simplified prospectus - bmo · 8/18/2015 · bmo risk reduction fixed income fund (series i) bmo...

Simplified Prospectus

BMO Retirement PortfoliosBMO Retirement Income Portfolio (series A, F, T6 and Advisor Series)

BMO Retirement Conservative Portfolio (series A, F, T6 and Advisor Series)

BMO Retirement Balanced Portfolio (series A, F, T6 and Advisor Series)

BMO Risk Reduction FundsBMO Risk Reduction Fixed Income Fund (series I)BMO Risk Reduction Equity Fund (series I)

August 18, 2015

The BMO Mutual Funds in this simplified prospectus are offered by BMO Investments Inc.

Offering series A securities, series F securities, series T6 securities, series I securities and Advisor Series securities, as noted.

No securities regulatory authority has expressed an opinion about these securities. It is an offence to claim otherwise.

The funds and the securities of the funds offered under this simplified prospectus are not registered with the United StatesSecurities and Exchange Commission and they are sold in the United States only in reliance on exemptions from registration.

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Introduction 1

Fund-specific informationA guide to using the fund descriptions 2

BMO Retirement Income Portfolio 6BMO Retirement Conservative Portfolio 8BMO Retirement Balanced Portfolio 10BMO Risk Reduction Fixed Income Fund 12BMO Risk Reduction Equity Fund 14

What is a mutual fund and what are the risks of investing in a mutual fund? 16

Organization and management of BMO Mutual Funds 22

Purchases, switches and redemptions 24

Optional services 29

Fees and expenses 31

Dealer compensation 34

Dealer compensation from management fees 36

Income tax considerations for investors 36

What are your legal rights? 38

Additional information 38

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You’ll find more information about each fund in thefollowing documents (once available):• the annual information form• the most recently filed fund facts• the most recently filed annual financial statements• any interim financial report filed after those financial

statements• the most recently filed annual management report of

fund performance• any interim management report of fund performance

filed after that annual management report of fundperformance.

These documents are incorporated by reference into thissimplified prospectus. That means they legally form partof this simplified prospectus just as if they were printedin it.

There’s no charge for these documents. You’ll also findcopies of them, and other information about the funds,on the internet at www.sedar.com.

If you would like a copy of these documents and youpurchased your securities at a BMO Bank of Montrealbranch, through the BMO Investment Centre, bytelephone or through the internet, for more informationabout BMO Mutual Funds, please call toll free at 1-800-665-7700 or visit our website:

In English: www.bmo.com/mutualfunds

En français: www.bmo.com/fonds

If you would like a copy of these documents and youpurchased your securities through a dealer, for moreinformation about BMO Mutual Funds, please call toll freeat 1-800-668-7327 or visit our website:

In English: www.bmo.com/gam/ca

En français: www.bmo.com/gma/ca

Introduction 1

In this document, “we”, “us” and “our” refer toBMO Investments Inc. We refer to all of the mutual fundswe offer as “BMO Mutual Funds”. We refer to the fundsoffered under this simplified prospectus as “fund” or“funds”. We refer to a unit or the units of the funds as“unit” or “units”. We also refer to units as “securities”and holders of units as “securityholders”.

This simplified prospectus contains selected importantinformation to help you make an informed investmentdecision and understand your rights as an investor. It’sdivided into two parts. Pages 2 to 15 contain specificinformation about each fund and pages 16 to 39 containgeneral information about the funds.


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A guide to using the fund descriptionsYou’ll find all the key information about each fundin one place—the fund descriptions. They begin onpage 6. Each fund description is organized intosections to make it easier for you to compare funds.Below is a short guide to what you’ll find in eachsection of the fund descriptions.

Fund detailsThe Fund details section provides an overview ofsome basic information about the fund, like whatkind of fund it is, when it was started and what typeof securities it offers.

A mutual fund can be set up as a trust or as acorporation. The funds offered under this simplifiedprospectus are organized as trusts. When you investin a fund, you are buying units of a trust. The fundsmay offer more than one series of securities. Eachseries is intended for a different kind of investorand may have a different management fee.

The Fund details section tells you if the fund is aqualified investment for registered retirementsavings plans (“RRSPs”), registered retirementincome funds (“RRIFs”), registered educationsavings plans (“RESPs”), deferred profit sharingplans (“DPSPs”), registered disability savings plans(“RDSPs”) and tax-free savings accounts (“TFSAs”)(collectively, the “registered plans” and each a“registered plan”). You should consult your own taxadvisor to determine whether an investment in afund would be a prohibited investment for yourregistered plan.

This section shows the maximum management feethat we may charge for the series of securities of thefunds. For each series, we may, from time to time atour discretion, waive a portion or the entire amountof the management fee chargeable at any given time.

This section includes information about theadministration fee of the funds and the name of theportfolio manager—the company that makes theday-to-day decisions about fund investments.

What does the fund invest in?This section tells you the Investment objectives andInvestment strategies of the fund.

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Investment objectivesThese are the goals of the fund. You’ll find detailsabout the kinds of securities the fund invests in, aswell as any special focus, like concentrating on aparticular country or industry.

Investment strategiesThis section tells you how the portfolio managertries to achieve the fund’s objectives. Each of thefunds follows the standard investment restrictionsand practices established by Canadian securitieslegislation, unless Canadian securities regulatorshave given the fund approval to vary from theserestrictions. If we and/or the fund have obtainedsuch an approval, we may discuss it here or underAdditional information and we also discuss it in theannual information form.

As permitted by Canadian securities legislation, theIndependent Review Committee (the “IRC”) of thefunds has provided us with approval to enable thefunds to engage in certain transactions with, andpurchase securities of, certain related parties.Additional information is available in the funds’annual information form and under Additionalinformation on page 38.

Each fund may hold cash as a defensive strategy orwhile waiting to invest in other securities. A fundmay also buy short-term fixed income securitiesand money market instruments.

A fund may purchase securities of other mutualfunds (or obtain exposure to other mutual funds byentering into derivative transactions), includingmutual funds or exchange traded funds that aremanaged by us or our affiliates or associates.

In some cases, the investment strategies section of afund may indicate that the fund has percentage orother restrictions on its investment in certain typesof securities. In these cases, if the restriction isadhered to at the time of investment and then laterthe market value of the investment, the rating of theinvestment, or the value of the fund, changes in amanner that causes the restriction to be exceeded, itis not a violation of the restriction.

How the funds use derivativesA derivative is an investment whose value is basedon the value of another investment—called theunderlying investment. There are many differentkinds of derivatives, but they usually take the formof a contract to buy or sell a stock, currency,commodity, market index or mutual fund.

Specific information about each of the mutual funds described in this document


considered appropriate to achieving the fund’sinvestment objectives. Please see Securitieslending, repurchase and reverse purchasetransactions risk on page 20.

The fund may engage in short selling in order tomanage volatility or enhance the fund’s performancein declining or volatile markets. In compliance withits investment objectives, the fund will engage inshort sales by borrowing securities which the portfoliomanager believes are overvalued and selling themin the open market. The securities will then berepurchased by the fund at a later date and returnedto the lender. The fund will only engage in shortsales as permitted by Canadian securities regulators.

In some market conditions, the fund may invest aportion of its assets in short-term or other debtsecurities.

What are the risks of investing in the fund?The investment strategies may involve the followingrisks, which we explain starting on page 16:• capital depletion risk

(for Series T6 investors only)• credit risk• currency risk• derivative risk• equity risk• foreign investment risk• fund of funds risk• indexing risk• interest rate risk• large transaction risk• securities lending, repurchase and reverse

repurchase transactions risk• series risk• short selling risk.

Who should invest in this fund?Consider this fund if:• you are at or near retirement seeking reduced

portfolio volatility while maintaining somemarket exposure

• you are comfortable with low investment risk(i.e., you are willing to accept some fluctuationsin the market value of your investment over theshort-term).

Series T6 securities are suitable for investorsholding securities outside of a registered plan andwishing to receive monthly distributions.

Please see Fund risk classification on page 4 for adescription of how we determined the classificationof this fund’s risk level.

Distribution policyThe fund distributes any net income and any netcapital gains in December. Distributions areautomatically reinvested in additional securities ofthe fund, unless you tell us in writing that youprefer to receive cash.

For Series T6 securities, the fund will makemonthly distributions of an amount comprised ofany net income, and/or ROC based on 6% of the netasset value per security of the series as determinedon December 31 of the prior year.

If the cash distributions to you are greater thanthe net increase in the value of your investmentsin Series T6 securities, these distributions willerode the value of your original investments.

A ROC does not necessarily reflect the fund’sinvestment performance and should not beconfused with “yield” or “income”. You should notdraw any conclusions about the fund’s investmentperformance from the amount of this distribution.

A ROC will reduce the amount of your originalinvestment and may result in the return to you ofthe entire amount of your original investment. AROC made to you is not immediately taxable inyour hands but will reduce the ACB of the relatedsecurities. You should consult your tax advisorregarding the tax implications of receiving a ROCon your securities. Please see page 36 for moreinformation.

Fund expenses indirectly borne by investorsThis information is not available because the fundis new and its expenses are not yet known.

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Fund details

Retirement Income Portfolio

What does the fund invest in?

Investment objectivesThis fund’s objective is to seek to preserve the valueof your investment and provide some potential forgrowth while seeking to reduce portfolio volatilityby investing primarily, directly or indirectly, inglobal equities and fixed income securities.

The fundamental investment objectives may onlybe changed with the approval of a majority of thevotes cast at a meeting of securityholders called forthat purpose.

Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objectives:• employs a strategic asset allocation strategy and

may dynamically shift the fund’s exposure acrossasset classes and markets

• employs investment strategies that seek to reduceportfolio risk levels. These strategies seek toreduce exposure to market declines, whilerecognizing that the fund may not fully benefitfrom strong market growth

• may invest up to 100% of the purchase cost of thefund’s assets in foreign securities

• may invest up to 100% of the fund’s assets insecurities of exchange traded funds and othermutual funds, including funds that are managedby us or one of our affiliates or associates

• the underlying funds selected by the portfoliomanager will invest primarily in global equitiesand fixed income securities and will be selectedon the basis that they help the fund to achieve itsobjective using the same strategies that it useswhen investing directly in those securities

• allocates assets among the underlying mutualfunds and exchange traded funds based on eachunderlying fund’s investment objectives andstrategies, among other factors. The underlyingfunds, as well as the percentage holding in eachunderlying fund, may be changed without noticefrom time to time

• the fund or the underlying funds may usederivatives to implement the investment strategy.Derivatives, such as options, futures, forwardcontracts, swaps and other derivativeinstruments may be used for both hedging andnon-hedging purposes, or to, among other things:- protect the fund against potential losses. For

example, the portfolio manager may be concernedabout the impact that rising interest rates mayhave on the fund. The portfolio manager mayattempt to reduce the impact of security pricefluctuations by using interest rate swaps

− - reduce the impact of volatility on the fund. Forexample, the portfolio manager may attempt toreduce the impact of any adverse changes inexchange rates by buying currency futures

− - gain exposure to securities without buying thesecurities directly.

The fund will only use derivatives as permitted byCanadian securities regulators.

The fund or the underlying funds may enter intosecurities lending, repurchase and reverserepurchase transactions to earn additional income.These transactions will be used in conjunction withthe other investment strategies in a manner

Type of fund

Date started

Securitiesoffered

Eligible forregisteredplans

Managementfee

Administrationfee

Portfoliomanager

Global fixed income balanced

Series A: August 18, 2015Series F: August 18, 2015Series T6: August 18, 2015Advisor Series: August 18, 2015

Units of a mutual fund trust

Expected to be a qualifiedinvestment

Series A: 1.40%Series F: 0.40%Series T6: 1.40%Advisor Series: 1.40%

0.15%Fees and expenses also includetaxes and other fund costs. SeeFees and expenses on page 31for details.

BMO Asset Management Inc.Toronto, Ontario

(Portfolio Manager since August 18, 2015)

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rates, these funds may buy or sell forward currencycontracts or currency futures contracts.

Each fund that engages in currency hedging willexchange currency on a spot basis at prevailingrates or through forward contracts of one year orless. We enter into currency hedging contracts onlyup to the market value of the assets a fund holds inthat currency. We may adjust the contracts fromtime to time.

Securities lending, repurchase and reverse repurchase transactionsAll of the funds may engage in securities lending,repurchase and reverse repurchase transactions asdescribed under General investment risks.

Short selling strategiesThe funds may engage in short selling in order tomanage volatility or enhance the fund’sperformance in declining or volatile markets.

