Simplified Prospectus - BMO

BMO Mutual Funds in this simplifiedprospectus are offered by BMOInvestments Inc.

Offering series A, I, T6 and/or Fsecurities, as noted. If the name of aseries includes the words “Series F”,that series is referred to as “series F”.

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

The funds and the securities of thefunds offered under this simplifiedprospectus are not registered withthe United States Securities andExchange Commission and they aresold in the United States only inreliance on exemptions fromregistration.

± Each fund within this category is a classof BMO Global Tax Advantage Funds Inc.,a mutual fund corporation.

BMO Security FundsBMO T-Bill Fund (series A, I and

BMO Guardian T-Bill Fund Series F)BMO Money Market Fund (series A and I)BMO AIR MILES®† Money Market Fund

(series A and I)BMO Premium Money Market Fund

(series A and I)

BMO Income FundsBMO Mortgage and Short-Term Income Fund

(series A and I)BMO Bond Fund (series A, I and

BMO Guardian Bond Fund Series F)BMO Monthly Income Fund

(series A, I and BMO Guardian Monthly Income Fund Series F)

BMO World Bond Fund (series A, I and BMO Guardian World Bond Fund Series F)

BMO Diversified Income Fund (series A and I)BMO Global Monthly Income Fund

(series A and I)BMO Global High Yield Bond Fund

(series A and I)BMO U.S. High Yield Bond Fund

(series A, I and BMO GuardianU.S. High Yield Bond Fund Series F)

BMO Income Trust Fund (series A and I)

BMO Growth FundsBMO Asset Allocation Fund (series A and I)BMO Dividend Fund (series A, I and

BMO Guardian Dividend Fund Series F)BMO U.S. Equity Fund (series A, I and

BMO Guardian U.S. Equity Fund Series F)BMO Equity Fund (series A, I and

BMO Guardian Equity Fund Series F)BMO North American Dividend Fund

(series A and I)BMO International Index Fund (series A and I)BMO U.S. Equity Index Fund (series A and I)BMO International Equity Fund

(series A, I and BMO Guardian International Equity Fund Series F)

BMO European Fund (series A, I and BMO Guardian European Fund Series F)

BMO U.S. Growth Fund (series A and I)BMO Equity Index Fund (series A and I)BMO Japanese Fund (series A and I)

BMO Aggressive Growth FundsBMO Special Equity Fund (series A and I)BMO U.S. Special Equity Fund (series A and I)BMO Global Science & Technology Fund

(series A and I)BMO Emerging Markets Fund

(series A, I and BMO Guardian Emerging Markets Fund Series F)

BMO Resource Fund (series A and I)BMO Precious Metals Fund (series A and I)

BMO U.S. Dollar FundsBMO U.S. Dollar Money Market Fund

(series A and I)BMO U.S. Dollar Monthly Income Fund

(series A and I)BMO U.S. Dollar Equity Index Fund

(series A and I)

BMO Global Tax Advantage Funds±BMO Short-Term Income Class (series A and I)BMO Dividend Class (series A and I)BMO Global Dividend Class (series A and I)BMO Canadian Equity Class (series A and I)BMO Global Equity Class (series A and I)BMO Greater China Class (series A and I)BMO Sustainable Opportunities Class

(series A and I)BMO Global Energy Class (series A and I)BMO Sustainable Climate Class (series A and I)BMO International Value Class (series A and I)BMO SelectClass Security Portfolio

(series A, I and T6)BMO SelectClass Balanced Portfolio

(series A, I and T6)BMO SelectClass Growth Portfolio

(series A, I and T6)BMO SelectClass Aggressive Growth Portfolio

(series A, I and T6)

May 8, 2009BMO LifeStage Plus FundsBMO LifeStage Plus 2015 Fund (series A)BMO LifeStage Plus 2017 Fund (series A)BMO LifeStage Plus 2020 Fund (series A)BMO LifeStage Plus 2022 Fund (series A)BMO LifeStage Plus 2025 Fund (series A)BMO LifeStage Plus 2026 Fund (series A)BMO LifeStage Plus 2030 Fund (series A)

BMO FundSelect™ PortfoliosBMO FundSelect™ Security Portfolio

(series A and I)BMO FundSelect™ Balanced Portfolio

(series A and I)BMO FundSelect™ Growth Portfolio

(series A and I)BMO FundSelect™ Aggressive

Growth Portfolio (series A and I)

Simplified Prospectus

Introduction 1

Fund-specific information 2A guide to using the fund descriptions 2

BMO Security Funds 7BMO T-Bill Fund 8BMO Money Market Fund 9BMO AIR MILES®† Money Market Fund 10BMO Premium Money Market Fund 12

BMO Income Funds 13BMO Mortgage and Short-Term Income Fund 14BMO Bond Fund 16BMO Monthly Income Fund 18BMO World Bond Fund 20BMO Diversified Income Fund 22BMO Global Monthly Income Fund 24BMO Global High Yield Bond Fund 26BMO U.S. High Yield Bond Fund 28BMO Income Trust Fund 30

BMO Growth Funds 33BMO Asset Allocation Fund 34BMO Dividend Fund 36BMO U.S. Equity Fund 38BMO Equity Fund 40BMO North American Dividend Fund 42BMO International Index Fund 44BMO U.S. Equity Index Fund 46BMO International Equity Fund 48BMO European Fund 50BMO U.S. Growth Fund 52BMO Equity Index Fund 54BMO Japanese Fund 56

BMO Aggressive Growth Funds 57BMO Special Equity Fund 58BMO U.S. Special Equity Fund 60BMO Global Science & Technology Fund 62BMO Emerging Markets Fund 64BMO Resource Fund 66BMO Precious Metals Fund 68

BMO U.S. Dollar Funds 71BMO U.S. Dollar Money Market Fund 72BMO U.S. Dollar Monthly Income Fund 73BMO U.S. Dollar Equity Index Fund 75

BMO Global Tax Advantage Funds 77BMO Short-Term Income Class 78BMO Dividend Class 80BMO Global Dividend Class 82BMO Canadian Equity Class 84BMO Global Equity Class 86BMO Greater China Class 88BMO Sustainable Opportunities Class 90BMO Global Energy Class 92BMO Sustainable Climate Class 94BMO International Value Class 96BMO SelectClass Security Portfolio 98BMO SelectClass Balanced Portfolio 100BMO SelectClass Growth Portfolio 102BMO SelectClass Aggressive Growth Portfolio 104

BMO LifeStage Plus Funds 107BMO LifeStage Plus 2015 Fund 108BMO LifeStage Plus 2017 Fund 110BMO LifeStage Plus 2020 Fund 112BMO LifeStage Plus 2022 Fund 114BMO LifeStage Plus 2025 Fund 116BMO LifeStage Plus 2026 Fund 118BMO LifeStage Plus 2030 Fund 120

BMO FundSelect™ Portfolios 123BMO FundSelect™ Security Portfolio 124BMO FundSelect™ Balanced Portfolio 126BMO FundSelect™ Growth Portfolio 128BMO FundSelect™ Aggressive Growth Portfolio 130

What is a mutual fund and what are the risks of investing in a mutual fund? 132

Organization and management of BMO Mutual Funds 138

Purchases, switches and redemptions 143

Optional services 149

Fees and expenses 151

Dealer compensation 153

Dealer compensation from management fees 154

Income tax considerations for investors 154

What are your legal rights? 156

Additional information 157

Introduction

In this document, “we”, “us” and “our” refer to BMO Investments Inc. We refer to all of the mutualfunds we offer as “BMO Mutual Funds” and themutual funds described in this document as the“funds”. Not all BMO Mutual Funds are offered underthis simplified prospectus and certain BMO MutualFunds offer different series under separateprospectuses. When you invest in a BMO Mutual Fundthat is a part of BMO Global Tax Advantage Funds

Inc., you buy shares of a class of BMO Global TaxAdvantage Funds Inc., which is a corporation, and youbecome a “shareholder”. We refer to these classes as“BMO Global Tax Advantage Funds”. When you invest inany of the other funds listed on the front cover, you buyunits of a trust and become a “unitholder”. We refer tothese funds as “BMO Trust Funds”. We refer to sharesand units collectively as “securities” and holders ofshares and units as “securityholders”.

