BMO is cutting distributions for several of its funds, including BMO Monthly Income and BMO Global Monthly Income. Overall, it’s a step in the right direction, says Dan Hallett, vice president and director of asset management at HighView Financial.
“According to a BMO advisor communication, BMO Monthly Income will reduce its distribution from $0.06 per unit monthly to $0.024 – a reduction of 60 percent. BMO Global Monthly Income will see its distribution fall from $0.055 to $0.016 per unit monthly – a 71% cut. Both changes kick in on May 16,” he notes.
While the changes will sting investors who depend on the funds’ payouts, the move is positive on the whole because “current distributions are just not sustainable,” says Hallett.
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