A “short sale” is where a fund borrows securitiesfrom a borrowing agent (generally a custodian ordealer) and then sells the borrowed securities in theopen market. At a later date, the same number andtype of securities are repurchased by the fund andreturned to the borrowing agent. In the interim, theproceeds from the first sale are deposited with theborrowing agent and the fund pays interest to theborrowing agent. If the value of the securitiesdeclines between the time that the fund borrows

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Some common types of derivatives a fund may useinclude:• Futures or forward contracts: these are

agreements made today to buy or sell a particularcurrency, security or market index on a specificday in the future at a specified price

• Options contracts: these are agreements that givethe buyer the right, but not the obligation, to buyor sell certain securities within a certain timeperiod, at a specified price

• Swap agreements: these are negotiated contractsbetween parties agreeing to exchange periodicpayments in the future based on returns ofdifferent investments. Swaps are generallyequivalent to a series of forward contractspackaged together

Mutual funds can use derivatives for purposesother than hedging only if the fund has enough cashor securities to cover its positions.

A mutual fund can only use derivatives aspermitted by the Canadian securities regulators,and only if their use is consistent with the fund’sinvestment objectives.

Currency hedging strategiesCertain funds buy securities denominated inforeign currencies. The value of these securitieswill vary with changes in the value of the Canadiandollar. To protect against variations in exchange


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the securities and the time it repurchases andreturns the securities, the fund makes a profit forthe difference (less any interest the fund must payto the borrowing agent).

A mutual fund will only engage in short sales aspermitted by Canadian securities regulators, andonly if the strategy is consistent with the fund’sinvestment objectives.

What are the risks of investing in the fund?When you’re deciding which funds to invest in, riskis one of the things you should think about. Thissection tells you the specific risks of investing in thefund. You’ll find a description of each risk underGeneral investment risks.

Who should invest in this fund?This section tells you the kind of investor the fundmay be suitable for and how the fund could fit intoyour portfolio. When you’re choosing a fund to investin, you need to ask yourself what you’re expectingfrom your investments, how long you’re planning toput your money away, and how much risk you’rewilling to accept. You should also think about howthe fund will work with your other investments.

Fund risk classificationWe assign an investment risk rating to each fund toprovide you with further information to help youdetermine whether the fund is appropriate for you.The methodology we use to determine the volatilityrisk ratings of the funds for purposes of disclosure in this simplified prospectus is based on themethodology recommended by the Investment FundsInstitute of Canada (“IFIC”). IFIC recommendedthat the most easily understood form of risk in thiscontext is historical volatility risk as measured bythe standard deviation of fund performance.However IFIC recognizes that other types of risk,both measurable and non-measurable, may exist. It is also important to note that a fund’s historicalvolatility may not be indicative of its future volatility.

Using this methodology, we will generally assign arisk rating based on a fund’s historical rolling threeand five-year standard deviation in one of thefollowing categories:• Low – generally includes money market funds

and Canadian fixed income funds;• Low to medium – generally includes balanced

and asset allocation funds;

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• Medium – generally includes large-cap equityfunds investing in developed markets;

• Medium to high – generally includes equityfunds investing in small/mid-cap issuers, or inspecific countries or larger sectors; and

• High – generally includes equity funds investingin emerging markets or narrower sectors.

In certain instances, this method may produce aresult that we believe may not be indicative of afund’s future volatility. As a result, in addition tousing the methodology recommended by IFIC, wemay take into account other qualitative factors,including, but not limited to, economic climate,portfolio management styles, sector concentrationand types of investments made by a fund and theliquidity of those investments, in making our finaldetermination of each fund’s risk rating. Inaddition, if a fund does not have at least three yearsof monthly return history, the benchmark indexthat most closely resembles the investmentmandate or strategy of the fund may be used as aproxy. We would then assign a risk classification tosuch a fund based on our expectation of the riskfactors that are likely to be relevant. This riskclassification may change once the fund hassufficient performance history. The investment riskrating for each fund is reviewed at least annually aswell as if there is a material change in a fund’sinvestment objectives or investment strategies.

These risk ratings do not necessarily correspond toan investor’s risk tolerance assessment; pleaseconsult your financial advisor for advice regardingyour personal circumstances.

Details about the method that we use to determinethe investment risk level of each fund are availableon request, at no cost to you. If you purchased your securities at a BMO Bank of Montreal branchor through the BMO Investment Centre, you may call us toll free at 1-800-665-7700, write toBMO Investments Inc. at 100 King Street West,43rd Floor, Toronto, Ontario M5X 1A1 or email us at [email protected]. If youpurchased your securities through a dealer, you may call us toll free at 1-800-668-7327, write to BMO Investments Inc. at 250 Yonge Street, 9th Floor, Toronto, Ontario M5B 2M8 or email us at [email protected].


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Derivatives: Specialized investments like forwardcontracts, futures, options and swaps whose valueis based on the value of another investment calledan underlying investment. See page 2 for moreinformation.

Fixed Income Securities: Investments that pay afixed rate of interest. They’re usually corporate andgovernment bonds.

Hedging: A transaction intended to offset risk.

Liquidity: How easy it is for a fund to buy and sell asecurity, like a stock or a bond. The easier it is, themore liquid the investment.

Maturity: The day on which investments like bondsor derivative contracts come due for payment.

Net Income: The net income of a fund is interest,dividends and other investment income earnedafter deducting all expenses. It does not includecapital gains or capital losses.

Return of Capital (“ROC”): A fund can generallychoose to make a distribution that is a ROC. Also, amutual fund trust will be considered to distribute aROC if it distributes more than its net income and netrealized capital gains. In any case, a ROC distributionis not included in your income, but instead reducesthe adjusted cost base (“ACB”) of the securities onwhich it was paid. When you eventually redeem thesecurities, you may realize a larger capital gain. Ifthe ACB of your securities is reduced to less thanzero while you continue to hold them, you will bedeemed to realize an immediate capital gain equal tothe negative amount and your ACB will be increasedto zero. A ROC distribution should not be confusedwith return on investment or “yield”. You shouldnot draw any conclusions about a fund’s investmentperformance from the amount of ROC it distributes.

Volatility: Volatility refers to the amount ofuncertainty or risk about the size of changes in asecurity's value. A higher volatility means that asecurity's value can potentially be spread out over alarger range of values. This means that the price ofthe security can change dramatically over a shorttime period in either direction. A lower volatilitymeans that a security's value does not fluctuate asdramatically, but changes in value at a steadier paceover a period of time.

Yield: The annual income distributed from aninvestment expressed as a percentage of theinvestment’s current value. For example, a moneymarket instrument that pays $30 in interest with acurrent value of $1,000 has a yield of 3%.

Distribution policyThis section tells you when you might receivedistributions from a fund and the character of thedistribution. However, due to tax loss restrictionrules, a fund may make other distributions fromtime to time. Distributions from all funds held inBMO registered plans are always reinvested inadditional securities of the same series of the fundyou hold. Distributions from all other funds,including funds held outside BMO registered plans,are reinvested in additional securities of the sameseries of the fund, unless you tell us in writing thatyou prefer cash. Given the nature of Series T6securities, we recommend that you request cashdistributions. You’ll find information about thetaxation of distributions and dividends underIncome tax considerations for investors.

Fund expenses indirectly borne by investorsThis section gives you a hypothetical example tohelp you compare the indirect cost of investing inthe fund with the indirect cost of investing in othermutual funds. These costs are paid out of a fund’sassets. While you don’t pay them directly, they havethe effect of lowering the fund’s returns. Theinformation in the chart is for the series of the fundthat are charged management fees, have beenissued to investors and have completed a financialyear. See Fees and expenses for more informationabout the cost of investing in the funds.

The example shows the expenses you would pay if:• you invested $1,000 in the fund for the time

periods shown;• the fund earned 5% each year (the fund’s actual

performance will likely be different); and• the fund’s management expense ratio was the same

in all periods as it was in its last financial year.

A word about special termsWhile we’ve made the fund descriptions easy tounderstand, you’ll come across a few investmentterms. Here’s what they mean.

Capital Gain: Generally, the amount an investmenthas risen in value since it was bought. A capitalgain is realized when the investment is sold. Netcapital gains are capital gains after deductingcapital losses.

Capitalization: Market capitalization is the value ofa company, generally measured by multiplying theprice of its common equity shares by the number ofshares outstanding.

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Retirement Income Portfolio


Investment objectivesThis fund’s objective is to seek to preserve the valueof your investment and provide some potential forgrowth while seeking to reduce portfolio volatilityby investing primarily, directly or indirectly, inglobal equities and fixed income securities.









• the fund or the underlying funds may usederivatives to implement the investment strategy.Derivatives, such as options, futures, forwardcontracts, swaps and other derivativeinstruments may be used for both hedging andnon-hedging purposes, or to, among other things:- protect the fund against potential losses. For

example, the portfolio manager may be concernedabout the impact that rising interest rates mayhave on the fund. The portfolio manager mayattempt to reduce the impact of security pricefluctuations by using interest rate swaps




The fund or the underlying funds may enter intosecurities lending, repurchase and reverserepurchase transactions to earn additional income.These transactions will be used in conjunction withthe other investment strategies in a manner

Type of fund

Date started

Securitiesoffered


Managementfee

Administrationfee

Portfoliomanager










considered appropriate to achieving the fund’sinvestment objectives. Please see Securitieslending, repurchase and reverse purchasetransactions risk on page 20.

The fund or the underlying funds may engage inshort selling in order to manage volatility orenhance the fund’s performance in declining orvolatile markets. In compliance with its investmentobjectives, the fund will engage in short sales byborrowing securities which the portfolio managerbelieves are overvalued and selling them in the openmarket. The securities will then be repurchased bythe fund at a later date and returned to the lender.The fund will only engage in short sales aspermitted by Canadian securities regulators.
















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Retirement Conservative Portfolio


Investment objectivesThis fund’s objective is to seek to preserve the valueof your investment and provide moderate potentialfor growth while seeking to reduce portfolio volatilityby investing primarily, directly or indirectly, inglobal equities and fixed income securities.









• the fund or the underlying funds may usederivatives to implement the investment strategy.Derivatives, such as options, futures, forwardcontracts, swaps and other derivativeinstruments may be used for both hedging andnon-hedging purposes, or to, among other things:

− - protect the fund against potential losses. Forexample, the portfolio manager may be concernedabout the impact that rising interest rates mayhave on the fund. The portfolio manager mayattempt to reduce the impact of security pricefluctuations by using interest rate swaps




The fund or the underlying funds may enter intosecurities lending, repurchase and reverse repurchasetransactions to earn additional income. Thesetransactions will be used in conjunction with theother investment strategies in a manner considered

Type of fund

Date started

Securitiesoffered


Managementfee

Administrationfee

Portfoliomanager










appropriate to achieving the fund’s investmentobjectives. Please see Securities lending, repurchaseand reverse purchase transactions risk on page 20.

The fund or the underlying funds may engage inshort selling in order to manage volatility orenhance the fund’s performance in declining orvolatile markets. In compliance with its investmentobjectives, the fund will engage in short sales byborrowing securities which the portfolio managerbelieves are overvalued and selling them in the openmarket. The securities will then be repurchased bythe fund at a later date and returned to the lender.The fund will only engage in short sales as permittedby Canadian securities regulators.










Distribution policyThe fund distributes any net income and any netcapital gains in December. Distributions areautomatically reinvested in additional securities of the fund, unless you tell us in writing that youprefer to receive cash.






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Retirement Balanced Portfolio


Investment objectivesThis fund’s objective is to seek to preserve the valueof your investment and provide potential for growthwhile seeking to reduce portfolio volatility byinvesting primarily, directly or indirectly, in globalequities and fixed income securities.









• the fund or the underlying funds may usederivatives to implement the investment strategy.Derivatives, such as options, futures, forwardcontracts, swaps and other derivative instrumentsmay be used for both hedging and non-hedgingpurposes, or to, among other things:





The fund or the underlying funds may enter intosecurities lending, repurchase and reverse repurchasetransactions to earn additional income. Thesetransactions will be used in conjunction with theother investment strategies in a manner considered

Type of fund

Date started

Securitiesoffered


Managementfee

Administrationfee

Portfoliomanager

Global neutral balanced









appropriate to achieving the fund’s investmentobjectives. Please see Securities lending, repurchaseand reverse purchase transactions risk on page 20.








• you are comfortable with low to mediuminvestment risk (i.e., you are willing to acceptsome fluctuations in the market value of yourinvestment).









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Fund details

Risk Reduction Fixed Income Fund


Investment objectivesThis fund’s objective is to seek to preserve the valueof your investment, to provide the potential forincome and to reduce portfolio volatility as comparedto the broader global fixed income market byinvesting primarily, directly or indirectly, in globalfixed income securities and/or derivatives.


