BMO Asset Management Fundamental Canadian Large Cap Equity Strategy

Passive

0 1-2% 3% 5% 6%

CanadianCore Alpha

FundamentalLarge Cap

FundamentalSmall Cap

CanadianPure Alpha

Benchmark Relative Active Risk

PhilosophyWe believe that a diversified portfolio of well managed, large cap compa-nies will, over long time periods, provide superior returns. We also believe that capital markets are not perfectly efficient, and therefore investment opportunities can be identified and captured through fundamental security analysis, disciplined portfolio construction, and strong risk management.

StrategyEquities are managed on a ‘Growth at A Reasonable Price’ basis. As a result, security selection is a critical element in adding value through the BMO AM investment process. A bottom-up, fundamental approach is used to identify high quality compa-nies with lower than benchmark risk. Rigorous risk controls are then applied to ensure that the overall risk profile of the portfolio is less than that of the benchmark. The firm adheres to a disciplined investment process and security selection crite-ria irrespective of market trends.

Investment ProcessIdentifying companies with an asset base that provides a sustainable, competitive advantage.

Idea Generation

Screening techniques are used to establish the investable universe. Our first screen establishes the large

About the StrategyFor institutional investors – a funda-mental, bottom-up GARP strategy with a focus on growth, quality and valuation.

Key differentiators:

Team: Deep and experienced portfolio man-agement team supported by extensive research by dedicated sector analysts

Track Record: 20 years of delivering strong perfor-mance

Discipline:Thorough and repeatable process paired with team collaboration that leads to optimal performance

Strong risk/return pro�le: Multi-dimensional risk management to ensure that the overall risk profile of the portfolio is less than that of the bench-mark

Process: Thorough and disciplined process to ensure the best growth opportunities are captured

Inception Date: Aug 1, 1993

Benchmark:S&P/TSX Composite Index

ObjectiveThe objective of the BMO Asset Manage-ment (BMO AM) Fundamental Cana-dian Large Cap Equity Strategy is to outperform the S&P/TSX Composite Index over a 4-year rolling period.

cap focus of the strategy. Eligible securities typically have a market cap of greater than 0.1% of the total market cap of the benchmark. Our secondary screens use both qualita-tive and quantitative factors to narrow down the universe further and identify the companies for which we conduct our detailed analysis.

Fundamental Research Process

Stringent analysis to generate the best quality and growth opportunities.

BMO AM applies a disciplined research process to an initial list of securities which is conducted by our dedicated team of sector analysts. Through the cumulative process of screening techniques and research, a series of portfolio recommendations are made. A majority of the research utilized by portfolio managers is generated internally. Management interviews also play a role in our qualitative research methodology. External research on companies under consideration may also be utilized to provide an alternative analysis of the company’s business opportunities.

Portfolio Construction and Management

Security selection is at the core of our portfolio construction process. “Buy” opportunities are identified using both quantitative and qualitative criteria. Quantitative criteria include performance track record, growth potential and outlook, balance sheet quality, and valuations or share price

BMO AM Canadian Equity Risk Continuum

... continued on page 2

appreciation potential. Qualitative criteria include management quality, corporate strategy, management ownership, and corporate governance.

A typical portfolio holds 45 to 65 large cap companies.

Sell Discipline

Should the original factors underlying our purchase of a security change, the investment fundamentals are reviewed. A review is triggered by events such as achieving the target return; a change in fundamentals, management or corporate strategy; or the companydoesn’t meet expectations. If the stock fails to meet our standards, it will be sold.

PhilosophyWe believe that a diversified portfolio of well managed, large cap compa-nies will, over long time periods, provide superior returns. We also believe that capital markets are not perfectly efficient, and therefore investment opportunities can be identified and captured through fundamental security analysis, disciplined portfolio construction, and strong risk management.

StrategyEquities are managed on a ‘Growth at A Reasonable Price’ basis. As a result, security selection is a critical element in adding value through the BMO AM investment process. A bottom-up, fundamental approach is used to identify high quality compa-nies with lower than benchmark risk. Rigorous risk controls are then applied to ensure that the overall risk profile of the portfolio is less than that of the benchmark. The firm adheres to a disciplined investment process and security selection crite-ria irrespective of market trends.

Investment ProcessIdentifying companies with an asset base that provides a sustainable, competitive advantage.

Idea Generation

Screening techniques are used to establish the investable universe. Our first screen establishes the large

cap focus of the strategy. Eligible securities typically have a market cap of greater than 0.1% of the total market cap of the benchmark. Our secondary screens use both qualita-tive and quantitative factors to narrow down the universe further and identify the companies for which we conduct our detailed analysis.

Fundamental Research Process

Stringent analysis to generate the best quality and growth opportunities.

