BMO Mutual Funds 2013 · Management’s responsibility for the financial statements Management is...

BMO Mutual Funds 2013Annual Financial Statements

September 30, 2013

BMO Fund nameBMO Global Strategic Bond Fund

Independent Auditor’s Report

To the Unitholders and Trustee of:BMO Equity FundBMO Canadian Small Cap Equity Fund(formerly BMO Special Equity Fund)

BMO Resource FundBMO Mortgage and Short-Term Income FundBMO Money Market FundBMO Bond FundBMO Canadian Equity ETF FundBMO Asset Allocation FundBMO Dividend FundBMO Precious Metals FundBMO Monthly Income FundBMO Diversified Income PortfolioBMO Global Infrastructure FundBMO Laddered Corporate Bond FundBMO Enhanced Equity Income FundBMO Emerging Markets Bond FundBMO LifeStage Plus 2015 FundBMO LifeStage Plus 2020 FundBMO LifeStage Plus 2025 FundBMO LifeStage Plus 2030 FundBMO LifeStage Plus 2017 FundBMO LifeStage Plus 2022 FundBMO LifeStage Plus 2026 FundBMO SelectTrust Fixed Income PortfolioBMO FundSelect Security PortfolioBMO FundSelect Balanced PortfolioBMO FundSelect Growth PortfolioBMO FundSelect Equity Growth Portfolio (formerly BMO FundSelect

Aggressive Growth Portfolio)

BMO Target Yield ETF PortfolioBMO Target Enhanced Yield ETF PortfolioBMO Fixed Income ETF PortfolioBMO Security ETF PortfolioBMO Conservative ETF PortfolioBMO Balanced ETF PortfolioBMO Growth ETF PortfolioBMO Equity Growth ETF PortfolioBMO World Bond FundBMO Emerging Markets FundBMO European FundBMO North American Dividend FundBMO U.S. Equity ETF FundBMO U.S. Equity FundBMO Global Dividend Fund (formerly BMO Global Science & Technology Fund)

BMO International Equity ETF FundBMO Global Monthly Income FundBMO Preferred Share FundBMO Tactical Dividend ETF FundBMO Global Strategic Bond FundBMO U.S. High Yield Bond FundBMO U.S. Dollar Money Market FundBMO U.S. Dollar Equity Index FundBMO U.S. Dollar Monthly Income FundBMO U.S. Dollar Dividend FundBMO U.S. Dollar Balanced Fund

To the Shareholders and Directors of BMO Global Tax Advantage Funds Inc.:BMO Global Dividend ClassBMO Canadian Equity ClassBMO Global Equity ClassBMO Global Energy ClassBMO Dividend ClassBMO Greater China ClassBMO International Value ClassBMO Short-Term Income ClassBMO Canadian Tactical ETF ClassBMO Global Tactical ETF ClassBMO LifeStage 2017 ClassBMO LifeStage 2020 ClassBMO LifeStage 2025 ClassBMO LifeStage 2030 ClassBMO LifeStage 2035 ClassBMO LifeStage 2040 ClassBMO SelectClass Security PortfolioBMO SelectClass Balanced PortfolioBMO SelectClass Growth PortfolioBMO SelectClass Equity Growth Portfolio (formerly BMO SelectClass

Aggressive Growth Portfolio)

BMO Security ETF Portfolio ClassBMO Balanced ETF Portfolio ClassBMO Growth ETF Portfolio ClassBMO Equity Growth ETF Portfolio Class (formerly BMO Aggressive

Growth ETF Portfolio Class)

BMO American Equity ClassBMO Asian Growth and Income Class

(collectively the Funds)

Independent Auditor’s Report (continued)

We have audited the accompanying financial statements of each of the Funds, which comprise the statement ofinvestment portfolio as at September 30, 2013 and the statements of net assets, operations and changes in netassets as at and for the periods indicated in note 1, and the related notes, which comprise a summary ofsignificant accounting policies and other explanatory information.

Management’s responsibility for the financial statementsManagement is responsible for the preparation and fair presentation of the financial statements of each of theFunds in accordance with Canadian generally accepted accounting principles, and for such internal control asmanagement determines is necessary to enable the preparation of financial statements that are free from materialmisstatement, whether due to fraud or error.

Auditor’s responsibilityOur responsibility is to express an opinion on the financial statements of each of the Funds based on our audits.We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standardsrequire that we comply with ethical requirements and plan and perform the audits to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor’s judgment, including the assessment of therisks of material misstatement of the financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in the circumstances, but not for thepurpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates madeby management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basisfor our audit opinion.

OpinionIn our opinion, the financial statements of each of the Funds present fairly, in all material respects, the financialposition of each of the Funds, the results of each of their operations and the changes in each of their net assets asat and for the periods indicated in note 1 in accordance with Canadian generally accepted accounting principles.

Chartered Professional Accountants, Licensed Public AccountantsToronto, OntarioDecember 20, 2013

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

INVESTMENT INCOMEInterest 52,034 48,978Net income from derivative contracts 1,059 279Securities lending revenue 20 16Foreign taxes (96) (17)

53,017 49,256

EXPENSESManagement fees (note 5) 7,149 5,920Fixed administration fees (note 5) 1,188 980Independent Review Committee fees 1 1Interest charges 7 1Fund Facts fees 1 —Operating expenses absorbed

by the Manager (81) (4)

8,265 6,898

Net investment income for the period 44,752 42,358Realized gain (loss)

on sale of investments 35,149 (1,530)Realized gain (loss)

on forward currency contracts (60,737) 27,406Realized gain on foreign exchange 7,551 24,814Change in unrealized appreciation

(depreciation) in value of investments (26,495) 32,522Change in unrealized appreciation

in value of forward currency contracts 10,064 25

Increase in net assets from operations 10,284 125,595

Increase (decrease) in net assets from operationsSeries A Units (812) 23,039Series I Units 14,081 79,829Series F Units (373) 5,436Advisor Series Units (2,612) 17,291

Increase (decrease) in net assets from operations per unit (note 2)Series A Units (0.04) 1.09Series I Units 0.29 1.56Series F Units (0.10) 1.93Advisor Series Units (0.19) 1.86

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

BMO Global Strategic Bond Fund

ASSETSCash 8,323 9,090Investments at fair value 499,852 889,330Income receivable 9,410 14,544Credit default swap agreements

at fair value 342 780Unrealized gain on forward

currency contracts at fair value 5,387 187Subscriptions receivable 440 7,367Due from broker 42,162 7,461

Total assets 565,916 928,759

LIABILITIESDistributions payable 1 1Due to broker 23,184 24,188Accrued expenses 572 617Credit default swap

agreements at fair value 119 246Unrealized loss on forward

currency contracts at fair value 3,851 8,715Redemptions payable 12,538 573

Total liabilities 40,265 34,340

Net assets representing unitholders’ equity 525,651 894,419

Net assets representing unitholders’ equitySeries A Units 139,575 156,858Series I Units 175,159 542,720Series F Units 42,553 43,366Advisor Series Units 168,364 151,475

Net assets per unitSeries A Units $ 7.26 $ 7.91Series I Units $ 9.35 $ 10.11Series F Units $ 12.80 $ 13.80Advisor Series Units $ 12.67 $ 13.66

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

September 30 September 30As at 2013 2012

September 30 September 30For the periods ended 2013 2012


Series F UnitsNet assets – beginning of period 43,366 33,585Increase (decrease)

in net assets from operations (373) 5,436UNIT TRANSACTIONS:Proceeds from sale of units 33,227 18,163Reinvested distributions 2,639 821Amounts paid on units redeemed (32,630) (13,456)

Total unit transactions 3,236 5,528

DISTRIBUTIONS TO UNITHOLDERS FROM:Net investment income (3,027) (1,090)Capital gains (628) —Return of capital (21) (93)

Total distributions paid to unitholders (3,676) (1,183)

Net assets – end of period 42,553 43,366

Advisor Series UnitsNet assets – beginning of period 151,475 107,241Increase (decrease)

in net assets from operations (2,612) 17,291UNIT TRANSACTIONS:Proceeds from sale of units 93,390 65,533Reinvested distributions 9,762 3,221Amounts paid on units redeemed (71,688) (37,914)

Total unit transactions 31,464 30,840

DISTRIBUTIONS TO UNITHOLDERS FROM:Net investment income (9,824) (3,450)Capital gains (2,081) —Return of capital (58) (447)



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

Series A UnitsNet assets – beginning of period 156,858 161,467Increase (decrease)

in net assets from operations (812) 23,039UNIT TRANSACTIONS:Proceeds from sale of units 22,518 15,943Reinvested distributions 11,931 8,624Amounts paid on units redeemed (38,682) (43,377)

Total unit transactions (4,233) (18,810)

DISTRIBUTIONS TO UNITHOLDERS FROM:Net investment income (9,713) (7,217)Capital gains (2,511) —Return of capital (14) (1,621)



Series I UnitsNet assets – beginning of period 542,720 413,086Increase in net assets from operations 14,081 79,829UNIT TRANSACTIONS:Proceeds from sale of units 110,455 149,010Reinvested distributions 50,913 21,451Amounts paid on units redeemed (492,097) (99,205)

Total unit transactions (330,729) 71,256

DISTRIBUTIONS TO UNITHOLDERS FROM:Net investment income (42,473) (20,654)Capital gains (8,144) —Return of capital (296) (797)







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

Total FundNet assets – beginning of period 894,419 715,379Increase in net assets from operations 10,284 125,595UNIT TRANSACTIONS:Proceeds from sale of units 259,590 248,649Reinvested distributions 75,245 34,117Amounts paid on units redeemed (635,097) (193,952)

Total unit transactions (300,262) 88,814

DISTRIBUTIONS TO UNITHOLDERS FROM:Net investment income (65,037) (32,411)Capital gains (13,364) —Return of capital (389) (2,958)






Par Fair Value Cost Value (in thousands) ($) ($)


Banco Nacional de Desenvolvimento Economico e Social (BNDES), Series 144A, Senior, Unsecured, Notes, 3.375% Sep 26, 2016 . . . . . . . US$ 1,800. . . . 1,843. . . . 1,863Banco Santander Brasil SA/Cayman Islands, Senior, Unsecured, Notes, 4.625% Feb 13, 2017 . . . . . . . . . . . . . US$ 1,400. . . . 1,479. . . . 1,493Braskem Finance Ltd., Series 144A, Senior, Unsecured, Notes, 5.75% Apr 15, 2021 . . . . . . . . . . . . . . . . . . . US$ 1,000. . . . 1,077. . . . 1,013Braskem Finance Ltd., Series 144A, Senior, Unsecured, Notes, 5.375% May 2, 2022 . . . . . . . . . . . . . . . . . . . US$ 3,100. . . . 3,045. . . . 2,997Centrais Eletricas Brasileiras S.A., Series 144A, Senior, Unsecured, Notes, Unsubordinated, 6.875% Jul 30, 2019. . . . . . . . . . . . . . . . . . . . US$ 4,300. . . . 4,955. . . . 4,721CSN Islands XI Corp., Senior, Unsecured, Notes, Unsubordinated, 6.875% Sep 21, 2019. . . . . . . . . . . . . US$ 1,700. . . . 1,821. . . . 1,830CSN Islands XI Corp., Series 144A, Senior, Unsecured, Notes, Unsubordinated, 6.875% Sep 21, 2019. . . . . . . . . . . . . US$ 1,000. . . . 1,063. . . . 1,077Odebrecht Drilling Norbe VIII/IX Ltd., Sinking Funds, Senior, Secured, Notes, Callable, 6.350% Jun 30, 2021 . . US$ 1,388. . . . 1,493. . . . 1,472Odebrecht Drilling Norbe VIII/IX Ltd., Series 144A, Senior, Secured, Notes, Callable, Sinking Funds, 6.350% Jun 30, 2021 . . . . . . . . . . . . . US$ 1,388. . . . 1,394. . . . 1,472OGX Petroleo e Gas Participacoes S.A., Series 144A, Senior, Notes, Callable, 8.500% Jun 1, 2018 . . . . . . . . . . . . . . US$ 3,000. . . . 2,936 . . . . . 371Petrobras International Finance Company, Senior, Unsecured, Notes, Unsubordinated, 7.875% Mar 15, 2019. . . . . . . . . . . . US$ 15,920. . . 19,634. . . 18,891Petrobras International Finance Company, Senior, Unsecured, Notes, 5.375% Jan 27, 2021 . . . . . . . . . . . . . . US$ 300 . . . . . 298 . . . . . 310QGOG Constellation S.A., Series 144A, Senior, Unsecured, Notes, Callable, 6.250% Nov 9, 2019 . . . . . . . . . . . . . US$ 1,000 . . . . . 983 . . . . . 982