This simplified prospectus contains selected importantinformation to help you make an informed investmentdecision and understand your rights as an investor.

It’s divided into two parts. Pages 2 to 131 containspecific information about each fund and pages 132 to158 contain general information about the funds.

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

financial statements• the most recently filed annual management report of

fund performance• any interim management report of fund performance

filed after that annual management report of fundperformance.

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

If you would like a copy of these documents, call us at1-800-665-7700, or ask your dealer. There’s no chargefor these documents. You’ll also find copies of them, andother information about the funds, on the internet atwww.sedar.com.

For more information about BMO Mutual Funds, visit ourwebsite:

In English: www.bmo.com/mutualfunds

En français: www.bmo.com/fonds

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A guide to using the fund descriptionsYou’ll find all the key information about each fund inone place—the fund descriptions. They begin onpage 7. Each fund description is organized intosections to make it easier for you to compare funds.Below is a short guide to what you’ll find in eachsection of the fund descriptions:

1 Fund detailsThe Fund details section provides an overview ofsome basic information about the fund, like what kindof fund it is, when it was started and what type ofsecurities it offers.

A mutual fund can be set up as a mutual fund trust oras a mutual fund corporation. We have both kinds ofmutual funds. BMO Global Tax Advantage Funds arecorporate classes of BMO Global Tax Advantage FundsInc., which is a mutual fund corporation. When youinvest in BMO Global Tax Advantage Funds, you buyshares of a class of BMO Global Tax Advantage FundsInc. BMO Trust Funds are organized as trusts. Whenyou invest in any of these funds, you buy units of atrust. Some of the funds offer more than one series ofsecurities. Each series is intended for a different kindof investor and may have a different management fee.

The Fund details section also tells you if thefund is eligible for registered plans likeRegistered Retirement Savings Plans (RRSPs),Registered Retirement Income Funds (RRIFs), Lockedin Retirement Savings Plans (LRSPs), Locked inRetirement Accounts (LIRAs), Restricted Locked inSavings Plans (RLSPs), Life Income Funds (LIFs),Restricted Life Income Funds (RLIFs), Locked inRetirement Income Funds (LRIFs), PrescribedRetirement Income Funds (PRIFs), RegisteredEducation Savings Plans (RESPs), Deferred ProfitSharing Plans (DPSPs), Registered Disability SavingsPlans (RDSPs) and Tax-Free SavingsAccounts (TFSAs).

This section also shows the maximum managementfee that we may charge for the series of securities ofthe funds. For each series, we may, from time to timeat our discretion, waive a portion or the entire amountof the management fee chargeable at any given time.

In addition, this section includes information on theadministration fee and the name of the portfoliomanager – the company that makes the day-to-daydecisions about fund investments.

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

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

Investment strategiesThis tells you how the portfolio manager tries toachieve the fund’s objectives. Each of the fundsfollows the standard investment restrictions andpractices established by Canadian securitieslegislation, unless Canadian securities regulators havegiven the fund approval to vary its strategies fromthese restrictions. If we and/or the fund has obtainedsuch an approval, we discuss it here and in the annualinformation form.

The Independent Review Committee (the “IRC”) of thefunds has, as permitted by Canadian securitieslegislation, provided us with approval to enable thefunds to engage in certain transactions with andpurchase securities of certain related parties, inaccordance with the terms of applicable Canadiansecurities legislation and the approval provided by theIRC. Additional information is available in the funds’annual information form and under AdditionalInformation on page 157.

Each fund may also hold cash as a defensive strategyor while waiting to invest in other securities. A fundmay also buy short-term fixed income securities andmoney market instruments.

A fund may purchase securities of other mutual funds(or obtain exposure to other mutual funds by enteringinto derivative transactions), including mutual fundsthat are managed by us or our affiliates or associates.

In some cases, the investment strategies section of afund may indicate that the fund has percentage orother restrictions on its investment in certain types ofsecurities. In these cases, if the restriction is adheredto at the time of investment and then later the marketvalue of the investment, the rating of the investment,or the value of the fund, change in a manner thatcauses the restriction to be exceeded, it is not aviolation of the restriction.

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

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

The most common kinds of derivatives are:• a futures or forward contract, which is an

agreement to buy or sell the underlyinginvestment at an agreed price at a future date; and

• an option contract, which gives the buyer theright, but not the obligation, to buy or sell theunderlying investment at an agreed price within acertain period of time.

A mutual fund can only use the derivatives permittedby the Canadian securities regulators, and only if theyare consistent with the fund’s investment objectives.

Mutual funds can use derivatives for purposes otherthan hedging only if the fund has enough cash orsecurities to cover its positions.

Currency hedging strategiesMany funds buy securities denominated in foreigncurrencies. The value of these securities will vary withchanges in the value of the Canadian dollar. To protectagainst variations in exchange rates, these funds maybuy or sell forward currency contracts or currencyfutures contracts.

Each fund will exchange currency on a spot basis atprevailing rates or through forward contracts of oneyear or less. We enter into currency hedging contractsonly up to the market value of the assets a fund holdsin that currency. We may adjust the contracts fromtime to time.

Repurchase and reverse repurchase transactions and securities lendingAll of the funds may engage in repurchase and reverserepurchase transactions and securities lending, asdescribed under General investment risks.

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BMOMortgage and Short-Term Income Fund

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Fund details

What does the fund invest in?

Investment objectivesThis fund’s objective is to provide a level of incomeconsistent with investments in short-term fixed-income securities.

The fund invests primarily in short-term, high-quality, fixed-income securities issued by orguaranteed by Canadian federal, provincial ormunicipal governments or issued by corporations.It may also invest in:• mortgages insured or guaranteed by Canadian

federal or provincial governments,• conventional first mortgages on Canadian real

estate, either directly or indirectly throughpooled mortgage investments, such as mortgage-backed securities.

The fundamental investment objective may only bechanged with the approval of a majority of thevotes cast at a meeting of unitholders called for that purpose.

Type of fund Canadian short-term bond andmortgage fund

Date started Series A: July 16, 1974Series I: March 5, 2008

Securitiesoffered

Units of a mutual fund trust

Eligible forregisteredplans

Yes

Managementfee

Series A: 1.25%Series I: N/A. A series I fee is

negotiated and paid by each series I investor

Administrationfee

0.17% (for series I, separate fees andexpenses are negotiated and paid by each series I investor)

Portfoliomanager

Jones Heward Investment Counsel Inc., Toronto, Ontario

(Portfolio Manager sinceJanuary 1991)

Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• examines economic indicators like growth,

inflation and monetary policy to provide aframework for selecting appropriate securities

• analyzes credit ratings of various issuers todetermine the best potential investments for theportfolio

• allocates investments among government andcorporate securities to diversify the fund’sholdings

• expects to invest a minimum of 30% of the fund’sassets directly or indirectly in mortgages

• may invest up to 30% of the purchase cost of thefund’s assets in foreign securities

• will only invest in securities rated BBB or higherat the time of investment by Standard & Poor’sRating Service or the equivalent rating as definedby other recognized rating agencies. BBB-ratedsecurities may not exceed 10% of the value ofthat portion of the fund’s assets which is investedin fixed income securities

• may use derivatives like options, futures andforward contracts to:- protect the fund against potential losses from

changes in interest rates. For example, theportfolio manager may be concerned about theimpact that rising interest rates may have onthe fund. By using index futures, the portfoliomanager can reduce impact of the securityprice fluctuations

- reduce the impact of currency fluctuations onthe fund’s holdings. For example, by buying anoption to sell a currency at a specified price,the portfolio manager can reduce the fund’spotential loss if the currency drops in value

- gain exposure to securities without buying thesecurities directly.