BMO AM applies a disciplined research process to an initial list of securities which is conducted by our dedicated team of sector analysts. Through the cumulative process of screening techniques and research, a series of portfolio recommendations are made. A majority of the research utilized by portfolio managers is generated internally. Management interviews also play a role in our qualitative research methodology. External research on companies under consideration may also be utilized to provide an alternative analysis of the company’s business opportunities.

Portfolio Construction and Management

Security selection is at the core of our portfolio construction process. “Buy” opportunities are identified using both quantitative and qualitative criteria. Quantitative criteria include performance track record, growth potential and outlook, balance sheet quality, and valuations or share price

Risk Management

TM/® Trade-marks/registered trade-marks of Bank of Montreal, used under licenceThe information provided herein does not constitute a solicitation of an offer to buy, or an offer to sell securities nor should the information be relied upon as investment advice. All Rights Reserved. The information contained herein: (1) is confidential and proprietary to BMO Asset Management Inc. (“BMO AM”); (2) may not be reproduced or distributed without the prior written consent of BMO AM; and (3) has been obtained from third party sources believed to be reliable but which have not been independently verified. BMO AM and its affiliates do not warrant or make any representations regarding the use or the results of the information contained herein in terms of its correctness, accuracy, timeliness, reliability or otherwise, and do not accept any responsibility for any loss or damage that results from its use. ® Registered trade-mark/trade-marks of Bank of Montreal, used under license.

Call to ActionFor more information about this strategy or our line-upof Equities, Fixed Income, Currency solutions and ETFs,please contact Marija Finney:Marija Finney, Senior Vice President,Head of Institutional Sales & ServiceTél. : 416-359-5003marija.finney@bmo.com

... continued from page 1

appreciation potential. Qualitative criteria include management quality, corporate strategy, management ownership, and corporate governance.

A typical portfolio holds 45 to 65 large cap companies.

Sell Discipline

Should the original factors underlying our purchase of a security change, the investment fundamentals are reviewed. A review is triggered by events such as achieving the target return; a change in fundamentals, management or corporate strategy; or the companydoesn’t meet expectations. If the stock fails to meet our standards, it will be sold.

Risk management is an inherent part of portfolio construction and management. Various tools are used to ensure that the investment philosophy and style are adhered to, and that the portfolio contains the type and amount of risk exposures intended by the portfolio management team. In addition, the portfolio is screened to ensure that no unintended risk exposures have been inadvertently introduced. Additionally, operational risk controls ensure a strong governance structure is in place to safeguard client assets. These include the segregation of portfolio management, research, and trading responsibilities which are reinforced by pre- and post-trade compli-ance activities, as well as daily monitoring of client and strategy guidelines.

BMO Global Asset Management, our global brand, is a multi-asset management business with offices located worldwide. BMO Asset Management Inc. (BMO AM) is the operating entity in Canada.BMO AM is a multi-disciplined provider of investment solutions across a diverse set of investment approaches:

■ Pure beta■ Risk controlled alpha■ Fundamental strategies■ Market neutral and long/short

We also offer customized solutions based on clients’ investment beliefs and risk preferences.

Key Investment Professionals

Firm Overview

Lesley Marks, CFA, MBA

Vice President, Head of Portfolio Management,Fundamental Canadian Equities

Lesley was appointed Head of the Fundamental Canadian Equity PortfolioManagement Group at BMO Asset Management in April 2013. In this role,

the portfolio managers report directly to Lesley and she is responsible for

overseeing the investment and risk management processes. She hasaccumulated 18 years’ experience, most recently with 13 years as lead

manager of the firm's Canadian Small Cap strategies. Prior to joining the

firm in 1998, Lesley was a portfolio manager with a major investment

management firm, responsible for managing Canadian equities for mutualand pension fund assets. In addition to holding a Bachelor of Commerce

degree from Queen's University and an MBA from the Richard Ivey School

of Business, Lesley is a CFA charterholder

Jeffrey Bradacs, CFA

Vice President, Portfolio Manager, Canadian Equities

Jeff joined BMO Asset Management’s core Canadian growth equity teamas a Vice President and Portfolio Manager (pending transfer of registration)with responsibility for Canadian large cap equities in September 2013.Previously, he spent 10 years as an investment professional with the assetmanagement arm of a large Canadian based insurance company where forthe last 8 years he was specifically responsible for managing Canadianequity and balanced mandates. Jeff graduated with distinction in theHonors Business Administration program from the Richard Ivey School ofBusiness at the University of Western Ontario. He is also a CFAcharterholder, and a member of the Toronto CFA Equity Committee.

Jordan Luckock, CFA, M.Sc.

Associate Portfolio Manager

Jordan is the associate portfolio manager for this strategy. He has over8 years of research and investment management experience.

FP-122012-FLC-E