BMO AM to shutter three bond ETFs

BMO Asset Management plans to scrap the BMO 2015 Corporate Bond Target Maturity ETF, BMO 2020 Corporate Bond Target Maturity ETF, and BMO 2025 Corporate Bond Target Maturity ETF on or about August 7, 2015.

As of Friday, BMO AM wasn’t accepting any more direct subscriptions.

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All units of the Funds held by investors after the termination date will be subject to mandatory redemption.

BMO will convert the ETFs into cash, to the extent practicable. Upon the Termination Date, each Fund’s property remaining after paying or providing for the relevant Fund’s liabilities and obligations will be distributed pro rata among the Funds’ respective unitholders based on the net asset value per unit of the Fund that is held by such unitholders.

BMO AM will request the TSX to de-list units of the Funds from the Toronto Stock Exchange on or about August 4, 2015. Until such date, units of the Funds will continue to be listed on the TSX.

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Staff

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