TORONTO, Jan. 16, 2019 /CNW/ - BMO Asset Management
Inc. ("BMO AM") today announced that it intends to consolidate the
units of certain commodity-based Exchange Traded Funds (the
"ETFs") which trade on the Toronto Stock Exchange.
After the close of trading on Friday
January 25, 2019, the units of the ETFs set out below will
be consolidated on the basis of the ratios indicated (the
"Consolidation Ratios"), and will begin trading on a
post-consolidated basis on Monday, January
28, 2019 – the effective date of the consolidations.
|
Fund Name and
Ticker
|
Consolidation
Ratio
|
|
BMO Equal Weight
Global Base Metals Hedged to CAD Index ETF (ZMT)
|
1:5
|
|
BMO Equal Weight
Global Gold Index ETF (ZGD)
|
1:5
|
|
BMO Equal Weight Oil
& Gas Index ETF (ZEO)
|
1:5
|
|
BMO Junior Gas Index
ETF (ZJN)
|
1:4
|
|
BMO Junior Gold Index
ETF (ZJG)
|
1:6
|
|
BMO Junior Oil Index
ETF (ZJO)
|
1:5
|
When a unit consolidation occurs, the net asset value per unit
is increased by the same ratio as the units are consolidated so
that the unit consolidation has no impact on the value of the
investor's total unit position. An investor's cost per unit also
increases by the same ratio as the units are consolidated, and the
investor's total cost remains unchanged.
No fractional units will be issued. Where the consolidation
results in a fractional unit, the number of post-consolidation
units will be rounded down to the nearest whole unit, in the case
of a fractional interest that is less than 0.5, or rounded up to
the nearest whole number, in the case of a fractional interest that
is 0.5 or greater.
Investor Information
Unitholders of the ETFs do not need to take any action to effect
these transactions and brokerage accounts will be automatically
updated to reflect the consolidation(s).
A broker may take several days to reflect these transactions in
a unitholder's account (the "Settlement Period"). However, units of
the ETFs may still be traded during the Settlement Period. BMO AM
recommends investors contact their broker should they wish to trade
post-consolidation units during the Settlement Period.
BMO Global Asset Management is a brand name that comprises BMO
Asset Management Inc., BMO Investments Inc., BMO Asset Management
Corp. and BMO's specialized investment management firms.
BMO ETFs are managed by BMO Asset Management Inc., which is an
investment fund manager and a portfolio manager, and a separate
legal entity from Bank of Montreal.
Commissions, management fees and expenses all may be associated
with investments in exchange traded funds. Please read the ETF
Facts or prospectus before investing. Exchange traded funds are not
guaranteed, their values change frequently and past performance may
not be repeated.
For a summary of the risks of an investment in the BMO ETFs,
please see the specific risks set out in the prospectus. BMO
ETFs and ETF series trade like stocks, fluctuate in market value
and may trade at a discount to their net asset value, which may
increase the risk of loss. Distributions are not guaranteed and are
subject to change and/or elimination.
About BMO Financial Group
Serving customers for 200
years and counting, BMO is a highly diversified financial services
provider - the 8th largest bank, by assets, in North America. With total assets of
$774 billion as of October 31, 2018, and a team of diverse and
highly engaged employees, BMO provides a broad range of personal
and commercial banking, wealth management and investment banking
products and services to more than 12 million customers and
conducts business through three operating groups: Personal and
Commercial Banking, BMO Wealth Management and BMO Capital
Markets.
SOURCE BMO Financial Group