BMO is adding a new discount series to its mutual fund lineup, among other changes to the structure of its funds.
The new series should be available starting April 3, and it will be available through BMO InvestorLine Inc. Thirty-three of its funds will come in this option, including BMO ETF Portfolios.
The firm is also reducing management fees across its Series F funds.
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Some of BMO’s funds will be closed to new buys as of next week, including Series R of BMO Monthly Income Fund, BMO Global Monthly Income Fund, BMO U.S. Dollar Monthly Income Fund and BMO Diversified Income Portfolio.
It also affects Series I of BMO Security ETF Portfolio Class, BMO Balanced ETF Portfolio Class, BMO Growth ETF Portfolio Class, BMO Equity Growth ETF Portfolio Class, BMO U.S. Dollar Money Market Fund, BMO FundSelect Security Portfolio, BMO FundSelect Balanced Portfolio, BMO FundSelect Growth Portfolio and BMO FundSelect Equity Growth Portfolio.
Further, Series H of BMO LifeStage 2017 Class, BMO LifeStage 2020 Class, BMO LifeStage 2025 Class, BMO LifeStage 2030 Class, BMO LifeStage 2035 Class and BMO LifeStage 2040 Class, won’t be available.
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Starting April 4, the BMO Global Diversified Fund will have a new investment strategy. It’s managers will be able to invest up to 100% of the fund’s assets in securities of other mutual funds and exchange traded funds.
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Change of Portfolio Manager
Effective on or about June 13, 2014, Lazard Asset Management (Canada), Inc. will no longer act as portfolio manager for any portion of BMO U.S. Dollar Monthly Income Fund and will be replaced with BMO Asset Management Corp., Monegy, Inc. and Taplin, Canida & Habacht, LLC. There will be minor changes to the fund’s investment strategies as a result of this portfolio manager change.
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Risk Rating Changes
The risk rating for the following funds changed as set out below, effective immediately, to align better with these funds’ risk levels.
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|Fund||Current Rating||New Rating|
|BMO U.S. Dollar Balanced Fund||Medium||Low to Medium|
|BMO U.S. Dollar Monthly Income Fund|
|BMO Global Diversified Fund|
|BMO Global Absolute Return Fund||Medium to high||Medium|
|BMO Emerging Markets Fund||Medium to high||High|
These new risk ratings are not as a result of any changes to the investment objectives, strategies or portfolio management of these mandates.