STATEMENT OF INVESTMENT PORTFOLIOAs at September 30, 2013 (in thousands of Canadian dollars, unless otherwise noted)

MONEY MARKET INVESTMENTSFederal – 0.9%Government of Canada, Treasury Bills, 0.976% Nov 21, 2013**. . . . . . . . . . . . . . . . 212 . . . . . 212 . . . . . 212Government of Canada, Treasury Bills, 0.984% Nov 21, 2013** . . . . . . . . . . . . . . 1,179. . . . 1,176. . . . 1,177Government of Canada, Treasury Bills, 0.988% Dec 5, 2013 . . . . . . . . . . . . . . . . . 1,229. . . . 1,226. . . . 1,227United States Government, Treasury Bills, 0.078% Aug 21, 2014 . . . US$ 1,800. . . . 1,853. . . . 1,853United States Government, Treasury Bills, 0.085% Aug 21, 2014**. . US$ 270 . . . . . 278 . . . . . 278

Total Money Market Investments – 0.9% . . . . . . . . . . . . . 4,745 . . . . 4,747

BONDS & DEBENTURESAustralia – 0.5%FMG Resources (August 2006) Pty Ltd., Series 144A, Senior, Notes, Callable, 7.000% Nov 1, 2015 . . . . . . . . . . . . . US$ 1,400. . . . 1,406. . . . 1,489FMG Resources (August 2006) Pty Ltd., Series 144A, Senior, Unsecured, Notes, Callable, 6.000% Apr 1, 2017 . . . US$ 900 . . . . . 894 . . . . . 950. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,300. . . . 2,439

Austria – 0.1%OGX Austria GmbH, Series 144A, Senior, Unsecured, Notes, Callable, 8.375% Apr 1, 2022 . . . . . . . . . . . . . . US$ 4,000. . . . 3,848 . . . . . 680

Barbados – 0.2%Columbus International Inc., Series 144A, Senior, Secured, Notes, Callable, 11.500% Nov 20, 2014 . . . . . . US$ 900 . . . . . 990 . . . . . 995

Bermuda – 0.4%Digicel Group Ltd., Series 144A, Senior, Unsecured, Notes, Callable, 10.500% Apr 15, 2018 . . . . . . . . . . . . US$ 1,700. . . . 1,914. . . . 1,896

Brazil – 8.5%Banco do Brasil S.A. (Cayman), Senior, Unsecured, Notes, 3.875% Oct 10, 2022 . . . . . . . . . . . . . US$ 3,000. . . . 2,923. . . . 2,668

The accompanying notes are an integral part of these financial statements. **All or a portion pledged as collateral.




India – 0.2%Power Grid Corporation of India Limited, Senior, Unsecured, Notes, 3.875% Jan 17, 2023 . . . . . . . . . . . . . US$ 1,000 . . . . . 980 . . . . . 865

Indonesia – 2.9%Bank Negara Indonesia Persero Tbk PT/London, Senior, Unsecured, Notes, Unsubordinated, 4.125% Apr 27, 2017 . . . . . . . . . . . . . US$ 1,500. . . . 1,465. . . . 1,541Majapahit Holding BV, Series 144A, Senior, Unsecured, Notes, 8.000% Aug 7, 2019 . . . . . . . . . . . . . US$ 5,000. . . . 6,326. . . . 5,715Majapahit Holding BV, Senior, Unsecured, Notes, Unsubordinated, 8.000% Aug 7, 2019 . . . . . . . . . . . . . US$ 1,254. . . . 1,577. . . . 1,432Majapahit Holding BV, Series 144A, Senior, Unsecured, Unsubordinated, Notes, 7.750% Jan 20, 2020 . . . . . . . . US$ 3,100. . . . 3,900. . . . 3,520Pertamina Persero PT, Senior, Unsecured, Notes, 4.875% May 3, 2022 . . . . . . . . . . . . . US$ 1,100. . . . 1,084. . . . 1,025PT Pertamina (Persero), Series 144A, Senior, Unsecured, Notes, 4.300% May 20, 2023 . . . . . . . . . . . . US$ 2,100. . . . 2,123. . . . 1,853. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,475. . . 15,086

Ireland – 1.6%Ardagh Packaging Finance plc, First Priority, Senior, Secured, Notes, Callable, 9.250% Oct 15, 2020 . . . ¤ 3,000. . . . 4,413. . . . 4,369SCF Capital Ltd., Senior, Unsecured, Notes, 5.375% Oct 27, 2017. . . . . . . . US$ 4,000. . . . 3,927. . . . 4,161. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,340. . . . 8,530

Israel – 0.1%Israel Electric Corporation Ltd., Series 144A, Senior, Secured, Notes, 7.250% Jan 15, 2019 . . . . . . . . . . . . . . US$ 500 . . . . . 540 . . . . . 563

Jordan – 0.1%Hashemite Kingdom of Jordan, Notes, 3.875% Nov 12, 2015 . . . . . . . . . . . . . . US$ 700 . . . . . 695 . . . . . 719

STATEMENT OF INVESTMENT PORTFOLIO (cont’d)As at September 30, 2013 (in thousands of Canadian dollars, unless otherwise noted)

Usiminas Commercial Ltd., Series 144A, Senior, Unsecured, Notes, 7.250% Jan 18, 2018 . . . . . . . . . . . . . US$ 2,000. . . . 2,352. . . . 2,226Vale Overseas Limited, 6.875% Nov 21, 2036 . . . . . . . . . . . . US$ 1,100. . . . 1,284. . . . 1,143. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,580. . . 44,529

Canada – 0.8%Novelis, Inc., Senior, Unsecured, Notes, Callable, 8.750% Dec 15, 2020 . . . . . . US$ 3,700. . . . 4,070. . . . 4,163Trinidad Drilling Ltd., Series 144A, Senior, Unsecured, Notes, Callable, 7.875% Jan 15, 2019 . . . . . . . . . . . . . . US$ 100 . . . . . 100 . . . . . 109. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,170. . . . 4,272

Cayman Islands – 1.0%Voto-Votorantim Ltd., Senior, Unsecured, Notes, 6.750% Apr 5, 2021 . . . . . . . . US$ 5,000. . . . 5,680. . . . 5,484

China – 0.0%Baidu Inc, Senior, Unsecured, Notes, 3.250% Aug 6, 2018 . . . . . . . . . . . . . . . US$ 100 . . . . . 103 . . . . . 103

France – 0.7%BPCE S.A., Junior, Notes, Subordinated, Fixed to Floating, Perpetual, Callable, 12.500% Sep 30, 2049 . . . . . . . . . . . . . . . ¤ 600. . . . 1,008. . . . 1,051Compagnie Generale de Geophysique-Veritas, Senior, Unsecured, Notes, Callable, 6.500% Jun 1, 2021 . . . . . . . . . . . . . . US$ 1,100. . . . 1,037. . . . 1,155RCI Banque SA, Series 144A, Senior, Unsecured, Notes, 3.500% Apr 3, 2018 . . . . . . . . . . . . . . US$ 1,500. . . . 1,530. . . . 1,572. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,575. . . . 3,778

Germany – 0.3%Unitymedia Hessen GmbH & Co KG/Unitymedia NRW GmbH, Euro Medium Term Notes, Senior, Secured, Callable, 5.625% Apr 15, 2023 . . . . . . . . ¤ 1,100. . . . 1,456. . . . 1,502





BBVA Bancomer SA/Texas, Series 144A, Notes, Subordinated, 6.500% Mar 10, 2021 . . . . . . . . . . . . . . US$ 200 . . . . . 196 . . . . . 215Cemex SAB de CV., Series 144A, Secured, 1st Lien, Callable, 9.500% Jun 15, 2018 . . . . . . . . . . . . . US$ 2,400. . . . 2,426. . . . 2,737Corporacion GEO SAB de CV, Series 144A, Senior, Unsecured, Notes, Callable, 9.250% Jun 30, 2020 . . US$ 500 . . . . . 510 . . . . . . 59Desarrolladora Homex S.A. de C.V., Senior, Unsecured, Notes, Callable, 7.500% Sep 28, 2015. . . . . . . . . . . . . US$ 1,800. . . . 1,906 . . . . . 445Desarrolladora Homex S.A. de C.V., Series 144A, Senior, Unsecured, Notes, Callable, 9.500% Dec 11, 2019 . . US$ 100 . . . . . 105 . . . . . . 26Urbi, Desarrollos Urbanos, S.A. de C.V., Senior, Notes, Unsubordinated, Callable, 9.500% Jan 21, 2020. . . . . . . . US$ 200 . . . . . 231 . . . . . . 39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,209. . . . 6,332

Netherlands – 0.6%EMF-NL BV, Series 2008-APRX, Class A2, Collateral Mortgage Obligation, Floating Rate, Apr 17, 2041. . . . . . . . . . . . ¤ 855 . . . . . 816. . . . 1,030InterGas Finance BV, Series 144A, 6.375% May 14, 2017. . . . . . . . . . . . . . US$ 100 . . . . . 110 . . . . . 111Koninklijke (Royal) KPN NV, Fixed to Floating, Senior, Notes, Subordinated, Perpetual, Callable, 6.125% Sep 14, 2049 . . . . . . . . . . . . . . . . ¤ 400 . . . . . 535 . . . . . 571UPC Holding BV, Secured, Notes, Callable, 6.375% Sep 15, 2022 . . . . . . . . ¤ 1,000. . . . 1,386. . . . 1,371. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,847. . . . 3,083

Peru – 1.4%Banco de Credito del Peru, Senior, Unsecured, Notes, 5.375% Sep 16, 2020. . . . . . . . . . . . . US$ 2,100. . . . 2,242. . . . 2,168Continental Senior Trustees Cayman Ltd., Series 144A, Senior, Notes, 5.500% Nov 18, 2020 . . . . . . . . . . . . US$ 4,500. . . . 4,704. . . . 4,687


Luxembourg – 6.2%Alrosa Finance SA, Series 144A, Notes, 7.750% Nov 3, 2020 . . . . . . . . . . . . . US$ 5,400. . . . 6,057. . . . 6,168Finmeccanica Finance SA, Euro Medium Term Notes, Senior, Unsecured, Unsubordinated, 8.000% Dec 16, 2019 . . . £ 1,500. . . . 2,697. . . . 2,767Gaz Capital S.A., Series 2, Senior, Unsecured, Notes, Unsubordinated, Loan Participation, 8.625% Apr 28, 2034 . . . . . . . . . . . . . . . . . . . US$ 4,020. . . . 5,228. . . . 5,000Geo Debt Finance S.C.A., Senior, Secured, Notes, Callable, 7.500% Aug 1, 2018. . . . . ¤ 300 . . . . . 399 . . . . . 441Telenet Finance III Luxembourg S.C.A., Series 144A, Senior, Secured, Notes, Callable, 6.625% Feb 15, 2021 . . . . . . . . . ¤ 800. . . . 1,092. . . . 1,169Telenet Finance V, Secured, Notes, Callable, 6.250% Aug 15, 2022 . . . . . . . . . ¤ 200 . . . . . 245 . . . . . 283Telenet Finance V, Secured, Notes, Callable, 6.750% Aug 15, 2024 . . . . . . . . . ¤ 500 . . . . . 612 . . . . . 711TNK-BP Finance S.A., Senior, Unsecured, Unsubordinated, 7.250% Feb 2, 2020. . . . . . . . . . . . . . US$ 6,200. . . . 7,228. . . . 7,248VTB Capital S.A., Series 4, Loan Participation Notes, Senior, Secured, Putable, 6.875% May 29, 2018. . . . . . US$ 5,000. . . . 5,053. . . . 5,559Wind Acquisition Finance SA, Series 144A, Senior, Secured, Notes, Subordinated, Callable, 11.750% Jul 15, 2017. . . . . . . . . . . . . US$ 1,400. . . . 1,654. . . . 1,534Wind Acquisition Finance SA, Series 144A, Senior, Secured, Notes, Callable, 7.250% Feb 15, 2018 . . . . . . US$ 1,800. . . . 1,826. . . . 1,928. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,091. . . 32,808

Mexico – 1.2%Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand, Series 144A, Senior, Unsecured, Notes, 4.125% Nov, 9, 2022 . . . . . . . . US$ 2,500. . . . 2,434. . . . 2,376BBVA Bancomer SA/Texas, Series 144A, Senior, Notes, Subordinated, 7.250% Apr 22, 2020 . . . . . . . . . . . . . . US$ 400 . . . . . 401 . . . . . 435