The fund will only use derivatives as permittedby Canadian securities regulators.

The fund has adopted additional restrictionsconsistent with its investment policies and withsecurities regulation. We may revise theserestrictions without unitholders’ approval.Additional information is disclosed in the annualinformation form.

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5The fund has obtained exemptive relief fromCanadian securities regulators to enable the fundto purchase mortgages from, or sell mortgages to,Bank of Montreal and/or MCAP FinancialCorporation, both associates or affiliates of theManager, in accordance with certain conditionsimposed by the regulators. Additional informationis disclosed in the annual information form.

The portfolio manager may frequently buy and sellinvestments for the fund. This can increase tradingcosts, which may lower the fund’s returns. It alsoincreases the chance that you may receive adistribution in the year. If you hold the fund in anon-registered account, distributions are generallytaxable.

What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• interest rate risk• credit risk• securities lending, repurchase and reverse

repurchase transaction risk• derivative risk• foreign investment risk• currency risk• large transaction risk• series risk.

Who should invest in this fund?Consider this fund if:• you want regular income• you are looking for a conservative fund for your

portfolio• you are comfortable with low investment risk

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

Distribution policyThe fund distributes income monthly and anycapital gains in December. Distributions areautomatically reinvested in additional units of thefund, unless you tell us in writing that you prefer toreceive cash distributions. Please see page 154 formore information.

Short-term tradingPlease refer to pages 145 and 152 for a discussion ofthe penalties that may apply to investors whoengage in short-term trading in securities of thisfund.

Fund expenses indirectly borne by investorsSee Fund expenses indirectly borne by investors onpage 4 for the assumptions we’re required to use inthis table. The assumptions do not reflect theactual performance of the fund.

Fees and expenses(per $1,000) payable over

OneYear

ThreeYears

FiveYears

TenYears

Series A $ 15.48 48.79 85.52 194.67

3 What are the risks of investing in the fund?When you’re deciding which funds to invest in, risk isone of the things you should think about. This sectiontells you the specific risks of investing in the fund.You’ll find a description of each risk under Generalinvestment risks.

4 Who should invest in this fund?This section tells you the kind of investor the fundmay be suitable for and how the fund could fit intoyour portfolio. When you’re choosing a fund to investin, you need to ask yourself what you’re expectingfrom your investments, for how long you’re planningto put your money away, and how much risk you’rewilling to accept. You should also think about how thefund will work with your other investments. Forexample, an aggressive growth fund, like BMO GlobalEnergy Class, may be too risky if it’s your onlyinvestment, but a small amount might be a good wayto boost the growth potential of your portfolio withoutadding too much overall risk.

5 Distribution policyThis section tells you how often you’ll receivepayments of income, capital gains and returns ofcapital (if any) from the fund or, in the case of theBMO Global Tax Advantage Funds, ordinarydividends, capital gains dividends and returns ofcapital (if any). Distributions from BMO SecurityFunds, BMO U.S. Dollar Money Market Fund, BMOLifeStage Plus Funds and all funds held in BMOregistered plans are always reinvested in additionalsecurities of the same series of the fund. Distributionsof all other funds are reinvested in additionalsecurities of the same series of the fund, unless youtell us in writing that you prefer cash. Given the natureof series T6 securities, we recommend that yourequest cash distributions. You’ll find moreinformation about distributions and dividends inIncome tax considerations for investors.

6 Fund expenses indirectly borne by investorsThis is a hypothetical example to help you comparethe indirect cost of investing in the funds with theindirect cost of investing in other mutual funds. Thesecosts are paid out of a fund’s assets. While you don’tpay them directly, they have the effect of lowering thefund’s returns. The information in the chart is for theseries of the fund that are charged management feesand that have been issued to investors and havecompleted a financial year. See Fees and expenses formore information about the cost of investing in thefunds.

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

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

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

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

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

Capital gain: Generally, the amount an investmenthas risen in value since you bought it. It’s called arealized capital gain when you sell the investment formore than you paid.

Capitalization: Market capitalization is the value of acompany, generally measured by multiplying the priceof its common equity shares by the number of sharesoutstanding.

Derivatives: Specialized investments like forwardcontracts, futures and options whose value is based onthe value of another investment called an underlyinginvestment. See page 134 for more information.

Fixed Income Component: The component of a BMOLifeStage Plus fund’s portfolio that is invested in fixedincome securities issued by Canadian federal orprovincial governments and corporations and cashequivalents.

Fixed income securities: Investments that pay a fixedrate of interest. They’re usually corporate andgovernment bonds.

Guaranteed Maturity Amount: If units of a LifeStagePlus fund are held to the Target End Date, the greaterof the following two values: (i) $10.00 (the net assetvalue per unit on the start date of the fund) or (ii) thehighest net asset value per unit of the fund during theperiod from the start date of the fund up to andincluding the Target End Date.

Hedging: A transaction intended to offset risk.

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

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

Mutual Fund Component: The component of a BMOLifeStage Plus fund’s portfolio that is invested insecurities of other mutual funds and cash equivalents.

Net income: The money earned after deducting allexpenses.

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Return of capital: A mutual fund trust that distributesmore than its income and realized capital gains earnedin any year is said to pay a return of capital (“ROC”).Alternatively, a mutual fund may choose to makedistributions that are ROC. A mutual fund corporationgenerally can choose to make distributions that areROC, provided that there is capital attributable to theparticular series of shares. A ROC is not included inthe income of the recipient securityholders, butinstead reduces the adjusted cost base (ACB) of theunits or shares on which it was paid. When thesecurities are eventually disposed of, the resultingcapital gains may be large. A ROC distribution shouldnot be confused with “yield” or “income”. You shouldnot draw any conclusion about the fund’s investmentperformance from the amount of this distribution.

Target End Date: The scheduled termination date fora BMO LifeStage Plus fund or the date that the fundcombines with one of our money market funds.

Yield: The annual income from an investmentexpressed as a percentage of the investment’s currentvalue. For example, a money market instrument thatpays $30 in interest with a current value of $1,000 hasa yield of 3%.

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BMO Security Funds

BMO T-Bill Fund

BMO Money Market Fund

BMO AIR MILES®† Money Market Fund

BMO Premium Money Market Fund

BMO Security Funds are designed for investors who want minimal risk along with interest income. Thesefunds hold safer types of investments, like governmenttreasury bills, money market instruments and highquality corporate and government debt securities. Please read the fund descriptions about each fund forkey information about the specific characteristics of each fund.

How much is right for you?

At BMO Mutual Funds, we recommend that you diversifyyour investments. That means building your portfoliowith a variety of funds from different categories, likeBMO Security Funds, BMO Income Funds, BMO GrowthFunds, BMO Aggressive Growth Funds, BMO U.S. DollarFunds, BMO Global Tax Advantage Funds, BMO LifeStagePlus Funds, BMO SelectClass Portfolios and BMOFundSelect™ Portfolios.

BMO Security Funds may be a good choice for the cashcomponent of your portfolio. They may also be right foryou if you’re looking for a low-risk investment or youneed ready access to your money. But before you canchoose the right mix of funds, you need to ask yourselfwhat you’re expecting from your investments, for howlong you’re planning to put your money away, and howmuch risk you’re willing to accept.

If you’re a safety-conscious investor, you might holdmore of your portfolio in BMO Security Funds.

If you’re looking for more income and some growth, youmight want to invest a smaller amount in BMO SecurityFunds—just enough to give your portfolio some stabilityand liquidity.

