BMO Mutual Funds 2013BMO Mutual Funds 2013 Semi-Annual Financial Statements March 31, 2013 BMO Fund...

BMO Mutual Funds 2013Semi-Annual Financial Statements

March 31, 2013

BMO Fund name

NOTICE OF NO AUDITOR REVIEW OF THE SEMI-ANNUAL FINANCIAL STATEMENTS

BMO Investments Inc., the Manager of the Fund, appoints independent auditors to audit the Fund’s Annual Financial Statements.Under Canadian securities laws (National Instrument 81-106), if an auditor has not reviewed the Semi-Annual FinancialStatements, this must be disclosed in an accompanying notice.

The Fund’s independent auditors have not performed a review of these Semi-Annual Financial Statements in accordance withstandards established by the Canadian Institute of Chartered Accountants.

BMO Global Equity Class

STATEMENT OF OPERATIONS(in thousands of Canadian dollars, except per share data)

INVESTMENT INCOMEDividends 5,841 5,057Interest 105 342Securities lending revenue 23 21Foreign taxes (490) (777)

5,479 4,643

EXPENSESManagement fees (note 5) 3,241 3,289Fixed administration fees (note 5) 567 576Independent Review Committee fees 1 1Interest charges — —Fund Facts fees — 1Operating expenses absorbed

by the Manager — —Commissions and other

portfolio transaction costs (note 5) 602 155

4,411 4,022

Net investment income for the period 1,068 621Realized gain on sale of investments 25,548 879Realized loss on foreign exchange (278) (113)Change in unrealized appreciation

in value of investments 18,088 40,437Change in unrealized appreciation

in value of forward currency contracts 493 —

Increase in net assets from operations 44,919 41,824

Increase in net assets from operationsSeries A Shares 38,428 37,035Series I Shares 4,975 4,767Advisor Series Shares 1,516 22

Increase in net assets from operations per share (note 2)Series A Shares 0.79 0.65Series I Shares 1.48 1.24Advisor Series Shares 1.63 1.32

STATEMENT OF NET ASSETS(in thousands of Canadian dollars, except per share data)


ASSETSCash 6,078 1,159Investments at fair value 320,810 328,283Income receivable 995 723Unrealized gain on forward

currency contracts at fair value 527 —Subscriptions receivable 143 80

Total assets 328,553 330,245

LIABILITIESDue to broker — 151Accrued expenses 687 613Unrealized loss on forward

currency contracts at fair value 34 —Redemptions payable 474 407

Total liabilities 1,195 1,171

Net assets representing shareholders’ equity 327,358 329,074

Net assets representing shareholders’ equitySeries A Shares 295,833 276,246Series I Shares 19,844 41,291Advisor Series Shares 11,681 11,537

Net assets per shareSeries A Shares $ 6.27 $ 5.47Series I Shares $ 11.13 $ 9.60Advisor Series Shares $ 13.15 $ 11.50

March 31 September 30As at 2013 2012

March 31 March 31For the periods ended 2013 2012

The accompanying notes are an integral part of these financial statements.

(unaudited)


STATEMENT OF CHANGES IN NET ASSETS(in thousands of Canadian dollars)

Series A SharesNet assets – beginning of period 276,246 288,332Increase in net assets from operations 38,428 37,035SHARE TRANSACTIONS:Proceeds from sale of shares 11,796 12,560Amounts paid on shares redeemed (30,637) (37,577)

Total share transactions (18,841) (25,017)

Net assets – end of period 295,833 300,350

Series I SharesNet assets – beginning of period 41,291 33,355Increase in net assets from operations 4,975 4,767SHARE TRANSACTIONS:Proceeds from sale of shares 381 71Amounts paid on shares redeemed (26,803) (3,463)



Advisor Series SharesNet assets – beginning of period 11,537 147Increase in net assets from operations 1,516 22SHARE TRANSACTIONS:Proceeds from sale of shares 1,172 44Amounts paid on shares redeemed (2,544) (2)

Total share transactions (1,372) 42

Net assets – end of period 11,681 211

Total FundNet assets – beginning of period 329,074 321,834Increase in net assets from operations 44,919 41,824SHARE TRANSACTIONS:Proceeds from sale of shares 13,349 12,675Amounts paid on shares redeemed (59,984) (41,042)



March 31 March 31For the periods ended 2013 2012


(unaudited)


Fair Number of Cost*+ Value Shares or Units ($) ($)


Mexico – 0.2%Fresnillo plc . . . . . . . . . . . . . . . . . . . . . . . . 40,000. . . . 1,207 . . . . . 840

Netherlands – 1.6%LyondellBasell Industries N.V. . . . . . . . . . . . 83,600. . . . 4,494. . . . 5,374

Norway – 1.1%Petroleum Geo-Services ASA . . . . . . . . . . . 223,723. . . . 3,766. . . . 3,521

Singapore – 1.1%City Developments Limited . . . . . . . . . . . . 377,000. . . . 3,343. . . . 3,507

South Korea – 4.4%LG Display Co., Ltd. . . . . . . . . . . . . . . . . . . . 85,000. . . . 2,244. . . . 2,518LG Display Co., Ltd., ADR . . . . . . . . . . . . . . 140,000. . . . 2,137. . . . 2,074Samsung Electronics Co., Ltd.. . . . . . . . . . . . . 3,700. . . . 4,848. . . . 5,119SK Telecom Co., Ltd., ADR . . . . . . . . . . . . . 253,400. . . . 3,941. . . . 4,600. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,170. . . 14,311

Sweden – 2.6%Atlas Copco AB, Class A . . . . . . . . . . . . . . . . 84,314. . . . 1,726. . . . 2,441Nordea Bank AB . . . . . . . . . . . . . . . . . . . . 523,851. . . . 5,296. . . . 6,038. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,022. . . . 8,479

Switzerland – 2.5%Roche Holding AG . . . . . . . . . . . . . . . . . . . . 34,609. . . . 5,708. . . . 8,208

Taiwan – 1.3%Taiwan Semiconductor Manufacturing Company Limited, ADR . . . . . . . . . . . . . 251,300. . . . 3,020. . . . 4,391

United Kingdom – 12.0%Aberdeen Asset Management PLC . . . . . . . 125,149 . . . . . 802 . . . . . 833Afren PLC . . . . . . . . . . . . . . . . . . . . . . . . 2,007,778. . . . 4,469. . . . 4,400Associated British Foods plc. . . . . . . . . . . . 115,011. . . . 3,132. . . . 3,376BAE Systems plc . . . . . . . . . . . . . . . . . . . . 251,952. . . . 1,486. . . . 1,536British American Tobacco p.l.c.. . . . . . . . . . . 50,000. . . . 1,752. . . . 2,720Hargreaves Lansdown plc . . . . . . . . . . . . . 456,457. . . . 5,384. . . . 6,120