Severstal OAO Via Steel Capital SA, Unsecured, Notes, 6.250% Jul 26, 2016. . . . . . . . . . . . . . US$ 3,000. . . . 3,065. . . . 3,283Vimpel Communications, Unsecured, Notes, 7.748% Feb 2, 2021 . . . . . . . . US$ 4,000. . . . 4,041. . . . 4,439Vimpel Communications via VIP Finance Ireland Ltd OJSC, Loan Participation Notes, Secured, 9.125% Apr 30, 2018 . . . US$ 700 . . . . . 775 . . . . . 837Vimpel Communications via VIP Finance Ireland Ltd OJSC, Series 144A, Loan Participation Notes, 7.748% Feb 2, 2021. . . . . . . . . . . . . . US$ 1,100. . . . 1,095. . . . 1,220Vnesheconombank via VEB Finance Ltd., Loan Participation Notes, Senior, Secured, 6.902% Jul 9, 2020 . . . . . . . . . US$ 800 . . . . . 828 . . . . . 904Vnesheconombank via VEB Finance Ltd., Series 144A, Loan Participation, 6.800% Nov 22, 2025 . . . . . . . . . . . . . . US$ 600 . . . . . 600 . . . . . 658Vnesheconombank via VEB Finance Ltd., Euro Medium Term Notes, Loan Participation, Secured, 6.800% Nov 22, 2025 . . . . . . . . . . . . US$ 1,100. . . . 1,068. . . . 1,207Vnesheconombank via VEB Finance PLC, Series 144A, Senior, Unsecured, Notes, 5.375% Feb 13, 2017 . . . . . . . . . US$ 200 . . . . . 201 . . . . . 218Vnesheconombank Via VEB Finance PLC, Series 144A, Senior, Unsecured, Notes, 6.025% Jul 5, 2022 . . . . . . . . . US$ 2,950. . . . 3,242. . . . 3,168. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,934. . . 42,218

Singapore – 0.1%Flextronics International Limited, Senior, Unsecured, Notes, 4.625% Feb 15, 2020 . . . . . . . . . . . . . . US$ 500 . . . . . 501 . . . . . 502

South Africa – 1.9%AngloGold Ashanti Holdings PLC, Senior, Notes, 5.375% Apr 15, 2020 . . . US$ 5,400. . . . 5,611. . . . 4,952Gold Field Orogen Holdings BVI Ltd., Senior, Unsecured, Notes, Unsubordinated, 4.875% Oct 7, 2020. . . US$ 6,000. . . . 5,959. . . . 4,880. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,570. . . . 9,832


Peru Enhanced Pass-Through Finance Ltd., Series 144A, Class A-1, Sinking Funds, Senior, Secured, Zero Coupon, May 31, 2018* . . . . . . . . . . . . . . . . . . . US$ 484 . . . . . 425 . . . . . 460. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,371. . . . 7,315

Russia – 8.0%Alpha Bank OJSC via Alpha Bond Issuance Plc, Senior, Unsecured, Notes, 7.750% Apr 28, 2021. . . . . . . . US$ 3,300. . . . 3,667. . . . 3,610Brunswick Rail Finance Ltd., Series 144A, Senior, Unsecured, Notes, 6.500% Nov 1, 2017 . . . . . . . . US$ 1,000 . . . . . 994. . . . 1,029Gazprom via Gaz Capital S.A., Series 9, Senior, Unsecured, Notes, Unsubordinated, Loan Participation, 6.510% Mar 7, 2022 . . . . . . . . . . . . . US$ 5,500. . . . 5,677. . . . 6,076OAO Novatek via Novatek Finance Limited, Series 144A, Loan Participation Notes, Senior, Unsecured, 6.604% Feb 3, 2021 . . . . . US$ 5,000. . . . 5,883. . . . 5,566Phosagro OAO, Series 144A, Senior, Unsecured, Notes, 4.204% Feb 13, 2018 . . . . . . . . . . . . . . US$ 600 . . . . . 597 . . . . . 612Rosneft Internatioanl Finance via Rosneft Oil Company, Series 144A, Loan Participation Notes, Senior, Unsecured, 4.199% Mar 6, 2022 . . . . . . US$ 620 . . . . . 616 . . . . . 593Russian Railways viz RZD Capital Limited, Senior, Unsecured, Loan Participation, 5.700% Apr 5, 2022. . . . US$ 3,400. . . . 3,466. . . . 3,563Sberbank of Russia Via SB Capital S.A., Senior, Unsecured, Notes, 6.125% Feb 7, 2022. . . . . . . . . . . . . . US$ 1,000. . . . 1,123. . . . 1,081Sberbank via SB Capital S.A., Series 7, Loan Participation Notes, Senior, Unsecured, 5.717% Jun 16, 2021 . . . . . . . . . . . . . . . . . . . US$ 3,500. . . . 3,593. . . . 3,721Sberbank via SB Capital S.A., Series 144A, Senior, Notes, Loan Participation, 6.125% Feb 7, 2022 . . . . . . . . . . . . . . . . . . . . . US$ 400 . . . . . 403 . . . . . 433

The accompanying notes are an integral part of these financial statements.*These securities have no quoted market value and are valued usingvaluation techniques (note 2).




HBOS PLC, Euro Medium Term Notes, Senior, Subordinated, 5.374% Jun 30, 2021 . . . . . . . . . . . . . . . . . . . . . ¤ 4,500. . . . 6,036. . . . 6,443Ineos Group Holdings Plc, Senior, Notes, Unsubordinated, Callable, 7.875% Feb 15, 2016 . . . . . . . . . . . . . . . . ¤ 842 . . . . . 999. . . . 1,185LBG Capital No. 1 plc, Series 8, Tranche 1, LT2 Enhanced Capital Notes, Unsecured, Subordinated, Bank Guaranteed, 7.869% Aug 25, 2020 . . . . . £ 1,000. . . . 1,526. . . . 1,758LBG Capital No. 1 plc, Series 144A, Series 002, Unsecured, Subordinated, 7.875% Nov 1, 2020 . . . . . . . . . . . . . US$ 2,250. . . . 2,053. . . . 2,462Lynx I Corp., Series 144A, Secured, Notes, Callable, 6.000% Oct 15, 2021 . . . £ 1,800. . . . 2,822. . . . 3,024Phones4u Finance plc, Senior, Secured, Notes, Callable, 9.500% Apr 1, 2018. . . . £ 3,200. . . . 4,987. . . . 5,683Spirit Issuer plc, Series A4, Sinkable, Fixed to Floating, Secured, Notes, Unsubordinated, 6.582% Dec 28, 2027 . . . £ 400 . . . . . 541 . . . . . 665. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,796. . . 24,338

United States – 42.8%2013-2 Aviation Loan Trust, Series 144A, Secured, Notes, Sinking Funds, Floating Rate, Sep 15, 2021* . . . . . . . . . . . . . . . . . . US$ 1,049. . . . 1,003. . . . 1,000Adjustable Rate Mortgage Trust, Series 2007-3, Class 2A1, Floating Rate, Nov 25, 2037 . . . . . . . . . US$ 819 . . . . . 752 . . . . . 543AES Corporation, The, Senior, Unsecured, Notes, 8.000% Jun 1, 2020. . . . . . . . . US$ 5,200. . . . 5,673. . . . 6,120Aircraft Certificate-Backed Notes, Series 2003-A, Class E, Asset-Backed, 7.001% Sep 20, 2022* . . . . . . . . . . . . US$ 1,400. . . . 1,311. . . . 1,456Aircraft Certificate Owner Trust, Series 2003, Class 1A, Asset-Backed Securities, 6.455% Sep 20, 2022* . . . . . . US$ 23 . . . . . . 23 . . . . . . 24Albertson’s Inc., Senior, Unsecured, Notes, 8.700% May 1, 2030 . . . . . . . . US$ 1,500. . . . 1,523. . . . 1,309Aleris International Inc., Senior, Unsecured, Notes, Callable, 7.875% Nov 1, 2020 . . . . . . . . . . . . . US$ 5,500. . . . 6,087. . . . 5,849


Spain – 1.5%Xunta de Galicia, Senior, Unsecured, Notes, 5.763% Apr 3, 2017 . . . . . . . . . . ¤ 5,200. . . . 6,971. . . . 7,810

Trinidad & Tobago – 0.0%Petroleum Company of Trinidad & Tobago Ltd., Series 144A, Sinkable, Senior, Unsecured, Notes, 6.000% May 8, 2022 . . . US$ 38 . . . . . . 41 . . . . . . 41

Turkey – 0.6%Arcelik AS, Series 144A, Senior, Unsecured, Notes, 5.000% Apr 3, 2023 . . . . . . . . . . US$ 700 . . . . . 708 . . . . . 624Republic of Turkey, Senior, Unsecured, Notes, 6.875% Mar 17, 2036 . . . . . . . US$ 1,800. . . . 2,230. . . . 1,966Turkiye Garanti Bankasi A.S., Series 144A, Senior, Unsecured, Floating Rate, Apr 20, 2016. . . . . . . . . . US$ 600 . . . . . 576 . . . . . 597. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,514. . . . 3,187

United Arab Emirates – 1.8%Doric Nimrod Air Finance Limited, Series 2012-1, Class A, Senior Secured Enhanced Equipment Trust, Sinking Funds, 5.125% Nov 30, 2024. . . US$ 3,685. . . . 3,877. . . . 3,786DP World Ltd., Euro Medium Term Notes, Senior, Unsecured, Unsubordinated, 6.850% Jul 2, 2037 . . . . . . . . . . . . . . US$ 5,300. . . . 6,247. . . . 5,504. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,124. . . . 9,290

United Kingdom – 4.6%Algeco Scotsman Global Finance Plc, Series 144A, Secured, Notes, Callable, 8.500% Oct 15, 2018 . . . . . . US$ 1,000 . . . . . 984. . . . 1,089Arqiva Broadcast Finance Plc, Euro Medium Term Notes, Senior, Secured, Subordinated, Callable, 9.500% Mar 31, 2020 . . . . . . . . . . . . . . . . £ 200 . . . . . 311 . . . . . 357Barclays Bank Plc, Series RCI, Fixed to Floating, Junior, Unsecured, Subordinated, Perpetual, Callable, 14.000% Jun 15, 2049 . . . . . . . . . . . . . . . £ 700. . . . 1,437. . . . 1,558HBOS plc, Series 144A, Global Medium Term Notes, Unsecured, Subordinated, 6.750% May 21, 2018. . . . . . . . . . . . . . US$ 100 . . . . . 100 . . . . . 114





Buckeye Tobacco Settlement Financing Authority, Tobacco Settlement Asset-Backed Bonds, Series 2007 A-2, Callable, Sinkable, 5.875% Jun 1, 2047. . . . . . . US$ 2,000. . . . 1,394. . . . 1,524Bumble Bee Acquisition Corp., Series 144A, Senior, Secured, Notes, Callable, 9.000% Dec 15, 2017 . . . . . . US$ 1,388. . . . 1,421. . . . 1,548Calpine Corporation, Series 144A, Senior, Secured, Notes, Callable, 7.875% Jul 31, 2020 . . . . . . . . . . . . . . . US$ 630 . . . . . 653 . . . . . 696Carrington Mortgage Loan Trust, Series 2006-NC4, Class A4, Floating Rate, Oct 25, 2036 . . . . . . . . US$ 1,000 . . . . . 345 . . . . . 533CCRE Co LP LLC/Fin Corp., Series 144A, Senior, Unsecured, Notes, Callable, 7.750% Feb 15, 2018 . . . . . . . . . . . . . US$ 2,000. . . . 1,976. . . . 2,091Centex Home Equity Loan Trust, Series 2004-D, Class MV1, Floating Rate, Sep 25, 2034 . . . . . . . . . US$ 726 . . . . . 631 . . . . . 654City of San Diego Redevelopment Agency, Series A, Tax Allocation Bonds, Sinking Funds, Callable, 7.750% Sep 1, 2040 . . . . . . . . . . . . . . . US$ 200 . . . . . 204 . . . . . 218Clear Channel Worldwide Holdings, Inc., Senior, Notes, Subordinated, Callable, 7.625% Mar 15, 2020 . . . . . . . US$ 750 . . . . . 742 . . . . . 796Clear Channel Worldwide Holdings, Inc., Senior, Unsecured, Notes, Callable, 6.500% Nov 15, 2022. . . . . . US$ 1,000 . . . . . 992. . . . 1,053Community Health, Term Loan, Series B, Floating Rate, Jul 25, 2014 . . . . . . . . . . . US$ 42 . . . . . . 40 . . . . . . 43Constellation Brands, Inc., Senior, Unsecured, Notes, 4.250% May 1, 2023. . . . . . . . . . . . . . . US$ 900 . . . . . 907 . . . . . 848Continental Airlines Pass Through Trust, Series 2010-1, Series B, Notes, Sinking Funds, 6.000% Jan 12, 2019 . . . . . . . . . . . . . . US$ 223 . . . . . 229 . . . . . 235Countrywide Asset-Backed Certificates, Series 2005-21, Class A3, Mortgage, Floating Rate, Jun 25, 2035 . . . . . . . . US$ 1,383. . . . 1,115. . . . 1,183Countrywide Asset-Backed Certificates, Series 2006-6, Class 2A2, Mortgage, Floating Rate, Sep 25, 2036 . . . . . . . . . US$ 152 . . . . . 121 . . . . . 150