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BMOT-Bill Fund

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Investment objectivesThis fund’s objectives are:• to preserve the value of your investment• to provide a high level of liquidity and interest

income.

As part of its investment objectives, the fundinvests in Canadian federal and provincialgovernment treasury bills.

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

Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objectives:• invests in Canadian federal and provincial

government treasury bills and in other high-quality money market instruments that areguaranteed by the federal and provincialgovernments

• keeps the portfolio’s weighted average term tomaturity at 90 days or less

Type of fund Canadian money market fund

Date started Series A: August 3, 1993Series I: May 9, 2008Series F: October 20, 2008

Securitiesoffered



Yes

Managementfee


negotiated and paid byeach series I investor

Series F 0.75%

Administrationfee


Portfoliomanager


(Portfolio Manager sinceAugust 1993)

• maintains a unit price of $1.00 by creditingincome daily and distributing it monthly

• may use derivatives to protect against potentiallosses from changes in interest rates. Forexample, the portfolio manager may beconcerned about the impact that rising interestrates may have on the fund. The fund will onlyuse derivatives as permitted by Canadiansecurities regulators.

What are the risks of investing in the fund?These strategies may involve the following risks:• the yield of the fund varies with short-term

interest rates• the unit price of the fund may rise or fall,

although we try to keep it fixed at $1.00.

The investment strategies may also involve thefollowing risks, which we explain starting onpage 132:• interest rate risk• credit risk• securities lending, repurchase and reverse

repurchase transaction risk• derivative risk• large transaction risk• series risk.

Who should invest in this fund?Consider this fund if:• you want a more secure investment with very

low investment risk• you are looking for a short-term investment.

Distribution policyIncome is credited daily and distributed monthly.Any capital gains are distributed in December.Distributions are automatically reinvested inadditional units of the fund. Please see page 154 formore information.



OneYear

ThreeYears

FiveYears

TenYears

Series A $ 12.40 39.10 68.53 156.00

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The investment strategies may also involve thefollowing risks, which we explain starting onpage 132:• interest rate risk• credit risk• foreign investment risk• currency risk• securities lending, repurchase and reverse







OneYear

ThreeYears

FiveYears

TenYears

Series A $ 11.99 37.81 66.27 150.84

BMOMoney Market Fund

Fund details



income.

As part of its investment objectives, the fundinvests primarily in high-quality money marketinstruments issued by governments andcorporations in Canada, like treasury bills,bankers’ acceptances, and commercial paper.


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objectives:• invests only in securities rated R-1 or higher by

DBRS or the equivalent rating as defined by otherrecognized rating agencies


Date started Series A: May 2, 1988Series I: October 20, 2008

Securitiesoffered



Yes

Managementfee



Administrationfee

0.12%(for series I, separate fees andexpenses are negotiated and paid by each series I investor)

Portfoliomanager


(Portfolio Manager sinceMay 1989)

BMOAIR MILES®†

Money Market Fund

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income.






Date started Series A: November 20, 2000Series I: October 20, 2008

Securitiesoffered



Only eligible for RESPs

Managementfee



Administrationfee


Portfoliomanager


(Portfolio Manager sinceNovember 2000)













OneYear

ThreeYears

FiveYears

TenYears

Series A $ 12.51 39.42 69.10 157.29

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About AIR MILES®† reward milesInvesting in this fund allows you to participate inthe many benefits of the AIR MILES RewardProgram. You’ll earn one AIR MILES reward milefor every $1,000 you hold in units of the fund,based on each month’s average balance. To earnreward miles, you must provide an AIR MILESCollector number.

For the purposes of calculating your AIR MILESreward miles, the value of your holdings in thefund will be calculated at the end of each monthusing the average daily balances. The AIR MILESreward miles that you earn on your investment willbe calculated and credited directly to your AIRMILES Collector Account following the end of eachmonth. Fractional reward miles will accumulateand be carried forward if you keep a minimumbalance of $500 in BMO AIR MILES Money MarketFund each month.

BMOPremium Money MarketFund

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income.


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





Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager










Who should invest in this fund?Consider this fund if:• you have at least $150,000 to invest in the fund• you want a more secure investment with very





OneYear

ThreeYears

FiveYears

TenYears

Series A $ 4.31 13.57 23.79 54.15

BMO Income Funds

BMO Mortgage and Short-Term Income Fund

BMO Bond Fund

BMO Monthly Income Fund

BMO World Bond Fund

BMO Diversified Income Fund

BMO Global Monthly Income Fund

BMO Global High Yield Bond Fund

BMO U.S. High Yield Bond Fund

BMO Income Trust Fund

BMO Income Funds are designed for investors whosemain priority is earning income. These funds try toprovide steady income by buying investments such asbonds and other fixed income securities. They also havesome potential to increase in value. Please read thefund descriptions for each fund for key informationabout the specific characteristics of each fund.



BMO Income Funds are generally a good choice for thefixed income portion of your portfolio. But before youcan choose the right mix of funds, you need to askyourself what you’re expecting from your investments,for how long you’re planning to put your money away,and how much risk you’re willing to accept.

If you want some additional potential for growth alongwith income, and you’re willing to accept higher risk,you could add more BMO Growth Funds, BMO AggressiveGrowth Funds or other equity investments to yourportfolio.

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BMOMortgage and Short-Term Income Fund

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Fund details


Investment objectivesThis fund’s objective is to provide a level of incomeconsistent with investments in short-term fixed-income securities.

The fund invests primarily in short-term, high-quality, fixed-income securities issued by orguaranteed by Canadian federal, provincial ormunicipal governments or issued by corporations.It may also invest in:• mortgages insured or guaranteed by Canadian

federal or provincial governments,• conventional first mortgages on Canadian real

estate, either directly or indirectly throughpooled mortgage investments, such as mortgage-backed securities.


Type of fund Canadian short-term bond andmortgage fund

Date started Series A: July 16, 1974Series I: March 5, 2008

Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager



Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• examines economic indicators like growth,




• expects to invest a minimum of 30% of the fund’sassets directly or indirectly in mortgages


• will only invest in securities rated BBB or higherat the time of investment by Standard & Poor’sRating Service or the equivalent rating as definedby other recognized rating agencies. BBB-ratedsecurities may not exceed 10% of the value ofthat portion of the fund’s assets which is investedin fixed income securities


changes in interest rates. For example, theportfolio manager may be concerned about theimpact that rising interest rates may have onthe fund. By using index futures, the portfoliomanager can reduce the impact of securityprice fluctuations




The fund has adopted additional restrictionsconsistent with its investment policies and withsecurities regulation. We may revise theserestrictions without unitholders’ approval.Additional information is disclosed in the annualinformation form.

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The fund has obtained exemptive relief fromCanadian securities regulators to enable the fundto purchase mortgages from, or sell mortgages to,Bank of Montreal and/or MCAP FinancialCorporation, both associates or affiliates of theManager, in accordance with certain conditionsimposed by the regulators. Additional informationis disclosed in the annual information form.


What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• interest rate risk• credit risk• securities lending, repurchase and reverse

repurchase transaction risk• derivative risk• foreign investment risk• currency risk• large transaction risk• series risk.

Who should invest in this fund?Consider this fund if:• you want regular income• you are looking for a conservative fund for your

portfolio• you are comfortable with low investment risk






OneYear

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FiveYears

TenYears

Series A $ 15.48 48.79 85.52 194.67

BMONorth AmericanDividend Fund

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Fund details

• chooses a variety of investment terms based onthe interest rate outlook

• changes the average term to maturity of theinvestments in the portfolio based on the outlookfor interest rates



• invests primarily in securities rated BBB orhigher at the time of investment by Standard &Poor’s Rating Service or the equivalent rating asdefined by other recognized rating agencies.BBB-rated securities may not exceed 10% of thevalue of the fund’s assets

• may invest up to 10% of the fund’s assets in non-investment grade fixed income securities

• will not invest more than 50% of the fund’sassets in corporate fixed income securities







The fund may hold no more than 10% of themarket value of its net assets in securities of othermutual funds managed by us or other mutual fundmanagers including our affiliates.