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objectives:• employs a strategic fixed income risk strategy

and may dynamically shift the fund’s exposureacross global markets

• seeks to reduce significant downside risks of thefixed income securities in which the fund investsthrough the use of derivatives including, withoutlimitation, buying or selling a combination offutures contracts and put and/or call options



• may invest up to 100% of the fund’s assets insecurities of exchange traded funds that are indexparticipation units, including funds that aremanaged by us or one of our affiliates or associates

• the fund or the underlying funds may usederivatives to implement the investment strategy

• the fund intends to use derivatives to hedge risksto which the fund is directly or indirectly exposedincluding to manage volatility, currency risk orinterest risk, to obtain protection from decreasesin the market value of securities, to reduceportfolio volatility and to otherwise preserve thevalue of your investment. Derivatives, such asoptions, futures, forward contracts, swaps andother derivative instruments may be used to,among other things:



− - The fund is not permitted to use derivatives to speculate, to seek to increase returnsindependent of the risks hedged or to generateindependent income

− - However, the fund is permitted to usederivatives to gain exposure to securitieswithout buying the securities directly.

Type of fund

Date started

Securitiesoffered


Managementfee

Administrationfee

Portfoliomanager

Specialty

Series I: August 18, 2015*


Not a qualified investment forregistered plans

Series I: N/A. A Series I fee isnegotiated and paid by eachSeries I investor(1)

For Series I, separate fees andexpenses are negotiated andpaid by each Series I investor(1)

Fees and expenses also includetaxes and other fund costs. SeeFees and expenses on page 31for details.



* This fund will not issue units to investors unless subscriptions aggregatingnot less than $500,000 have been received and accepted by the fundfrom investors other than us, a portfolio advisor of the fund, or officers,directors or securityholders of us or a portfolio advisor of the fund.

(1) The combined management and administration fees for Series I will notexceed 2.50%.



The fund may enter into securities lending,repurchase and reverse repurchase transactions toearn additional income. These transactions will beused in conjunction with the other investmentstrategies in a manner considered appropriate toachieving the fund’s investment objectives. Pleasesee Securities lending, repurchase and reversepurchase transactions risk on page 20.



What are the risks of investing in the fund?The investment strategies may involve the followingrisks, which we explain starting on page 16:• credit risk• currency risk• derivative risk• foreign investment risk• fund of funds risk• indexing risk• interest rate risk• large transaction risk• liquidity risk• securities lending, repurchase and reverse

repurchase transactions risk• short selling risk• tax treatment of options risk.

Who should invest in this fund?Consider this fund if:• you are looking for a global fixed income fund

with less volatility for your portfolio• you are comfortable with low investment risk

(i.e., you are willing to accept some fluctuationsin the market value of your investment over theshort-term).


Distribution policyThe fund distributes any net income and any netcapital gains in December. Distributions areautomatically reinvested in additional securities ofthe fund, unless you tell us in writing that youprefer to receive cash. Please see page 36 for moreinformation.

Fund expenses indirectly borne by investorsFor Series I, separate fees and expenses arenegotiated and paid by each Series I investor.

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Fund details

Risk Reduction Equity Fund


Investment objectivesThis fund’s objective is to seek to preserve the valueof your investment, to provide the potential forgrowth and to reduce portfolio volatility as comparedto the broader global equity market by investingprimarily, directly or indirectly, in global equitysecurities and/or derivatives.

The fundamental investment objectives may onlybe changed with the approval of a majority of thevotes cast at a meeting of securitytholders called forthat purpose.

Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objectives:• employs a strategic equity risk strategy and may

dynamically shift the fund’s equity exposureacross global markets

• seeks to reduce significant downside risks of the equity securities in which the fund investsthrough the use of derivatives including, withoutlimitation, buying or selling a combination of putand/or call options

• employs investment strategies that seek to reduceportfolio risk levels. These strategies seek toreduce exposure to market declines, whilerecognizing that they may not fully benefit fromstrong market growth


• may invest up to 100% of the fund’s assets insecurities of exchange traded funds that are indexparticipation units, including funds that aremanaged by us or one of our affiliates or associates

• the fund or the underlying funds may usederivatives to implement the investment strategy

• the fund intends to use derivatives to hedge risksto which the fund is directly or indirectly exposedincluding to manage volatility, currency risk orinterest risk, to obtain protection from decreasesin the market value of securities, to reduceportfolio volatility and to otherwise preserve thevalue of your investment. Derivatives, such asoptions, futures, forward contracts, swaps andother derivative instruments may be used to,among other things:



− - The fund is not permitted to use derivatives to speculate, to seek to increase returnsindependent of the risks hedged or to generateindependent income

− - However, the fund is permitted to usederivatives to gain exposure to securitieswithout buying the securities directly.

Type of fund

Date started

Securitiesoffered


Managementfee

Administrationfee

Portfoliomanager

Specialty

Series I: August 18, 2015*


Not a qualified investment forregistered plans

Series I: N/A. A Series I fee isnegotiated and paid by eachSeries I investor(1)

For Series I, separate fees andexpenses are negotiated andpaid by each Series I investor(1)

Fees and expenses also includetaxes and other fund costs. SeeFees and expenses on page 31for details.



* This fund will not issue units to investors unless subscriptions aggregatingnot less than $500,000 have been received and accepted by the fundfrom investors other than us, a portfolio advisor of the fund, or officers,directors or securityholders of us or a portfolio advisor of the fund.

(1) The combined management and administration fees for Series I will notexceed 2.50%.



The fund may enter into securities lending,repurchase and reverse repurchase transactions toearn additional income. These transactions will beused in conjunction with the other investmentstrategies in a manner considered appropriate toachieving the fund’s investment objectives. Pleasesee Securities lending, repurchase and reversepurchase transactions risk on page 20.



What are the risks of investing in the fund?The investment strategies may involve the followingrisks, which we explain starting on page 16:• currency risk• derivative risk• equity risk• foreign investment risk• fund of funds risk• indexing risk• large transaction risk• liquidity risk• securities lending, repurchase and reverse

repurchase transactions risk• short selling risk• tax treatment of options risk.

Who should invest in this fund?Consider this fund if:• you are looking for a global equity fund with less

volatility for your portfolio• you are comfortable with low to medium

investment risk (i.e., you are willing to acceptsome fluctuations in the market value of yourinvestment).


Distribution policyThe fund distributes any net income and any netcapital gains in December. Distributions areautomatically reinvested in additional securities ofthe fund, unless you tell us in writing that youprefer to receive cash. Please see page 36 for moreinformation.

Fund expenses indirectly borne by investorsFor Series I, separate fees and expenses arenegotiated and paid by each Series I investor.

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What is a mutual fund?A mutual fund is a pool of investments managed byprofessional money managers. When you invest ina mutual fund, you’re actually pooling your moneywith other people who have similar investmentgoals. A portfolio manager invests that money onbehalf of the whole group. If the investments makemoney, everyone shares in the gain. If the investmentslose money, the whole group shares in the loss.

Mutual fund companies keep track of each investor’sshare of the pool by selling mutual funds in units orshares. The more you invest, the more units youown and the bigger your share of the fund’s income,gains and losses. As an investor, you also share aportion of the fund’s expenses.

Mutual funds come in many varieties that aredesigned to meet the differing needs of investors. A fund could hold investments like stocks, bonds,cash, derivatives, or other mutual funds andexchange traded funds or some combination ofthese, depending on its investment objectives.

The value of these investments can go up or down.They’re affected by things such as changes ininterest rates or currency exchange rates, economicconditions in Canada or abroad, or news about thecompanies the fund invests in. When the value ofthe investments change, it can make the price of themutual fund securities rise or fall. That’s why mutualfund investments can increase or decrease in valueafter you buy them and why the value of yourinvestment in a mutual fund may be more or lesswhen you redeem it than when you purchased it.

Under exceptional circumstances, a mutual fundmay not allow you to redeem your securities. SeeWhen you may not be allowed to redeem yoursecurities on page 28 for more information.

How mutual funds are structuredA mutual fund can be set up as a trust or corporation.Both allow you to pool your money with otherinvestors, but there are some differences. When youinvest in a trust, you buy units of the trust. Whenyou invest in a corporation, you buy shares of thecorporation. Some mutual fund corporations issueseveral classes of shares, where each share classworks like a separate mutual fund with its owninvestment objectives.

The main difference between an investment in atrust and a corporation is in how the entity and yourinvestment in the entity are taxed. This is generallymore important if you’re investing outside of aregistered plan. Distributions from a mutual fundthat is a trust are generally treated differently fortax purposes than distributions from a mutual fundthat is a corporation. You can switch yourinvestment between the different classes and seriesof shares of a corporation without realizing capitalgains on your securities at the time of the switch.You cannot switch your investment between twotrusts or between a corporation and a trust orbetween two corporations on a tax-deferred basis.

Units of a mutual fund trust and classes of a mutualfund corporation may be issued in different series.Each series is intended for different kinds ofinvestors and may have different fees and expensesor different distribution policies.

The funds offered under this simplified prospectusare organized as trusts. When you invest in a fund,you are buying units of a trust.

What are the risks of investing in a mutual fund?Risk varies from one fund to another. You canmeasure risk by how often the fund’s value changesand how big the changes tend to be. This is calledvolatility. The bigger and more often the changes invalue, the more volatile the fund.

Every fund has a different degree of volatility,which depends largely on the investments that thefund makes. For example, if a fund only invests ininterest-paying money market instruments offeredby the Canadian government, it will be subject tovery little volatility. That’s because the governmentguarantees payment of a certain interest rate andthere’s little chance it will fail to keep its promise.On the other hand, some funds may invest heavilyin technology stocks. Technology stocks can havefrequent, large changes in value as a company’sproducts go in and out of favour, so funds thathave heavy exposure to technology stocks can bequite volatile.

As a general rule, the higher the risk, the higher thepotential for gains (and losses). The lower the risk,the lower the potential for gains (and losses). A keyto reducing the overall volatility of your portfolio isto hold a wide variety of investments.

16 What is a mutual fund and what are the risks of investing in a mutual fund?


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When you’re deciding which funds to invest in, youneed to ask yourself how comfortable you’ll be withtheir volatility. Here are some important points thatcan help you decide:• the length of time you’re prepared to invest. The

more time you have until you need to cash in yourinvestments, the more you should be thinkingabout investing in funds that have exposure toequities. These can be volatile in the short-term,but over the long-term, they’ve tended to providehigher returns than other kinds of investments

• your investment goals. Your goals are uniqueand will influence the amount of risk that youare willing to take. If you can reach your goalonly by earning higher returns on yourinvestments, you may want to think about takingon more risk by making more volatile funds alarger part of your portfolio

• your portfolio as a whole. A fund that may seemtoo risky on its own may be suitable as a smallpercentage of your portfolio. Why? Diversification.When you hold a variety of interest-paying fundsand equity funds in your portfolio, you increasethe potential for higher returns. At the same time,a good mix of investments tends to reduce wideswings in the value of your portfolio. That’sbecause the various kinds of investments thefunds hold tend to react differently to market andeconomic changes.

Mutual fund investments are not guaranteedUnlike bank accounts or GICs, the funds aren’tcovered by the Canada Deposit Insurance Corporationor the Régie de l’assurance dépôts du Québec andaren’t guaranteed by Bank of Montreal or by anyoneelse. The value of each fund will vary with changesin the value of the fund’s investments.

Under exceptional circumstances, a fund maysuspend redemptions. See When you may not beallowed to redeem your securities on page 28.

General investment risksThe volatility of a fund depends on the kinds ofinvestments it makes. Here are some of the commonrisk factors that cause the value of funds to change.Not all risks apply to all funds.

Capital depletion riskSeries T6 securities make monthly distributions ofan amount comprised, in whole or in part, of ROCbased on 6% of the net asset value per security ofthe series on December 31 of the prior year. As well,certain other series of the funds may makedistributions comprised, in whole or in part, of ROC.

A ROC reduces the amount of your originalinvestment and may result in the return to you ofthe entire amount of your original investment. ROCthat is not reinvested will reduce the net asset valueof the fund, which could reduce the fund’s ability togenerate future income. You should not draw anyconclusions about the fund’s investment performancefrom the amount of this distribution. ROC can onlybe made by a series of a fund to the extent that thereis a positive balance in the capital account for therelevant series. To the extent that the balance in thecapital account becomes, or is at risk of becoming,zero, monthly distributions may be reduced ordiscontinued without prior notice. See page 36 foradditional information about ROC.