STATEMENT OF INVESTMENT PORTFOLIOAs at March 31, 2013 (in thousands of Canadian dollars, unless otherwise noted)

EQUITIESAustralia – 1.8%CSL Limited . . . . . . . . . . . . . . . . . . . . . . . . . 92,709. . . . 5,152. . . . 5,832

Canada – 2.5%Canadian National Railway Company . . . . . . 60,000. . . . 3,548. . . . 6,109ShawCor Ltd.. . . . . . . . . . . . . . . . . . . . . . . . 47,900. . . . 1,893. . . . 2,062. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,441. . . . 8,171

Chile – 1.0%Antofagasta plc . . . . . . . . . . . . . . . . . . . . . 221,944. . . . 4,566. . . . 3,376

Germany – 1.2%Allianz SE . . . . . . . . . . . . . . . . . . . . . . . . . . 29,337. . . . 4,057. . . . 4,049

Hong Kong – 0.8%Hang Seng Bank Limited . . . . . . . . . . . . . . 153,200. . . . 2,504. . . . 2,500

Ireland – 0.8%Accenture PLC, Class A. . . . . . . . . . . . . . . . . 32,800. . . . 2,231. . . . 2,531

Italy – 0.7%Prada SpA . . . . . . . . . . . . . . . . . . . . . . . . . 227,600. . . . 2,128. . . . 2,367

Japan – 13.7%Aozora Bank, Ltd. . . . . . . . . . . . . . . . . . . . 540,000. . . . 1,612. . . . 1,548Chiyoda Corporation . . . . . . . . . . . . . . . . . 182,000. . . . 2,626. . . . 2,072Daihatsu Motor Co., Ltd. . . . . . . . . . . . . . . 250,000. . . . 4,520. . . . 5,276Daiwa House Industry Co., Ltd. . . . . . . . . . 280,000. . . . 4,438. . . . 5,569DeNA Co., Ltd.. . . . . . . . . . . . . . . . . . . . . . . 41,800. . . . 1,103. . . . 1,157FujiFilm Holdings Corporation. . . . . . . . . . . 212,300. . . . 4,190. . . . 4,272Hokkaido Electric Power Co., Inc. . . . . . . . . 268,200. . . . 2,403. . . . 2,789Mitsubishi Chemical Holdings Corp. . . . . . . 654,000. . . . 3,059. . . . 3,162Mizuho Financial Group, Inc. . . . . . . . . . . 1,783,600. . . . 2,839. . . . 3,891Nippon Electric Glass Co., Ltd. . . . . . . . . . . 524,000. . . . 2,489. . . . 2,652Nippon Telegraph and Telephone Corporation. . . . . . . . . . . . . . 125,100. . . . 5,200. . . . 5,544Resona Holdings Inc. . . . . . . . . . . . . . . . . . 374,500. . . . 1,670. . . . 2,010SONY CORPORATION. . . . . . . . . . . . . . . . . . 166,000. . . . 2,687. . . . 2,927Sony Financial Holdings Inc. . . . . . . . . . . . 121,500. . . . 2,139. . . . 1,844. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,975. . . 44,713


(unaudited)

+Where applicable, distributions received from holdings as a return ofcapital are used to reduce the adjusted cost base of the securities inthe portfolio.

*For the purpose of the Statement of Investment Portfolio, cost includescommissions and other portfolio transaction costs (note 2).




Seagate Technology . . . . . . . . . . . . . . . . . . 83,700. . . . 2,287. . . . 3,107TJX Companies, Inc., The,. . . . . . . . . . . . . . . 48,000. . . . 2,079. . . . 2,279United Technologies Corporation . . . . . . . . . 28,500. . . . 2,107. . . . 2,705Valero Energy Corporation . . . . . . . . . . . . . 144,700. . . . 4,877. . . . 6,687Verizon Communications Inc. . . . . . . . . . . . . 48,300. . . . 2,095. . . . 2,408Western Digital Corporation . . . . . . . . . . . . . 88,492. . . . 3,189. . . . 4,519. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136,088. . 159,464

Total Investment Portfolio – 98.0% . . . . . . . . . . . . . . . . 280,320 . . 320,810Total Unrealized Gain on Forward Currency Contracts – 0.2% . . . . . . . 527Total Unrealized Loss on Forward Currency Contracts – (0.0)%. . . . . . . (34)Other Assets Less Liabilities – 1.8% . . . . . . . . . . . . . . . . . . . . . . . . 6,055NET ASSETS – 100.0%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327,358

+Where applicable, distributions received from holdings as a return ofcapital are used to reduce the adjusted cost base of the securities inthe portfolio.

*For the purpose of the Statement of Investment Portfolio, costincludes commissions and other portfolio transaction costs (note 2).

STATEMENT OF INVESTMENT PORTFOLIO (cont’d)As at March 31, 2013 (in thousands of Canadian dollars, unless otherwise noted)

Ladbrokes PLC . . . . . . . . . . . . . . . . . . . . . . 960,000. . . . 3,311. . . . 3,359Mondi Plc . . . . . . . . . . . . . . . . . . . . . . . . . 406,811. . . . 4,606. . . . 5,636Next PLC . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,474. . . . 2,552. . . . 2,800QinetiQ Group plc . . . . . . . . . . . . . . . . . . . 270,347 . . . . . 850 . . . . . 866Reed Elsevier PLC . . . . . . . . . . . . . . . . . . . 114,439. . . . 1,326. . . . 1,384Unilever PLC . . . . . . . . . . . . . . . . . . . . . . . 140,000. . . . 5,653. . . . 6,034William Hill PLC, Rights, Apr 4, 2013 . . . . . . 59,011 . . . . . 125 . . . . . 112. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,448. . . 39,176

