OREANDA-NEWS. 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® Income Portfolio
BMO Dividend Class   BMO SelectClass® Balanced Portfolio
BMO Global Dividend Class   BMO SelectClass® Growth Portfolio
BMO Global Energy Class   BMO SelectClass® 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.