Credit riskCredit risk is the risk that the company, governmentor other entity (including a special purpose vehicle)that issued a bond or other fixed income security(including asset-backed and mortgage-backedsecurities) can’t pay interest or repay principalwhen it’s due. This risk is lowest among issuers thathave a high credit rating from a credit ratingagency. It’s highest among issuers that have a lowcredit rating or no credit rating. Investments with alower credit rating usually offer a better return thanhigher-grade investments, but have the potentialfor substantial loss as well as gain, as will the fundsthat buy them.

High yielding, higher risk income securities inwhich some of the funds may invest are subject togreater risk of loss of principal and income thanhigher rated fixed income securities, and areconsidered to be less certain with respect to theissuer’s capacity to pay interest and repay principal.

A specialized credit rating agency, such as Standard& Poor’s or DBRS, may reduce the credit rating of anissuer’s debt securities. Unexpected downgrades incredit rating typically decrease the value of suchsecurities.

Currency riskFunds that invest in foreign securities buy themusing foreign currency. For example, funds useU.S. dollars to buy U.S. stocks or bonds. Becausecurrencies change in value against each other, it’s possible that an unfavourable move in theexchange rate may reduce, or even eliminate, anyincrease in the value of that investment. Theopposite can also be true—the fund can benefitfrom changes in exchange rates.


Derivative riskWhile derivatives can be useful for hedging againstlosses or as a substitute for the underlying assets,they involve a number of risks:• the hedging strategy used by a fund may not

be effective• there’s no guarantee that a market will exist when

a fund wants to meet the terms of the derivativecontract. This could prevent the fund from makinga profit or limiting its losses

• the other party to a derivative contract may not beable to meet its obligations

• stock exchanges may set daily trading limits onfutures contracts. This could prevent a fund fromclosing a contract

• the price of stock index options may be distortedif trading in some or all of the stocks that make upthe index is interrupted. If a fund could not closeout its position in these options because ofinterruptions or imposed restrictions, it mayexperience losses

• the price of a derivative may not accurately reflectthe value of the underlying security or index

• an acceptable counterparty may not be willing toenter into contracts that allow the fund to link itsperformance to the underlying security

• if a fund is required to give a security interest inorder to enter into a derivative, there is a risk thatthe other party may try to enforce the securityinterest against the fund’s assets

• the cost of the derivative contracts may increase.

Equity riskBusinesses issue equity securities, such as shares orunits, to help pay for their operations and financefuture growth. Funds that buy equities become partowners of the company that issued the securities.Changes in the value of the businesses change thevalue of the fund. The price of a security isinfluenced by the outlook for the particularbusiness, by the market activity and by the largereconomic picture, both at home and abroad. Whenthe economy is expanding, the outlook for manybusinesses may also be good and the value of theirsecurities may rise. The opposite is also true.

Funds that invest in limited partnership units ortrust units, such as oil and gas royalty trusts, realestate investment trusts and income trusts, willhave varying degrees of risk depending on thesector and the underlying asset or business andmay therefore be susceptible to risks associated

with the industry in which the underlying businessoperates, to changes in business cycles, commodityprices, and to interest rate fluctuations and othereconomic factors.

Foreign investment riskWhen a fund invests in foreign securities, its value isaffected by financial markets and general economictrends in the countries where the securities areissued. While the U.S. market has standards that aresimilar to those in Canada, other foreign marketsmay not. For example, some foreign markets maynot be as strictly regulated as Canadian and U.S.markets. Their laws might make it difficult toprotect investor rights. The political climate mightbe less stable and social, religious and regionaltensions may exist. Business disclosure andaccounting standards may be less stringent than inCanada and the U.S., making it difficult to obtaincomplete information about a potential investment.Securities markets may be smaller than in moredeveloped countries, making it more difficult to sellsecurities in order to take profits or avoid losses. Asa result, the value of foreign securities, and the valueof funds that hold them, may rise or fall more rapidlyand to a greater degree than Canadian and U.S.investments. In general, securities issued in moredeveloped markets have lower foreign investmentrisk. Securities issued in emerging or developingmarkets have higher foreign investment risk.

Funds that concentrate their investments in a singlecountry or region of the world tend to be riskierthan funds with greater geographic diversificationbecause prices of securities in the same marketstend to move up and down together.

Fund of funds riskCertain funds invest directly in, or obtain exposure to,other investment funds as part of their investmentstrategy. Therefore, these funds will be subject to therisks of the underlying funds. Also, if an underlyingfund suspends redemptions, the investment fundthat invests in the underlying fund will be unable tovalue part of its portfolio and may be unable toredeem securities.

Indexing riskCertain funds, including index funds and certainexchange traded funds, use a variety of indexingstrategies or have exposure to underlying mutualfunds that use indexing strategies. Indexingstrategies involve tracking the performance of an

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index by tracking the performance of the investmentsincluded in the index. It’s unlikely that a fund or anunderlying mutual fund will be able to track anindex perfectly because each of the fund andunderlying mutual fund has its own operating andtrading costs, which lower returns. Indices don’thave these costs.

Also, a fund or an underlying mutual fund may, inbasing its investment decisions on an index, havemore of its assets invested in one or more issuersthan is usually permitted for mutual funds. In thesecircumstances, the fund or underlying mutual fundmay tend to be more volatile and less liquid thanmore diversified mutual funds as it is affected moreby the performance of individual issuers.

Further, concentrating its investments in thesecurities of a particular index allows a fund or anunderlying mutual fund to focus on that index’spotential, but it also means that the fund orunderlying mutual fund may tend to be morevolatile than a fund or underlying mutual fund thatinvests in the securities of a variety of indicesbecause prices of securities on the same index tendto move up and down together. If required by itsinvestment objectives, the fund or underlying mutualfund must continue to invest in the securities of theindex, even if the index is performing poorly. Thatmeans the fund or underlying mutual fund won’t beable to reduce risk by diversifying its investmentsinto securities listed on other indices.

Also, if the stock market upon which the index isbased is not open, the fund or underlying mutualfund may be unable to determine its net asset valueper security, and so may be unable to satisfyredemption requests.

Interest rate riskThe value of funds that invest in fixed incomesecurities can move up or down as interest rateschange. Here’s why. Fixed income securities—including bonds, mortgages, treasury bills andcommercial paper—pay a rate of interest that’sfixed when they’re issued. Their value tends tomove in the opposite direction to interest ratechanges. For example, when interest rates rise, the value of an existing bond will fall because theinterest rate on that bond is less than the marketrate. The opposite is also true. These changes inturn affect the value of any fund investing in fixedincome securities.

In the case of money market funds, a fund’s yield isaffected by short-term interest rates, and will vary.

Large transaction riskA fund may have one or more investors who hold oracquire a significant amount of securities of thefund, including another mutual fund. For example,a financial institution may buy or sell large amountsof the securities of a fund to hedge its obligationsrelating to a guaranteed investment product whoseperformance is linked to the performance of thefund. As well, certain mutual funds, including thefunds, may invest directly in the funds. If one ormore of these investors (including these investingfunds) decides to redeem its investment in a fund,the fund may have to make large sales of securitiesto meet these requests. The portfolio manager mayhave to change the composition of the fund’sportfolio significantly or may be forced to sellinvestments at unfavourable prices, which cannegatively impact the fund’s returns. Conversely, ifone or more of these investors decides to increaseits investment in a fund, the fund may have to holda relatively large position in cash for a period oftime while the portfolio manager attempts to findsuitable investments. This could negatively impactthe fund’s return.

A trust, such as a fund, is subject to a “loss restrictionevent” for the purposes of the Income Tax Act (the“Tax Act”) each time a person or partnershipbecomes a “majority-interest beneficiary” of thetrust for tax purposes, which generally occurs whena beneficiary of the trust and its affiliates havebeneficial interests in the trust of more than 50% ofthe fair market value of the trust. However, noperson, partnership or affiliated group should willbe or become a “majority interest beneficiary” of afund as long as the fund satisfies certain investmentdiversification restrictions. If a fund experiences a“loss restriction event”, the taxation year of the fundwill be deemed to end.

The fund will realize its capital losses and mayelect to realize its capital gains. Unused capitallosses will expire and the ability of the fund tocarryforward non-capital losses will be restricted.

Liquidity riskSome securities may be difficult to buy or sellbecause they’re not well known or because politicalor economic events significantly affect them. Theseinclude investments in specific sectors, especiallycommodity sectors, and investments in developing


or smaller markets. In addition, smaller companiesmay be hard to value because they’re developingnew products or services for which there is not yet adeveloped market or revenue stream. They mayonly have a small number of shares in the market,which may make it difficult for a fund to buy or sellshares when it wants to. The value of funds thathold these investments may rise or fall substantially.

Securities lending, repurchase and reverse repurchase transactions riskThe funds may engage in securities lending,repurchase and reverse repurchase transactions.These transactions will be used in conjunction with the other investment strategies in a mannerconsidered appropriate to achieving the fund’sinvestment objectives. Securities lending is anagreement whereby a fund lends securities throughan authorized agent in exchange for a fee and aform of acceptable collateral. Under a repurchasetransaction, a fund agrees to sell securities for cashwhile, at the same time, assuming an obligation torepurchase the same securities for cash (usually ata lower price) at a later date. A reverse repurchasetransaction is a transaction pursuant to which afund buys securities for cash while, at the sametime, agreeing to resell the same securities for cash(usually at a higher price) at a later date.

The risks associated with securities lending,repurchase or reverse repurchase transactions arisewhen a counterparty defaults under the agreementevidencing the transaction and the fund is forced tomake a claim in order to recover its investment. In asecurities lending or a repurchase transaction, afund could incur a loss if the value of the securitiesloaned or sold has increased in value relative to thevalue of the collateral held by the fund. In the caseof a reverse repurchase transaction, a fund couldincur a loss if the value of the securities purchasedby the fund decreases in value relative to the valueof the collateral held by the fund.

To limit these risks:• the collateral held by the fund must equal at least

102% of the market value of the security sold,loaned or cash paid (the collateral is adjusted oneach business day to ensure that this value ismaintained)

• repurchase transactions and securities lendingagreements are limited to 50% of a fund’s assets.Collateral held for loaned securities and cashpaid for received securities are not includedwhen making this calculation

• we only enter into such transactions with partieswho appear to have the resources and the financialstrength to fulfill the terms of the agreements.

Series riskThe funds issue more than one series of securities.Each series has its own fees and expenses, whichare tracked separately; however, if a series can’tmeet its financial obligations, the other series areresponsible for making up the difference. This isbecause the fund as a whole is legally responsiblefor the financial obligations of all of the series.

Short selling riskShort selling strategies can provide a fund with anopportunity to manage volatility and enhanceperformance in declining or volatile markets. Shortselling securities involves risk because there is noassurance that securities will sufficiently decline invalue during the period of the short sale to offset theinterest paid by the fund and make a profit for thefund. Securities sold short may instead increase invalue. The fund may also experience difficultiesrepurchasing and returning the borrowed securities.The borrowing agent from whom the fund hasborrowed securities may go bankrupt and the fundmay lose the collateral it has deposited with theborrowing agent.

To limit these risks, a fund will implement controlswhen conducting a short sale:• the security sold short must not be an illiquid asset• at the time the fund sells the security short:

– the fund has borrowed or arranged to borrowthe security from a borrowing agent

– the aggregate market value of all securities ofthe issuer of the securities sold short by thefund does not exceed 5% of the net asset valueof the fund

– the aggregate market value of all securitiessold short by the fund does not exceed 20% ofthe net asset value of the fund

– the fund must hold cash cover that, togetherwith the portfolio assets deposited with theborrowing agents as security for the short salesby the fund, is at least 150% of the aggregatemarket value of all securities sold short by thefund on a daily mark-to-market basis

• the fund must not use the cash cover from a shortsale to enter into a long position in a security,other than a security that qualifies as cash cover.

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Tax treatment of options riskIn determining its income for tax purposes, a fundintends to treat derivatives that are (A) used to hedgerisks and (B) not used (i) to speculate, (ii) to seek toincrease returns independent of the risks hedged or(iii) to generate independent income, on capitalaccount. A fund will generally treat other derivativeson income account. The Canada Revenue Agency’spractice is to not grant advance income tax rulingson the characterization of items as capital or income.No advance income tax ruling has been sought orreceived from the Canada Revenue Agency.

