TORONTO, Jan. 16, 2019 /CNW/ - BMO Asset Management Inc.
("BMO AM") today announced that it intends to consolidate the units of certain commodity-based Exchange Traded Funds (the
"ETFs") which trade on the Toronto Stock Exchange.
After the close of trading on Friday January 25, 2019, the units of the ETFs set out below will
be consolidated on the basis of the ratios indicated (the "Consolidation Ratios"), and will begin trading on a post-consolidated
basis on Monday, January 28, 2019 – the effective date of the consolidations.
|
Fund Name and Ticker
|
Consolidation
Ratio
|
|
BMO Equal Weight Global Base Metals Hedged to CAD Index ETF
(ZMT)
|
1:5
|
|
BMO Equal Weight Global Gold Index ETF (ZGD)
|
1:5
|
|
BMO Equal Weight Oil & Gas Index ETF (ZEO)
|
1:5
|
|
BMO Junior Gas Index ETF (ZJN)
|
1:4
|
|
BMO Junior Gold Index ETF (ZJG)
|
1:6
|
|
BMO Junior Oil Index ETF (ZJO)
|
1:5
|
When a unit consolidation occurs, the net asset value per unit is increased by the same ratio as the units are consolidated so
that the unit consolidation has no impact on the value of the investor's total unit position. An investor's cost per unit also
increases by the same ratio as the units are consolidated, and the investor's total cost remains unchanged.
No fractional units will be issued. Where the consolidation results in a fractional unit, the number of post-consolidation
units will be rounded down to the nearest whole unit, in the case of a fractional interest that is less than 0.5, or rounded up
to the nearest whole number, in the case of a fractional interest that is 0.5 or greater.
Investor Information
Unitholders of the ETFs do not need to take any action to effect these transactions and brokerage accounts will be
automatically updated to reflect the consolidation(s).
A broker may take several days to reflect these transactions in a unitholder's account (the "Settlement Period"). However,
units of the ETFs may still be traded during the Settlement Period. BMO AM recommends investors contact their broker should they
wish to trade post-consolidation units during the Settlement Period.
BMO Global Asset Management is a brand name that comprises BMO Asset Management Inc., BMO Investments Inc., BMO Asset
Management Corp. and BMO's specialized investment management firms.
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.
Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the ETF
Facts or prospectus 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 prospectus.
BMO ETFs and ETF series 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.
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 $774
billion as of October 31, 2018, 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
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