Alliance Data Systems Corporation, Series 144A, Senior, Unsecured, Notes, 5.250% Dec 1, 2017 . . . . . . . . US$ 1,600. . . . 1,585. . . . 1,706Ally Financial Inc., Senior, Notes, 6.250% Dec 1, 2017. . . . . . . . . . . . . . US$ 5,500. . . . 5,558. . . . 6,048American Airlines, Inc., Series 144A, Senior, Secured, Notes, Callable, 7.500% Mar 15, 2016. . . . . . . . . . . . . US$ 1,500. . . . 1,456. . . . 1,831American Airlines, Inc., Series 144A, Series 2001-1, Class B, Pass Through Trust, Secured, Sinking Funds, 7.000% Jan 31, 2018 . . . . . . . . . . . . . . US$ 490 . . . . . 489 . . . . . 519American International Group, Inc., Fixed to Floating, Junior, Subordinated, Debentures, Callable, 8.175% May 15, 2058 . . . . . . . . . . . . US$ 4,900. . . . 5,496. . . . 5,909AmeriGas Partners, L.P./ AmeriGas Finance Corp., Senior, Unsecured, Notes, Callable, 6.500% May 20, 2021. . . . . . . . . . . . . . US$ 525 . . . . . 523 . . . . . 557Argent Securities Inc., Series 2006-M1, Class A2C, Asset-Backed Securities, Floating Rate, Jul 25, 2036 . . . . . . . . . US$ 1,568 . . . . . 598 . . . . . 660Ashland Inc., Senior, Unsecured, Notes, Callable, 6.875% May 15, 2043 . . . . . . . US$ 500 . . . . . 509 . . . . . 489Banc of America Large Loan, Inc., Series 2010-HLTN, Class HLTN, Collateral Mortgage Obligation, Floating Rate, Nov 15, 2015 . . . . . . . . US$ 3,092. . . . 3,029. . . . 3,189Banco Santander Brasil SA/Brazil, Series 144A, Senior, Unsecured, Notes, 4.625% Feb 13, 2017 . . . . . . . US$ 1,900. . . . 1,891. . . . 2,026Bear Stearns Alt-A Trust, Series 2006-5, Class 1A1, Collateral Mortgage Oblication, Floating Rate, Aug 25, 2036 . . . . . . . . . US$ 636 . . . . . 335 . . . . . 358Berry Plastics Corporation, Secured, Notes, Callable, 9.750% Jan 15, 2021 . . US$ 1,300. . . . 1,300. . . . 1,550BIOMET Inc., Term Loan B, Floating Rate, Jul 25, 2017 . . . . . . . . . US$ 1,985. . . . 1,953. . . . 2,048Braskem America Finance Company, The, Series 144A, Senior, Unsecured, Notes, Callable, 7.125% Jul 22, 2041. . . . . . . US$ 5,000. . . . 5,425. . . . 4,698





Energy Future Intermediate Holding Co. LLC/EFIH Finance Inc., Secured, Notes, First Lien, Callable, 10.000% Dec 1, 2020. . . . . . . . . . . . . US$ 1,000. . . . 1,045. . . . 1,087EP Energy LLC/Everest Acquisition Finance Inc., Senior, Unsecured, Notes, Callable, 7.750% Sep 1, 2022 . . . US$ 700 . . . . . 696 . . . . . 782Fannie Mae, Series 2007-114, Class A6, Mortgage-Backed, Floating Rate, Oct 27, 2037. . . . . . . . . . . . . . . . . . . . . US$ 200 . . . . . 192 . . . . . 203First Data Corporation, Term Loan, Floating Rate, Sep 24, 2018 . . . . . . . . US$ 1,400. . . . 1,404. . . . 1,431First Data Corporation, Series 144A, Secured, Notes, First Lien, Callable, 6.750% Nov 1, 2020 . . . . . . . . . . . . . US$ 2,600. . . . 2,537. . . . 2,759FirstEnergy Corp., Series C, Senior, Unsecured, Notes, 7.375% Nov 15,2031 . . . . . . . . . . . . . US$ 2,000. . . . 2,080. . . . 2,087Fortescue Metals Group, Term Loan, Floating Rate, Oct 18, 2017 . . . . . . . . US$ 2,978. . . . 2,887. . . . 3,076Frontier Communications Corporation, Senior, Unsecured, Notes, 7.125% Mar 15, 2019 . . . . . . . . . . . . . . US$ 125 . . . . . 125 . . . . . 136Frontier Communications Corporation, Senior, Unsecured, Notes, Unsubordinated, 9.000% Aug 15, 2031. . . . . . . . . . . . . US$ 1,600. . . . 1,620. . . . 1,603Gardner Denver Inc., Term Loan B, Floating Rate, Jul 30, 2020 . . . . . . . . . US$ 4,500. . . . 4,605. . . . 4,586Golden State Tobacco Securitization Corporation, Tobacco Settlement Asset-Backed, Series A-2, Sinking Funds, Convertible, 0.000% Jun 1, 2037 . . . . . . . . . . . . . . . US$ 100 . . . . . . 62 . . . . . . 80GSR Morgtage Loan Trust, Series 2005-AR3, Class 6A1, Mortgage-Backed, Floating Rate, May 25, 2035 . . . . . . . . . . . . . . . . . . US$ 2,149. . . . 1,747. . . . 1,936GSR Mortgage Loan Trust, Series 2005-AR7, Class 2A1, Collateral Mortgage Obligation, Floating Rate, Nov 25, 2035 . . . . . . . . . US$ 129 . . . . . 103 . . . . . 127


Countrywide Home Loans Trust, Series 2006-19, Class 1A7, Mortgage, 6.000% Jan 25, 2037 . . . . . . . . . . . . . US$ 2,053. . . . 1,702. . . . 1,951Countrywide Home Loans Trust, Series 2007-HYB2, Class 3A1, Mortgage, Floating Rate, Feb 25, 2047. . . . . . . . . . US$ 260 . . . . . 211 . . . . . 201Covanta Holding Corporation, Senior, Unsecured, Notes, Callable, 6.375% Oct 1, 2022 . . . . . . . . . . . . . . . US$ 250 . . . . . 248 . . . . . 262CS First Boston Mortgage Securities Corp., Series 2005-12, Class 8A1, 6.000% Jan 25, 2036 . . . . . . . . . . . . . . US$ 339 . . . . . 245 . . . . . 252CSC Holdings LLC, Senior, Unsecured, Notes, 7.875% Feb 15, 2018 . . . . . . . . . US$ 440 . . . . . 490 . . . . . 518CSC Holdings LLC, Senior, Unsecured, Notes, 7.625% Jul 15, 2018. . . . . . . . . . US$ 300 . . . . . 330 . . . . . 353CSC Holdings LLC, Senior, Unsecured, Notes, 8.625% Feb 15, 2019 . . . . . . . US$ 2,900. . . . 3,304. . . . 3,465Davita Inc. Term Loan, Floating Rate, Nov 1, 2019. . . . . . . . . . . . . . . . . . . . US$ 4,975. . . . 4,968. . . . 5,137Del Monte Corporation, Senior, Unsecured, Notes, Callable, 7.625% Feb 15, 2019 . . . . . . . . . . . . . US$ 2,000. . . . 1,972. . . . 2,132Dell Inc., Bridge Term Loan, Floating Rate, Nov 6, 2013* . . . . . . . . US$ 7,800. . . . 7,986. . . . 8,028Dell Inc., Bridge Term Loan, Floating Rate, Nov 6, 2013* . . . . . . . . US$ 4,900. . . . 5,017. . . . 5,043Dell Inc., Term Loan B, Floating Rate, Mar 24, 2020 . . . . . . . . . . . . . . . . . . . US$ 1,200. . . . 1,224. . . . 1,213Denali Borrower LLC/Denali Finance Corp., Series144A, 1st Lien, Notes, Callable, 5.625% Oct 15, 2020 . . . . . . US$ 1,400. . . . 1,433. . . . 1,402DISH DBS Corporation, Senior, Unsecured, Notes, 7.875% Sep 1, 2019 . . . . . . . . US$ 2,000. . . . 2,157. . . . 2,349DJO Finance LLC/DJO Finance Corp., Senior, Unsecured, Notes, Callable, 7.750% Apr 15, 2018 . . . . . . . . . . . . . . US$ 800 . . . . . 792 . . . . . 816El Paso LLC, Global Medium Term Notes, Senior, Unsecured, 7.750% Jan 15, 2032 . . . . . . . . . . . . . . . . . . . US$ 1,900. . . . 2,229. . . . 1,993Energy Future Intermediate Holding Co. LLC/EFIH Finance Inc., Senior, Secured, Notes, Callable, 10.000% Dec 1, 2020 . . US$ 3,000. . . . 3,080. . . . 3,260





Linn Energy LLC/Linn Energy Finance Corp., Senior, Unsecured, Notes, Callable, 7.750% Feb 1, 2021 . . . . . . . . US$ 500 . . . . . 517 . . . . . 518Long Beach Mortgage Loan Trust, Series 2006-WL1, Asset-Backed Certificates, Class I-A3, Floating Rate, Jan 25, 2046. . . . . . . . . . . . . . . . . . . . . . US$ 12 . . . . . . 12 . . . . . . 10MetroPCS Wireless Inc., Senior, Unsecured, Notes, Callable, 6.625% Nov 15, 2020 . . . . . . . . . . . . US$ 3,000. . . . 2,872. . . . 3,198MGM Resorts International, Senior, Unsecured, Notes, 6.625% Dec 15, 2021. . . . . . . . . . . . . US$ 2,000. . . . 2,235. . . . 2,127Morgan Stanley ABX Capital I Inc. Trust, Series 2007-HE1, Class A2C, Mortgage-Backed Security, Floating Rate, Nov 25, 2036 . . . . . . . . US$ 1,773 . . . . . 937. . . . 1,164Morgan Stanley Capital I Inc., Series 2007-HQ12, Class A2, Collateral Strip Interest, Floating Rate, Apr 12, 2049 . . . . . . . . US$ 1,539. . . . 1,613. . . . 1,629MPM Escrow LLC/MPM Finance Escrow Corp., Secured, Notes, First Lien, Callable, 8.875% Oct 15, 2020 . . . . . . US$ 1,000 . . . . . 979. . . . 1,079Newfield Exploration Company, Senior, Unsecured, Notes, Unsubordinated, Callable, 6.875% Feb 1, 2020 . . . . . . . US$ 1,200. . . . 1,210. . . . 1,298Nielsen Company (Luxembourg) Sarl, The, Series 144A, Senior, Unsecured, Notes, Callable, 5.500% Oct 1, 2021 . . . US$ 1,200. . . . 1,236. . . . 1,239Novelis, Inc., Term B, Floating Rate, Mar 10, 2017 . . . . . . . . . . . . . . . . . . . . US$ 975 . . . . . 996. . . . 1,005Ocwen Financial Corp Term Loan, Floating Rate, Feb 15, 2018 . . . . . . . . US$ 3,000. . . . 3,004. . . . 3,125Pittsburgh Glass Works LLC, Senior, Secured, Notes, Callable, 8.500% Apr 15, 2016 . . . . . . . . . . . . . . US$ 100 . . . . . . 96 . . . . . 106ProLogis International Fund II, Series 144A, Unsecured, Notes, 4.875% Feb 15, 2020 . . . . . . . . . . . . . US$ 2,800. . . . 2,721. . . . 2,863Quintiles Transnational, Series, Term Loan B2, Floating Rate, Jun 8, 2018 . . . . . . . . . . . . . . . . . . . . . US$ 969 . . . . . 948 . . . . . 997