BMOBond Fund

Fund details


Investment objectivesThis fund’s objectives are:• to provide a high level of interest income• to provide some opportunity for growth in the

value of your investment.

As part of its investment objectives, the fundinvests primarily in high quality fixed-incomesecurities that are issued by governments andcorporations in Canada and that mature in morethan one year.


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objectives:• examines economic indicators like growth,


Type of fund Canadian bond fund

Date started Series A: May 2, 1988Series I: March 5, 2008Series F: October 20, 2008

Securitiesoffered



Yes

Managementfee



Series F: 0.75%

Administrationfee


Portfoliomanager



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What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• interest rate risk• credit risk• foreign investment risk• currency risk• securities lending, repurchase and reverse

repurchase transaction risk• fund of funds risk• derivative risk• large transaction risk• series risk.

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

fund for your portfolio• you want the potential for higher income from

longer term bonds, which form part of the fund’sportfolio

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





OneYear

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FiveYears

TenYears

Series A $ 15.58 49.12 86.09 195.96

BMOMonthly Income Fund

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Fund details


Investment objectivesThis fund’s objectives are:• to provide a fixed monthly distribution• to preserve the value of your investment.

As part of its investment objectives, the fundinvests primarily in:• Canadian fixed-income securities with higher-

than-average yields, issued by the federalgovernment, provincial governments,government agencies and corporations

• preferred and common shares• real estate investment trusts (REITs)• royalty trusts and other high-yielding

investments.

To enhance the yield, the fund may also invest inCanadian or foreign:• lower-rated or unrated securities• derivative instruments like options, futures and

forward contracts.

Type of fund Canadian balanced fund

Date started Series A: March 22, 1999Series I: March 5, 2008Series F: October 20, 2008

Securitiesoffered



Yes

Managementfee



Series F: 0.85%

Administrationfee


Portfoliomanager


(Portfolio Manager sinceMarch 1999)


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objectives:• invests in both equities and fixed-income

securities• invests primarily in securities rated BBB or

higher at the time of investment by Standard andPoor’s Rating Service or the equivalent rating asdefined by other recognized rating agencies.BBB-rated securities may not exceed 10% of thevalue of that portion of the fund’s assets which isinvested in bonds







When choosing fixed-income securities, theportfolio manager:• examines economic indicators like growth,


• selects the term of the securities based on theoutlook for interest rates


• invests in government and corporate securities todiversify the fund’s holdings.

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When choosing equities, the portfolio manager:• examines the financial statistics of each company

it’s considering to determine if the equitysecurities are attractively priced

• reviews company operations and research anddevelopment to assess the company’s potentialfor growth

• continuously monitors the companies in whichthe fund invests for changes that may affect theirprofitability.

The fund may hold no more than 10% of themarket value of its net assets in securities of othermutual funds managed by us or other mutual fundmanagers.

The fund has obtained exemptive relief fromCanadian securities regulators that permits thefund to invest in certain commodity pools that usefinancial instruments that correlate to a multiple(or inverse multiple) of the daily performance of anunderlying index, which is a permitted index asdefined in NI 81-102. The fund may invest in thesecommodity pools from time to time as the portfoliomanager considers appropriate.

What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• interest rate risk• equity risk• credit risk• derivative risk• foreign investment risk• securities lending, repurchase and reverse

repurchase transaction risk• commodity pool ETF risk• fund of fund risk• currency risk• large transaction risk• series risk.

Who should invest in this fund?Consider this fund if:• you want regular monthly cash flow with the

potential for capital gains• you are comfortable with low to moderate

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

• you plan to hold this investment for the mediumto long term.

This fund is more suitable for non-registeredaccounts because it’s designed to pay out regularmonthly income. Distributions paid on funds youhold in a BMO registered plan must be reinvestedin the fund.

Distribution policyThe fund distributes a fixed amount per unit everymonth. The amount of the monthly distribution isset at the beginning of each calendar year based onthe market outlook. The amount of the monthlydistribution may be adjusted without noticethroughout the year as market conditions change.If the fund doesn’t earn enough income and capitalgains to meet the distribution, it will return capitalto make up the difference. A return of capital willreduce the adjusted cost base of your units. Anyadditional distributions required to pay out netincome and net realized capital gains in excess ofthe aggregate fixed amount paid during the yearmay be made at our discretion at various timesthroughout the year. Please see page 154 for moreinformation.




OneYear

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FiveYears

TenYears

Series A $ 15.27 48.15 84.39 192.10

BMOWorld Bond Fund

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Fund details


Investment objectivesThis fund’s objectives are:• to provide a high level of interest income• to provide some opportunity for growth in the

value of your investment.

As part of its investment objectives, the fundinvests primarily in bonds and debentures thatmature in more than one year and are issued by:• governments and corporations around the world• supranational agencies like the World Bank.

The fundamental investment objectives may onlybe changed with the approval of a majority of thevotes cast at a meeting of unitholders called for thatpurpose.

Type of fund Foreign bond fund

Date started Series A: August 3, 1993Series I: May 9, 2008Series F: October 20, 2008

Securitiesoffered



Yes

Managementfee



Series F: 1.00%

Administrationfee


Portfoliomanager

Insight Investment Management(Global) Limited, London,United Kingdom


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objectives:• assesses the outlook for various countries and

currencies using variables like expected growth,inflation and real return

• diversifies the fund’s assets among governmentand corporate securities in many differentcountries and industries to help reduce risk

• analyzes the interest rates offered by variousissuers to determine the best potentialinvestments for the portfolio

• changes the average term to maturity of theinvestments in the portfolio based on the outlookfor interest rates

• invests primarily in securities rated BBB orhigher at the time of investment by Standard andPoor’s Rating Services or the equivalent rating, asdefined by other recognized rating agencies andup to 10% of the fund’s assets may be invested innon-investment grade bonds






The fund has obtained approval from Canadiansecurities regulators to invest up to 20% of its netassets taken at market value at the time of purchasein evidences of indebtedness that are issued orguaranteed fully as to principal and interest bypermitted supranational agencies or governments(other than the government of Canada, a provinceof Canada, or the United States of America, wheresuch approval was not required) and are rated AA

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or better by Standard & Poor’s or the equivalentrating as defined by other recognized ratingagencies, and up to 35% of its net assets taken atmarket value at the time of purchase in evidencesof indebtedness that are issued or guaranteed fullyas to principal and interest by permittedsupranational agencies or governments (other thanthe government of Canada, a province of Canada,or the United States of America, where suchapproval was not required) and are rated AAA orbetter by Standard & Poor’s or the equivalent ratingas defined by other recognized rating agencies.



What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• interest rate risk• foreign investment risk• currency risk• credit risk• securities lending, repurchase and reverse


Who should invest in this fund?Consider this fund if:• you are looking to diversify your portfolio

geographically with a core world bond fund• you want high potential for interest income and

some potential for capital gains• you are comfortable with low to moderate

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

Distribution policyThe fund distributes any income and capital gainsin December. Distributions are automaticallyreinvested in additional units of the fund, unlessyou tell us in writing that you prefer to receive cashdistributions. Please see page 154 for moreinformation.




OneYear

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FiveYears

TenYears

Series A $ 22.35 70.44 123.47 281.05

BMODiversified Income Fund

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Fund details


Investment objectivesThis fund’s objective is to provide a fixed monthlydistribution by investing primarily in Canadian andforeign fixed-income and equity securities, incometrust securities, as well as mutual fund securities.

The fundamental investment objective may only bechanged with the approval of a majority of thevotes cast at a meeting of unitholders called for thatpurpose.

Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objectives:• invests in Canadian equities, including income

trusts, and fixed-income securities issued by thefederal government, provincial governments,government agencies and corporations

• may invest up to 100% of the fund’s assets insecurities of other mutual funds, which mayinclude mutual funds that are managed by us orour affiliates

Type of fund Global balanced fund

Date started Series A: June 1, 2006Series I: October 20, 2008

Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager


(Portfolio Manager sinceJune 2006)

• the fund’s underlying mutual funds selected bythe portfolio manager will invest primarily inglobal, including Canadian, securities, includinghigh yield fixed income securities from issuersaround the world with a credit rating below BBB,as well as Canadian income trust securities, suchas royalty trust units (RTUs), real estateinvestment trusts (REITs), and business trusts(BTs), representing various sectors of theeconomy

• may use derivatives like swaps, options, futuresand forward contracts to:- protect the fund against potential losses from







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What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• interest rate risk• equity risk• credit risk• commodity risk• derivative risk• liquidity risk• foreign investment risk• securities lending, repurchase and reverse

repurchase transaction risk• currency risk• commodity pool ETF risk• fund of funds risk• large transaction risk• series risk.


potential for capital gains• you are comfortable with low to moderate








OneYear

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TenYears

Series A $ 21.63 68.18 119.51 272.03

BMOGlobal Monthly Income Fund

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Investment objectivesThis fund’s objective is to provide a fixed monthlydistribution by investing primarily in foreignequities and foreign fixed income securities.


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• may invest up to 100% of the purchase cost of the

fund’s assets in securities of other mutual funds,which may include mutual funds that aremanaged by us or our affiliates. The underlyingmutual funds selected by the portfolio managerwill invest primarily in either foreign equities orforeign fixed income securities or both, and willbe selected on the basis that they help theportfolio to achieve the same strategies that ituses when investing directly in those securities

• active asset allocation across up to seven assetclasses of global stocks and bonds

Type of fund Global balanced fund

Date started Series A: October 12, 2004Series I: October 20, 2008

Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager

UBS Global Asset Management(Canada) Co., Toronto, Ontario

(Portfolio Manager sinceOctober 2004)

• active security selection based on comparing theintrinsic fair value of a security to its marketprice to determine whether a security is over-valued or under-valued, used across all marketsworldwide

• may actively manage currency exposure• may use derivatives such as options, futures and

forward contracts to:- reduce the impact of currency fluctuations on

the fund’s holdings. For example, by buying anoption to sell a currency at a specified price,the portfolio manager can reduce the fund’spotential loss if the currency drops in value




What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• interest rate risk• equity risk• credit risk• foreign investment risk• currency risk• securities lending, repurchase and reverse

repurchase transaction risk• derivative risk• liquidity risk• fund of funds risk• large transaction risk• series risk.

Who should invest in this fund?Consider this fund if:• you want regular monthly cash flow from your

global investments with the potential for capitalgains

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


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Distribution policyThe fund distributes a fixed amount per unit everymonth. The amount of the monthly distribution isset at the beginning of each calendar year based onthe market outlook. The amount of the monthlydistribution may be adjusted without noticethroughout the year as market conditions change.If the fund doesn’t earn enough income and capitalgains to meet the distribution, it will return capitalto make up the difference. A return of capital willreduce the adjusted cost base of your units. Anyadditional distributions required to pay out netincome and net realized capital gains in excess ofthe aggregate fixed amount paid during the yearmay be made at various times determined by usthroughout the year. Please see page 154 for moreinformation.




OneYear

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FiveYears

TenYears

Series A $ 24.19 76.26 133.67 304.26

BMOGlobal High YieldBond Fund

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Fund details

What does the fund invest in?Itment objectives

Investment objectivesThis fund’s objective is to provide a fixed monthlydistribution and capital appreciation potential byinvesting primarily in debt instruments issued bygovernments and corporations from around the world.

The fundamental investment objectives may only bechanged with the approval of a majority of the votescast at a meeting of unitholders called for thatpurpose.

Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objectives:• invests primarily in a diversified pool of fixed

income securities, such as bonds and debenturesissued by governments and corporations orobtains exposure to such securities

• seeks the best potential investments for theportfolio by analyzing the credit ratings ofvarious issuers and using quantitative and otherresearch

• invests primarily in high yield securities with acredit rating below BBB and in emerging marketdebt

Type of fund Global high yield bond fund

Date started Series A: November 27, 2000Series I: May 9, 2008

Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager

PIMCO Canada Corp., Toronto, Ontario


• may hold a portion of its assets in cash or short-term money market instruments and/or highquality fixed income securities while seekinginvestment opportunities or for defensivepurposes to reflect economic and marketconditions

• may use derivatives like swaps, options, futuresand forward contracts to:- protect the fund against potential losses from

changes in interest rates. For example, theportfolio manager may be concerned about theimpact that rising interest rates may have onthe fund. By using financial futures, theportfolio manager can reduce the impact ofsecurity price fluctuations


- gain exposure to securities and marketswithout investing in securities directly.


The fund has obtained approval from Canadiansecurities regulators to invest up to 20% of its netassets taken at market value at the time of purchase inevidences of indebtedness that are issued orguaranteed fully as to principal and interest bypermitted supranational agencies or governments(other than the government of Canada, a province ofCanada, or the United States of America, where suchapproval was not required) and are rated AA or betterby Standard & Poor’s or the equivalent rating asdefined by other recognized rating agencies, and up to35% of its net assets taken at market value at the timeof purchase in evidences of indebtedness that areissued or guaranteed fully as to principal and interestby permitted supranational agencies or governments(other than the government of Canada, a province ofCanada, or the United States of America, where suchapproval was not required) and are rated AAA orbetter by Standard & Poor’s or the equivalent rating asdefined by other recognized rating agencies.

The fund has obtained approval from Canadiansecurities regulators:

• to enter into interest rate swaps and creditdefault swaps with a remaining term to maturityof greater than 3 years

• to the extent required, to cover specifiedderivative positions with:(a) any bonds, debentures, notes or other

evidences of indebtedness that are liquid,

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have a remaining term to maturity of 365 daysor less and have an “approved credit rating” asdefined in National Instrument 81-102; or

(b) certain floating rate evidences of indebtednesswhich are a “conventional floating rate debtinstrument” as defined in National Instrument81-102 with principal amounts that have amarket value of approximately par at the timeof each change in the rate to be paid (“FRNs”)if certain conditions as to the issuing body,reset periods and credit rating are met

• to use as cover, in addition to the usual coverwhen the fund has a long position in a debt-likesecurity that has a component that is a longposition in a forward contract, or in astandardized future or forward contract, or whenthe fund has an interest rate swap position andduring the periods when the fund is entitled toreceive payments under the swap, a right orobligation to sell an equivalent quantity of theunderlying interest of the standardized future,forward or swap.

For more information on these exemptions, see thefund’s annual information form.

The portfolio manager may frequently buy and sellinvestments for the fund. This can increase tradingcosts, which may lower the fund’s returns. It alsoincreases the chance that you may receive adistribution in the year. If you hold the fund in a non-registered account, distributions are generally taxable.

The fund may hold no more than 10% of the marketvalue of its net assets in securities of other mutualfunds managed by us or other mutual fund managers.

What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• interest rate risk• foreign investment risk• currency risk• credit risk• derivative risk• securities lending, repurchase and reverse

repurchase transaction risk• liquidity risk• fund of funds risk• large transaction risk• series risk.

As of April 20, 2009, BMO Diversified Income Fundheld 40.12% of the securities of the fund.


potential for capital gains primarily throughinvestments in non-investment grade bonds fromaround the world



This fund is more suitable for non-registered accountsbecause it’s designed to pay out regular monthlyincome. Distributions paid on funds you hold in aBMO registered plan must be reinvested in the fund.

