BMO changes mutual fund payouts and lineup

BMO Investments is changing the way some of its mutual funds distribute income or return capital. It’s also cut off a number of funds from new investors.

Starting January 2014, Series F and Advisor Series of BMO Global Diversified Fund and Series A, Series F, Series I and Advisor Series of BMO Global Dividend Fund will distribute any net income and/or return of capital on a fixed monthly basis, rather than on a quarterly and annual basis, respectively. The changes, summarized in the table below, will provide customers with predictable and regular monthly cash flow.

Read: BMO faces seg fund players head on

As of November 4, BMO Investments Inc. is now offering Series T6 on each of the BMO SelectTrust and BMO ETF Trust Portfolios. The newly launched Series T6 securities widen the range of cash flow investments available through BMO Mutual Funds and provide investors with predictable monthly cash flow. With the distribution rate set at the beginning of each year, these series make monthly distributions based on 6% annually of the net asset value per security of the series; this amount will include some return of capital.

Effective after the close of business on November 21, 2013, the series below will be capped and will no longer be offered for sale to new or existing investors.

Read: RBC to add 4 ETFs to lineup

Effective December 13, 2013, each of the following funds will offer Series NBA and Series NBF securities: BMO Bond Fund, BMO Asset Allocation Fund, BMO U.S. Equity Fund, BMO FundSelect Balanced Portfolio, BMO FundSelect Growth Portfolio and BMO FundSelect Equity Growth Portfolio. Series NBA securities and Series NBF securities of the funds may be purchased through sales representatives of BMO Nesbitt Burns Inc.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.