SOURCE: BMO Global Asset Management

BMO Global Asset Management

September 03, 2013 10:00 ET

BMO Global Asset Management Converts Target Date Collective Funds to Mutual Funds

CHICAGO, IL--(Marketwired - Sep 3, 2013) - BMO Global Asset Management is pleased to announce five new open end mutual funds: BMO Target Retirement 2010 Fund, BMO Target Retirement 2020 Fund, BMO Target Retirement 2030 Fund, BMO Target Retirement 2040 Fund and the BMO Target Retirement 2050 Fund. Each fund is available in multiple share classes. The funds are the result of the conversion of the BMO Managed Asset Allocation Program (MAAP) target date collective funds into traditional mutual funds, effective August 30, 2013.

Target date mutual funds may be appropriate for investors planning for retirement who are looking for a simple approach to investing. The management team actively shifts the asset allocation mix of stocks and bonds over time, typically becoming increasingly conservative as the target date, or retirement date, approaches. Defined contribution plan sponsors often include target date funds in their investment line-up, and some have made target date mutual funds their default investment for their plan.

"This transition makes our existing retirement investment solutions more attractive and user-friendly for our plan sponsor clients," said Matt Smith, Managing Director of BMO Retirement Services, a part of BMO Global Asset Management. "We listened to them and restructured our MAAPs into target date mutual funds to accommodate their preference."

"Also, this change makes the funds more easily understood by investors. As mutual funds, daily information about the funds' objectives, performance and holdings is readily available through broadly recognized reporting websites like Morningstar," Smith added. Previously, this information was only available directly from BMO Global Asset Management.

The same portfolio management team at BMO that has been managing the collective funds will remain at the helm. Additionally, the new target date mutual funds are expected to follow the same investment policies and management practices.

Investors who select to invest in the new target date funds by transferring their assets from the closing collective funds should expect no impact to their overall costs. "This will be an easy transition for our current shareholders as only the format of the funds is changing, not the strategy behind them. Retirement plan participants won't be burdened with learning about an entirely new product as we are only changing the type of fund to make it easier for our clients to navigate their plans and monitor performance," Smith added.

These new funds expand BMO's lineup of mutual funds, since previously the collective funds were only available through plan sponsors. In addition to being more accessible to investors, these funds offer the added convenience of portability, allowing investors to roll them over should they convert to traditional or Roth IRAs or switch employers.

The new open end target date mutual funds are available in multiple share classes:

Fund Class Y Class I Class R-3 Class R-6
BMO Target Retirement 2010 Fund BTRYX BTRIX BTRRX BTRTX
BMO Target Retirement 2020 Fund BTRDX BTREX BTRFX BTRGX
BMO Target Retirement 2030 Fund BTRHX BTRJX BTRKX BTRLX
BMO Target Retirement 2040 Fund BTRMX BTRNX BTRPX BTRQX
BMO Target Retirement 2050 Fund BTRUX BTRVX BTRWX BTRZX

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About the BMO Family of Funds
The BMO Funds are a global family of actively managed mutual funds. The firm's 29 funds span the risk/reward spectrum and include: domestic and international equity funds, taxable and tax-free fixed income funds, emerging market equity and money market funds.

The family of funds is managed by a multi-disciplined team based in Chicago and Milwaukee, and by a network of world-class boutique managers, which are strategically located across the globe. This network includes Monegy, Inc., Pyrford International Ltd., Lloyd George Management and Taplin, Canida & Habacht, LLC.

Established in 1992, BMO Funds are advised by BMO Asset Management U.S. and offers Institutional and Investor class shares. Along with its subsidiary boutiques and affiliates, the advisor oversees more than $50 billion in assets under management. BMO Funds is a part of BMO Financial Group, a fully diversified financial services organization with $555 billion total assets and more than 46,000 employees as of April 30, 2013.

BMO Retirement Services is a part of BMO Global Asset Management and a division of the BMO Harris Bank N.A., offering products and services through various affiliates of BMO Financial Group.

BMO Global Asset Management is the brand name for various affiliated entities of BMO Financial Group that provide trust, custody, securities lending, investment management, and retirement plan services. Certain of the products and services offered under the brand name BMO Global Asset Management are designed specifically for various categories of investors in a number of different countries and regions. Products and services are only offered to such investors in those countries and regions in accordance with applicable laws and regulations. BMO Financial Group (NYSE: BMO), is a service mark of Bank of Montreal (BMO).

BMO Asset Management U.S. consists of BMO Asset Management Corp.

BMO Asset Management Corp. is the investment adviser to the BMO Funds. M&I Distributors LLC is the distributor. BMO Funds are not marketed or sold outside the United States.

Investors should carefully consider the investment objectives, risks, charges and expenses of the BMO Funds. This and other important information is contained in the prospectuses and/or summary prospectuses, which can be obtained by calling 1-800-580-3863. Please read carefully before investing.

The investment risks of each Target Date Fund changes over time as its asset allocation changes. They are subject to the volatility of the financial markets, including equity and fixed income investments in the U.S. and abroad and may be subject to risks associated with investing in high yield, small cap, commodity-linked, and foreign securities. 

The target date refers to the approximate year when an investor in the Fund would start withdrawing from the investment, which is assumed age 65. The principal value of the Funds is not guaranteed at any time, including at or after the target date.

All investments involve risk, including the possible loss of principal.

Investment products are: Not FDIC Insured | No Bank Guarantee | May Lose Value

©2013 BMO Financial Corp.

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