Distribution policyThe fund distributes a fixed amount per unit everymonth. The amount of the monthly distribution is setat the beginning of each calendar year based on themarket outlook. The amount of the monthlydistribution may be adjusted without noticethroughout the year as market conditions change. Ifthe fund doesn’t earn enough income and capitalgains to meet the distribution, it will return capital tomake up the difference. A return of capital will reducethe adjusted cost base of your units. Any additionaldistributions required to pay out net income and netrealized capital gains in excess of the aggregate fixedamount paid during the year may be made at ourdiscretion at various times throughout the year. Pleasesee page 154 for more information.

Short-term tradingPlease refer to pages 145 and 152 for a discussion ofthe penalties that may apply to investors who engagein short-term trading in securities of this fund.

Fund expenses indirectly borne by investorsSee Fund expenses indirectly borne by investors onpage 4 for the assumptions we’re required to use inthis table. The assumptions do not reflect the actualperformance of the fund.


OneYear

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TenYears

Series A $ 22.04 69.47 121.77 277.19

BMOU.S. High Yield Bond Fund

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Fund details


Investment objectivesThis fund’s objective is to provide a high level oftotal return through a combination of income andcapital appreciation by investing primarily in fixedincome securities issued by United Statescorporations.


Investment strategiesThese are the strategies that the portfolio manageruses to try to achieve the fund’s objectives:• invests primarily in a diversified pool of fixed

income securities, such as bonds and debenturesissued by corporations or obtains exposure tosuch securities

• invests primarily in high yield securities with acredit rating below BBB

• invests in fixed income securities issued by theU.S./Canadian government or gains exposure tosuch securities

Type of fund U.S. high yield bond fund

Date started Series A: May 9, 2008Series I: May 9, 2008Series F: February 4, 2009

Securitiesoffered



Yes(U.S. currency feature is available forself-directed registered plans only)

Managementfee



Series F: 1.00%

Administrationfee


Portfoliomanager

HIM Monegy, Inc., Toronto, Ontario


• seeks the best potential investments for theportfolio by analyzing the credit ratings ofvarious issuers and using bottom up quantitativeand fundamental analysis

• may hold a portion of its assets in cash or short-term money market instruments and/or highquality fixed income securities while seekinginvestment opportunities or to reflect economicand market conditions

• may use derivatives such as options, futures andforward contracts to:- reduce the impact of currency fluctuations on


- gain exposure to securities without buying thesecurities directly

- adjust credit risk.


The fund may hold no more than 10% of themarket value of its net assets in securities of othermutual funds managed by us or by other mutualfund managers including our affiliates.

What are the risks of investing in the fund?The investment strategies may involve thefollowing risks, which we explain starting onpage 132:• interest rate risk• foreign investment risk• currency risk• credit risk• derivative risk• securities lending, repurchase and reverse

repurchase transaction risk• fund of funds risk• liquidity risk• large transaction risk• series risk.

As of April 20, 2009, BMO Bond Fund held 98.59%of the securities of the fund.

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Who should invest in this fund?Consider this fund if:• you are looking for income and the potential for

capital gains primarily through investments innon-investment grade bonds of U.S. issuers



Distribution policyThe fund distributes any income quarterly andcapital gains in December. Distributions areautomatically reinvested in additional units of thefund unless you tell us in writing that you prefer toreceive cash distributions. Please see page 154 formore information.




OneYear

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TenYears

Series A $ 20.71 65.27 114.41 260.43

BMOIncome Trust Fund

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Fund details


Investment objectivesThis fund’s objective is to provide a fixed monthlydistribution by investing primarily in Canadianincome trust securities.


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objectives:• invests primarily in Canadian income trust

securities, such as royalty trust units (RTUs), realestate investment trusts (REITs), and businesstrusts (BTs) representing various sectors of theCanadian economy

• RTUs are closed-end investment trusts traded onstock exchanges that derive their value from astream of income relating to the naturalresources industry, while REITs are closed-endproperty investment trusts. BTs are income trustswhere the principal business of the underlyingentity is in the manufacturing, service or generalindustry sectors

Type of fund Canadian income trust fund


Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager

Guardian Capital LP, Toronto, Ontario

(Portfolio Manager sinceJune 2006)

• attempt to add value by purchasing income trustsecurities where their market valuations do notreflect their underlying values or where there issome favourable change in circumstancesaffecting the industry underlying the incometrust








What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• interest rate risk• equity risk• derivative risk• securities lending, repurchase and reverse

repurchase transaction risk• foreign investment risk• currency risk• large transaction risk• series risk.

Recent changes to the Income Tax Act (Canada)(the “Tax Act”) will impose a tax on income trustsand treat distributions of those earnings as ataxable dividend. These changes apply beginningin 2007 to an income trust the units of which werefirst listed for public trading after October 31, 2006.Otherwise they will apply beginning with the 2011taxation year of an income trust and in certainsituations, earlier. These proposed changes willreduce the tax effectiveness of holding units of

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income trusts over time, and may negativelyimpact the value of income trusts units held by afund.

As of April 20, 2009, BMO Diversified Income Fundheld 45.73% of the securities of the fund.


potential for capital gains• you are comfortable with moderate investment

risk (i.e. you are willing to accept fluctuations inthe market value of your investment)







OneYear

ThreeYears

FiveYears

TenYears

Series A $ 22.14 69.80 122.34 278.47

BMO Growth Funds

BMO Asset Allocation Fund

BMO Dividend Fund

BMO U.S. Equity Fund

BMO Equity Fund

BMO North American Dividend Fund

BMO International Index Fund

BMO U.S. Equity Index Fund

BMO International Equity Fund

BMO European Fund

BMO U.S. Growth Fund

BMO Equity Index Fund

BMO Japanese Fund

If you want your money to grow over a long period,consider BMO Growth Funds. Their objective is to growyour investment by seeking to buy securities of large,well-established companies or well-managed smallercompanies. BMO Growth Funds often have higherreturns than BMO Income Funds or BMO Security Funds—but they also have higher risk. Please read the funddescriptions for each fund for key information about thespecific characteristics of each fund.

Keep in mind that not all BMO Growth Funds have thesame growth potential or level of risk. For example,BMO Asset Allocation Fund, which invests in equity andfixed-income securities, is lower on the risk scale.BMO Equity Fund, which invests in a broad range oflarge, well-established companies, has moderate risk.Funds that concentrate their investments in a geographicregion, like Japan, have higher risk.



BMO Growth Funds are generally a good choice for thestock or equity portion of your portfolio. But before youcan choose the right mix of funds, you need to askyourself what you’re expecting from your investments,for how long you’re planning to put your money away,and how much risk you’re willing to accept.

If you want some additional potential for growth butyou’re not willing to take on a lot of risk, you could holdsome BMO Growth Funds in a more diversified portfolio.

If you’re looking for growth and you’re willing to accepthigher risk, you might want to invest a large part ofyour portfolio in BMO Growth Funds.

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BMOAsset Allocation Fund

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Fund details


Investment objectivesThis fund’s objective is to provide a balancebetween income and growth in the value of yourinvestment over the long term.

As part of its investment objective, the fund investsprimarily in Canadian equities and fixed incomesecurities. The portfolio manager may change themix of assets according to its outlook for each asset class.


Type of fund Canadian asset allocation fund

Date started Series A: May 2, 1988Series I: March 5, 2008

Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager

Jones Heward Investment Counsel Inc., Toronto, Ontario withadvice on foreign securities fromHarris Investment Management, Inc.,Martin Currie Inc. and Sanford C.Bernstein & Co., LLC


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• invests in equities, including income trusts, and

in fixed income securities• invests between 30%-70% of the fund’s assets in

equities, between 30%-70% of the fund’s assetsin bonds and no more than 30% of the fund’sassets in money market securities


• may invest up to 10% of the fund’s assets inpermitted mortgages






When choosing fixed income securities, theportfolio manager:• examines economic indicators like growth,


• selects a variety of investment terms based on theinterest rate outlook

• analyzes credit ratings of various issuers todetermine the best potential investments for the portfolio

• invests in government and corporate securities todiversify the fund’s holdings.