GSR Mortgage Loan Trust, Series 2005-AR7, Class 6A1, Collateral Mortgage Obligation, Floating Rate, Nov 25, 2035 . . . . . . . . US$ 2,216. . . . 2,104. . . . 2,232H.J. Heinz Company, Term Loan, Floating Rate, Jun 8, 2020 . . . . . . . . . US$ 3,200. . . . 3,244. . . . 3,305HCA, Inc., Term Loan, Series A, Floating Rate, May 2, 2016. . . . . . . . . US$ 1,331. . . . 1,270. . . . 1,370HCA, Inc., Senior, Secured, Notes, 6.500% Feb 15, 2020 . . . . . . . . . . . . . US$ 7,253. . . . 7,595. . . . 8,087Hertz Corporation, Term Loan, Floating Rate, Mar 11, 2018 . . . . . . . . . US$ 978 . . . . . 988. . . . 1,001Hexion U.S. Finance Corp/Hexion Nova Scotia Finance ULC, Senior, Secured, Notes, Callable, 8.875% Feb 1, 2018 . . . US$ 700 . . . . . 704 . . . . . 745Hexion U.S. Finance Corp/Hexion Nova Scotia Finance ULC, Secured, Notes, Callable, 9.000% Nov 15, 2020. . . . . . US$ 4,500. . . . 4,448. . . . 4,543Hexion US Finance Corp., Senior, Secured, Notes, First Lien, Callable, 6.625% Apr 15, 2020 . . . . . . . . . . . . . . US$ 525 . . . . . 522 . . . . . 541Indiana Finance Authority, Series 2009-B, Lease Appropriation, Build America Bonds, Sinkable, 6.596% Feb 1, 2039 . . . . . . . . . . . . . . . US$ 300 . . . . . 348 . . . . . 370Indymac IMSC Mortgage Loan Trust, Series 2007-2007-HOA1, Class A11, Floating Rate, Jul 25, 2047 . . . . . . . . . . US$ 635 . . . . . 304 . . . . . 413Indymac Indx Mortgage Loan Trust, Series 2005-AR23, Class 2A1, Floating Rate, Nov 25, 2035 . . . . . . . . . US$ 339 . . . . . 264 . . . . . 278Iowa Tobacco Settlement Authority, Series 2005 A, Tobacco Settlement, Asset-Backed, Sinking Fund, Callable, 6.500% Jun 1, 2023 . . . . . . . US$ 1,665. . . . 1,439. . . . 1,653JP Morgan Mortgage Trust, Series 2007-A4, Class 3A1, Collateral Mortgage Obligation, Floating Rate, Jun 25, 2037 . . . . . . . . . . US$ 491 . . . . . 434 . . . . . 450Lehman Brothers Holdings Inc., Series I, Medium Term Notes, Senior, Unsecured, Floating Rate, Apr 22, 2020 . . . . . . . . . . . . . . . . . . . . US$ 700 . . . . . 616 . . . . . 187





Springleaf Finance Corp., Series J, Medium Term Notes, Senior, Unsecured, 6.900% Dec 15, 2017 . . . . . US$ 900 . . . . . 951 . . . . . 971Sprint Capital Corp., Senior, Unsecured, Notes, 8.750% Mar 15, 2032 . . . . . . . US$ 3,000. . . . 2,776. . . . 3,137Sprint Communications Inc., Senior, Unsecured, Notes, Unsubordinated, 6.000% Dec 1, 2016. . . . . . . . . . . . . . US$ 1,100. . . . 1,095. . . . 1,204Station Casinos LLC Term Loan, Floating Rate, Mar 1, 2020 . . . . . . . . . US$ 1,995. . . . 2,016. . . . 2,068Tenet Healthcare Corporation, Senior, Unsecured, Notes, Callable, 8.000% Aug 1, 2020. . . . . . . . . . . . . . . . . . . . US$ 3,000. . . . 3,057. . . . 3,283Tobacco Settlement Finance Authority, West Virginia, Series 2007A, Taxable Tobacco Settlement, Asset-Backed Bonds, 7.467% Jun 1, 2047 . . . . . . . . . . . . . . . . . . . . US$ 2,445. . . . 1,723. . . . 1,983Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed Bonds, Series 2007-1, Callable, Sinkable, 5.000% Jun 1, 2041 . . . . . . . . . . . . . . . . . . . . . US$ 100 . . . . . . 86 . . . . . . 73Tomkins LLC/Tomkins Inc., Senior, Secured, Notes, Multi-Couponed, Callable, 9.000% Oct 1, 2018 . . . . . . . . US$ 481 . . . . . 507 . . . . . 541tw telecom holdings Inc., Senior, Unsecured, Notes, Callable, 5.375% Oct 1, 2022 . . . . . . . . . . . . . . US$ 2,000. . . . 1,962. . . . 1,973United Air Lines, Inc., Series 144A, Series, 2007-1 Class B, Sinkable, Senior, Secured, Notes, Pass-Thru-Certificates, 7.336% Jul 2, 2019 . . . . . . . . . . . . . . . . US$ 182 . . . . . 193 . . . . . 194United States Treasury Notes, 0.250% Aug 31, 2014 . . . . . . . . . . . . . . US$ 100 . . . . . 104 . . . . . 103Univision Communications, Inc., Series 144A, Senior, Unsecured, Notes, Callable, 8.500% May 15, 2021 . . . . . US$ 1,500. . . . 1,500. . . . 1,684UR Financing Escrow Corp., Senior, Unsecured, Notes, Callable, 7.375% May 15, 2020 . . . . . . . . . . . . US$ 4,000. . . . 4,224. . . . 4,429USG Corporation, Senior, Unsecured, Notes, Multi-Couponed, 9.750% Jan 15, 2018 . . . . . . . . . . . . . . US$ 100 . . . . . 111 . . . . . 119


Qwest Corporation, Unsecured, Notes, 7.250% Sep 15, 2025 . . . . . . . . . . . . . . US$ 250 . . . . . 272 . . . . . 282Radiation Therapy Services, Inc., Senior, Unsecured, Notes, Subordinated, Callable, 9.875% Apr 15, 2017 . . . . . . US$ 1,500. . . . 1,469. . . . 1,112Rain CII Carbon LLC and CII Carbon Corp., Series 144A, Senior, Secured, Notes, Callable, 8.000% Dec 1, 2018 . . . US$ 300 . . . . . 307 . . . . . 312RBS Greenwich Capital Mortgage Loan Trust, Series 2008-A, Class A1, RBSGC Mortgage Pass-Through Certificates, Floating Rate, Nov 25, 2035. . . . . . . . . . . . . . . . . . . US$ 2,430. . . . 1,873. . . . 1,995Residential Funding Mortgage, Series 2005-SA2, Class 4A, Floating Rate, Jun 25, 2035 . . . . . . . . . . US$ 810 . . . . . 731 . . . . . 846Rockies Express Pipeline LLC, Series 144A, Senior, Unsecured, Notes, 6.000% Jan 15, 2019 . . . . . . . . US$ 4,000. . . . 3,926. . . . 3,605Rockies Express Pipeline LLC, Series 144A, Senior, Unsecured, Notes, Unsubordinated, 5.625% Apr 15, 2020 . . . . . . . . . . . . . US$ 3,000. . . . 2,771. . . . 2,596RSC Equipment Rental Inc./RSC Holdings III LLC, Senior, Unsecured, Notes, Callable, 8.250% Feb 1, 2021 . . . . . . . US$ 1,500. . . . 1,524. . . . 1,707SandRidge Energy, Inc., Senior, Unsecured, Notes, Callable, 7.500% Mar 15, 2021 . . . . . . . . . . . . . . US$ 900 . . . . . 898 . . . . . 936Scientific Games International Inc., Senior, Unsecured, Notes, Subordinated, Callable, 9.250% Jun 15, 2019. . . . . . . . US$ 500 . . . . . 532 . . . . . 556Sealed Air Corporation, Series 144A, Senior, Unsecured, Notes, 6.500% Dec 1, 2020 . . . . . . . . . . . . . . . US$ 500 . . . . . 501 . . . . . 537SLM Corporation, Medium Term Notes, Senior, Unsecured, Unsubordinated, 8.450% Jun 15, 2018 . . . . . . . . . . . . . US$ 8,700. . . . 9,227. . . 10,131Southern Copper Corporation, Senior, Unsecured, Notes, 5.250% Nov 8, 2042 . . . . . . . . . . . . . US$ 1,000 . . . . . 979 . . . . . 831Springleaf Financial Corp., Term Loan, Floating Rate, May 10, 2017. . . . . . . . US$ 2,171. . . . 2,088. . . . 2,236





Petroleos de Venezuela S.A., Senior, Unsecured, Notes, Callable, 5.375% Apr 12, 2027 . . . . . . . . . . . . US$ 39,100. . . 22,926. . . 22,747Petroleos de Venezuela S.A., Senior, Unsecured, Notes, Unsubordinated, 5.500% Apr 12, 2037 . . . . . . . . . . . . . US$ 3,900. . . . 1,944. . . . 2,229. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,924. . . 29,566

Zambia – 0.5%Republic of Zambia, Unsecured, 5.375% Sep 20, 2022. . . . . . . . . . . . . US$ 2,700. . . . 2,670. . . . 2,424

Total Bonds & Debentures – 94.2% . . . . . . . . . . . . . . . . 493,124 . . 495,105

Total Investment Portfolio – 95.1% . . . . . . . . . . . . . . . . 497,869 . . 499,852Total Unrealized Gain on Forward Currency Contracts – 1.0% . . . . . . 5,387Total Unrealized Loss on Forward Currency Contracts – (0.7)% . . . . (3,851)Credit Default Swap Contracts – (0.0)% . . . . . . . . . . . . . . . . . . . . . . (119)Credit Default Swap Contracts – 0.1% . . . . . . . . . . . . . . . . . . . . . . . . 342Other Assets Less Liabilities – 4.5% . . . . . . . . . . . . . . . . . . . . . . . 24,040NET ASSETS – 100.0%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 525,651


Valeant Pharmaceuticals International, Inc., Series 144A, Senior, Unsecured, Notes, Unsubordinated, Callable, 6.750% Aug 15, 2021. . . . . . . . . . . . . US$ 1,000 . . . . . 991. . . . 1,071Valeant Pharmaceuticals International, Inc., Series 144A, Senior, Notes, Callable, 7.250% Jul 15, 2022. . . . . . . US$ 2,000. . . . 1,972. . . . 2,199Walter Investment Management Corp., Senior, Secured, First Lien Term Loan Facility, Floating Rate Nov 28, 2017 . . . US$ 3,899. . . . 3,830. . . . 4,047WaMu Mortgage Pass-Through Certificates, Series 2006-AR9, Class 1A, Collateral Mortgage Obligation, Floating Rate, Aug 25, 2046 . . . . . . . . . US$ 416 . . . . . 249 . . . . . 347Wells Fargo Mortgage-Backed Securities Trust, Series 2006-AR7, Class 2A4, Mortgage Pass-Through Certificates, Floating Rate, May 25, 2036 . . . . . . . . . US$ 379 . . . . . 333 . . . . . 361Wells Fargo Mortgage-Backed Securities Trust, Series 2006-AR10, Class 4A1, Mortgage Pass-Through Certificates, Floating Rate, Jul 25, 2036 . . . . . . . . . US$ 2,009. . . . 1,619. . . . 1,896Windstream Holdings Inc., Senior, Unsecured, Notes, Unsubordinated, 7.875% Nov 1, 2017 . . . . . . . . . . . . . US$ 2,000. . . . 2,082. . . . 2,292. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215,915. . 224,918

Venezuela – 5.6%Bolivarian Republic of Venezuela, Senior, Unsecured, Notes, Unsubordinated, 7.750% Oct 13, 2019 . . US$ 300 . . . . . 194 . . . . . 254Bolivarian Republic of Venezuela, Senior, Unsecured, Unsubordinated, 8.250% Oct 13, 2024 . . . . . . . . . . . . . US$ 2,400. . . . 1,534. . . . 1,867Bolivarian Republic of Venezuela, Senior, Unsecured, Notes, 9.375% Jan 13, 2034 . . . . . . . . . . . . . US$ 2,000. . . . 1,656. . . . 1,617Petroleos de Venezuela S.A., Series 2014, Senior, Unsecured, Notes, 4.900% Oct 28, 2014 . . . . . . . . . US$ 200 . . . . . 136 . . . . . 193Petroleos de Venezuela S.A., Senior, Unsecured, Notes, Unsubordinated, 5.250% Apr 12, 2017 . . . . . . . . . . . . . . US$ 800 . . . . . 534 . . . . . 659