United States – 48.7%AbbVie Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 84,900. . . . 3,226. . . . 3,512Aflac Incorporated . . . . . . . . . . . . . . . . . . . 100,000. . . . 5,227. . . . 5,283American Eagle Outfitters Inc. . . . . . . . . . . 100,000. . . . 2,128. . . . 1,899Boeing Company, The, . . . . . . . . . . . . . . . . . 71,300. . . . 5,425. . . . 6,215Bristol-Myers Squibb Company. . . . . . . . . . 137,700. . . . 4,579. . . . 5,759Carter’s, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 50,000. . . . 2,592. . . . 2,908CF Industries Holdings, Inc. . . . . . . . . . . . . . 25,100. . . . 5,265. . . . 4,853Comcast Corporation, Class A . . . . . . . . . . . 129,400. . . . 3,491. . . . 5,521Computer Sciences Corporation . . . . . . . . . . 97,800. . . . 3,830. . . . 4,889CVS Caremark Corporation . . . . . . . . . . . . . . 83,400. . . . 2,879. . . . 4,657Diamond Offshore Drilling, Inc. . . . . . . . . . . 34,200. . . . 2,362. . . . 2,417DIRECTV. . . . . . . . . . . . . . . . . . . . . . . . . . . 104,000. . . . 5,112. . . . 5,978DTE Energy Company. . . . . . . . . . . . . . . . . . 42,000. . . . 2,530. . . . 2,914EOG Resources, Inc. . . . . . . . . . . . . . . . . . . . 48,100. . . . 4,851. . . . 6,258Expedia, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 46,800. . . . 2,789. . . . 2,853Express Scripts Holding Company . . . . . . . . . 30,600. . . . 1,633. . . . 1,791Gap Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . 156,100. . . . 4,993. . . . 5,610H&R Block Inc. . . . . . . . . . . . . . . . . . . . . . . 65,700. . . . 1,880. . . . 1,962Harris Corporation . . . . . . . . . . . . . . . . . . . . 66,200. . . . 3,143. . . . 3,116HollyFrontier Corporation . . . . . . . . . . . . . . . 92,500. . . . 4,184. . . . 4,835Intel Corporation . . . . . . . . . . . . . . . . . . . . 165,000. . . . 3,368. . . . 3,659Lockheed Martin Corporation . . . . . . . . . . . . 41,600. . . . 3,811. . . . 4,075Marathon Petroleum Corporation . . . . . . . . . 63,000. . . . 3,931. . . . 5,734Marriott International Inc., Class A . . . . . . . . 54,200. . . . 2,117. . . . 2,325McGraw-Hill Companies, Inc., The, . . . . . . . . 48,700. . . . 2,417. . . . 2,575Microsoft Corporation. . . . . . . . . . . . . . . . . 240,000. . . . 6,307. . . . 6,973Northrop Grumman Corporation . . . . . . . . . . 74,800. . . . 4,963. . . . 5,330Ocwen Financial Coporation . . . . . . . . . . . . 131,000. . . . 4,793. . . . 5,046Oracle Corporation. . . . . . . . . . . . . . . . . . . 160,000. . . . 4,685. . . . 5,253PetSmart, Inc. . . . . . . . . . . . . . . . . . . . . . . . 31,100. . . . 2,157. . . . 1,962Philip Morris International Inc.. . . . . . . . . . . 57,700. . . . 3,058. . . . 5,435Portland General Electric Company. . . . . . . . 60,000. . . . 1,595. . . . 1,849Public Storage, Inc. . . . . . . . . . . . . . . . . . . . 27,900. . . . 4,133. . . . 4,313


(unaudited)


Settlement Currency Position Currency Position Contract Credit UnrealizedDate Buy (000s) Sell (000s) Rates Counterparty Rating** Gain

THE FUND’S INVESTMENT PORTFOLIO IS CONCENTRATEDIN THE FOLLOWING SEGMENTS AS AT:

March 31 September 302013 2012

Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.8% . . . . . . . . . . . . 1.8%Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —% . . . . . . . . . . . . 6.0%Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5% . . . . . . . . . . . . 4.0%Chile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0% . . . . . . . . . . . . . —%China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —% . . . . . . . . . . . . 1.6%France. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —% . . . . . . . . . . . . 1.4%Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2% . . . . . . . . . . . . . —%Hong Kong . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8% . . . . . . . . . . . . 3.7%Ireland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8% . . . . . . . . . . . . . —%Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7% . . . . . . . . . . . . 2.4%Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.7% . . . . . . . . . . . . 6.1%Luxembourg . . . . . . . . . . . . . . . . . . . . . . . . . . —% . . . . . . . . . . . . 2.9%Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2% . . . . . . . . . . . . 2.2%Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . 1.6% . . . . . . . . . . . . . —%Norway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1% . . . . . . . . . . . . . —%Singapore . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1% . . . . . . . . . . . . 1.2%South Korea . . . . . . . . . . . . . . . . . . . . . . . . . 4.4% . . . . . . . . . . . . 2.6%Sweden. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6% . . . . . . . . . . . . 4.9%Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5% . . . . . . . . . . . 13.0%Taiwan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3% . . . . . . . . . . . . 4.3%United Kingdom. . . . . . . . . . . . . . . . . . . . . . 12.0% . . . . . . . . . . . 18.0%United States. . . . . . . . . . . . . . . . . . . . . . . . 48.7% . . . . . . . . . . . 23.7%Other Assets Less Liabilities . . . . . . . . . . . . . . 2.0% . . . . . . . . . . . . 0.2%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% . . . . . . . . . . . 100.0%

STATEMENT OF INVESTMENT PORTFOLIO (cont’d)As at March 31, 2013 (in thousands of Canadian dollars, unless otherwise noted)


(unaudited)

UNREALIZED GAIN ON FORWARD CURRENCY CONTRACTS3-Apr-13 . . . . . . . . ¥ . . 1,477,000 . . . . . . CA$ . . . (15,911). . . . . 92.8276 . . . Bank of New York Mellon Trust Co. N.A. (The) . . . . A-1+ . . . . . . . . . 283-Apr-13 . . . . . . CA$ . . . . 16,434 . . . . . . . . ¥ . (1,477,000) . . . . . 0.0111 . . . Bank of New York Mellon Trust Co. N.A. (The) . . . . A-1+ . . . . . . . . 4957-May-13 . . . . . . . ¥ . . . 117,000 . . . . . . CA$ . . . . (1,260). . . . . 92.8269 . . . Bank of New York Mellon Trust Co. N.A. (The) . . . . A-1+ . . . . . . . . . . 4

Total Unrealized Gain on Forward Currency Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .527

UNREALIZED LOSS ON FORWARD CURRENCY CONTRACTSSettlement Currency Position Currency Position Contract Credit UnrealizedDate Buy (000s) Sell (000s) Rates Counterparty Rating** Loss7-May-13 . . . . . CA$ . . . . 15,924 . . . . . . . . ¥ . (1,477,000) . . . . . 0.0108 . . . Bank of New York Mellon Trust Co. N.A. (The) . . . . A-1+ . . . . . . . . (34)

Total Unrealized Loss on Forward Currency Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(34)

**Credit rating provided by Standard & Poor’s.

BMO Global Equity Class(unaudited)

NOTES TO THE FINANCIAL STATEMENTS(All amounts in thousands of Canadian dollars, except per share data)March 31, 2013

1. BMO Global Tax Advantage FundsBMO Global Tax Advantage Funds Inc. (the“Corporation”) is a mutual fund corporationincorporated on September 5, 2000 under the CanadaBusiness Corporations Act and commenced operationson October 19, 2000. The authorized capital consists ofan unlimited number of Class A, Class B and twenty-eight classes of redeemable special shares. TheCorporation is authorized to issue an unlimitednumber of special shares in each of Series A, Series I,Series F, Advisor Series, Series H, Series T5, Series T6and Series T8. Each series is intended for differentkinds of investors and has different management feesand fixed administration fees. BMO Global EquityClass (the “Fund”) is a class of the special shares ofthe Corporation. Refer to Note 7(a) for the seriesissued in this Fund, and the respective launch dates,and Note 7(d) for management fee rates and fixedadministration fee rates for each series.

