BMO Investments Inc. will pay the majority of operating expenses for its funds, in return for a fixed administration fee, the company announced on Friday.

This change will provide investors with greater certainty with respect to each fund’s management expense ratio, which will become more transparent and predictable. MERs for all funds will either decrease or remain neutral, compared to MERs in 2006. These changes will be effective Dec. 1.

“By replacing operating expenses with a fixed administration fee, the MER for each BMO fund will become more stable and provide unitholders with clear pricing and greater certainty about the cost of investing in a BMO Mutual Fund,” said Ed Legzdins, president and CEO, BMO Investments Inc.

The funds have an independent review committee that provides independent oversight and advice to the manager. BMO Investments Inc. referred this change to the IRC for its review and input as required by securities regulation. The IRC was of the opinion that the proposed change will achieve a fair and reasonable result for the funds and provided a positive recommendation to BMO Investments Inc.

Unitholders will be notified in writing during the fourth week of September, as required by securities regulations.