The Tax Act contains recently enacted derivativeforward agreement (“DFA”) rules that, in somecircumstances, could apply to cause a gain or loss onthe disposition or an acquisition of an investmentby a fund, which would otherwise be treated oncapital account, to be treated on income accountwhere the disposition or acquisition arises under aDFA. Whether the DFA rules will apply in respect ofan underlying investment of a fund will depend onthe terms and conditions of the derivatives that areentered into by the fund, including the extent of therisk of loss and opportunity for gain or profit in respectof the underlying investment that is maintained bythe fund. Generally, the fund anticipates that theDFA Rules will not apply to its investments.

There is a risk that the Canada Revenue Agencymay disagree with the tax treatment adopted by afund. In such case, the net income of the fund fortax purposes and the taxable component ofdistributions to investors could subsequently bedetermined to be more than originally reported.Investors could be reassessed or the fund could beliable for income tax. Also, the fund could becomeliable for unremitted withholding taxes on priordistributions made to non-resident investors. Anyliability imposed on the fund may reduce the valueof the fund and the value of an investor’s investmentin the fund.

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Manager

Trustee

Principaldistributor

Custodian

Registrar

Auditor

Securitieslendingagent

The manager is responsible for the day-to-daymanagement of the business and operations of thefunds. BMO Investments Inc., an indirect wholly-owned subsidiary of Bank of Montreal, is the managerof the BMO Mutual Funds.

All of the funds are organized as trusts. The trusteeholds title to the securities owned by the funds onbehalf of securityholders, has exclusive authority overtheir assets and affairs and has a fiduciary responsibilityto act in the best interest of the securityholders.

The principal distributor markets and distributes thefunds through registered dealers and brokers.

The custodian holds the funds’ cash and securities onbehalf of the funds. The custodian is independent ofBMO Investments Inc.

The registrar processes orders, records all investorinvestment transactions, issues or cancels certificates,as applicable, issues account statements tosecurityholders and deals with enquiries from investorsand dealers. The register of securities of the funds iskept in Toronto, Ontario and Montreal, Quebec.

The auditor audits the funds’ annual financialstatements to ensure that these statements fairlypresent the financial position and results of operationsof each of the funds in accordance with InternationalFinancial Reporting Standards. The auditor isindependent of BMO Investments Inc. and the funds.

The securities lending agent acts as agent forsecurities lending transactions for those funds thatengage in securities lending. The securities lendingagent is independent of BMO Investments Inc.

BMO Investments Inc.100 King Street West, 43rd FloorToronto, Ontario M5X 1A1

1-800-665-7700 or1-800-668-7327

BMO Investments Inc.Toronto, Ontario


CIBC Mellon Trust CompanyToronto, Ontario


PricewaterhouseCoopers LLP,Chartered Professional AccountantsToronto, Ontario

The Bank of New York MellonToronto, Ontario

Organization and management of BMO Mutual Funds22


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IndependentReviewCommittee

Organization and management of BMO Mutual Funds (continued)

The funds are required to have an independent review committee (“IRC”) in accordancewith National Instrument 81-107 Independent Review Committee for Investment Funds.The mandate of the IRC is to review conflict of interest matters identified and referredto the IRC by the manager and to give its approval or recommendation, depending onthe nature of the conflict of interest matter. In each instance where a conflict of interestmatter is identified and referred to the IRC, the primary focus of the IRC is to determineif the manager’s proposed action achieves a fair and reasonable result for the funds.

The IRC is currently composed of four members and each member is independent ofthe funds, the manager and other companies related to the manager. The IRC willprepare, for each financial year of the funds, a report to securityholders that describesthe IRC and its activities for the financial year. Securityholders can get a copy of thisreport, at no cost, as follows: • If you purchased your securities at a BMO Bank of Montreal Branch or through

the BMO Investment Centre, you may call us toll free at 1-800-665-7700, write toBMO Investments Inc. at 100 King Street West, 43rd Floor, Toronto, Ontario, M5X 1A1or visit our website at www.bmo.com/mutualfunds.

• If you purchased your securities through a dealer, you may call us toll free at 1-800-668-7327, write to BMO Investments Inc., at 250 Yonge St., 9th Floor, Toronto,Ontario, M5B 2M8 or visit our website at www.bmo.com/gam/ca.

You can also get a copy of this report through the SEDAR website at www.sedar.com.

Additional information about the IRC, including the names of IRC members, is availablein the funds’ annual information form.

Portfolio managerThe portfolio manager provides investment advice to the manager on the investment portfolios of thefunds. We’ve hired the following company to manage the investment portfolios of the funds.

BMO AssetManagementInc.Toronto,Ontario(“BMOAM”)

BMOAM is a wholly-owned, indirect subsidiary of Bank of Montreal, the parentcompany of BMO Investments Inc. and had approximately $73 billion (CAD) in assetsunder management as at December 31, 2014. The BMOAM equity team employs a“bottom-up” investment process using fundamental analysis to identify attractivelypriced equities. Research responsibilities are divided by sector.

The securities of underlying funds held by a fundthat we, or one of our affiliates or associates,manage will not be voted unless, at our discretion,we arrange for securities of the underlying fund tobe voted by the securityholders of the fund.

In certain circumstances, in place of you approvinga fund merger, the IRC has been permitted undersecurities legislation to approve a fund merger. Inthese circumstances, you will receive written noticeof any proposed fund merger at least 60 days priorto the effective date of the merger.


24

Purchasing fundsYou can buy, switch, or redeem Series A securitiesand Series T6 securities under the no load salescharge option (“No Load Series T6”) of the funds atno charge:• in person, at any Bank of Montreal branch.• by telephone, once you’ve made arrangements

for payment:– with your Bank of Montreal branch– through the BMO Investment Centre,

1-800-665-7700• through the internet (other than in an RDSP) at

www.bmo.com/mutualfunds, once you’ve madeauthorization arrangements.

• by mail. Your order to buy must be mailed with acertified cheque made out to the fund you’re buying.

• automatically through a Continuous Savings Planfor purchases, or a Systematic Withdrawal Planfor redemptions.

You can buy, switch, or redeem Series A and No LoadSeries T6 securities through a registered dealer.Please contact your dealer to find out how to placean order. Some dealers may charge you a fee fortheir services.

You can buy Series F securities of the funds throughdealers who have entered into a Series F agreementwith us and only with our prior approval. A dealer’sability to sell Series F securities is subject to ourterms and conditions.

Through your dealer, you may buy Advisor Seriesand certain Series T6 (“Load Series T6”) securitiesof the funds under the Sales Charge option or underthe deferred charge option.

You don’t pay a sales charge when you buy Series A,Series F or No Load Series T6 securities of the funds.

Your choice of purchase option affects the fees andsales charges you, or we, will pay to your dealer andthe service fee we will pay to your dealer. See Feesand expenses on page 31 and Dealer compensationon page 34.

Under the Sales Charge option, you pay a commissionto your dealer when you buy securities of a fund.The commission is negotiable between you andyour dealer, but cannot exceed 5% of the amountyou invest. See further details under Fees andexpenses on page 31.

There is one deferred charge option – the Low LoadDeferred Charge option. Under the Low LoadDeferred Charge option, we pay a commission to

your dealer on your behalf when you buy securitiesof a fund. You may be required to pay a fee to us if youredeem your securities within a specified numberof years after your purchase. The redemption fee isa percentage of the original cost of the securitiesredeemed and declines at the rates shown in theFees and expenses table starting on page 31.

How the funds are structuredWhen you invest in a fund, you buy units. Each funddistributes its earnings by allocating its income andnet capital gains to securityholders. In general,income and capital gains distributed to you from atrust is taxed as if you received it directly. A fundmay also distribute capital to you. Distributions ofcapital, called ROC, are not taxable but reduce theACB of your units.

About the series of securitiesThe funds in this simplified prospectus may issuemore than one series of securities. You’ll find thetype of securities each fund offers through thissimplified prospectus in the Fund details section ofits fund description. Each series is intended fordifferent kinds of investors and has different feesand expenses. See Fees and expenses and Dealercompensation for details.• Series A and No Load Series T6 securities are

available to all investors. You can buy Series Aand No Load Series T6 securities directly from us by mail, by telephone (once you’ve madearrangements for payment) or through theinternet (other than in an RESP, RDSP or TFSA) atwww.bmo.com/mutualfunds or at any branch ofBank of Montreal in Canada or from the BMOInvestment Centre or through your dealer.

• Load Series T6 and Advisor Series securities areavailable to all investors through authorizeddealers and brokers, and may be purchasedunder the Sales Charge option or the Low LoadDeferred Charge option. You can also buy LoadSeries T6 and Advisor Series securities under theSales Charge option directly from us by mail, bytelephone (once you’ve made arrangements forpayment) at any branch of Bank of Montreal inCanada or from the BMO Investment Centre.

• Series F securities are for investors who areenrolled in dealer sponsored wrap programs orflat fee accounts. Instead of paying a commissionon each transaction, these investors pay anannual fee based on the value of their assets.Series F securities are also available to other

Purchases, switches and redemptions


25

investors for whom we do not incur substantialdistribution costs. The management fee is reducedfor these investors because our costs are reduced.You can buy Series F securities only throughdealers who have entered into a Series F agreementwith us and only with our prior approval. A dealer’sparticipation in Series F securities distribution issubject to our terms and conditions. You don’t paya sales charge when you buy Series F securities ofthe funds.

• Series I securities are for institutional investors, foruse within managed asset programs or structuredproducts. A fund doesn’t pay a management feeon Series I securities because Series I investorsnegotiate and pay a separate fee directly to us. Youdon’t pay a sales charge when you buy Series Isecurities of the funds. If eligible, you can buySeries I securities only through a registered dealeror broker who has entered into a Series I Agreementwith us and only with our prior approval. A dealer’sparticipation in Series I securities distribution issubject to our terms and conditions.

If you or your dealer is no longer eligible to holdSeries F or Series I securities (as the case may be),we may switch your Series F or Series I securities (asapplicable) into Series A securities or Advisor Seriessecurities (under the Sales Charge option) of thesame fund. If we do this, we’ll give you at least30 days’ notice. If we switch your securities of a fundinto securities of another series of the same fund inthe circumstances described above, the managementfee charged to your new series and the service feepayable by us to registered dealers, if any, may behigher than the series that you previously owned.These service fees are set out below under Dealercompensation on page 34.

Provided the conditions set out below are met, wemay, in our discretion, switch your securities of afund into securities of another series of the samefund. We may only switch your securities in thiscircumstance if all the following conditions aresatisfied:• you receive securities of the same value;• the management fee and administration fee of the

new series are not more than that of the seriesthat you previously owned;

• the switch is done at no cost to you;• the switch is not a disposition for tax purposes; and• the service commissions payable to registered

dealers and brokers, if any, remain the same.

The price of a securityWhen you buy, switch or redeem securities of amutual fund, you do so at the net asset value(“NAV”) of the security. This is also called thefund’s unit or share price. We calculate the price ofeach security for each series of each fund as at4:00 p.m. Eastern Time (“ET”) on each valuationday. A valuation day is any day that the TorontoStock Exchange is open for trading or such othertime as we may from time to time determine to be aday for valuation for any fund. Prices for the seriesof securities sold through BMO Bank of Montrealbranches and the BMO Investment Centre may bepublished in major Canadian newspapers thefollowing day and are published on the internet atwww.bmo.com/mutualfunds. Prices for series ofsecurities sold through a dealer may be published inmajor Canadian newspapers the following day and arepublished on the Internet at www.bmo.com/gam/ca.

For each fund, we calculate the price for eachsecurity by:• adding up the market value of each series’

proportionate share of the assets of the fund (its investments and cash)

• subtracting the liabilities of the fund (any moneythe fund owes) attributed to the series of securities

• dividing by the number of securities of the seriesheld by all investors in the series.

series’ proportionateshare of liabilities

series’ proportionateshare of assets –

= = price of a

security

How to calculate a fund’s NAV per security of a series

number of securities of that series

NAV per

security


26

Short-Term TradingWe discourage investors from short-term trading.Short-term trading can harm a fund’s performanceand the value of other investors’ holdings in a fundbecause such trading can increase brokerage andother administrative costs of a fund and interferewith the long term investment decisions of theportfolio manager. Short-term trading may beparticularly problematic when large sums areinvolved. Short-term trading can include buyingand then redeeming or switching securities of afund within 30 days of buying or switching theminto the fund. We have policies and procedures todetect and deter short-term trading that include theability to refuse your present or future order(s) tobuy or switch securities. If, in our sole discretion,we determine that you are engaging in short-termtrading, in addition to taking other available remedies,the relevant fund may charge a short-term tradingpenalty to be paid directly to the fund out of theredemption proceeds, reducing the amountotherwise payable to you on the redemption orswitch (see page 33 for more information). We maywaive this penalty at any time.