There are 100 Class A shares and one Class B shareoutstanding which are held by BMO Investments Inc.(the “Manager”), a subsidiary of Bank of Montreal.

The information provided in these unauditedfinancial statements is for the period(s) endedMarch 31, 2013 and 2012 except for the comparativeinformation in the Statement of Net Assets and therelated notes which are as at September 30, 2012.Financial information provided for a series establishedduring the period(s) is presented from the launch dateas noted in Note 7(a).

2. Summary of significant accounting policiesThese interim financial statements have beenprepared in accordance with Canadian generallyaccepted accounting principles (“Canadian GAAP”),including estimates and assumptions made bymanagement that may affect the reported amounts ofassets, liabilities, income and expenses during thereported periods. Actual results could differ fromestimates. Certain prior period balances have beenreclassified to conform with the current periodpresentation.

Fund mergersThe Manager has adopted the purchase method ofaccounting for certain Fund mergers which occurredduring the periods. Under this method, one of theFunds in each merger is identified as the acquiringFund, and is referred to as the “Continuing Fund”,and the other Fund involved in the merger is referredto as the “Terminated Fund”. This identification isbased on the comparison of the relative net assetvalues of the Funds as well as consideration of thecontinuation of such aspects of the Continuing Fundas: investment advisors; investment objectives andpractices; type of portfolio securities; andmanagement fees and expenses. Where applicable,refer to Note 7(a) for the details of the mergertransactions.

Valuation of investmentsCanadian GAAP requires the use of bid prices forlong positions and ask prices for short positions inthe fair valuation of investments traded in an activemarket, rather than the use of closing prices currentlyused for the purpose of determining Net Asset Value(“NAV”). For investments that are not traded in anactive market, Canadian GAAP requires the use ofvaluation techniques, incorporating factors thatmarket participants would consider in setting a price.

The NAV is the value of the total assets of a Fund lessthe fair value of its total liabilities at a Valuation Date(the “Valuation Date” is each day on which the TorontoStock Exchange is open for trading) determined inaccordance with Part 14 of National Instrument 81-106 – Investment Fund Continuous Disclosure (“NI 81-106”) for the purpose of processingshareholder transactions. For financial statementpurposes, valuations are determined in accordancewith Canadian GAAP. This may result in a differencebetween the net assets per share for each series andthe NAV per share for each series. Refer to Note 7(b)for the comparison between NAV per share and netassets per share for each series.


NOTES TO THE FINANCIAL STATEMENTS (cont’d)(All amounts in thousands of Canadian dollars, except per share data)March 31, 2013

Investments are deemed to be held for trading.Investments are recorded at their fair value with thechange between this amount and average cost beingrecorded as unrealized appreciation (depreciation) invalue of investments in the Statement of Operations.

Securities and exchange traded funds listed on arecognized public securities exchange in NorthAmerica are valued for financial statement purposes attheir bid prices for long positions and ask prices forshort positions. Procedures are in place to fair valuesecurities traded in countries outside of NorthAmerica daily, to avoid stale prices and to take intoaccount, among other things, any significant eventsoccurring after the close of a foreign market.

For bonds, debentures, asset-backed securities andother debt securities, the fair value represents the bidprice provided by independent security pricingservices. Short-term investments are included in theStatement of Investment Portfolio at their fair value.Unlisted warrants are valued based on a pricingmodel which considers factors such as the marketvalue of the underlying security, strike price andterms of the warrant. Mutual fund units held asinvestments are valued at their respective NAVs oneach Valuation Date, as these values are the mostreadily and regularly available.

The Manager uses fair value pricing when the price ofa security held in the Fund is unavailable, unreliableor not considered to reflect the current value, andmay determine another value which it considers to befair and reasonable using the services of third-partyvaluation service providers, or using a valuationtechnique that, to the extent possible, makes maximumuse of inputs and assumptions based on observablemarket data including volatility, comparablecompanies and other applicable rates or prices.

Investment transactionsInvestment transactions are accounted for on thetrade date. Realized gains (losses) from the sale ofinvestments and unrealized appreciation(depreciation) in the value of investments arecalculated with reference to the average cost of therelated investments which exclude brokeragecommissions and other trading expenses. All netrealized gains (losses), unrealized appreciation(depreciation) in value, and transaction costs areattributable to investments and derivativeinstruments which are deemed held for trading, andare included in the Statement of Operations.

Client brokerage commissions, where applicable, areused as payment for order execution services orresearch services. The portfolio advisors or Managermay select brokers, including their affiliates, whocharge a commission in excess of that charged byother brokers (“soft dollars”) if they determine ingood faith that the commission is reasonable inrelation to the order execution and research servicesutilized. It is the Manager’s objective that over time,all clients receive benefits from the client brokeragecommissions.

Transaction costs, such as brokerage commissions,incurred in the purchase and sale of securities by theFund are expensed and included in “Commissionsand other portfolio transaction costs” in theStatement of Operations.

Cost of investmentsThe cost of investments represents the amount paidfor each security and is determined on an averagecost basis.

Income recognitionInterest income is recognized on accrual basis.Dividend income and distributions from investmenttrust units are recognized on the ex-dividend and ex-distribution date, respectively.



Interest on inflation-indexed bonds will be paidbased on the principal value, which is adjusted forinflation. The inflation adjustment of the principalvalue is recognized as part of interest income in theStatement of Operations. At maturity, the Fund willreceive, in addition to a coupon interest payment, afinal payment equal to the sum of the par value andthe inflation compensation accrued from the originalissue date. Interest is accrued on each Valuation Datebased on the inflation adjusted par value at that timeand is included in “Interest” in the Statement ofOperations.