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


UNREALIZED GAIN ON FORWARD CURRENCY CONTRACTS+

2-Oct-13 . . . . . . . . ¤ . . . . . . . 25 . . . . . . US$ . . . . . . . (33) . . . . . 0.7514 . . . JPMorgan Chase Bank N.A. . . . . . . . . . . . . . . . . . . A-1. . . . . . . . . . . 12-Oct-13 . . . . . . . . ¤ . . . . . . 492 . . . . . . US$ . . . . . . (657) . . . . . 0.7489 . . . HSBC Bank USA . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1. . . . . . . . . . . 92-Oct-13 . . . . . . . . ¤ . . . . . . 503 . . . . . . US$ . . . . . . (664) . . . . . 0.7572 . . . Deutsche Bank AG. . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . . 172-Oct-13 . . . . . . . . ¤ . . . . . 1,650 . . . . . . US$ . . . . (2,200) . . . . . 0.7501 . . . Citibank N.A.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . . 342-Oct-13 . . . . . . . . ¤ . . . . . 2,477 . . . . . . US$ . . . . (3,315) . . . . . 0.7472 . . . Goldman Sachs Bank USA . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . . 372-Oct-13 . . . . . . . . ¤ . . . . . 3,551 . . . . . . US$ . . . . (4,699) . . . . . 0.7557 . . . Citibank N.A.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . 1082-Oct-13 . . . . . . BRL . . . . 27,403 . . . . . . US$ . . . (11,421) . . . . . 2.3993 . . . HSBC Bank USA . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . 9719-Oct-13 . . . . . . US$ . . . . . . 128 . . . . . . ZAR . . . . (1,238) . . . . . 0.1037 . . . Deutsche Bank AG. . . . . . . . . . . . . . . . . . . . . . . . . A-1. . . . . . . . . . . 510-Oct-13 . . . . . CA$ . . . 131,860 . . . . . . US$. . . (127,026) . . . . . 1.0381 . . . Citibank N.A.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . 99110-Oct-13 . . . . . CA$ . . . 131,860 . . . . . . US$. . . (127,025) . . . . . 1.0381 . . . Deutsche Bank AG. . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . 99110-Oct-13 . . . . . CA$ . . . 132,207 . . . . . . US$. . . (127,237) . . . . . 1.0391 . . . JPMorgan Chase Bank N.A. . . . . . . . . . . . . . . . . . . A-1 . . . . . . . 1,12110-Oct-13 . . . . . US$ . . . . . 4,855 . . . . . . CA$ . . . . (5,000) . . . . . 0.9710 . . . Citibank N.A.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1. . . . . . . . . . . 210-Oct-13 . . . . . US$ . . . . . . 293 . . . . . . CA$ . . . . . . (300) . . . . . 0.9758 . . . Morgan Stanley. . . . . . . . . . . . . . . . . . . . . . . . . . . A-2. . . . . . . . . . . 210-Oct-13 . . . . . US$ . . . . . 5,826 . . . . . . CA$ . . . . (6,000) . . . . . 0.9710 . . . Credit Suisse Securities (USA) LLC. . . . . . . . . . . . . . A-1. . . . . . . . . . . 210-Oct-13 . . . . . US$ . . . . . 4,857 . . . . . . CA$ . . . . (5,000) . . . . . 0.9715 . . . JPMorgan Chase Bank N.A. . . . . . . . . . . . . . . . . . . A-1. . . . . . . . . . . 410-Oct-13 . . . . . US$ . . . . . 5,149 . . . . . . CA$ . . . . (5,300) . . . . . 0.9715 . . . Citibank N.A.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1. . . . . . . . . . . 510-Oct-13 . . . . . US$ . . . . . 4,885 . . . . . . CA$ . . . . (5,000) . . . . . 0.9770 . . . Citibank N.A.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . . 3317-Oct-13 . . . . . US$ . . . . . 3,578. . . . . . . IDR. (37,905,083) . . . . . 0.0001 . . . JPMorgan Chase Bank N.A. . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . 31517-Oct-13 . . . . . US$ . . . . . 5,924. . . . . . . IDR. (62,439,137) . . . . . 0.0001 . . . Citibank N.A.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . 5504-Nov-13. . . . . . BRL . . . . 19,814 . . . . . . US$ . . . . (8,677) . . . . . 2.2835 . . . Morgan Stanley. . . . . . . . . . . . . . . . . . . . . . . . . . . A-2 . . . . . . . . . 1794-Nov-13. . . . . . US$ . . . . 27,862 . . . . . . . . ¤ . . . (20,588) . . . . . 1.3533 . . . Goldman Sachs Bank USA . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . . 10

Total Unrealized Gain on Forward Currency Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5,387

**Credit rating provided by Standard & Poor’s.+Positions collateralized by U.S. Treasury Bills.



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


UNREALIZED LOSS ON FORWARD CURRENCY CONTRACTS+

2-Oct-13 . . . . . . . . ¤ . . . . 20,588 . . . . . . US$ . . . (27,860) . . . . . 0.7390 . . . Goldman Sachs Bank USA . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . . (8)2-Oct-13 . . . . . . CA$ . . . . 10,369 . . . . . . US$ . . . (10,087) . . . . . 1.0279 . . . Barclays Bank PLC . . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . (21)2-Oct-13 . . . . . . US$ . . . . . . 412 . . . . . . CA$ . . . . . . (434) . . . . . 0.9504 . . . Morgan Stanley. . . . . . . . . . . . . . . . . . . . . . . . . . . A-2 . . . . . . . . . . (9)2-Oct-13 . . . . . . US$ . . . . . 1,300 . . . . . . BRL . . . . (3,132) . . . . . 0.4151 . . . Credit Suisse Securities (USA) LLC. . . . . . . . . . . . . . A-1 . . . . . . . . (117)2-Oct-13 . . . . . . US$ . . . . . 1,846 . . . . . . BRL . . . . (4,457) . . . . . 0.4141 . . . Morgan Stanley. . . . . . . . . . . . . . . . . . . . . . . . . . . A-2 . . . . . . . . (170)2-Oct-13 . . . . . . US$ . . . . . 8,738 . . . . . . BRL . . . (19,814) . . . . . 0.4410 . . . Morgan Stanley. . . . . . . . . . . . . . . . . . . . . . . . . . . A-2 . . . . . . . . (208)2-Oct-13 . . . . . . US$ . . . . 14,266 . . . . . . CA$ . . . (15,000) . . . . . 0.9510 . . . HSBC Bank USA . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . (306)2-Oct-13 . . . . . . US$ . . . . 15,031 . . . . . . CA$ . . . (15,800) . . . . . 0.9513 . . . Citibank N.A.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . (317)2-Oct-13 . . . . . . US$ . . . . 39,054 . . . . . . . . ¤ . . . (29,286) . . . . . 1.3335 . . . Citibank N.A.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . (582)7-Oct-13 . . . . . . RUR . . . 321,715 . . . . . . US$ . . . (10,023). . . . . 32.0975 . . . Deutsche Bank AG. . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . (106)7-Oct-13 . . . . . . US$ . . . . . 2,200 . . . . . . RUR . . . (71,599) . . . . . 0.0307 . . . HSBC Bank USA . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . . (8)7-Oct-13 . . . . . . US$ . . . . . 7,700 . . . . . . RUR. . . (251,136) . . . . . 0.0307 . . . Morgan Stanley. . . . . . . . . . . . . . . . . . . . . . . . . . . A-2 . . . . . . . . . (45)9-Oct-13 . . . . . . ZAR . . . . . 1,238 . . . . . . US$ . . . . . . (123). . . . . 10.0346 . . . HSBC Bank USA . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . . —10-Oct-13 . . . . . CA$ . . . . . 1,495 . . . . . . US$ . . . . (1,452) . . . . . 1.0299 . . . Deutsche Bank AG. . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . . (1)10-Oct-13 . . . . . CA$ . . . . 95,374 . . . . . . US$ . . . (92,684) . . . . . 1.0290 . . . Goldman Sachs Bank USA . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . (114)10-Oct-13 . . . . . CA$ . . . . 95,374 . . . . . . US$ . . . (92,693) . . . . . 1.0289 . . . Deutsche Bank AG. . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . (124)10-Oct-13 . . . . . US$ . . . . . . 582 . . . . . . CA$ . . . . . . (600) . . . . . 0.9694 . . . Credit Suisse Securities (USA) LLC. . . . . . . . . . . . . . A-1 . . . . . . . . . . (1)10-Oct-13 . . . . . US$ . . . . . . 968 . . . . . . CA$ . . . . (1,000) . . . . . 0.9683 . . . HSBC Bank USA . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . . (2)10-Oct-13 . . . . . US$ . . . . . 1,064 . . . . . . CA$ . . . . (1,100) . . . . . 0.9669 . . . Citibank N.A.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . . (4)10-Oct-13 . . . . . US$ . . . . . 7,633 . . . . . . CA$ . . . . (7,891) . . . . . 0.9673 . . . Credit Suisse Securities (USA) LLC. . . . . . . . . . . . . . A-1 . . . . . . . . . (27)17-Oct-13 . . . . . . . ¥ . . . . 66,500 . . . . . . US$ . . . . . . (693). . . . . 95.9285 . . . Deutsche Bank AG. . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . (17)17-Oct-13 . . . . . . IDR . 28,408,500. . . . . . . US$. . . . . (2,675). . 10,620.0000. . . . Deutsche Bank AG . . . . . . . . . . . . . . . . . . . . . . . . . . A-1. . . . . . . . . (230)17-Oct-13 . . . . . . IDR . 70,485,130. . . . . . . US$. . . . . (6,653). . 10,595.0000. . . . JPMorgan Chase Bank N.A.. . . . . . . . . . . . . . . . . . . . A-1. . . . . . . . . (585)17-Oct-13 . . . . . US$ . . . . . . 663 . . . . . . . . ¥ . . . (65,600) . . . . . 0.0101 . . . Bank of America N.A. . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . . (4)4-Nov-13. . . . . . US$ . . . . . 9,256 . . . . . . BRL . . . (21,490) . . . . . 0.4307 . . . Credit Suisse Securities (USA) LLC. . . . . . . . . . . . . . A-1 . . . . . . . . (354)12-Dec-13 . . . . . US$ . . . . 15,255 . . . . . . . . £ . . . . (9,720) . . . . . 1.5695 . . . Credit Suisse Securities (USA) LLC. . . . . . . . . . . . . . A-1 . . . . . . . . (483)17-Dec-13 . . . . . US$ . . . . . . 247 . . . . . . MXN . . . . (3,279) . . . . . 0.0754 . . . JPMorgan Chase Bank N.A. . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . . (2)15-Jan-14 . . . . . ZAR . . . . . 1,238 . . . . . . US$ . . . . . . (127) . . . . . 9.7809 . . . Deutsche Bank AG. . . . . . . . . . . . . . . . . . . . . . . . . A-1 . . . . . . . . . . (6)

Total Unrealized Loss on Forward Currency Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(3,851)




Sell Referenced Receive Expiry Credit Notional FairProtection Entity Fixed Rate Date Counterparty Rating)** Amount Value


CREDIT DEFAULT SWAP CONTRACTS+

Sell . . . . . . . .Federal Republic of Brazil,Senior, Unsecured, 12.250%, Jun 3, 2030 . . . . . . . . . . . .1.000% . . . . . .20-Jun-18 . . . . . .HSBC Bank USA . . . . . . . . .A-1+ . . . . . . . .4,000 . . . . . . .(119)

Sell . . . . . . . .CDX EM14 5-year Index . . . . . . . . . . .5.000% . . . . . .20-Dec-15 . . . . . .HSBC Bank USA . . . . . . . . .A-1+ . . . . . . . .8,000 . . . . . . .342

Total Credit Default Swap Contracts at Fair Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .223


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

September 30 September 302013 2012

Money Market InvestmentsFederal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9% . . . . . . . . . . . . 5.9%

Bonds & DebenturesAustralia . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5% . . . . . . . . . . . . 0.4%Austria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1% . . . . . . . . . . . . 0.2%Barbados. . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2% . . . . . . . . . . . . 0.1%Bermuda . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4% . . . . . . . . . . . . 0.5%Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.5% . . . . . . . . . . . . 7.1%British Virgin Islands . . . . . . . . . . . . . . . . . . . . —% . . . . . . . . . . . . 1.0%Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8% . . . . . . . . . . . . 0.8%Cayman Islands . . . . . . . . . . . . . . . . . . . . . . . 1.0% . . . . . . . . . . . . 1.1%Chile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —% . . . . . . . . . . . . 0.4%China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0% . . . . . . . . . . . . 0.5%Columbia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . —% . . . . . . . . . . . . 0.7%France. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7% . . . . . . . . . . . . 0.7%Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3% . . . . . . . . . . . . 0.1%India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2% . . . . . . . . . . . . 1.0%Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9% . . . . . . . . . . . . 2.5%Ireland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.6% . . . . . . . . . . . . 3.3%Israel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1% . . . . . . . . . . . . 0.1%Jordan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1% . . . . . . . . . . . . 0.1%Kazakhstan . . . . . . . . . . . . . . . . . . . . . . . . . . . —% . . . . . . . . . . . . 1.6%Luxembourg . . . . . . . . . . . . . . . . . . . . . . . . . 6.2% . . . . . . . . . . . . 6.1%