The restrictions imposed on short-term trading,including the short-term trading fees, will generallynot apply in connection with redemptions orswitches: from money market funds and similarfunds; initiated by us; under special circumstances,as determined by us in our sole discretion; orpursuant to Systematic Withdrawal Plans. Theannual information form includes a description ofall arrangements, whether formal or informal, withany person or company, to permit short-term tradesof securities of the funds.

Despite these restrictions and our procedures todetect and deter short-term trading, we cannotensure that such trading will be completelyeliminated.

How we process your orderYour order to buy, switch or redeem securities mustbe forwarded to us by your dealer. If we receiveyour order by 4:00 p.m. (ET) on a valuation day,we’ll process it at that day’s price per security. If we receive your order after 4:00 p.m. (ET), we’llprocess it at the next valuation day’s price. If theToronto Stock Exchange closes earlier than4:00 p.m. (ET) on a valuation day, we may imposean earlier deadline. We’ll process your order only ifit’s in good order. The issue and redemption priceof the securities of a fund is based on the mutualfund’s NAV per security next determined afterreceipt by the mutual fund of your order.

If you’re buying securities, you must include paymentwith your order. If we do not receive payment withinthree (3) business days of processing your purchaseorder for any securities, we must redeem yoursecurities on the next business day. If the proceedsfrom the redemption are greater than the paymentyou owe, the relevant fund keeps the difference. Ifthe proceeds are less than the payment you owe, wewill pay the difference to the relevant fund on yourbehalf, and collect this amount together withadditional costs from your dealer who may collectthese amounts from you.

We’ll pay to the fund you’re buying any interestearned between the time you make payment andthe time the purchase is completed. We generallydon’t issue certificates. We may accept or reject anorder to buy within one business day of receivingthe order. If we accept your order, your broker ordealer or we will send you confirmation of yourorder, which is your proof of the transaction. If yousign up for our Continuous Savings Plan or SystematicWithdrawal Plan, you’ll only receive confirmationof the first transaction made under the plan. If wereject your order, we’ll return any money we’vereceived, without interest.

If you’re redeeming securities, we’ll transfer or mailthe proceeds to you within three (3) business daysafter we determine the redemption price providedall necessary documents and/or information havebeen received.


27

Buying funds Minimum amount Minimumyou can buy balanceYour first Each additionalpurchase purchase

ALL FUNDS AND SERIES except Series F and Series I securities

SINGLE PURCHASE

Regular account $500 $50 $500

RRIF account $5,000 — —

CONTINUOUS SAVINGS PLAN

All accounts $50 a month — —

Switching between funds Minimum amount Minimumyou can switch balance


Regular account $50 $500

Redeeming funds Minimum amount Minimumyou can redeem balance


SINGLE REDEMPTION

All accounts $50 $500

RRIF, LIF, LRIF, PRIF and RLIF accounts Minimum amount required N/Aunder the Tax Act

SYSTEMATIC WITHDRAWAL PLAN

All non-registered accounts $100 monthly, quarterly $10,000or semi-annually

Your guide to buying, switching and redeeming the fundsThe following tables show you the minimumamounts for buying, switching and redeemingsecurities of a fund, and for maintaining an accountor an investment in a fund. These amounts dependon the kind of account and fund or series youchoose. If the value of your investment in a fundfalls below the minimum amount as determined byus from time to time, we will give you 30 days’written notice before we redeem all the securities ofsuch fund in your account. If, as a result of marketfluctuation, the value of your securities falls belowthe minimum balance, we may buy your securities

from you or redeem them for you after giving you10 days’ notice. If, as a result of a partial redemption,the value of your remaining holding falls below theminimum balance, we may redeem such remainingholding immediately and without prior notice toyou. We may change the minimum amounts at anytime without notice. Any minimum amounts forSeries I securities are determined on a contractualbasis. Any minimum purchase amounts for Series Fsecurities are determined by your dealer and theminimum account balance for Series F securities is$250. These minimums are not currently enforcedbut may be enforced at our discretion.


28

Switching fundsA switch involves moving your investment fromone BMO Mutual Fund or series to anotherBMO Mutual Fund or series. We describe the kindsof switches you can make below. When we receiveyour order, we’ll switch your securities of oneBMO Mutual Fund or series for securities ofanother BMO Mutual Fund or series. You’ll find the minimum amounts needed for switches in thetables above. You may pay a fee of up to 2% of thevalue of the securities redeemed for switchingbetween the funds. You and your dealer cannegotiate this fee. There may be fees or chargespayable on the redemption of securities of the fundfrom which you are switching or on the purchase of the securities of the new fund or new series,depending on the series of securities involved andthe arrangements between you and your dealer.Please see Fees and expenses on page 31 for moreinformation. If necessary, securities may beredeemed to pay fees or charges.

Switching securities you hold in a non-registeredaccount may result in a disposition of yoursecurities and cause you to realize a capital gain or capital loss. Net capital gains are taxable. Fordetails about how switches are taxed, see Incometax considerations for investors.

You may instruct your dealer or financial advisor toswitch securities of one series or purchase option ofa fund to securities of another series or purchaseoption of the same fund, which series may havedifferent fees and expenses, as long as you meet theminimum initial investment requirement for thatseries. If you wish to switch your securities, it isyour sole responsibility to monitor your accountand instruct your dealer or financial advisor toswitch your securities.

Switching between series of the same fundYou can switch your units of one series of a fund intounits of another series of the same fund, providedyou are qualified. This is called a redesignation, and should not result in a disposition for income tax purposes.

Switching between the fundsYou can switch units of a fund into securities of thesame series or different series of another BMO MutualFund, provided you are qualified. This is a dispositionfor income tax purposes. Switching units you holdin a non-registered account may result in a capitalgain or capital loss. Net capital gains are taxable.

Switching under the deferred charge optionIf you are switching securities that you boughtunder the Low Load Deferred Charge option, youmust switch into the same purchase option if youwould like the new securities to continue thedeferred charge schedule of the securities that youhave switched from. This is true if you switchbetween any of the funds.

Switching between purchase optionsSwitches between purchase options may involve achange in the compensation paid to your dealer andredemption fees. We do not recommend that youswitch between purchase options as it may result inadditional fees.

Redeeming fundsSee the table on page 27 for the minimum amountsneeded for redemptions.

For your protection, you must sign your redemptionrequest and we may ask that your signature beguaranteed by a bank, trust company or your dealer.

If we have not received all the necessarydocumentation and/or information needed to settleyour redemption request within ten (10) businessdays, we are required under securities legislation topurchase the equivalent number of securities youasked to be redeemed as of the close of business onthe tenth business day. If the purchase price of thesecurities is less than the original redemption price,the fund will keep the difference. If the amount ofthe purchase price exceeds the original redemptionprice, we will pay the difference to the fund andmay seek reimbursement from your dealer,together with additional costs. Your dealer may beentitled to recover these amounts from you.

Redeeming securities you hold in a non-registeredaccount may result in a capital gain or capital loss.You’ll find information about the taxation ofsecurities held in a non-registered account underIncome tax considerations for investors.

When you may not be allowed to redeem your securitiesA fund may suspend your right to request aredemption for all or part of a period when:• normal trading is suspended on a stock, options

or futures exchange in Canada or outside Canadain which securities or derivatives that make upmore than 50% of the value or underlying exposureof the fund’s total assets are traded, and


29

• those securities or derivatives are not traded onany other exchange that represents a reasonablealternative for the fund.

A fund may postpone a redemption payment forany period during which your right to request aredemption is suspended under the circumstancesdescribed above or with the approval of theCanadian securities regulators. A fund may notaccept orders for the purchase of securities duringany period when the redemption of its securitieshas been suspended.

Redeeming securities under the deferred charge optionYou may be required to pay a redemption fee onsecurities bought under the deferred charge optionif you redeem the securities within three years afteryou purchase them under the Low Load DeferredCharge option. This redemption fee is a percentageof the original cost of your investment, and declinesat the rates shown on page 31 under Fees andexpenses. If you are redeeming securities that wereswitched from another fund, the redemption feerate is based on the date the original securities werepurchased in the other fund. With the deferredcharge option, your securities are redeemed in theorder they were purchased or deemed purchased.

Optional services

This section tells you about the plans and servicesthat are available to fund investors. Call us toll freeat 1-800-665-7700 or 1-800-668-7327 or ask yourdealer for full details.

Continuous Savings PlanYou can generally make weekly, bi-weekly, semi-monthly, monthly or quarterly investments in thefunds using our Continuous Savings Plan. Here’show the plan works:• you must meet the minimum requirements in the

table on page 27• we’ll automatically transfer money from your bank

account to buy securities of the funds you choose.

Averaging the cost of your investments

Making regular investments through ourContinuous Savings Plan can reduce the cost ofinvesting. Here’s how. Let’s say you invest $100in a fund each month. That money will buy moresecurities of the fund when prices are low andfewer securities when prices are high. Over time,this can mean a lower average cost per securitythan if you had made one lump-sum purchase.

The funds have received relief to permit dealers todeliver the fund facts once to participants in aContinuous Savings Plan upon their initialpurchases of securities of a fund and then notthereafter for subsequent purchases pursuant to theContinuous Savings Plan, unless they request it.You may request fund facts by calling us toll free at1-800-665-7700 if you purchased your securities ata BMO Bank of Montreal branch or through theBMO Investment Centre or toll free at 1-800-668-7327if you purchased your securities through a dealer.The simplified prospectus may also be found on the SEDAR website at www.sedar.com or on ourwebsites at www.bmo.com/mutualfunds andwww.bmo.com/gam/ca.

You do not have a statutory right to withdraw fromyour purchase of mutual funds pursuant to aContinuous Savings Plan, other than in respect ofyour initial purchase. However, you will continueto have all other statutory rights under securities law,including certain rights if this simplified prospectusor any document incorporated by reference containsa misrepresentation (see page 38 under What areyour legal rights?), whether or not you request thefund facts. You will continue to have the right toterminate your participation in a ContinuousSavings Plan at any time, upon providing notice to usat least four (4) business days before the nextscheduled investment date.


30

Systematic Withdrawal PlanYou can withdraw money monthly, quarterly, semi-annually or annually from your funds using ourSystematic Withdrawal Plan. Here’s how the planworks:• you must hold your funds in a non-registered

account• you must meet the minimum requirements in the

table on page 27• we’ll redeem enough securities to withdraw money

from your account and make payments to you.

If you withdraw more than your funds are earning,you’ll reduce your original investment and may useit up altogether.

Registered plansYou may purchase securities of the funds (otherthan BMO Risk Reduction Fixed Income Fund andBMO Risk Reduction Equity Fund) throughregistered plans offered by us or other institutions,subject to certain restrictions. You should consultyour tax advisor about the special rules that applyto each particular registered plan, includingwhether or not an investment in a fund would be aprohibited investment for your registered plan.

We can also set up a RRSP, RRIF, one of the varioustypes of locked-in RRSPs or RRIFs, RESP, TFSA orRDSP for you. See Fees and expenses for fees thatmay apply.

BMO Mutual Funds Allocation Averaging Program Under this program, which is available only throughdealers, you can arrange for regular (monthly,quarterly, semi-annual or annual) transfers from alump sum investment in BMO Money Market Fund(offered under a separate simplified prospectus) to amaximum of five other funds of your choice. Theminimum initial investment is $5,000 and theminimum transfer amount to any one fund eachtime is $50.

BMO Mutual Funds Distribution Transfer ProgramUnder this program, which is available onlythrough dealers, you can arrange to havedistributions made by one fund automaticallyreinvested in another fund or funds within thesame series and currency. The reinvestment will beprocessed and trade dated on the same valuationdate. This service is not available to investors whohold their securities in a registered plan.


31

series or to securityholders of these series or if a feeor expense, to be charged directly to securityholdersof these series by the fund or by us in connectionwith the holding of securities of such series of thefund, is introduced, and if this fee or expense ischarged by an entity that is at arm’s length to thefund, then the approval of securityholders of suchseries will not be obtained. In the cases above,securityholders of such series will be sent a writtennotice of the change at least 60 days prior to theeffective date.

If a fund holds securities of an underlying fund, feesand expenses are payable by the underlying fund inaddition to the fees and expenses payable by the fund.No management fees or incentive fees are payableby a fund that, to a reasonable person, wouldduplicate a fee payable by an underlying fund forthe same service. No sales fees or redemption feesare payable by the fund in relation to its purchasesor redemptions of the underlying fund that, to areasonable person, would duplicate a fee payableby an investor in the fund. Further, except in caseswhere we have obtained exemptive relief, no salesor redemption fees are payable by a fund in relationto its purchases or redemptions of the securities ofan underlying fund if we or one of our affiliates orassociates manage the underlying fund. SeeAdditional information for more details.