Translation of foreign currenciesThe fair value of investments and other assets andliabilities in foreign currencies are translated into theFund’s functional currency at the rates of exchangeprevailing at the period-end date. Purchases andsales of investments, and income and expenses aretranslated at the rates of exchange prevailing on therespective dates of such transactions. Foreignexchange gains (losses) on completed transactionsare included in “Realized gain (loss) on sale ofinvestments” and unrealized foreign exchange gains(losses) are included in “Change in unrealizedappreciation (depreciation) in value of investments”in the Statement of Operations. Realized andunrealized foreign exchange gains (losses) on assets(other than investments) and liabilities are included in“Realized gain (loss) on foreign exchange” in theStatement of Operations.

Forward currency contractsA forward currency contract is an agreement betweentwo parties (the Fund and the counterparty) topurchase or sell a currency against another currencyat a set price on a future date. The Fund may enterinto forward currency contracts for hedging purposeswhich can include the hedging of all or a portion ofthe currency exposure of an investment or group ofinvestments, either directly or indirectly. The Fundmay also enter into these contracts for non-hedgingpurposes which can include increasing the exposureto a foreign currency or to shift exposure to foreigncurrency fluctuations from one country to another.

The value of forward currency contracts entered intoby the Fund is recorded as the difference between thevalue of the contract on the Valuation Date and thevalue on the date the contract originated.

Changes in the value of open forward currencycontracts at each Valuation Date are recognized in theStatement of Operations as “Change in unrealizedappreciation (depreciation) in value of forwardcurrency contracts”.

Amounts realized at the close of the contracts arerecorded as “Realized gain (loss) on forwardcurrency contracts” in the Statement of Operations.

Securities lendingA Fund may engage in securities lending pursuant tothe terms of an agreement which includes restrictionsas set out in Canadian securities legislation.Collateral held is government Treasury Bills andqualified Notes.

Income from securities lending, where applicable, isincluded in the Statement of Operations and isrecognized when earned. The securities on loancontinue to be displayed in the Statement ofInvestment Portfolio. The market value of thesecurities loaned and collateral held is determineddaily. Aggregate fair values of securities on loan andrelated collateral held in trust as at March 31, 2013and September 30, 2012, where applicable, aredisclosed in Note 7(h).

Increase or decrease in net assets from operations per share“Increase (decrease) in net assets from operations pershare” of a series in the Statement of Operationsrepresents the increase (decrease) in net assets fromoperations attributable to the series, divided by theweighted average number of shares of the seriesoutstanding during the period.

Short-term trading penaltyTo discourage excessive trading, the Fund may, at theManager’s sole discretion, charge a short-termtrading penalty. This penalty is paid directly to theFund and is included in “Interest” in the Statement ofOperations, if any.



Other assets and liabilitiesIncome receivable, subscriptions receivable and duefrom broker are designated as loans and receivablesand recorded at cost or amortized cost. Similarly,amounts due to broker, redemptions payable andaccrued expenses are designated as financialliabilities and reported at amortized cost. Otherassets and liabilities are short-term in nature, and arecarried at cost or amortized cost, which approximatesfair value.

Future accounting standardsCanadian investment entities will be required toprepare their financial statements in accordance withInternational Financial Reporting Standards (“IFRS”),as issued by the International Accounting StandardsBoard (“IASB”), for fiscal years beginning on or afterJanuary 1, 2014. For reporting periods commencingOctober 1, 2014, the Fund will adopt IFRS as the basisfor preparing its financial statements. The Fund willreport its financial results for the interim periodending March 31, 2015, prepared on an IFRS basis. Itwill also provide comparative data on an IFRS basis,including an opening balance sheet as at October 1,2013 (transition date). A summary of the significantstandards impacting the Fund under IFRS areoutlined below.

Based on the Fund’s analysis to date, the moresignificant accounting changes that will result fromits adoption of IFRS will be in the areas of fairvaluation, cash flow presentation, consolidation ofinvestments and classification of net assetsrepresenting shareholders’ equity. The differencesdescribed in the sections that follow are based onCanadian GAAP and IFRS that are in effect as of thisdate. This should not be considered a comprehensivelist of the main accounting changes when the Fundadopts IFRS.

The framework for fair valuation is set out underIFRS 13 Fair Value Measurement, which includes therequirements for the measurement and disclosure offair value. If an asset or liability measured at fair

value has a bid price and an ask price, the standardrequires valuation to be based on a price within thebid-ask spread that is most representative of fairvalue. The standard allows the use of mid-marketpricing or other pricing conventions that are used bymarket participants as a practical means for fair valuemeasurements within a bid-ask spread. Thus thisstandard will impact the net assets per share forfinancial statement reporting purposes compared tocurrent standards, and may also result in theelimination of the differences between the net assetper share and NAVPS at the financial statementreporting date. The Manager has not identified anychanges that will impact NAVPS as a result of thetransition to IFRS.

Where the Fund holds controlling interest in aninvestment, it is the Manager’s expectation that theFund will qualify as an Investment Entity in accordancewith IFRS 10 Consolidated Financial Statements. Assuch, the Fund will not be required to consolidate itsinvestments, but rather to fair value its investmentsregardless of whether those investments are controlled.If the Fund fair values investments that it controls, itmay be required to make additional financialstatement disclosures on its controlled investmentsin accordance with IFRS 12 Disclosure of Interests inOther Entities. IFRS 12 also requires additionaldisclosures if the Fund is determined to qualify as aninvestment entity while not possessing all of thetypical characteristics of an investment entity.

In addition to the financial statements currentlypresented for the Fund, Statement of Cash Flows willnow be included in the financial statements inaccordance with the requirement of IFRS 1 First-timeAdoption of IFRS, and prepared in line with IAS 7Statement of Cash Flows.

The criteria contained within IAS 32 FinancialInstruments: Presentation may require shareholders’equity to be classified as a liability within the Fund’sStatement of Net Assets, unless certain conditions aremet. The Manager is currently assessing the Fund’sshareholder structure to confirm classification.



3. Share valuationShares of the Fund are offered for sale on a continuousbasis and may be purchased or redeemed on anyValuation Date at the NAV per share of a particularseries. The NAV per share of a series for the purposesof subscription or redemption is computed by dividingthe NAV of the Fund attributable to the series (that is,the total fair value of the assets attributable to theseries less the liabilities attributable to the series) bythe total number of shares of the series of the Fundoutstanding at such time. This amount may bedifferent from the net assets per share of a seriescalculation, which is presented on the Statement ofNet Assets. Generally, any differences are due tovaluing actively traded securities at bid prices forCanadian GAAP purposes while NAV typicallyutilizes closing price to determine fair value for thepurchase and redemption of shares. See Note 7(b) forthe comparison between NAV per share and net assetsper share for each series.

