.
BMO Short-Term Income Class
The shareholders of this fund approved the proposed changes to this fund's investment objectives, as described below, at the shareholders meeting that was held on April 26, 2007. The approved changes, including the name change from “BMO Short Term Income Class” to “BMO Capital Yield Class”, will be implemented later in the year, when the manager is in a position to proceed with the changes in a manner that is cost-effective and compliant with applicable regulatory requirements, and is in the best interests of the shareholders.
Once implemented, the new investment objectives will be to provide a return similar to that of a fixed income fund by investing primarily in Canadian equity securities and entering into forward contracts or other permitted derivatives in order to provide the fund with a return determined by reference to the performance of a fixed income fund. It is expected that the earnings derived from these transactions will be treated as capital gains and, if distributed to shareholders, will be capital gains dividends for tax purposes. Where, in the opinion of the portfolio manager, the after tax returns do not outweigh the costs of using the derivative strategy, the fund may primarily invest directly in fixed income securities. In these circumstances, it is expected that the earnings generated will be interest income.
About BMO Investments Inc.
BMO Investments Inc. is a member of the BMO Financial Group and part of the organization's Private Client Group. The Private Client Group provides integrated wealth management services in Canada and the United States and had total assets under management and administration and term investments of $296.5 billion as at January 31, 2007.
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