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BMO Investments Inc. Announces Fee Reductions and Manager Changes for Certain Funds

Strategic Insights

— 2 min read

BMO Investments Inc. (the "Manager"), the manager of the BMO Mutual Funds, has announced significant changes to certain funds in their portfolio. Effective immediately, the Manager has reduced the management fees and administration fees for several series of the BMO Money Market Fund. Additionally, the Manager has announced changes to the portfolio managers and/or sub-advisors for several funds, with some notable changes to occur as early as November 12, 2021, and others as late as December 15, 2021.

Key Takeaways:

  • BMO Investments Inc. has reduced the management fees for certain series of the BMO Money Market Fund, with reductions ranging from 0.40% to 1.00%.
  • The administration fee for Series A, F, D, and Advisor Series securities of the BMO Money Market Fund has been reduced from 0.12% to 0.08%.
  • Taplin, Canida & Habacht, LLC will cease to act as a sub-advisor for the BMO Crossover Bond Fund and BMO Asset Management Limited will become the sole sub-advisor on November 12, 2021.
  • Columbia Management Investment Advisers, LLC will replace BMO Asset Management Inc. as the portfolio manager of the BMO U.S. High Yield Bond Fund on November 12, 2021, and will also make changes to the investment strategies of the fund.
  • Columbia Management Investment Advisers, LLC will replace Taplin, Canida & Habacht, LLC as sub-advisor for the U.S. fixed income portion of the BMO U.S. Dollar Balanced Fund and the U.S. fixed income and U.S. high yield bond portions of the BMO U.S. Dollar Monthly Income Fund on November 12, 2021.
  • BMO Asset Management Corp will cease to act as sub-advisor for the BMO U.S. Dollar Money Market Fund on November 19, 2021, and BMO Asset Management Inc. will take over portfolio management responsibility for this fund.
  • Columbia Management Investment Advisers, LLC will replace BMO Asset Management Inc. as portfolio manager for the U.S. equity portion of the BMO North American Dividend Fund, BMO U.S. Dollar Balanced Fund, and BMO U.S. Dollar Monthly Income Fund on December 15, 2021.
  • Columbia Management Investment Advisers, LLC will replace BMO Asset Management Inc. as portfolio manager for the BMO International Equity Fund, BMO U.S. Dividend Fund, BMO U.S. Dollar Dividend Fund, BMO U.S. Equity Class, BMO U.S. Equity Fund, and BMO U.S. Small Cap Fund on December 15, 2021.

Statistics:

  • The new management fees for the BMO Money Market Fund are as follows:

+ Series A: 0.60%

+ Series F: 0.20%

+ Series D: 0.55%

+ Series M: 0.30%

+ Advisor Series: 0.60%

  • The new administration fee for Series A, F, D, and Advisor Series securities of the BMO Money Market Fund is 0.08%.
  • The number of funds with changes to portfolio managers and/or sub-advisors is 6.
  • The number of changes to portfolio managers and/or sub-advisors is 10.

Sources:

  • BMO Investments Inc. press release, undated, accessed [insert date]

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