Fees and expenses

The following table shows the fees and expensespayable by the funds and the fees and expenses youmay have to pay if you invest in the funds. Fees arepaid by the funds before they calculate their priceper security. These fees indirectly reduce the valueof your investment.

In general, the approval of securityholders will notbe obtained if the basis of the calculation of a fee orexpense that is charged to Series A, Series F, Series Iand No Load Series T6 securities of a fund (or ischarged directly to securityholders of these seriesby the fund or by us in connection with the holdingof securities of such series of the fund) is changedin a way that could result in an increase in chargesto the series or to securityholders of such series or ifa fee or expense, to be charged to Series A, Series F,Series I and No Load Series T6 securities of a fund(or to be charged directly to securityholders of theseseries by the fund or by us in connection with theholding of securities of such series of the fund) thatcould result in an increase in charges to the seriesor to securityholders of such series, is introduced.In the cases above, securityholders of such serieswill be sent a written notice of the change at least60 days prior to the effective date.

If the basis of the calculation of a fee or expense thatis charged to any other series of a fund is changed ina way that could result in an increase in charges to the

Fees and expenses payable by the funds

Management fees Each fund pays us a fee for our management services. For this management fee,various services are provided to the funds, such as investment management andadvisory services, sales and trailing commissions to registered dealers on thedistribution of the funds’ securities, and other services that include but are notlimited to advertising and promotional services, office overhead expenses relatedto the Manager’s activities, and all other services necessary or desirable toconduct and operate the funds’ business in an efficient manner.

The management fee for each series is expressed as a percentage of the dailyNAV of the series and varies by fund and series. The fee is calculated daily andpayable monthly. You’ll find the maximum management fee for the series of eachfund in the Fund details section.

Series F securities have lower management fees than other series since we do notpay service fees on Series F securities.

For Series I securities, separate fees are negotiated and paid for each Series Iinvestor. The combined management and administration fees for Series I will not exceed 2.50%.

For each series, we may, at our discretion, waive a portion or the entire amountof the management fee chargeable at any given time.

Management fees are subject to applicable taxes.


32

Depending on several factors, we may reduce or rebate all or a portion of themanagement fee for certain investors in a fund. These factors include the valueof an investment in the fund and the nature of an investment, such as largeinvestments by institutional investors. See Fees and Expenses in the funds’annual information form.

The manager pays certain operating expenses of each fund including audit andlegal fees and expenses; custodian and transfer agency fees; costs attributableto the issue, redemption and change of securities, including the cost of thesecurityholder record keeping system; expenses incurred in respect of preparingand distributing prospectuses, financial reports and other types of reports,statements and communications to securityholders; fund accounting and valuationcosts; filing fees, including those incurred by the manager (collectively the“Administration Expenses”). In return, each fund pays a fixed administration feeto the manager. The administration fee may vary by fund and is a fixed annualpercentage of the average net assets of the fund.

For Series I securities of the funds, separate fee and expense arrangements arenegotiated with each Series I investor. The combined management andadministration fees for Series I will not exceed 2.50%.

See the Administration fee information in the Fund details table for each fund.

Administration fees are subject to applicable taxes.

Each fund also pays certain operating expenses directly (“Fund Expenses”),including expenses incurred in respect of preparing and distributing fund facts;interest or other borrowing expenses; all reasonable costs and expenses incurredin relation to compliance with NI 81-107, including compensation and expensespayable to IRC members and any independent counsel or other advisors employedby the IRC, the costs of the orientation and continuing education of IRC membersand the costs and expenses associated with IRC meetings; taxes of all kinds to whichthe fund is or might be subject; and costs associated with compliance with anynew governmental or regulatory requirement introduced after December 1, 2007.Funds that offer more than one series of securities allocate Fund Expensesproportionately among the series. Fund Expenses that are specific to a series areallocated to that series.

Certain Fund Expenses are subject to applicable taxes. The administration fee andFund Expenses are included in the management expense ratios of the funds.

IRC fees and expensesEach IRC member receives compensation for the duties he or she performs as anIRC member. The annual retainer for each IRC member (other than the Chair) inrespect of all of the BMO Mutual Funds is approximately $52,749; the annualretainer for the Chair is approximately $78,161. In addition, each IRC member isentitled to the reimbursement of all reasonable expenses in connection with hisor her duties as an IRC member.

The manager will not reimburse the funds for any costs incurred in relation tocompliance with NI 81-107.

Fees and expenses payable by the funds (continued)

Management fees(continued)

Operating expenses


For securities purchased under the Sales Charge option:0-5% of the amount you invest

For securities purchased under the deferred charge option: None

0-2% of the amount you switch

For securities purchased under the Sales Charge option: None

For securities purchased under the deferred charge option:You pay a redemption fee at the following rates if you redeem your securitiesduring the time periods specified. The redemption fee is a percentage of theoriginal cost of the securities you are redeeming.

During the followingperiods after purchase Redemption feeFirst year 3.0%Second year 2.0%Third year 1.0%Thereafter Nil

For Series I securities, separate fee and expense arrangements are negotiated andpaid by each Series I investor.

Short-term trading by investors may adversely affect all investors in a fund. To discourage short-term trading, a fund may, at our sole discretion, charge ashort-term trading penalty of up to 2% of the amount that you redeem or switch ifyou buy or switch and then redeem or switch securities of the fund within 30 daysof purchasing or switching them. This penalty will be paid directly to the fund.While this penalty generally will be paid out of the redemption proceeds of thefund in question, we have the right to redeem such other funds in any of youraccounts without further notice to pay this penalty. We may in our sole discretiondecide which securities will be redeemed in such manner as we may determine.You will be responsible for any costs and expenses, as well as any tax consequences,resulting from the collection of this penalty. We may waive this penalty at anytime. Please see Short-term trading on page 26.

An annual administration fee of $10 (plus applicable taxes) is charged for eachRRSP and RESP account. This fee may be different if you invest through a dealerother than us.

A fee of $50 (plus applicable taxes) may be applied to a registered plan account if and at such time as you transfer it, in whole or in part, to another institution.This fee may be different if you invest through a dealer other than us.

Continuous Savings Plan – NoneSystematic Withdrawal Plan – NoneBMO Distribution Transfer Program – NoneYour dealer may charge a fee for similar servicesDishonoured payments – $25 (plus applicable taxes)

33

Sales charges

Switch fees

Redemption fees

Low Load DeferredCharge schedule

Series I fees

Short-term trading fee

Registered plan fees

Other fees and expenses

Fees and expenses payable directly by youFor fees and expenses payable directly by you, the applicable rate of GST, HST or QST, as applicable,will be determined based on your province or territory of residence.


34

Impact of sales chargesCertain series of the funds, including Series A, NoLoad Series T6, Series F and Series I are no load.That means you pay no sales or redemption chargeson these transactions.

The following table shows the maximum amount offees that you would have to pay if you made aninvestment of $1,000 in Series A, No Load Series T6,Series F and Series I securities of a fund, held thatinvestment for one, three, five or ten years andredeemed immediately before the end of the period.

The following table also shows the maximumamount of fees that you would have to pay under thedifferent purchase options available to you if youmade an investment of $1,000 in Load Series T6 orAdvisor Series securities of a fund, if you held thatinvestment for one, three, five or ten years andredeemed immediately before the end of thatperiod. The fees under the Sales Charge option arenegotiable with your dealer.

At One Three Five Tenpurchase Year Years Years Years

No Load option(1) none none none none none

Sales Charge option $50.00 n/a n/a n/a n/a

Low Load Deferred Charge option(2) n/a $30.00 $10.00 n/a n/a

(1) Applicable to Series A, No Load Series T6, Series F and Series I securities of the funds.

(2) Redemption fees may apply if you redeem your Load Series T6 or Advisor Seriessecurities within three years of purchase under the Low Load Deferred Chargeoption, as shown under Fees and expenses above. The redemption fee is basedupon the original cost of your investment. For purposes of the table, noreinvestments of income or capital gains distributions have been assumed.

Dealer compensation

We pay sales commissions to some Bank of Montrealemployees.

Sales commissionsIf you buy Load Series T6 or Advisor Seriessecurities under the Sales Charge option, you payyour dealer a sales commission at the time ofpurchase. The maximum amount of the commissionis 5% of the amount you invest in BMO MutualFunds other than money market funds and 2% ofthe amount you invest in money market funds. Thesales commission is negotiable between you andyour dealer.

If you buy Load Series T6 or Advisor Seriessecurities under the Low Load Deferred Chargeoption, we pay your dealer a commission of 2% ofthe amount you invest. The commissions we pay toyour dealer for securities purchased under thedeferred charge option are not negotiable.

Sales commissions are not paid when you switchbetween funds, but a switch fee of up to 2% may becharged by your dealer. This fee may be negotiatedbetween you and your dealer. No commissions arepaid when you receive securities from reinvesteddistributions.


35

Service feesFor certain series of the funds, out of the managementfees that we receive, we pay your registered dealer(including discount brokers for securities youpurchase through your discount brokerage account)a service fee or trailing commission, calculated dailyand paid monthly or quarterly at the option of the

dealer. The service fee is a percentage of the averagedaily value of the securities you hold. The servicefee varies by fund and by purchase option. We donot pay service fees on Series F or Series I securities.The following tables provide a summary of themaximum annual service fee we pay to your dealeron Series A, Series T6 and Advisor Series securities.

BMO Retirement Income Portfolio up to 1.00 1.00 1.00

BMO Retirement Conservative Portfolio up to 1.00 1.00 1.00

BMO Retirement Balanced Portfolio up to 1.00 1.00 1.00

Service Fee (%) (as applicable)

No Load

Maximum annual fee Series A and

No Load Series T6

Sales Charge option

(Advisor Series and Load Series T6 are available

under the Sales Charge option)

Deferred Charge option

(Advisor Series and LoadSeries T6 are available

under the Deferred Charge option)

Advisor Series and Load Series T6

Low Load Deferred Charge optionFund

Other sales incentivesWe’ll pay for any new compensation programs thatwe may introduce as well as a portion of marketingand educational programs; neither the funds northeir securityholders pay for any compensationprograms.

Sales incentive programsWe pay for marketing materials we give to dealersto help support their sales efforts. We may alsoshare with dealers up to 50% of their costs inmarketing the funds.

We may pay up to 10% of the costs of some dealersto hold educational seminars or conferences fortheir representatives to teach them about, amongother things, new developments in the mutual fundindustry, financial planning or new financialproducts. The dealer makes all decisions aboutwhere and when the conference is held and whocan attend.

We may arrange seminars for representatives of thedealers where we inform them about newdevelopments in our mutual funds, our productsand services and mutual fund industry matters. Weinvite dealers to send their representatives to ourseminars and we do not decide who attends. Therepresentatives must pay their own travel,accommodation and personal expenses inconnection with attending our seminars.

Equity interestsBank of Montreal Holding Inc. owns 100% of theissued shares of the manager. Bank of MontrealHolding Inc. is a wholly-owned subsidiary of Bankof Montreal. BMO Nesbitt Burns Inc. and BMOInvestorLine Inc., both indirect wholly-ownedsubsidiaries of Bank of Montreal, may sellsecurities of the funds. Such sales are made on thesame basis as those made by other dealers, with nopreferential compensation.


Dealer compensation frommanagement fees

During the manager’s financial year endedOctober 31, 2014, we paid approximately 11.06%of total management fees we received to registereddealers in sales and service commissions for sellingBMO Mutual Funds.

Income tax considerations for investors

This is a general summary of the current Canadianfederal income tax rules applicable to you as aninvestor in the funds. This summary assumes thatyou are a Canadian resident individual (otherthan a trust) who holds securities of the fundsdirectly as capital property or in a registeredplan. This summary is not intended to be legal ortax advice. More information is contained in thefunds’ annual information form.

We have tried to make this summary easy tounderstand. As a result, we cannot be technicallyprecise, or cover all the tax consequences thatmay apply. We suggest that you consult your taxadvisor for details about your situation.

How the funds make moneyMutual funds make money in a number of ways,including:• Earning income in the form of interest,

dividends, income distributions from a trust,gains and losses from derivatives and other typesof returns from investment

• Realizing capital gains when they sell aninvestment for more than its ACB. Mutual fundscan also realize a capital loss when they sell aninvestment for less than its ACB.