Expenses directly attributable to a series are chargedto that series. Other expenses, income, realized andunrealized gains and losses from investmenttransactions are allocated proportionately to eachseries based upon the relative NAV of each series.

CapitalThe capital of the Fund is represented by issued andredeemable shares with no par value. The shares areentitled to distributions, if any, and to payment of aproportionate share based on the Fund’s NAV pershare upon redemption. The Fund has no restrictionsor specific capital requirements on the subscriptionsand redemptions of shares except as disclosed inNote 7(a), if any. The relevant movements in capitalare shown on the Statement of Changes in Net Assets.In accordance with its investment objectives andstrategies, and the risk management practicesoutlined in Note 6, the Fund endeavours to invest thesubscriptions received in appropriate investmentswhile maintaining sufficient liquidity to meetredemptions, such liquidity being augmented byshort-term borrowings or disposal of investmentswhere necessary.

4. Income taxesThe Corporation is a mutual fund corporation asdefined in the Income Tax Act (“Canada”) with aSeptember 30th tax year-end. All of the outstandingshare classes are aggregated in determining the taxposition of the corporation as a whole. Interest andforeign income are taxed at corporate rates subject topermitted deductions for expenses. The taxableportion of net capital gains is subject to tax atcorporate rates applicable to mutual fund corporations,but taxes paid thereon are refundable. This tax isrefundable by virtue of refunding provisions in taxlegislation as redemptions occur or by payment ofcapital gains dividends to shareholders. It is theintention of the corporation to pay sufficient capitalgains dividends to eliminate this tax.

Non-capital losses that arose in 2004 and 2005 areavailable to be carried forward for ten years andapplied against future taxable income. Non-capitallosses that arose in 2006 and there after are availableto be carried forward for twenty years. Capital lossesfor income tax purposes may be carried forwardindefinitely and applied against capital gains realizedin future years.

The Corporation’s non-capital and capital losses forincome tax purposes as of the tax year-endedSeptember 2012 are included in Note 7(c).

5. Related party transactions(a) Management feesThe Manager is responsible for the day-to-daymanagement of the Fund and its investment portfolioin compliance with the Fund’s constating documents.The Manager monitors and evaluates the performanceof the Fund, pays for the investment managementservices of the investment advisors and provides allrelated administrative services required by the Fund.As compensation for its services the Manager isentitled to receive a fee payable monthly, calculatedat the maximum annual rates included in Note 7(d).



(b) Fixed administration feeThe Manager pays certain operating expenses of theFund in return for a fixed administration fee, which ispaid for by the Fund. Certain specified expenses arepaid directly by the Fund and include interest andborrowing expenses, costs and expenses related to theoperation of the Fund’s Independent ReviewCommittee, taxes to which the Fund is or might besubject, and costs associated with compliance withany new governmental or regulatory requirementintroduced after December 1, 2007 (e.g., costassociated with the production of Fund Facts fees).The fixed administration fee is calculated daily as afixed annual percentage of the average NAV of theFund. Refer to Note 7(d) for the fixed administrationfee rates charged to the Fund.

The Manager may, in some years and in certain cases,absorb a portion of management fees, fixedadministration fees or certain specified expenses ofthe Fund or series of the Fund. The decision to absorbthese expenses is reviewed periodically anddetermined at the discretion of the Manager, withoutnotice to shareholders.

(c) Commissions and other portfolio transaction costsThe Fund may execute trades with and or throughBMO Nesbitt Burns Inc., an affiliate of the Manager,based on established standard brokerage agreementsat market prices. These fees are included in“Commissions and other portfolio transaction costs”in the Statement of Operations. Refer to Note 7(e) forrelated party fees charged to the Fund for the periodsended March 31, 2013 and 2012, where applicable.

(d) Initial investmentsIn order to establish a new fund, the Manager makesan initial investment in the Fund. Pursuant to thepolicies of the Canadian Securities Administrators, aninitial investor cannot redeem its investments until anadditional $500 has been received from otherinvestors with respect to the same series of shares.Refer to Note 7(d) for the investment in shares of theFund held by the Manager as at March 31, 2013 andSeptember 30, 2012, where applicable.

(e) Other related party transactionsFrom time to time, the Manager may on behalf of theFund enter into transactions or arrangements with orinvolving other members of Bank of Montreal Groupof Companies, or certain other persons or companiesthat are related or connected to the Manager of theFund. These transactions or arrangements may includetransactions or arrangements with or involving Bankof Montreal Group of Companies, BMO Nesbitt BurnsInc., BMO Harris Investment Management Inc.,BMO Asset Management Inc., BMO InvestorLine Inc.,HIM Monegy Inc., BMO Trust Company, PyrfordInternational Ltd., Lloyd George Management Inc., orother investment funds offered by BMO, and mayinvolve the purchase or sale of portfolio securitiesthrough or from a member of Bank of Montreal Groupof Companies, the purchase or sale of securitiesissued or guaranteed by a member of Bank ofMontreal Group of Companies, the purchase orredemption of units or shares of other BMO MutualFunds or the provision of services to the Manager.

6. Financial instrument riskThe Fund may be exposed to a variety of financialrisks that are concentrated in its investment holdings,including derivative instruments. The Statement ofInvestment Portfolio groups securities by asset type,geographic region and/or market segment. The Fund’srisk management practice includes the monitoring ofcompliance to investment guidelines.

The Manager manages the potential effects of thesefinancial risks on the Fund’s performance byemploying and overseeing professional andexperienced portfolio managers that regularlymonitor the Fund’s positions, market events anddiversify investment portfolios within the constraintsof the investment guidelines.

Where the Fund invests in other investment fund(s),it may be indirectly exposed to the financialinstrument risks of the underlying fund(s), dependingon the investment objectives and the type of securitiesheld by the underlying fund(s). The decision to buy orsell an underlying fund is based on the investmentguidelines and positions, rather than the exposure ofthe underlying fund(s).



(a) Currency riskCurrency risk is the risk that the value of investmentsdenominated in currencies, other than the functionalcurrency of the Fund, will fluctuate due to changes inforeign exchange rates. Investments in foreignmarkets are exposed to currency risk as the pricesdenominated in foreign currencies are converted tothe Fund’s functional currency in determining fairvalue. The Fund may enter into forward currencycontracts for hedging purposes to reduce foreigncurrency exposure or to establish exposure to foreigncurrencies. The Fund’s exposure to currency risk, ifany, is further discussed in Note 7(e).

