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BMO receives holder approval for mutual fund merger

2021-06-21 15:29 ET - News Release

An anonymous director reports

BMO INVESTMENTS INC. ANNOUNCES RESULTS OF ANNUAL AND SPECIAL MEETINGS OF SECURITYHOLDERS

Bank of Montreal's BMO Investments Inc., the manager of the BMO mutual funds, confirmed that the previously announced merger of BMO Floating Rate Income Fund into BMO U.S. High Yield Bond Fund will proceed since securityholder approval was obtained at a special meeting held on June 18, 2021, and securities regulatory approval has also been received for this merger.

This merger will be effected on a taxable basis for securityholders of BMO Floating Rate Income Fund. Effective on or about June 25, 2021, securityholders of each series of BMO Floating Rate Income Fund will receive securities of the same series of BMO U.S. High Yield Bond Fund, determined on a dollar-for-dollar basis, and then BMO Floating Rate Income Fund will be wound up as soon as reasonably possible.

Securityholders of BMO Floating Rate Income Fund will have the right to redeem securities of, or make switches out of, BMO Floating Rate Income Fund up to the close of business on June 24, 2021. If a securityholder redeems securities of BMO Floating Rate Income Fund that were purchased under the standard deferred sales charge or the low load option, any applicable redemption fees will remain payable by the securityholder.

In addition, the merger of BMO Monthly Dividend Fund Ltd. into BMO Dividend Fund will not proceed as previously announced since securityholders of BMO Monthly Dividend Fund did not approve this merger at a special meeting held on June 18, 2021. BMO Monthly Dividend Fund will continue to be available for purchase by investors. Classic series securities of BMO Dividend Fund will not be available for purchase, effective June 24, 2021, as this series of securities was only created to facilitate the merger.

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

BMO mutual funds are managed by BMO Investments, which is an investment fund manager and a separate legal entity from Bank of Montreal.

Commissions, trailing commissions (if applicable), management fees and expenses all may be associated with mutual fund investments. Please read the fund facts or the 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. 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 Bank of Montreal

Serving customers for 200 years and counting, BMO is a highly diversified financial services provider -- the eighth-largest bank, by assets, in North America. With total assets of $950-billion as of April 30, 2021, 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.

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