BMO Investments Inc. and Guardian Group of Funds Ltd. Friday proposed changes to the BMO Guardian Funds and BMO Mutual Funds line-ups, including mergers, terminations and changes to sub-advisors.

“The primary goal of these changes is to reduce duplicate fund offerings and streamline the product suite to provide more cost-effective investment solutions,” the companies said.

Subject to unitholder approval, it is proposed that 14 terminating funds will be merged into the applicable continuing fund. For each of the 14 continuing funds, a BMO Guardian Advisor Series exists or will be launched in the month of October:

For a complete list terminating and continuing funds, please refer to the attached list.

Securityholder approval of each terminating fund plus two continuing funds will be sought at special meetings to be held on November 10.

If the proposed mergers are approved, the funds will be merged on various dates between November 13 and 27. Securities of the terminating funds will continue to be available for sale until the close of business on the date that is six business days before the effective date of each merger, following which time they will cease distribution of new securities.

“The Independent Review Committee of each of the relevant funds has reviewed the potential conflict of interest matters related to the proposed mergers and has provided the managers with a positive recommendation for the mergers, after determining that the proposed mergers, if implemented, achieve a fair and reasonable result for each of the applicable funds,” the companies said.

Change of Investment Objectives of BMO American Equity Class

Subject to obtaining securityholder approval, the investment objectives of BMO American Equity Class will change to adopt investment objectives that are substantially similar to the current investment objectives of BMO Guardian American Equity Fund Ltd. As such, the investment objectives of BMO American Equity Class will change to allow the fund to provide long term growth through capital appreciation, by investing primarily in equities and equity-related securities of U.S. companies (with no restrictions on the capitalization of those companies).

Portfolio manager changes

BMO Investments Inc. intends to change the portfolio manager of each of BMO American Equity Class, BMO European Fund, BMO Emerging Markets Fund and BMO U.S. Dollar Monthly Income Fund. The changes will take effect from November 20 to 27.

The portfolio manager of BMO American Equity Class is currently Jones Heward Investment Counsel Inc. Harris Investment Management, Inc. will become the portfolio manager of the fund.

The portfolio manager of BMO European Fund is currently Sanford C. Bernstein & Co., LLC. Vontobel Asset Management Inc. will be appointed sub-advisor by Jones Heward Investment Counsel Inc., which will become the portfolio manager of the fund.

The portfolio manager of BMO Emerging Markets Fund is currently Sanford C. Bernstein & Co., LLC. Lazard Asset Management (Canada) Inc. will become the portfolio manager of the fund.

The portfolio manager of BMO U.S. Dollar Monthly Income Fund is currently UBS Global Asset Management (Canada) Co. Jones Heward Investment Counsel Inc. and Lazard Asset Management (Canada) Inc. will become the portfolio managers of the fund.

BMO AIR MILES Money Market Fund

BMO Investments Inc. intends to terminate the AIR MILES feature of BMO AIR MILES Money Market Fund and change the name of the fund to BMO Canadian Money Market Fund, effective December 31.

IE