(b) Interest rate riskInterest rate risk is the risk that the fair value of theFund’s interest-bearing investments will fluctuatedue to changes in market interest rates. The Fund’sexposure to interest rate risk is concentrated in itsinvestment in debt securities (such as bonds, moneymarket instruments, short-term investments anddebentures) and interest rate derivative instruments,if any. Other assets and liabilities are short-term innature and/or non-interest bearing. The Fund’sexposure to interest rate risk, if any, is furtherdiscussed in Note 7(f).

(c) Other market riskOther market risk is the risk that the fair value of afinancial instrument will fluctuate as a result ofchanges in market prices (other than those arisingfrom interest rate risk or currency risk), whetherthose changes are caused by factors specific to theindividual financial instrument or its issuer, orfactors affecting all similar financial instrumentstraded in a market. Other assets and liabilities aremonetary items that are short-term in nature, as suchthey are not subject to other market risk. The Fund’sexposure to other market risk, if any, is furtherdiscussed in Note 7(f).

(d) Credit riskCredit risk is the risk that a loss could arise from asecurity issuer or counterparty to a financialinstrument not being able to meet its financialobligations. The fair value of debt securities includesconsideration of the credit worthiness of the debtissuer. Credit risk exposure for over-the-counterderivative instruments is based on the Fund’sunrealized gain of the contractual obligations withthe counterparty as at the reporting date. The creditexposure of other assets is represented by its carryingamount. The Fund’s exposure to credit risk, if any, isfurther discussed in Note 7(f).

The Fund may enter into securities lendingtransactions with approved counterparties. Credit riskassociated with these transactions is consideredminimal as all counterparties have the approved creditrating and the market value of collateral held by theFund must be at least 102% of the fair value ofsecurities loaned, as disclosed in Note 7(h).

(e) Liquidity riskThe Fund’s exposure to liquidity risk is concentratedin the daily cash redemptions of shares. The Fundprimarily invests in securities that are traded in activemarkets and can be readily disposed. In addition, theFund retains sufficient cash and cash equivalentpositions to maintain liquidity. The Fund may, fromtime to time, enter into over-the-counter derivativecontracts or invest in unlisted securities, which arenot traded in an organized market and may beilliquid. Securities for which a market quotationcould not be obtained and may be illiquid areidentified on the Statement of Investment Portfolio.The proportion of illiquid securities to NAV of theFund is monitored by the Manager to ensure it doesnot exceed the regulatory limit and does notsignificantly affect the liquidity required to meet theFund’s financial obligations.



7. Fund specific information(a) Fund and series information, change in shares and significant eventsThe Fund is authorized to issue an unlimited numberof shares in each of Series A, Series I, and AdvisorSeries.

Series Launch Date

Series A November 27, 2000Series I May 9, 2008Advisor Series November 3, 2008

Series A shares are offered on a no-load basis and areavailable to all investors.

Series I shares are available for purchase byinstitutional investors who make the requiredminimum investments and have entered into anagreement with the Manager. No management feesand fixed administration fees are charged to the Fundin respect of the Series I shares as each investor ordealer negotiates a separate fee with the Manager.

Advisor Series shares are available to all investorsthrough authorized dealers and brokers.

The number of shares of each series that have beenissued and are outstanding are disclosed in the tablebelow.

For the periods ended Mar. 31 Mar. 31(in thousands of shares) 2013 2012

Series AShares issued and outstanding, beginning of period 50,461 59,428Issued 2,016 2,394Redeemed during the period (5,261) (7,163)

Shares issued and outstanding, end of period 47,216 54,659

Series IShares issued and outstanding, beginning of period 4,300 4,022Issued 40 8Redeemed during the period (2,557) (379)

Shares issued and outstanding, end of period 1,783 3,651

For the periods ended Mar. 31 Mar. 31(in thousands of shares) 2013 2012

Advisor SeriesShares issued and outstanding, beginning of period 1,004 14Issued 97 4Redeemed during the period (213) —

Shares issued and outstanding, end of period 888 18

Fund mergerAs at the close of business on June 15, 2012, the Fund(“the Continuing Fund”) acquired the net assets ofBMO Guardian Global Equity Fund, BMO GlobalAbsolute Return Class, BMO Emerging Markets Class,BMO Global Small Cap Class and BMO GlobalTechnology Class (“the Terminated Funds”). As aresult, the shareholders of the Terminated Fundsbecame shareholders of the Continuing Fund. Thecost of this merger was borne by the Manager of theFund. The net assets acquired by each series and theshares issued of each series of the Continuing Fundare listed in the table below.

Terminated Net Assets SharesFund Series Acquired ($) Issued

BMO Guardian Global Equity Fund Advisor Series 7,762 701,771

BMO Guardian Global Equity Fund Series I 9,467 1,032,836

BMO Global Technology Class Advisor Series 595 53,779

BMO Global AbsoluteReturn Class Advisor Series 2,021 182,739

BMO Emerging Markets Class Advisor Series 1,292 116,795

BMO Global Small Cap Class Advisor Series 227 20,535

Series name changesAs at the close of business on March 28, 2013, theseries name was changed from BMO Guardian GlobalEquity Class Advisor Series to Advisor Series.


Initial investmentsThe Manager held the following shares of the Fund:

Mar. 31, 2013 Sep. 30, 2012Value Value

Number of Shares Number of SharesSeries of Shares ($) of Shares ($)

Advisor Series 37,001 487 38,093 438

(e) Brokerage commissions and soft dollarsBrokerage commissions paid on securitiestransactions and amounts paid to related parties ofthe Manager for brokerage services provided to theFund for the periods are as follows:

Mar. 31, 2013 Mar. 31, 2012 ($) ($)

Total brokerage amounts paid 282 126Total brokerage amounts paid to related parties — —

There were no ascertainable soft dollars or clientbrokerage commissions paid or payable to dealers bythe Fund during the periods.

(f) Financial instrument riskThe Fund’s objective is to provide long-term growth ofcapital by investing in equity securities of publiclytraded companies with significant growth potential,located around the world.

No changes to the Fund’s objective or strategy, whichwould have had an affect on the overall level of risk ofinvesting in the Fund, were made during the period.Effective November 30, 2012, the investment strategiesof the Fund were changed from investing in equitysecurities of publicly traded companies withsignificant growth potential around the world toinvesting in securities that trade below their intrinsicvalue, demonstrate superior earning growth, anddemonstrate positive price momentum.


