Changes to the BMO International Bond Fund’s investment objectives were approved at a special meeting of unitholders held on July 21. The fund will be renamed BMO World Bond Fund to reflect the changes to the fund’s investment objectives.
The changes will be effective on July 22.
BMO says the investment objectives have been broadened to allow the fund to invest in bonds and debentures issued by governments and corporations around the world, including Canada and the United States. Previously, the fund could invest only in bonds and debentures issued by governments and corporations outside North America.
“The BMO World Bond Fund will now provide investors with greater geographic diversification and enhanced income earning potential,” says Ed Legzdins, president and CEO, BMO Investments Inc.
In other changes, BMO U.S. Value Fund’s name will be changed to BMO U.S. Equity Fund, effective July 22.
BMO says the new name better reflects the composition of U.S. securities within the fund’s portfolio. BMO U.S. Equity Fund will continue to be offered in both Canadian and US dollars.
With the recent approval of the 2005 Federal Budget, the 30% foreign content limit for investments held within registered plans has now been eliminated. As a result, BMO Investments Inc. has discontinued foreign content rebalancing for RRSPs and RRIFs as of July 1.