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BMO Investments Inc. Announces New Fund and Series Launches and Changes to its Mutual Fund Lineup

TORONTO, May 4, 2018 /CNW/ - BMO Investments Inc. (BMOII) today announced new mutual fund and series launches, fee reductions, sub-advisor appointments, risk rating changes and discontinuation of the standard DSC purchase option across its lineup.

New Mutual Fund Launches

BMOII has expanded its mutual fund lineup with global solutions providing investors with precise exposures and additional portfolio building blocks to help navigate the rapidly changing environment.

"We recognize that investing in global solutions and the continued need for income are core priorities for investors," said Kevin Gopaul, Head of BMO Global Asset Management Canada. "We are excited to add unique exposures and broader solutions that allow investors to pivot their portfolios, add income and add more global reach easily."

BMOII has launched the following new funds with Series A, Series F, Series D, Series I and Advisor Series securities (subject to receipt of securities regulatory approval):

  • BMO Concentrated Global Equity Fund – This fund provides investors with a portfolio of global high quality equity securities, investing with high concentration to deliver long-term capital appreciation.
  • BMO Covered Call Canada High Dividend ETF Fund – This fund invests, directly or indirectly, in dividend paying Canadian equities with additional yield through a covered call overlay, complementing BMOII's existing suite of covered call funds.
  • BMO Crossover Bond Fund – This fund offers a targeted exposure to BBB and BB rated bonds issued by corporations in developed markets, delivering a precise credit vehicle for portfolio construction.
  • BMO Global Multi-Sector Bond Fund – This fund is designed for investors looking for a high level of interest income with the ability to respond to changing markets by investing in a diversified portfolio of global fixed income securities.
  • BMO Multi-Factor Equity Fund – This fund invests systematically in U.S. equities by identifying factor exposures to enhance portfolio construction.
  • BMO U.S. Small Cap Fund – This fund provides systematic return opportunities from smaller and mid-sized companies to complement traditional U.S. exposures.

New Cash Flow Options

BMOII has expanded its cash flow solutions with Series T6 securities being added to each of the following BMO AscentTM Portfolios (subject to receipt of securities regulatory approval):

  • BMO AscentTM Balanced Portfolio
  • BMO AscentTM Conservative Portfolio
  • BMO AscentTM Equity Growth Portfolio
  • BMO AscentTM Growth Portfolio
  • BMO AscentTM Income Portfolio

BMOII has also expanded its cash flow solutions with Series F2 securities being added to five of the following BMO ETF Portfolios (subject to receipt of securities regulatory approval):

  • BMO Conservative ETF Portfolio
  • BMO Equity Growth ETF Portfolio
  • BMO Fixed Income ETF Portfolio
  • BMO Growth ETF Portfolio
  • BMO Income ETF Portfolio

New Discount Series Offerings

BMOII has expanded its discount series offering by adding Series D securities to the following funds (subject to receipt of securities regulatory approval):

  • BMO International Equity Fund
  • BMO Japan Fund

Fee Reductions

Effective immediately, BMOII reduced management fees by up to 25 basis points on Series A, Series F, Series D, Advisor Series, Series T6 and Series G on four BMO Mutual Funds as indicated in the table below:

Fund

Current  Management Fee

New Management Fee

BMO Core Bond Fund

Series F: 0.40%

Series F: 0.35%

BMO Core Plus Bond Fund

Series F: 0.50%

Series F: 0.40%

BMO Fixed Income ETF Portfolio

Series A: 1.00%

Series F: 0.35%

Series D: 0.60%

Advisor Series: 1.00%

Series T6: 1.00%

Series G: 0.70%

Series A: 0.75%

Series F: 0.25%

Series D: 0.40%

Advisor Series: 0.75%

Series T6: 0.75%

Series G: 0.50%

BMO Women In Leadership Fund

Series A: 1.40%

Series F: 0.40%

Series D: 0.65%

Advisor Series: 1.40%

Series A: 1.25%

Series F: 0.25%

Series D: 0.50%

Advisor Series: 1.25%

 

Effective immediately, BMOII also reduced the administration fee on two BMO Mutual Funds as indicated in the table below:

Fund

Current Administration Fee

New Administration Fee

BMO Core Bond Fund

0.15%

0.10%

BMO Core Plus Bond Fund

0.15%

0.10%

 

Sub-Advisor Appointments

Effective May 4, 2018, BMO Asset Management Inc. appointed sub-advisors for the following funds:

  • F&C Management Limited as sub-advisor for BMO Fossil Fuel Free Fund, BMO Global Equity Class, BMO Global Equity Fund and BMO World Bond Fund
  • BMO Asset Management Corp. as sub-advisor for BMO Global Growth & Income Fund

BMO Asset Management Inc. remains the portfolio manager for these funds. There are no changes to the funds' fundamental investment objectives, investment restrictions or principal risks as a result of the appointment of these sub-advisors.

Risk Rating Changes

Effective immediately, the risk ratings of the funds listed in the table below have changed. There are no changes to the investment objectives, strategies or management of these funds associated with the new risk ratings.

These changes are based on the new standardized risk classification methodology mandated by the Canadian Securities Administrators and an annual review by BMOII to determine the risk level of publicly offered mutual funds.

Funds with a lower risk rating:

Fund

Previous Risk Rating

New Risk Rating

BMO AscentTM Conservative Portfolio

Low to Medium

Low

BMO Dividend Class

Medium

Low to Medium

BMO Dividend Fund

Medium

Low to Medium

BMO Emerging Markets Fund

High

Medium to High

BMO Enterprise Fund

Medium to High

Medium

BMO LifeStage Plus 2020 Fund

Low to Medium

Low

BMO North American Dividend Fund

Medium

Low to Medium

BMO Retirement Balanced Portfolio

Low to Medium

Low

BMO SelectTrust® Conservative Portfolio

Low to Medium

Low

BMO Tactical Dividend ETF Fund

Medium

Low to Medium

BMO Target Education 2020 Portfolio

Low to Medium

Low

 

Fund with a higher risk rating:

Fund

Previous Risk Rating

New Risk Rating

BMO U.S. High Yield Bond Fund

Low to Medium

Medium

 

Discontinuation of Standard DSC Purchase Option

Effective after the close of business on May 4, 2018, the standard deferred sales charge (DSC) purchase option will no longer be offered for new purchases, including pre-authorized purchases under a Continuous Savings Plan, across the entire BMO Mutual Funds lineup. The low load DSC purchase option will continue to be available to investors.

BMOII has not offered any new mutual funds under the standard DSC purchase option since April 2016.

Investors with existing standard DSC purchase option holdings will remain invested based on the redemption fee schedule applicable to those securities, and switches from existing securities acquired under the standard DSC purchase option will continue to be available.  

"With the changing regulatory environment, we've made the decision to close our standard DSC offering to new purchases to align with advisors transitioning and simplifying their businesses," said Mr. Gopaul.

For more information about BMO Mutual Funds please visit www.bmo.com/mutualfunds.

TM/® Trademarks of Bank of Montreal, used under licence. BMO Mutual Funds are offered by BMO Investments Inc., a financial services firm and separate legal entity from Bank of Montreal.

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

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund facts or prospectus of the relevant mutual fund before investing.  Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. 

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 $728 billion as of January 31, 2018, 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 Contacts: Alicia Skrinjar, Toronto, alicia.skrinjar@bmo.com, (416) 867-3996; Valérie Doucet, Montreal, valerie.doucet@bmo.com, (514) 877-8224

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