News Releases

TORONTO, May 23, 2024 /CNW/ - BMO Asset Management Inc., as manager of the BMO ETFs, and BMO Investments Inc., as manager of the BMO Mutual Funds, today announced the May 2024 cash distributions for unitholders of BMO ETFs and unitholders of ETF Series units of the BMO Mutual Funds (ETF Series) that distribute monthly, as set out in the table below. BMO Asset Management Inc. also announced notional non-cash reinvested distributions (each a "Notional Distribution") for certain BMO ETFs. Unitholders of record of the BMO ETFs and ETF Series at the close of business on May 30, 2024 will receive cash distributions payable on June 4, 2024.

The ex-dividend date and record date for all BMO ETFs and ETF Series of BMO Mutual Funds is May 30, 2024.

Details of the per unit cash distribution amount are as follows:

*Cash distribution per unit ($) amounts are USD for ZJK.U, ZPR.U, ZIC.U, ZUAG.U, ZUP.U, ZWB.U, ZMI.U, ZPAY.U, ZUS.U, ZUCM.U, ZDY.U, ZWH.U, and ZPW.U.

Each BMO ETF listed in the following table made a Notional Distribution, expressed in the table as a dollar amount per unit, to all unitholders of record on the relevant Record Date:

A Notional Distribution occurs when a BMO ETF makes a distribution in the form of units, which are then immediately consolidated with the units issued and outstanding held prior to the distribution, so that the total number of units held after the distribution is identical to the number of units held prior to the distribution.

Each of these BMO ETFs was launched in 2023. These tax adjustments occurred because none of these BMO ETFs has qualified as a 'mutual fund trust' under the Income Tax Act (Canada) (the "Tax Act") and each has been a 'financial institution' as defined under the Tax Act for at least a portion of its existence. (Generally, a BMO ETF is a 'financial institution' at any time that it does not qualify as a 'mutual fund trust' if more than 50% of its units are held by one or more 'financial institutions'.)

Further information about BMO ETFs and ETF Series of the BMO Mutual Funds can be found at www.bmo.com/etfs.

Commissions, management fees and expenses all may be associated with investments in BMO ETFs and ETF Series of the BMO Mutual Funds. Please read the ETF facts or prospectus of the relevant BMO ETF or ETF Series before investing. BMO ETFs and ETF Series are not guaranteed, their values change frequently, and past performance may not be repeated.

For a summary of the risks of an investment in the BMO ETFs or ETF Series of the BMO Mutual Funds, please see the specific risks set out in the prospectus. BMO ETFs and ETF Series trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase the risk of loss.

BMO ETFs are managed by BMO Asset Management Inc., which is an investment fund manager and a portfolio manager, and a separate legal entity from Bank of Montreal. ETF Series of the BMO Mutual Funds are managed by BMO Investments Inc., which is an investment fund manager and a separate legal entity from Bank of Montreal.

Distributions are not guaranteed and may fluctuate. Distribution rates may change without notice (up or down) depending on market conditions. The payment of distributions should not be confused with an investment fund's performance, rate of return or yield. If distributions paid by an investment fund are greater than the performance of the fund, your original investment will shrink. Distributions paid as a result of capital gains realized by an investment fund, and income and dividends earned by an investment fund, are taxable in your hands in the year they are paid. Your adjusted cost base will be reduced by the amount of any returns of capital. If your adjusted cost base goes below zero, you will have to pay capital gains tax on the amount below zero. Please refer to the distribution policy for the relevant BMO ETF or ETF Series set out in its prospectus.

Cash distributions, if any, on units of a BMO ETF or an ETF Series (other than accumulating units or units subject to a distribution reinvestment plan) are expected to be paid primarily out of dividends or distributions, and other income or gains, received by the BMO ETF or ETF Series less the expenses of the BMO ETF or ETF Series, but may also consist of non-taxable amounts including returns of capital, which may be paid in the manager's sole discretion. To the extent that the expenses of a BMO ETF or an ETF Series exceed the income generated by such BMO ETF or ETF Series in any given month, quarter or year, as the case may be, it is not expected that a monthly, quarterly, or annual distribution will be paid. Distributions, if any, in respect of the accumulating units of BMO Short Corporate Bond Index ETF, BMO Short Federal Bond Index ETF, BMO Short Provincial Bond Index ETF, BMO Ultra Short-Term Bond ETF and BMO Ultra Short-Term US Bond ETF will be automatically reinvested in additional accumulating units of the applicable BMO ETF. Following each distribution, the number of accumulating units of the applicable BMO ETF or ETF Series will be immediately consolidated so that the number of outstanding accumulating units of the applicable BMO ETF or ETF Series will be the same as the number of outstanding accumulating units before the distribution. Non-resident unitholders may have the number of securities reduced due to withholding tax. Certain BMO ETFs and ETF Series have adopted a distribution reinvestment plan, which provides that a unitholder may elect to automatically reinvest all cash distributions paid on units held by that unitholder in additional units of the applicable BMO ETF or ETF Series in accordance with the terms of the distribution reinvestment plan. For further information, see the distribution policy for the relevant BMO ETF or ETF Series set out in its prospectus.

"BMO (M-bar roundel symbol)" is a registered trademark of Bank of Montreal, used under license.

About BMO Exchange Traded Funds (ETFs)
BMO Exchange Traded Funds has been an ETF provider in Canada for more than 14 years, with over 1800 strategies, over 23 per cent market share in Canada¹, and $97.5 billion in assets under management. BMO ETFs are designed to stay ahead of market trends and provide compelling solutions to help advisors and investors. This includes a comprehensive suite of ETFs developed in Canada for Canadians, such as cost effective core equity ETFs following market leading indexes, and a broad range of fixed income ETFs; solution-based ETFs responding to client demand; and innovation with smart beta ETFs, as well as combining active and passive investing with ETF series of active mutual funds.

¹Morningstar, December 2023

BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.3 trillion as of January 31, 2024. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to 13 million customers across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and inclusive society.

SOURCE BMO Financial Group