BMO Financial Group

BMO Financial Group

March 28, 2016 17:21 ET

BMO Investments Inc. Advises of Proposed Tax Changes to Corporate Class Funds

TORONTO, ONTARIO--(Marketwired - March 28, 2016) - The Federal Government budget released on March 22, 2016 included a proposal that will treat an exchange of shares of a mutual fund corporation, from one fund to another fund, as a disposition at fair market value for tax purposes (the Budget Proposal). The Budget Proposal states that it will be effective after September 2016.

The Budget Proposal will generally impact all funds that are classes of multi-class mutual fund corporations, including those of BMO Global Tax Advantaged Fund Inc. (GTAF Funds) which are managed by BMO Investments Inc. Currently, investors in multi-class mutual fund corporations are generally able to exchange shares of one class of the mutual fund corporation for shares of another class in order to switch their investment exposure without realizing a disposition for tax purposes. As a result of the Budget Proposal, after September 2016 investors will realize a capital gain or loss on their shares when they effect such exchanges.

BMO Investments Inc. continues to assess the implications of the Budget Proposal and its potential impact on the GTAF Funds.

The GTAF Funds impacted by the Budget Proposal are:

BMO Asian Growth and Income Class BMO Short-Term Income Class
BMO Canadian Equity Class BMO U.S. Equity Class
BMO Canadian Low Volatility ETF Class BMO SelectClass® Income Portfolio
BMO Dividend Class BMO SelectClass® Balanced Portfolio
BMO Global Dividend Class BMO SelectClass® Growth Portfolio
BMO Global Energy Class BMO SelectClass® Equity Growth Portfolio
BMO Global Equity Class BMO Income ETF Portfolio Class
BMO Global Low Volatility ETF Class BMO Balanced ETF Portfolio Class
BMO Greater China Class BMO Growth ETF Portfolio Class
BMO International Value Class BMO Equity Growth ETF Portfolio Class

In light of the Budget Proposal, investors should speak with their investment professional and/or tax advisor about their investment options regarding funds that are classes of multi-class mutual fund corporations such as the GTAF Funds.

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BMO Mutual Funds are offered by BMO Investments Inc., a financial services firm and separate legal entity from Bank of Montreal. GTAF Funds are classes of BMO Global Tax Advantage Funds Inc., a separate entity managed by BMO Investments Inc. For details on how these funds are structured to allow transfers without the realization of capital gains (subject to the implementation of the Budget Proposals), please read the fund facts or prospectus. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments and the use of an asset allocation service. Please read the fund facts or prospectus of the mutual fund before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

About BMO Financial Group

Established in 1817, BMO Financial Group is a highly diversified financial services provider based in North America. With total assets of $699 billion as of January 31, 2016, and close to 47,000 employees, BMO provides a broad range of retail 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, Wealth Management and BMO Capital Markets.

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