September 30 September 302013 2012

Bonds & DebenturesMexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2% . . . . . . . . . . . . 6.9%Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . 0.6% . . . . . . . . . . . . 3.0%Panama . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —% . . . . . . . . . . . . 0.0%Peru . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4% . . . . . . . . . . . . 1.4%Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . —% . . . . . . . . . . . . 1.2%Qatar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —% . . . . . . . . . . . . 0.7%Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.0% . . . . . . . . . . . . 7.2%Singapore . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1% . . . . . . . . . . . . 0.2%South Africa . . . . . . . . . . . . . . . . . . . . . . . . . 1.9% . . . . . . . . . . . . 1.0%South Korea . . . . . . . . . . . . . . . . . . . . . . . . . . —% . . . . . . . . . . . . 0.1%Spain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5% . . . . . . . . . . . . . —%Trinidad & Tobago . . . . . . . . . . . . . . . . . . . . . 0.0% . . . . . . . . . . . . 0.1%Turkey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6% . . . . . . . . . . . . 1.3%United Arab Emirates . . . . . . . . . . . . . . . . . . . 1.8% . . . . . . . . . . . . 0.9%United Kingdom . . . . . . . . . . . . . . . . . . . . . . 4.6% . . . . . . . . . . . . 2.8%United States. . . . . . . . . . . . . . . . . . . . . . . . 42.8% . . . . . . . . . . . 34.4%Uruguay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —% . . . . . . . . . . . . 0.0%Venezuela . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.6% . . . . . . . . . . . . 4.0%Zambia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5% . . . . . . . . . . . . . —%

Other Assets Less Liabilities . . . . . . . . . . . . . . 4.9% . . . . . . . . . . . . 0.6%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% . . . . . . . . . . . 100.0%


NOTES TO THE FINANCIAL STATEMENTS(All amounts in thousands of Canadian dollars, except per unit data)September 30, 2013

1. The FundBMO Global Strategic Bond Fund (“the Fund”) is anopen-ended mutual fund trust established under thelaws of the province of Ontario and is governed by aMaster Declaration of Trust dated November 6, 2007.The Master Declaration of Trust was amended onOctober 23, 2008 and November 3, 2009 to permitcertain funds to offer a multi-series structure. Inaddition to the existing Series A units, certain Fundsare permitted to offer Series I, Series F, AdvisorSeries, Series T5, Series T6 and/or Classic Seriesunits. Each series is intended for different kinds ofinvestors and has different management fees andfixed administration fees. Refer to Note 7(a) for theFund’s series and respective launch date(s) andNote 7(d) for management fee rates and fixedadministration fee rates for each series.

BMO Investments Inc. (the “Manager”) is themanager and Trustee of the Fund. The Manager is awholly-owned subsidiary of Bank of Montreal.

The information provided in these audited financialstatements is for the period(s) ended September 30,2013 and 2012. Financial information provided for afund established during the period(s) is presentedfrom the date of inception as noted in Note 7(a).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 financial statements have been prepared inaccordance with Canadian generally acceptedaccounting principles (“Canadian GAAP”), includingestimates and assumptions made by managementthat may affect the reported amounts of assets,liabilities, income and expenses during the reportedperiods. Actual results could differ from estimates.

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; and managementfees and expenses. Where applicable, refer toNote 7(a) for the details of the merger transactions.

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 processingunitholder transactions. For financial statementpurposes, valuations are determined in accordancewith Canadian GAAP. This may result in a differencebetween the net assets per unit for each series andthe NAV per unit for each series. Refer to Note 7(b)for the comparison between NAV per unit and netassets per unit for each series.

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.


NOTES TO THE FINANCIAL STATEMENTS (cont’d)(All amounts in thousands of Canadian dollars, except per unit data)September 30, 2013

Securities and exchange traded funds listed on arecognized public securities exchange in NorthAmerica are valued for financial statement purposesat their bid prices for long positions and ask pricesfor short positions. Procedures are in place to fairvalue securities 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, if any, are includedin the Statement of Investment Portfolio at their fairvalue. Unlisted warrants, if any, are valued based ona pricing model which considers factors such as themarket value of the underlying security, strike priceand terms 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 fair value, andmay determine another value which it considers tobe fair and reasonable using the services of third-party valuation 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 net

realized 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 in goodfaith that the commission is reasonable in relation tothe order execution and research services utilized. Itis the Manager’s objective that over time, all clientsreceive benefits from the client brokerage commissions.

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 an 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 a principal value, which is adjusted forinflation. The inflation adjustment of the principalvalue is recognized as part of interest income in theStatement of Operations. If held to maturity, the Fundwill receive, in addition to a coupon interest payment,a final 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 includedin “Realized gain (loss) on foreign exchange” in theStatement of Operations.

Forward currency contractsA forward currency contract is an agreementbetween two parties (the Fund and the counterparty)to purchase or sell a currency against anothercurrency at a set price on a future date. The Fundmay enter into forward currency contracts forhedging purposes which can include the hedging ofall or a portion of the currency exposure of aninvestment or group of investments, either directly orindirectly. The Fund may also enter into thesecontracts for non-hedging purposes which caninclude increasing the exposure to a foreign currencyor to shift exposure to foreign currency fluctuationsfrom 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 inthe Statement 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.

Futures contractsFutures contracts are financial agreements topurchase or sell a financial instrument at a contractedprice on a specified future date. Futures contracts arevalued at the gain or loss that would arise as a resultof closing the position at the Valuation Date, the“notional value”. Any difference between the notionalvalue on each Valuation Date and the notional valueon the previous Valuation Date is recorded as “Netincome (loss) from derivative contracts” in theStatement of Operations. Treasury bills or cash areheld as margin against the futures contracts.

Credit default swap contractsA credit default swap contract is an agreement totransfer credit risk from one party, a buyer ofprotection, to another party, a seller of protection. TheFund as a seller of protection would be required to paya notional or other agreed upon value to the buyer ofprotection in the event of a default by a third party. Inreturn, the Fund would receive from the counterpartya periodic stream of payments over the term of thecontract provided that no event of default occurs. Ifno default occurs, the Fund would keep the stream ofpayments and would have no payment obligations.

The Fund as a buyer of protection would receive anotional or other agreed upon value from the sellerof protection in the event of a default by a thirdparty. In return, the Fund would be required to payto the counterparty a periodic stream of paymentsover the term of the contract provided that no eventof default occurs.

Credit default swap contracts are fair valued dailybased upon quotations from independent securitypricing sources. Premiums paid or received, if any,are included in “Net income from derivative contracts”in the Statement of Operations. Net periodicpayments are accrued daily and recorded as “Netincome (loss) from derivative contracts” in theStatement of Operations. When credit default swapcontracts expire or are closed out, gains or losses arerecorded as “Net income (loss) from derivativecontracts” in the Statement of Operations.



Option contractsThe Fund may engage in option contract transactionsby purchasing (long positions) or writing (shortpositions) call or put option contracts. Thesecontracts have different risk exposures for the Fundwhereas the risk for long positions will be limited tothe premium paid to purchase the option contracts,the risk exposure for the short position is potentiallyunlimited until closed or expired.

Purchased option contractsThe premium paid for purchasing a call option isrecorded as an asset in the Statement of Net Assets.The premium is valued at every Valuation Date at anamount equal to the fair value of the option thatwould have the effect of closing the position. Thechange in the difference between the premium andthe fair value is shown as “Change in unrealizedappreciation (depreciation) in value of investments”in the Statement of Operations.

When a purchased option expires, the Fund willrealize a loss equal to the premium paid. When apurchased option is closed, the gain or loss the Fundwill realize will be the difference between theproceeds and the premium paid. When a purchasedcall option is exercised, the premium paid is added tothe cost of acquiring the underlying security. When apurchased put option is exercised, the premium paidwill be subtracted from the proceeds from the sale ofthe underlying security that had to be sold.

Written option contractsThe premium received from writing a call or putoption is recorded as a liability in the Statement ofNet Assets.

When a written option expires, the Fund will realize again equal to the premium received. When a writtenoption is closed, the Fund will realize a gain or lossequal to the difference between the cost at which thecontract was closed and the premium received. When

a written call option is exercised, the premiumreceived is added to the proceeds from the sale of theunderlying investments to determine the realizedgain or loss. When a written put option is exercised,the premium received will be subtracted from the costof the underlying investment the Fund had purchased.

The gain or loss that the Fund realizes when apurchased or written option is expired or closed isrecorded as “Net income (loss) from derivativecontracts” in the Statement of Operations.

Securities lendingA Fund may engage in securities lending, whereapplicable, pursuant to the terms of an agreementwhich includes restrictions as set out in Canadiansecurities legislation. Collateral held is governmentTreasury Bills and qualified 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 September 30,2013 and September 30, 2012, where applicable, aredisclosed in Note 7(h).

Increase or decrease in net assets from operations per unit“Increase (decrease) in net assets from operations perunit” 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 units 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 of Operations, if any.




Other assets and liabilitiesIncome receivable, subscriptions receivable, futurescontract margin receivable, and due from broker aredesignated as loans and receivables and recorded atcost or amortized cost. Similarly, amounts due tobroker, futures contract margin payable, redemptionspayable, distributions payable and accrued expensesare designated as financial liabilities and reported atamortized cost. Other assets and liabilities are short-term in nature, and are carried at cost or amortizedcost which approximates fair 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. As a result, the Fund will report itsfinancial results for the interim period endingMarch 31, 2015, prepared on an IFRS basis. It willalso provide comparative data on an IFRS basis,including an opening balance sheet as at October 1,2013 (“transition date”).

The differences between the Fund’s accountingpolicies under Canadian GAAP and IFRSrequirements will result in measurement andrecognition differences on transition to IFRS. The netimpact of these differences will be recorded in theincrease/ decrease in net assets attributable toredeemable unitholders.

Significant accounting changes resulting from our adoption of IFRSThe main accounting changes listed below shouldnot be considered a comprehensive list of impacts ofadopting IFRS, but rather the most significant ofcertain key changes.

The framework for fair valuation is set out underIFRS 13 Fair Value Measurement (“IFRS 13”), whichincludes the requirements for the measurement anddisclosure of fair value. If an asset or liabilitymeasured at fair value has a bid price and an askprice, the standard requires valuation to be based on

a price within the bid-ask spread that is mostrepresentative of fair value. The standard allows theuse of mid-market pricing or other pricingconventions that are used by market participants as apractical means for fair value measurements within abid-ask spread. Thus this standard will impact thenet assets per unit for financial statement reportingpurposes compared to current standards, and mayalso result in the elimination of the differencesbetween the net asset per unit and NAV per unit atthe financial statement reporting date. While IFRSdoes not require interest income to be disclosed fordebt instruments measured at Fair Value throughProfit or Loss, when interest income is disclosed,IFRS requires that the effective interest rate methodof calculating accrued interest be used rather thanthe straight-line amortization method. The Manageris assessing the impact of this change to the Fund’sfinancial statements. The Manager has not identifiedany changes that will impact NAV per unit as a resultof the transition to IFRS.

Where the Fund holds controlling interest in aninvestment, it is the Manager’s expectation that theFund will qualify as an Investment Entity inaccordance with IFRS 10 Consolidated FinancialStatements. As such, the Fund will not be required toconsolidate its investments, but rather to hold theinvestments at Fair Value through Profit or Lossregardless of whether those investments arecontrolled. If the Fund fair values the investments itcontrols, it may be required to make additionalfinancial statement disclosures on its controlledinvestments in accordance with IFRS 12 Disclosure ofInterests in Other Entities (“IFRS 12”). IFRS 12 alsorequires additional disclosures if the Fund isdetermined to qualify as an investment entity withouthaving all of the typical characteristics of aninvestment entity.

The criteria contained within IAS 32 FinancialInstruments: Presentation (“IAS 32”) will result in theclassification of the unitholders’ equity as a liabilitywithin the Fund’s Statement of Net Assets, unless allconditions required for equity classification are met.The Manager is currently assessing the Fund’sunitholder structure to determine classificationunder IAS 32.



redemptions of units except as disclosed in Note 7(a),if any. The relevant movements in capital are shownon the Statement of Changes in Net Assets. Inaccordance 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 Fund qualifies as a mutual fund trust under theprovisions of the Income Tax Act (Canada) (the “TaxAct”). Distributions of all net taxable income andsufficient amounts of net realized capital gains foreach taxation year will be paid to unitholders. Part ofthe Fund’s net income and net realized capital gainsnot paid or payable, is subject to income tax. It is theintentions of the Fund to distribute all of its incomeand sufficient net realized capital gains so that theFund will not be subject to income tax. Income tax onnet realized capital gains not paid or payable isgenerally recoverable by virtue of refundingprovisions contained in tax legislation, asredemptions occur.

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 thereafter 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 Fund’s non-capital and capital losses for incometax purposes as of the tax year-ended December 2012are included in Note 7(c), if applicable.

Under IFRS, cash flows statement is one of theprimary financial statements required to bepresented. The Fund will therefore be presentingcash flows statement in its set of financial statementsin accordance with the presentation requirements inIAS 7 Statement of Cash Flows (“IAS 7”).