A mutual fund is required to calculate its incomeand capital gains in Canadian dollars. So, when amutual fund sells a foreign denominated security orwhen that security matures, the mutual fund mayrealize a capital gain or capital loss as a result of achange in the value of the foreign currency relativeto the Canadian dollar.

The funds treat gains and losses realized on futures,forward contracts, options and other derivatives asordinary income and losses or as capital gains andcapital losses, depending on the circumstances.Capital losses may be denied or suspended and

therefore, unavailable to shelter capital gains. Forexample, a capital loss may be suspended if acapital loss is realized on the sale of an investmentand an identical investment is acquired within aperiod that begins 30 days before and ends 30 daysafter the day that the loss was realized. This is morelikely to occur to a fund invests in underlyingfunds. There are other loss restriction rules thatmay prevent a fund from deducting losses.

If you hold units – Each year, each fund willdistribute enough of its net income and net realizedcapital gains so that the fund will not be subject tonormal income tax. The fund flows its taxableincome through to investors in the form ofdistribution. Investors are generally taxed on thisincome as if they earned it directly.

Portfolio turnoverIn general, the higher a fund’s portfolio turnoverrate, the greater the chance that you will receive acapital gains distribution or capital gains dividend.Any capital gains realized would be offset by anycapital losses realized on portfolio transactions.There is not necessarily a relationship between ahigh turnover rate and the performance of a fund.

How your investment is taxedHow you are taxed on your investment in the fundsdepends on whether you hold securities of a fund inyour registered plan or your non-registered account.

Registered plansThe securities of BMO Risk Reduction FixedIncome Fund and BMO Risk Reduction Equity Fundare not and are not expected to be a qualifiedinvestment for registered plans. Accordingly,securities of these funds should not be held in aregistered plan.

If securities of a fund (other than BMO RiskReduction Fixed Income Fund and BMO RiskReduction Equity Fund) are held in your registeredplan, generally, neither you nor your registeredplan is subject to tax on distributions paid on thosesecurities or on capital gains realized when thosesecurities are redeemed or switched. However,even when securities of a fund are a qualifiedinvestment for your registered plan, you may besubject to tax if a security held in your RRSP, RRIFor TFSA is a “prohibited investment” for yourregistered plan.

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You will generally be subject to a 50% potentiallyrefundable tax on the value of a prohibitedinvestment held in your RRSP, RRIF or TFSA and a100% tax on income attributable to and capitalgains realized on the disposition (or deemeddisposition) of that prohibited investment.However, under a safe harbour for newlyestablished mutual funds, the securities of a fundwill not be a prohibited investment for an RRSP,RRIF or TFSA at any time during the first 24 monthsof existence if the fund is a mutual fund trust andfollows a reasonable policy of investmentdiversification throughout that period. You shouldconsult your tax advisor about the special rulesthat apply to each particular registered plan,including whether or not an investment in a fundwould be a prohibited investment for your RRSP,RRIF or TFSA.

Non-registered accountsIf securities are held in your non-registered account,you must include in your income for a taxation year,the taxable portion of all distributions (includingmanagement fee distributions) paid or payable to youby a fund during the year, whether you received themin cash or invested them in additional securities. Theamount of reinvested distributions is added to theACB of your securities. This ensures that you do notpay tax on the amount again at a later date.

Distributions paid by a fund may consist of capitalgains, ordinary Canadian dividends, foreign sourceincome, other income and/or ROC.

One-half of a capital gain distribution is included inyour income. Ordinary Canadian dividends aresubject to the dividend gross-up and tax credit rules.Steps will be taken to pass on to you the benefit of theenhanced dividend tax credit when it is available.You may be eligible for foreign tax credits in respectof any foreign taxes paid by a fund.

ROC is not immediately taxable to you but willreduce the ACB of the securities on which it waspaid. As a result, the amount of any capital gain thatyou realize when you redeem your securities will belarger (or the capital loss will be smaller), unless theROC was reinvested in additional securities. If theACB of your securities is reduced to less than zerowhile you continue to hold them, you will be deemedto realize an immediate capital gain equal to thenegative amount and your ACB will be increased tozero. Monthly distributions on Series T6 securitiesare expected to include ROC.

You should consult with your tax advisor about thetax treatment of fees payable directly to us, yourdealer or any other fees payable directly by you.

Buying securities before a distribution dateYou must include in your income the taxableportion of a distribution received from a fund eventhough the fund may have earned the income orrealized the capital gains that gave rise to thedistribution before you owned your securities. Ifyou invest in a fund late in the year, you may haveto pay tax on its earnings for the whole year.

Sales Charge and FeesSales charges paid on the purchase of securities arenot deductible in computing your income but areadded to the ACB of your securities.

Switching your securitiesIf you switch your securities of a fund for securitiesof another series of the same fund, the switch ismade as a redesignation of your securities. In otherwords, the switch should occur on a tax-deferredbasis so that you do not realize a capital gain orcapital loss on your switched securities. The cost ofyour new securities will generally be equal to theACB of the switched securities.

As part of a switch, some securities may be redeemedto pay fees. Any other type of switch involves theredemption of your securities, which is a dispositionfor income tax purposes.

Redeeming your securitiesThe redemption of securities is a disposition. Youwill realize a capital gain or capital loss when youredeem or otherwise dispose of your securities. Thecapital gain or loss is the difference between theproceeds you receive for the redemption and theACB of your redeemed securities, less any cost ofdisposition. We will provide you with details ofyour proceeds of redemption. However, in order tocalculate your gain or loss you will need to know theACB of your securities on the date of the redemption.

In general, you must include one-half of any capitalgain in computing your income for tax purposesand may deduct one-half of any capital loss to offsettaxable capital gains.

How to calculate ACBFor most situations, here’s how the total ACB ofyour securities of a series of a particular fund iscalculated.


• Start with the cost of your initial investment,including any sales charges you paid.

• Add the cost of any additional investments,including any sales charges you paid.

• Add the amount of any distributions that werereinvested (including ROC and management feedistributions).

• Subtract the amount of any ROC.• For a tax-deferred switch into the fund, add the

ACB of switched securities.• For a tax-deferred switch out of the fund, subtract

the ACB of the switched securities.• Subtract the ACB of any previously redeemed

securities.

The ACB of a single security is the average of theACB of all the identical securities.

Tax reportingEach year we will send you a tax slip with detailedinformation about the distributions paid to you onsecurities held in a non-registered account. Tocalculate your ACB, you will need to keep detailedrecords of the cost of all purchases and the amountof all distributions paid to you.

Exchange of tax informationThere are new due diligence and reportingobligations which were enacted to implement theCanada-United States Enhanced Tax InformationExchange Agreement. You may be requested toprovide information to your dealer to identify U.S.persons holding securities of the funds. If you are aU.S. person (including a U.S. citizen) or if you donot provide the requested information, generally,information about your investments held in thefinancial account maintained by your dealer will bereported to the CRA, unless the investments areheld within a registered plan. The CRA is expectedto provide that information to the U.S. InternalRevenue Service.

What are your legal rights?

Under securities law in some provinces andterritories, you have the right to:• withdraw from your agreement to buy mutual

funds within two business days of receiving thesimplified prospectus or fund facts

• cancel your purchase within 48 hours of receivingconfirmation of your order, or

• cancel your purchase agreement and get yourmoney back if the simplified prospectus, annualinformation form, fund facts or financial statementsmisrepresent any facts about the fund. You may alsobe entitled to get your money back or make a claimfor damages if you have suffered a loss.

The time limit to exercise these rights depends on thegoverning legislation in your province or territory.

For more information, refer to the securitieslegislation of your province or territory or consultyour lawyer.

Additional information

The manager of the funds has received an exemptionfrom Canadian securities regulators to enable thedealer-managed funds, subject to certain conditionsimposed by the regulators, including the priorapproval of the funds’ IRC, to purchase equitysecurities of a reporting issuer during the period ofdistribution (the “Distribution”) of the issuer’ssecurities pursuant to a private placement offeringand for the 60-day period following the completionof the Distribution notwithstanding that the manageror the associates or affiliates thereof act or have actedas underwriter in connection with the Distribution.

The manager has also received an exemption fromCanadian securities regulators to enable the funds,subject to certain conditions imposed by theregulators, including the prior approval of the funds’IRC, to purchase debt securities in the secondarymarket from, or sell debt securities in the secondarymarket to, an associate or affiliate of the managerthat is a principal dealer in the Canadian debtsecurities markets, acting as principal.

Subject to certain conditions imposed by theregulators, including the prior approval of thefunds’ IRC, the funds may:• invest in or continue to invest in securities of

Bank of Montreal or another related issuer; and• invest in equity and/or corporate debt securities

of a reporting issuer during the Distribution ofthe issuer’s securities and for the 60-day periodfollowing the completion of the Distribution,notwithstanding that the manager or an associateor affiliate thereof acts or has acted as underwriterin connection with the Distribution.

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We, and all of the BMO Mutual Funds, have alsoobtained exemptive relief, subject to certainconditions, to permit the BMO Mutual Funds:1. to invest in Bank of Montreal debt securities in

the secondary market and to invest in Bank ofMontreal debt securities, other than asset-backedcommercial paper securities, with a term ofmaturity of 365 days or more in a primary offering;

2. to purchase mortgages from and/or sell mortgagesto certain associates or affiliates of the manager;

3. to purchase securities of exchange traded fundsmanaged by us, or one of our affiliates orassociates, and to pay the applicable brokeragecommissions associated with such purchases inthe secondary market;

4. to invest in securities of certain exchange tradedfunds managed by us that are not considered“index participation units” under NI 81-102,subject to certain conditions; and

5. to invest in debt securities of an issuer during theDistribution or during the period of 60 days afterthe Distribution, notwithstanding that theManager, or an associate or affiliate of theManager, acts or has acted as an underwriter inthe Distribution and notwithstanding that thedebt securities do not have a designated rating bya designated rating organization as contemplatedby section 4.1(4)(b) of NI 81-102.

Prior to seeking IRC approval, the manager isrequired to refer its written policies and proceduresrelating to the above-mentioned investments for thefunds to the IRC for the IRC’s review. The policiesand procedures are designed to ensure, among otherthings, that each such transaction (i) is consistentwith, or be necessary to meet, the investmentobjectives of the funds (ii) is free from any influenceby the manager or any associates or affiliates thereofand does not take into account any considerationrelevant to the manager or any associates oraffiliates thereof (iii) represents the manager’sbusiness judgment uninfluenced by considerationsother than the best interests of the funds, and(iv) achieves a fair and reasonable result for the funds.In the event an investment for a fund is not made inaccordance with the conditions imposed by theregulators and/or the IRC, the manager is requiredto notify the IRC and the IRC, as soon as practicable,is required to notify the securities regulators. Thisinformation is also included in the annual report tosecurityholders prepared by the IRC.

Additional information about exemptive reliefdecisions received by the funds and the mandateand responsibilities of the IRC is disclosed in thefunds’ annual information form.

You’ll find more information about each fund in the funds’ annual information form, fund facts, management reports of fundperformance and financial statements. These documents are incorporated by reference into this simplified prospectus, which meansthat they legally form part of this simplified prospectus just as if they were printed in it.

BMO Mutual Funds are offered by BMO Investments Inc. If you would like a copy of these documents and you purchased your securitiesat a BMO Bank of Montreal branch or through the BMO Investment Centre, call us toll free at 1-800-665-7700. If you would like a copyof these documents and you purchased your securities through a dealer, call us toll free at 1-800-668-7327. There’s no charge for thesedocuments. You’ll also find copies of them, and other information about the funds, such as information circulars and material contracts,on the Internet at www.bmo.com/mutualfunds, www.bmo.com/gam/ca or www.sedar.com.®Registered trade-mark of Bank of Montreal, used under licence.


A member of BMO Financial Group

bmo.com/mutualfunds bmo.com/fonds

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HOW TO REACH US

BMO Investments Inc., 2465 Argentia Road, 5th Floor, Mississauga, Ontario L5N 0B4BMO Investissements Inc., 129, rue St. Jacques, 5ème étage, Montréal, Québec H2Y 1L6

BMO Retirement PortfoliosBMO Retirement Income Portfolio (series A, F, T6 and Advisor Series)

BMO Retirement Conservative Portfolio (series A, F, T6 and Advisor Series)

BMO Retirement Balanced Portfolio (series A, F, T6 and Advisor Series)

BMO Risk Reduction FundsBMO Risk Reduction Fixed Income Fund (series I)BMO Risk Reduction Equity Fund (series I)

BMO Mutual Funds are offered by BMO Investments Inc.Offering series A securities, series F securities, series I securities, series T6 securities and/or Advisor Series securities, as noted.


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