(b) Comparison of NAV per share to net assets per shareMar. 31, 2013 Sep. 30, 2012

NAV Net Assets NAV Net AssetsSeries per Share per Share per Share per Share

Series A 6.27 6.27 5.48 5.47Series I 11.13 11.13 9.60 9.60Advisor Series 13.16 13.15 11.50 11.50

(c) Income taxesAs of September 30, 2012, the Corporation had thefollowing capital and non-capital losses available forincome tax purposes:

Non-Capital LossesTotal Total That Expire in

Capital Non-Capital 2026 and Losses Losses 2014 2015 thereafter ($) ($) ($) ($) ($)

74,526 22,328 — — 22,328

(d) Related party transactionsManagement and fixed administration feesThe Manager is entitled to receive the following feespayable monthly, calculated at the followingmaximum annual rates:

Fixed Management Administration Fees FeesSeries (%) (%)

Series A 2.00 0.35Series I * *Advisor Series 2.00 0.35

*Negotiated and paid by each Series I investor directly to the Manager.



Currency riskThe table below summarizes the Fund’s exposure tocurrency risk. Amounts shown are based on the carryingvalue of monetary and non-monetary assets (includingderivatives and the underlying principal (notional)amount of forward currency contracts, if any).

As at Mar. 31, 2013Cash and As a

other current Forward Net % ofreceivables Invest- currency currency net& payables ments contracts exposure assets

Currency ($) ($) ($) ($) (%)

U.S. dollar 384 184,543 — 184,927 56.5Euro — 4,049 — 4,049 1.2Pound sterling 148 43,392 — 43,540 13.3Japanese yen 559 44,713 (14,694) 30,578 9.3Swiss Franc — 8,208 — 8,208 2.5Other European currencies — 12,000 — 12,000 3.7

Other Pacific currencies 88 14,206 — 14,294 4.4

Emerging Market currencies 61 7,637 — 7,698 2.4

Total 1,240 318,748 (14,694) 305,294 93.3

All amounts in CA$.

As at Sep. 30, 2012Cash and As a

other current Forward Net % ofreceivables Invest- currency currency net& payables ments contracts exposure assets

Currency ($) ($) ($) ($) (%)

U.S. dollar 348 135,403 — 135,751 41.3Euro 2 12,501 — 12,503 3.8Pound sterling 97 59,109 — 59,206 18.0Japanese yen 151 20,177 — 20,328 6.2Swiss Franc — 42,925 — 42,925 13.0Other European currencies — 16,155 — 16,155 4.9

Other Pacific currencies 143 27,129 — 27,272 8.3

Emerging Market currencies 87 8,449 — 8,536 2.6

Total 828 321,848 — 322,676 98.1

All amounts in CA$.

As at the periods ended March 31, 2013 andSeptember 30, 2012, if the Canadian dollar hadstrengthened or weakened by 5% in relation to allforeign currencies, with all other factors remainingconstant, Net Assets could possibly have decreased orincreased, respectively, by approximately $15,265(September 30, 2012 – $16,134). In practice, actualresults may differ from this sensitivity analysis andthe difference could be material.

Interest rate riskAs at March 31, 2013 and September 30, 2012, theFund did not have significant exposure to interestrate risk.

Other market riskAs at March 31, 2013, 98.0% (September 30, 2012 –99.8%) of the Fund’s Net Assets were traded onrespective stock exchanges. If equity prices on therespective stock exchanges had increased ordecreased by 10% as at the periods ended, with allother factors remaining constant, Net Assets couldpossibly have increased or decreased, respectively, byapproximately $32,081 (September 30, 2012 – $32,828).In practice, actual results may differ from thissensitivity analysis and the difference could be material.

Credit riskAs at March 31, 2013 and September 30, 2012, the Funddid not have significant exposure to credit risk.

(g) Fair value hierarchyThere was no significant change in the compositionof the Fund’s financial instruments levels as atMarch 31, 2013 compared to the classification as atSeptember 30, 2012. Please refer to the September 30,2012 audited annual financial statements disclosureof the Fund’s financial assets and liabilities into thefair value levels classification.

(h) Securities lendingThe Fund had assets involved in securities lendingtransactions outstanding as at March 31, 2013 andSeptember 30, 2012 as follows:

Mar. 31, 2013 Sep. 30, 2012 ($) ($)

Aggregate value of securities on loan 6,412 8,933Aggregate value of collateral received for the loan 6,741 9,536

8. Subsequent eventOn April 12, 2013, the Manager announced proposedchanges to the articles of incorporation of BMOGlobal Tax Advantage Funds Inc. from the CanadaBusiness Corporations Act to the BusinessCorporations Act (Ontario) (OBCA), subject toshareholders’ approval in a special meetingscheduled for June 17, 2013.



Trustee and Officers

Trustee of BMO Mutual Fund TrustsBMO Investments Inc.

Officers of BMO Mutual Fund TrustsRobert J. Schauer, CPA, CATreasurer & Chief Financial Officer

Michelle MagnayeSecretary

Fund ManagerBMO Investments Inc.Member of the Investment Funds Institute of Canada

Directors of BMO Investments Inc.Myra Cridland

Barry M. Cooper

Ross F. Kappele

Carol A. Neal, CPA, CA

Rajiv R. Silgardo

Robert J. Schauer, CPA, CA

Directors of BMO Global Tax Advantage Funds Inc.Barry M. Cooper

Ross F. Kappele

Douglas E. Kirk*

Carol A. Neal, CPA, CA*

Thomas A. Pippy, CPA, CA*

Rajiv R. Silgardo

Officers of BMO Investments Inc.Barry M. Cooper, Chairman

Rajiv R. Silgardo, Chief Executive Officer

Ross F. Kappele, Executive Vice-President & Head of Retail Distribution

Kevin Gopaul, Chief Product Officer & Senior Vice President

Subhas Sen, Senior Vice President

Dirk McRobb, Senior Vice President

Stella Vranes, CPA, CA, Chief Financial Officer

Darcy M. Lake, Chief Compliance Officer

Michelle Magnaye, Corporate Secretary

Penelope Muradya, Assistant Corporate Secretary

Officers of BMO Global Tax Advantage Funds Inc.Barry M. Cooper, Chairman

Rajiv R. Silgardo, Chief Executive Officer

Robert J. Schauer, CPA, CATreasurer & Chief Financial Officer

Michelle Magnaye, Corporate Secretary

Penelope Muradya, Assistant Corporate Secretary

Fund ManagerBMO Investments Inc.Member of the Investment Funds Institute of Canada

Directors and Officers

*Audit Committee member for BMO Global Tax Advantage Funds Inc.

www.bmo.com/mutualfunds

BMO Investments Inc.77 King Street West, Suite 4200Toronto, Ontario M5K 1J5

For more information please call 1-800-665-7700

® Registered trade-mark of Bank of Montreal, used under licence.

BMO Mutual Funds are offered by BMO Investments Inc., a financial services firm and separate legal entity from Bank of Montreal.

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