3. Unit valuationUnits of the Fund are offered for sale on a continuousbasis and may be purchased or redeemed on anyValuation Date at the NAV per unit of a particularseries. The NAV per unit of a series for the purposesof subscription or redemption is computed bydividing the NAV of the Fund attributable to the series(that is, the total fair value of the assets attributable tothe series less the liabilities attributable to the series)by the total number of units of the series of the Fundoutstanding at such time. This amount may bedifferent from the net asset per unit 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 typically utilizesclosing price to determine fair value for the purchaseand redemption of units. See Note 7(b) for thecomparison between NAV per unit and net assets perunit 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 units with no par value. The units areentitled to distributions, if any, and to payment of aproportionate share based on the Fund’s NAV per unitupon redemption. The Fund has no restrictions orspecific capital requirements on the subscriptions and



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., cost associatedwith the production of Fund Facts). The fixedadministration fee is calculated daily as a fixedannual percentage of the average NAV of the Fund.Refer to Note 7(d) for the fixed administration feerates 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 unitholders.

(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 September 30, 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 units.Refer to Note 7(d) for the investment in units of theFund held by the Manager as at September 30, 2013and September 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 Limited, Lloyd George ManagementInc., or other investment funds offered by BMO andmay involve the purchase or sale of portfoliosecurities through or from a member of Bank ofMontreal Group of Companies, the purchase or sale ofsecurities issued or guaranteed by a member of Bankof Montreal 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. TheFund’s risk management practice includes themonitoring of compliance 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 financial instrumentrisks of the underlying fund(s), depending on theinvestment objectives and the type of securities heldby the underlying fund(s). The decision to buy or sellan 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(f).

(b) Interest rate riskInterest rate risk is the risk that the fair value of theFund’s interest-bearing investments will fluctuate dueto 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 instruments

traded 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 lending transactionswith approved counterparties. Credit risk associatedwith these transactions is considered minimal as allcounterparties have a sufficient approved credit ratingand the market value of collateral held by the Fundmust be at least 102% of the fair value of securitiesloaned, if any, as disclosed in Note 7(h).

(e) Liquidity riskThe Fund’s exposure to liquidity risk is concentratedin the daily cash redemptions of units. The Fundprimarily invests in securities that are traded inactive markets and can be readily disposed. Inaddition, the Fund retains sufficient cash and cashequivalent positions to maintain liquidity. The Fundmay, from time to time, enter into over-the-counterderivative contracts or invest in unlisted securities,which are not traded in an organized market and maybe illiquid. 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 the 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.



For the periods ended Sep. 30 Sep. 30(in thousands of units) 2013 2012

Series IUnits issued and outstanding, beginning of period 53,676 46,141Issued 11,064 15,444Issued on reinvestment of distributions 5,177 2,240Redeemed during the period (51,181) (10,149)

Units issued and outstanding, end of period 18,736 53,676

Series FUnits issued and outstanding, beginning of period 3,141 2,734Issued 2,453 1,381Issued on reinvestment of distributions 196 62Redeemed during the period (2,467) (1,036)


Advisor SeriesUnits issued and outstanding, beginning of period 11,086 8,771Issued 6,925 4,996Issued on reinvestment of distributions 731 247Redeemed during the period (5,451) (2,928)


Series name changesAs at the close of business on March 28, 2013, thefollowing series names were changed:

• BMO Guardian Global Strategic Bond Fund Series Fchanged to Series F

• BMO Guardian Global Strategic Bond Fund AdvisorSeries changed to Advisor Series

(b) Comparison of NAV per unit to net assets per unitSep. 30, 2013 Sep. 30, 2012

NAV Net Assets NAV Net AssetsSeries per Unit per Unit per Unit per Unit

Series A 7.26 7.26 7.91 7.91Series I 9.35 9.35 10.11 10.11Series F 12.80 12.80 13.80 13.80Advisor Series 12.67 12.67 13.66 13.66

(c) Income taxesThe Fund did not have any available capital and non-capital losses carried forward for income tax purposesas of the tax year-ended December 2012.

7. Fund specific information(a) Fund and series information, change in units and significant eventsThe Fund’s inception date was September 6, 2000. TheFund is authorized to issue an unlimited number ofunits in each of Series A, Series I, Series F andAdvisor Series.

Series Launch Date

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

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

Series I units are offered for purchase by institutionalinvestors who make the required minimuminvestments and have entered into an agreement withthe Manager. No management fees and fixedadministration fees are charged to the Fund inrespect of the Series I units as each investor or dealernegotiates a separate fee with the Manager.

Series F units are available for purchase by investorswho are enrolled in dealer-sponsored wrap programsor flat fee accounts. Instead of paying a commission oneach transaction, these investors pay an annual fee tothe Manager based on the value of their assets.

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

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

For the periods ended Sep. 30 Sep. 30(in thousands of units) 2013 2012

Series AUnits issued and outstanding, beginning of period 19,820 22,283Issued 2,901 2,088Issued on reinvestment of distributions 1,545 1,134Redeemed during the period (5,033) (5,685)




(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 1.75 0.28Series I * *Series F 1.25 0.28Advisor Series 1.75 0.28

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

(e) Brokerage commissions and soft dollarsThere were no brokerage commissions charged to theFund during the periods ended September 30, 2013 orSeptember 30, 2012.

(f) Financial instrument riskThe Fund’s objective is to provide a fixed monthlydistribution and capital appreciation potential byinvesting primarily in debt instruments issued bygovernments and corporations around the world. TheFund invested in a diversified pool of fixed-incomesecurities, which primarily includes investmentgrade securities with a credit rating of BBB or higher,high yield securities with a credit rating below BBBand emerging market debt.

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.

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

As at Sep. 30, 2013Cash and As a

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

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

Brazilian Real 708 — (772) (64) (0.0)Euro 726 27,935 (28,713) (52) (0.0)Indonesia Rupiah — — (129) (129) (0.0)

Japanese Yen 1 — 9 10 0.0Mexican Peso 249 — (257) (8) (0.0)Polish Zloty 2 — — 2 0.0Pound Sterling 640 15,812 (16,225) 227 0.0Russian Ruble — — (33) (33) (0.0)Singapore Dollar — — — — —

South African Rand — — 125 125 0.0

U.S. Dollar 27,776 453,712 (482,584) (1,096) (0.2)

Total 30,102 497,459 (528,579) (1,018) (0.2)

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

Brazilian Real 332 13,719 (10,357) 3,694 0.4Euro (2,853) 53,390 (50,545) (8) (0.0)Indonesia Rupiah 410 3,097 (2,496) 1,011 0.1

Japanese Yen — — — — —Mexican Peso 182 7,891 (5,918) 2,155 0.3Polish Zloty — — — — —Pound Sterling 458 15,284 (14,834) 908 0.1Russian Ruble — — — — —Singapore Dollar — — (18) (18) (0.0)

South African Rand 215 4,787 (3,956) 1,046 0.1

U.S. Dollar (21) 784,331 (792,450) (8,140) (0.9)

Total (1,277) 882,499 (880,574) 648 0.1

All amounts in CA$.


As at the periods ended September 30, 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 $51(September 30, 2012 – $32). In practice, actual resultsmay differ from this sensitivity analysis and thedifference could be material.

Interest rate riskThe following table summarizes the Fund’s exposureto interest rate risk by remaining term to maturity.

Interest Rate Exposure as atNumber of years Sep. 30, 2013 Sep. 30, 2012

Less than 1 year 17,965 57,191One to three years 17,266 45,320Three to five years 95,208 120,967Five to ten years 269,148 469,866Greater than ten years 100,265 195,989

Total 499,852 889,333

All amounts in CA$.

As at the periods ended September 30, 2013 andSeptember 30, 2012, if the prevailing interest rateshad been raised or lowered by 1%, assuming aparallel shift in the yield curve, with all other factorsremaining constant, Net Assets could possibly havedecreased or increased, respectively, by approximately$22,582 (September 30, 2012 – $44,583). The Fund’sinterest rate sensitivity was determined based onportfolio weighted duration. In practice, actual resultsmay differ from this sensitivity analysis and thedifference could be material.

Other market riskAs at September 30, 2013 and September 30, 2012,the Fund was not significantly exposed to othermarket risk.


Credit riskThe Fund’s credit risk exposure grouped by creditratings are listed in the following table:

As a % of Net Assets as atCredit Rating Sep. 30, 2013 Sep. 30, 2012

R-1 High 0.9 5.9AAA 0.0 0.0AA 0.3 2.1A 1.8 7.4BBB 31.1 32.3BB 26.8 23.1B 28.2 21.2Below B 7.1 7.5

Total 96.2 99.5

(g) Fair value hierarchyThe Fund classifies its financial instruments into threelevels based on the inputs used to value the financialinstruments. Level 1 securities are valued based on thequoted prices in active markets for identical securities.Level 2 securities are valued based on significantobservable market inputs, such as quoted prices fromsimilar securities and quoted prices in inactive marketsor based on unobservable inputs to models. Level 3securities are valued based on significant unobservableinputs that reflect the Manager’s determination ofassumptions that market participants might reasonablyuse in valuing the securities. The tables below showthe relevant disclosure.

As at September 30, 2013Financial assets Level 1 Level 2 Level 3 Total

Debt Securities 231,501 265,871 2,480 499,852Derivatives — 5,729 — 5,729

Total 231,501 271,600 2,480 505,581

Financial liabilities

Derivatives — (3,970) — (3,970)

As at September 30, 2012Financial assets Level 1 Level 2 Level 3 Total

Debt Securities 493,061 394,428 1,841 889,330Derivatives — 967 — 967

Total 493,061 395,395 1,841 890,297

Financial liabilities

Derivatives — (8,961) — (8,961)


Significant transfersThere were no significant transfers between the levelsduring the periods.

Changes in Level 3 Fair Value MeasurementsThe following table presents a reconciliation of allLevel 3 financial instruments during the periodsended September 30, 2013 and September 30, 2012,including realized and unrealized gains (losses)included in earnings.

September 30, 2013 Realized & Balance unrealized gains/ as at Purchases/ Sales/ (losses) included Transfers Transfers BalanceFinancial assets Sep. 30, 2012 issuance settlements in earnings* in out Sep. 30, 2013

Debt Securities 1,841 1,000 — 21 113 (495) 2,480

*Change in unrealized gain related to investments held at September 30, 2013 was $21.

September 30, 2012 Realized & Balance unrealized gains/ as at Purchases/ Sales/ (losses) included Transfers Transfers BalanceFinancial assets Sep. 30, 2011 issuance settlements in earnings* in out Sep. 30, 2012

Debt Securities 5,669 — (4,258) (153) 583 — 1,841

*Change in unrealized loss related to investments held at September 30, 2012 was $18.

The Manager has assessed the effect of changing theinputs to possible alternatives and determined thatthey would not have a significant impact on NetAssets of the Fund.

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

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

Aggregate value of securities on loan 8,577 16,674Aggregate value of collateral received for the loan 9,055 17,677


Management’s Responsibility for Financial Reporting

The accompanying financial statements have been prepared by management of BMO Investments Inc. Managementis responsible for the information and representations made in these financial statements.

Management has maintained appropriate processes to ensure that relevant and reliable financial information isproduced. The financial statements have been produced in accordance with accounting principles generallyaccepted in Canada and include certain amounts based on estimates and judgements. The significant accountingpolicies which management believes are appropriate for the BMO Mutual Funds are described in Note 2 to thefinancial statements.

The Trustee of each of the Trusts is responsible for reviewing and approving the financial statements and overseeingmanagement’s performance of its financial reporting responsibilities. The Trustee reviews the financialstatements, adequacy of internal controls, the audit process and financial reporting with management and theexternal auditors.

The Board of Directors of BMO Global Tax Advantage Funds Inc. is responsible for reviewing and approving thefinancial statements and overseeing management’s performance of its financial reporting responsibilities. TheAudit Committee of the Board of Directors reviews the financial statements, adequacy of internal controls, theaudit process and financial reporting with management and the external auditors. The Audit Committee reportsto the Board of Directors prior to the Board approval of the financial statements.

PricewaterhouseCoopers LLP are the external auditors of the BMO Mutual Funds. The auditors have beenappointed by the respective Boards and cannot be changed without the prior approval of the Independent ReviewCommittee and 60 days notice to the Securityholders. They have audited the financial statements in accordancewith generally accepted auditing standards in Canada to enable them to express their opinion on the financialstatements. Their report is included as an integral part of the financial statements.

Rajiv Silgardo R.J. SchauerChief Executive Officer Treasurer and Chief Financial OfficerBMO Investments Inc. BMO Mutual FundsDecember 10, 2013 December 10, 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 MagnayeCorporate Secretary

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

Rajiv R. Silgardo

Robert J. Schauer, CPA, CA

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

Ross F. Kappele

Helen Killoch*

Douglas E. Kirk*

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

William Chinkiwsky, 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. First Canadian Place, 43rd Floor, 100 King Street WestToronto, ON M5X 1A1

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

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