BMO Investments Inc. on Monday proposed changes to the BMO Mortgage Fund. If approved by unithholders, the changes will go into effect in July 2003.

To provide greater diversification and enhanced income earning potential, the investment objective of the BMO Mortgage Fund will be revised to allow high-quality, short-term corporate fixed-income securities to be included in its portfolio. The restriction that 50% of the fund’s portfolio must be invested in mortgage investments will also be removed from the investment objective.

Unitholders will be asked to approve the change at a special meeting to be held on or about July 7. They will also be asked to approve at this meeting certain amendments to the Declaration of Trust.

Should unitholders approve the change to the fund’s investment objective, the fund will be renamed “BMO Mortgage and Short-Term Income Fund.