The BMO Mortgage Fund was renamed BMO Mortgage and Short-Term Income Fund on Wednesday. Changes to the fund’s investment objectives were approved at a special meeting of unitholders held on July 21.

In a statement, BMO Investments Inc. said the fund’s investment objectives have been broadened to allow high-quality, short-term corporate fixed-income securities to be included in the portfolio in addition to fixed-income securities issued or guaranteed by Canadian federal, provincial or municipal governments.

As well, the restriction that half of the fund’s portfolio be invested in mortgage investments has been removed.

“The BMO Mortgage and Short-Term Income Fund remains an appropriate investment choice for investors with low to medium risk tolerance,” said Ed Legzdins, president and CEO, BMO Investments Inc. “These changes will allow the fund to remain competitive, offer further diversification and provide the potential for long-term growth for investors.”

Changing the fund’s investment objectives will result in greater diversification of the Fund’s portfolio by allowing the fixed-income holdings to be divided between government and corporate securities. Adding short-term corporate fixed-income securities to the portfolio may also increase the Fund’s potential return.

Mary Jane Yule and Robert Featherby of Jones Heward Investment Management Inc. will continue to manage the fund.