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BMO Investments Inc. Advises of Proposed Tax Changes to Corporate Class Funds.

TORONTO, ONTARIO: The Federal Government budget released on March 22, 2016 included a proposal that will treat an exchange of shares of a mutual fund corporation, from one fund to another fund, as a disposition at fair market value for tax purposes (the Budget Proposal). The Budget Proposal states that it will be effective after September 2016.

The Budget Proposal will generally impact all funds that are classes of multi-class mutual fund corporations, including those of BMO Global Tax Advantaged Fund Inc. (GTAF Funds) which are managed by BMO Investments Inc. Currently, investors in multi-class mutual fund corporations are generally able to exchange shares of one class of the mutual fund corporation for shares of another class in order to switch their investment exposure without realizing a disposition for tax purposes. As a result of the Budget Proposal, after September 2016 investors will realize a capital gain or loss on their shares when they effect such exchanges.

BMO Investments Inc. continues to assess the implications of the Budget Proposal and its potential impact on the GTAF Funds.

The GTAF Funds impacted by the Budget Proposal are:

BMO Asian Growth and Income Class

BMO Short-Term Income Class

BMO Canadian Equity Class

BMO U.S. Equity Class

BMO Canadian Low Volatility ETF Class

BMO SelectClass(r) Income Portfolio

BMO Dividend Class

BMO SelectClass(r) Balanced Portfolio

BMO Global Dividend Class

BMO SelectClass(r) Growth Portfolio

BMO Global Energy Class

BMO SelectClass(r) Equity Growth Portfolio

BMO Global Equity Class

BMO Income ETF Portfolio Class

BMO Global Low Volatility ETF Class

BMO Balanced ETF Portfolio Class

BMO Greater China Class

BMO Growth ETF Portfolio Class

BMO International Value Class

BMO Equity Growth ETF Portfolio Class

In light of the Budget Proposal, investors should speak with their investment professional and/or tax advisor about their investment options regarding funds that are classes of multi-class mutual fund corporations such as the GTAF Funds.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Apr 1, 2016
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