CHICAGO, ILLINOIS--(Marketwired - Jun 6, 2016) - BMO Global Asset Management today introduced the BMO Institutional Prime Money Market Fund to provide institutional and retail investors with a money market fund that will eventually have a floating net asset value (NAV).
Managed by BMO Global Asset Management's team of experienced money market professionals, this new fund is expected to have a stable NAV until approximately October 3, 2016. Thereafter, the fund's NAV may begin to float as a result of an expanded four decimal NAV (e.g. $1.0000) and slight changes to the market values of the underlying portfolio of very short term, income securities. The new fund also may be subject to liquidity gates and/or redemption fees as required by the new money market fund regulations.
"As a global investment solutions provider, BMO strives to meet the ever-changing needs of our institutional and retail clients by continuing to build our selection of funds," said John Blaser, President of BMO Funds. "The new regulatory reforms will soon restrict institutional investors from stable NAV money market funds other than government money market funds. We expect a significant shift of assets out of prime money market funds and into government money market funds. As a result, the new fund is expected to provide enhanced total returns well above the expected low rates of return in government money market funds in the new regulatory environment."
"This new fund brings BMO Global Asset Management's total U.S. suite to 45 mutual funds. It will be an excellent addition to our existing family of money market funds, comprised of the BMO Prime Money Market Fund, BMO Tax-Free Money Market Fund and BMO Government Money Market Fund, which will remain ideal for institutions with a preference for a stable NAV," added Mr. Blaser.
For more information about BMO Global Asset Management and the new fund, please visit: www.bmogam.com.
About BMO Global Asset Management
BMO Global Asset Management is a global investment manager with offices in more than 25 cities in over 15 countries, delivering service excellence to clients across five continents.
Our four major investment centers in Toronto, Chicago, London and Hong Kong are complemented by a network of world-class boutique managers strategically located across the globe: BMO Real Estate Partners, LGM Investments, Monegy, Inc., Pyrford International Ltd., and Taplin, Canida & Habacht, LLC. BMO Global Asset Management has operations throughout North America and Europe, as well as in Abu Dhabi, Beijing, Shanghai, Hong Kong, Guangzhou, Singapore, Melbourne and Sydney and is a signatory of the United Nations-supported Principles for Responsible Investment initiative (UNPRI).
BMO Global Asset Management is a part of BMO Financial Group, a highly diversified financial services provider based in North America with total assets of CDN $681 billion as of April 30, 2016, and over 45,000 employees. BMO Wealth Management has worldwide assets under management of CDN $377 billion (USD $300).
Investors should carefully consider the investment objectives, risks, charges and expenses of the BMO Funds. This and other important information is contained in the prospectuses and/or summary prospectuses, which can be obtained by calling 1-800-236-3863. Please read carefully before investing.
All investments involve risk, including the possible loss of principal.
BMO Global Asset Management is the brand name for various affiliated entities of BMO Financial Group that provide investment management and trust and custody services. Certain of the products and services offered under the brand name BMO Global Asset Management are designed specifically for various categories of investors in a number of different countries and regions and may not be available to all investors. Products and services are only offered to such investors in those countries and regions in accordance with applicable laws and regulations. BMO Financial Group is a service mark of Bank of Montreal (BMO).
BMO Asset Management U.S. consists of BMO Asset Management Corp.
BMO Global Asset Management is the brand name for BMO Investment Distributors, LLC. BMO Asset Management Corp. is the investment adviser to the BMO Funds. BMO Investment Distributors, LLC is the distributor of the BMO Funds. Member FINRA/SIPC.
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