TORONTO, Aug. 18, 2021 /CNW/ – BMO Asset Management Inc. (“BMOAM”) today announced it is reducing the annual management fees on BMO Equal Weight Banks Index ETF (“ZEB”) and BMO Monthly Income ETF (“ZMI”).
Effective on or about September 1, 2021, the annual management fees for ZEB and ZMI will be reduced as follows:
|BMO Equal Weight Banks Index ETF||ZEB||0.55||0.25|
|BMO Monthly Income ETF||ZMI||0.55||0.18|
“Since our first launch in 2009, the BMO ETF team has continuously looked for opportunities for investors to benefit from the growth of our products. With ZEB, we are recognizing the success of the largest Canadian bank ETF, built with an easy-to-understand equal weight strategy. Canadian banks are a core holding in investors’ portfolios and deliver both dividend yield and market growth, where we saw record net subscriptions in July 2021,” said Mark Raes, Head of Product, BMO Global Asset Management Canada. “On ZMI, we are addressing investor demand for all-in-one, easy-to-use income solutions. With these fee reductions, we are continuing on our path of partnering with investors and passing on savings to them.”
Proposed Investment Objective Changes
BMOAM today also announced proposed changes to the investment objectives (collectively the “Investment Objective Changes”) of BMO China Equity Index ETF (“ZCH”) and BMO India Equity Index ETF (“ZID”) to, among other things, add a responsible investment overlay to the ETFs.
Subject to obtaining all necessary approvals BMOAM proposes to change the investment objectives for each of ZCH and ZID, which will result in corresponding other changes to the BMO ETFs, including:
- Changing the names to BMO MSCI China ESG Leaders Index ETF and BMO MSCI India ESG Leaders Index ETF
- Changing indexes to the MSCI China ESG Leaders Index and MSCI India ESG Leaders Index
- Investing directly in local markets
- Lowering the annual management fees from 0.65 per cent to 0.60 per cent
“We are excited to have the opportunity to broaden these ETFs by investing directly in local markets,” commented Mr. Raes. “We also recognize the investor demand for ESG solutions and are pleased to extend our partnership with MSCI by tracking further indexes from the well-known MSCI ESG Leaders suite.”
If approved, the Investment Objective Change for ZCH will be effective on or about December 3, 2021 and the Investment Objective Change for ZID will be effective on or about December 13, 2021.
Approval from unitholders of ZCH and ZID will be sought at special meetings to be held on November 5, 2021.
In advance of the meetings, a notice-and-access document will be sent to unitholders of record as at September 20, 2021. The notice-and-access document will describe the various ways in which securityholders can obtain a copy of a management information circular that contains full details of the proposed investment objective changes. The notice-and-access document and management information circular will also be available on SEDAR at www.sedar.com.
Further information about BMO ETFs can be found at www.bmo.com/etfs.
The BMO ETFs or securities referred to herein are not sponsored, endorsed or promoted by MSCI Inc. (“MSCI”), and MSCI bears no liability with respect to any such BMO ETFs or securities or any index on which such BMO ETFs or securities are based. The prospectus of the BMO ETFs contains a more detailed description of the limited relationship MSCI has with BMO Asset Management Inc. and any related BMO ETFs.
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Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the ETF Facts or prospectus of the BMO ETFs before investing. Exchange traded funds are not guaranteed, their values change frequently and past performance may not be repeated.
For a summary of the risks of an investment in the BMO ETFs, please see the specific risks set out in the BMO ETF’s prospectus. BMO ETFs trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase the risk of loss. Distributions are not guaranteed and are subject to change and/or elimination.
BMO ETFs are managed by BMO Asset Management Inc., which is an investment fund manager and a portfolio manager, and a separate legal entity from Bank of Montreal.
About BMO Exchange Traded Funds (ETFs)
BMO Exchange Traded Funds has been a leading ETF provider in Canada for more than 11 years, with over 100 strategies, over 25 per cent market share in Canada1, and $80.6 billion in assets under management. BMO ETFs are designed to stay ahead of market trends and provide compelling solutions to help advisors and investors. This includes a comprehensive suite of ETFs developed in Canada for Canadians, such as cost effective core equity ETFs following market leading indexes, and a broad range of fixed income ETFs; solution-based ETFs responding to client demand; and innovation with smart beta ETFs, as well as combining active and passive investing with ETF series of active mutual funds.
|1Morningstar, May 2021|
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider – the 8th largest bank, by assets, in North America. With total assets of $950 billion as of April 30, 2021, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial 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, BMO Wealth Management and BMO Capital Markets.
SOURCE BMO Financial Group
For further information: Colleen Hamilton, Toronto, Colleen.Hamilton@bmo.com, (416) 867-3996