When choosing equities, the portfolio manager:• examines the financial statistics of each company



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• continuously monitors the companies in whichthe fund invests for changes that may affect theirprofitability.




repurchase transaction risk• commodity pool ETF risk• derivative risk• large transaction risk• series risk.

Who should invest in this fund?Consider this fund if:• you want a mix of equities and fixed-income

securities in a single fund• you are comfortable with low to moderate






OneYear

ThreeYears

FiveYears

TenYears

Series A $ 20.60 64.95 113.84 259.14


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Fund details

Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• invests in equities, including up to 10% of the

fund’s assets in income trusts, and in fixedincome securities


• examines the financial statistics of each companyit’s considering to determine if the equitysecurities are attractively priced

• reviews company operations and research anddevelopment to assess each company’s potentialfor growth

• continuously monitors the companies in whichthe fund invests for changes that may affect theirprofitability







BMODividend Fund

Fund details


Investment objectivesThis fund’s objective is to provide a high after-taxreturn, which includes dividend income andcapital gains from growth in the value of yourinvestment.

As part of its investment objective, the fund investsprimarily in dividend-yielding common andpreferred shares of established Canadiancompanies.


Type of fund Canadian dividend fund

Date started Series A: October 3, 1994Series I: March 5, 2008Series F: October 20, 2008

Securitiesoffered



Yes

Managementfee



Series F: 0.90%

Administrationfee


Portfoliomanager

Jones Heward InvestmentCounsel Inc., Toronto, Ontario


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repurchase transaction risk• commodity pool ETF risk• derivative risk• large transaction risk• series risk.

Who should invest in this fund?Consider this fund if:• you are seeking to maximize your after-tax

income in your non-registered account• you want a dividend fund that focuses on

established Canadian companies• you are comfortable with low to moderate


Distribution policyThe fund distributes any income quarterly andcapital gains in December. Distributions areautomatically reinvested in additional units of thefund, unless you tell us in writing that you prefer toreceive cash distributions. Please see page 154 formore information.




OneYear

ThreeYears

FiveYears

TenYears

Series A $ 17.53 55.26 96.85 220.46

BMOU.S. Equity Fund

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Investment objectivesThis fund’s objective is to increase the value ofyour investment over the long term by investing inequities of well-established U.S. companies thatmay be undervalued by the marketplace.


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• examines the financial statistics of each potential

investment, looking for:- an attractive price- consistent earnings- evidence that the company’s management

believes in the future of the company. Anexample of this would be when earnings havebeen reinvested in the company

Type of fund U.S. equity fund

Date started Series A: January 7, 1997Series I: March 5, 2008Series F: October 20, 2008

Securitiesoffered



Yes(U.S. currency feature is available forself-directed registered plans only)

Managementfee



Series F: 1.00%

Administrationfee


Portfoliomanager

Harris Investment Management,Inc., Chicago, Illinois


• uses the above information to rank potentialinvestments. The highest-ranked securities areincluded in the portfolio

• diversifies the fund’s assets by industry andcompany to help reduce risk

• may use derivatives like options, futures andforward contracts to:- reduce the impact of currency fluctuations on






What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• equity risk• currency risk• securities lending, repurchase and reverse


Who should invest in this fund?Consider this fund if:• you are looking for a core U.S. equity fund for

your portfolio• you are comfortable with moderate investment

risk (i.e. you are willing to accept fluctuations inthe market value of your investment).

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OneYear

ThreeYears

FiveYears

TenYears

Series A $ 24.50 77.23 135.36 308.13

BMOEquity Fund

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Fund details


Investment objectivesThis fund’s objective is to increase the value ofyour investment over the long term by investing inequities of well-established Canadian companies.


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• invests in equities, including income trusts• examines the financial statistics of each entity it’s

considering to determine if the equity securitiesare attractively priced

• reviews operations and research anddevelopment to assess each company’s potentialfor growth

Type of fund Canadian equity fund

Date started Series A: August 3, 1993Series I: March 5, 2008Series F: October 20, 2008

Securitiesoffered



Yes

Managementfee



Series F: 1.00%

Administrationfee


Portfoliomanager



• continuously monitors the entities in which thefund invests for changes that may affect theirprofitability









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What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• equity risk• foreign investment risk• currency risk• liquidity risk• securities lending, repurchase and reverse

repurchase transaction risk• commodity pool ETF risk• derivative risk• interest rate risk• large transaction risk• series risk.

Who should invest in this fund?Consider this fund if:• you are looking for a core Canadian equity fund

for your portfolio• you are comfortable with moderate investment






OneYear

ThreeYears

FiveYears

TenYears

Series A $ 23.37 73.67 129.13 293.95

BMONorth American Dividend Fund

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Fund details


Investment objectivesThis fund’s objective is to achieve a high level oftotal return, including dividend income and capitalgains, by investing primarily in dividend-yieldingcommon and preferred shares of North Americancompanies.


Type of fund North American equity fund


Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanagers

Jones Heward Investment Counsel Inc., Toronto, Ontario(Canadian portfolio)Harris Investment Management, Inc., Chicago, Illinois (U.S. portfolio)

(Portfolio Managers sinceOctober 1994)

Investment strategiesThese are the strategies the portfolio managers useto try to achieve the fund’s objective:• invest in North American equities, including

income trusts• examine the financial statistics of each company

they are considering to determine if the equitysecurities are attractively priced and thecompany demonstrates consistent earnings

• monitor the companies in which the fund investsfor changes that may affect their profitability






The portfolio managers may frequently buy andsell investments for the fund. This can increasetrading costs, which may lower the fund’s returns.It also increases the chance that you may receive adistribution in the year. If you hold the fund in anon-registered account, distributions are generallytaxable.


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repurchase transaction risk• commodity pool ETF risk• derivative risk• large transaction risk• interest rate risk• credit risk• series risk.

Who should invest in this fund?Consider this fund if:• you are looking for an equity fund that provides

exposure to dividend-yielding North Americancompanies

• you are comfortable with moderate investmentrisk (i.e. you are willing to accept fluctuations inthe market value of your investment).

Distribution policyThe fund distributes any income quarterly andcapital gains in December. Distributions areautomatically reinvested in additional units of thefund, unless you tell us in writing that you prefer toreceive cash distributions. Please see page 154 formore information.




OneYear

ThreeYears

FiveYears

TenYears

Series A $ 24.91 78.52 137.63 313.28

BMOInternational Index Fund

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Fund details


Investment objectivesThis fund’s objective is to increase the value ofyour investment over the long term by tracking theperformance of the Morgan Stanley CapitalInternational – Europe, Australasia and Far East(MSCI-EAFE) Index.

As part of its investment objective, this fund mayinvest directly in securities of companies includedin the MSCI-EAFE Index in substantially the sameproportion as the index. The fund may also usederivatives, as permitted by securities regulation,to gain exposure to some or all of those securitieswithout buying them directly.


Type of fund International equity fund

Date started Series A: March 22, 1999Series I: March 5, 2008

Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager

State Street Global Advisors, Ltd.,Montréal, Québec


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• may use derivatives like options, futures and

forward contracts to gain market exposure. Thefund will only use derivatives as permitted byCanadian securities regulators

• may keep most of the fund’s assets in Canadianmoney market instruments. This allows the fundto cover its commitments in the options, futuresand forward contracts

• may invest directly in securities of companiesthat are included in the MSCI-EAFE Index insubstantially the same proportion as the index

• may use futures and forward contracts to manageexposure to foreign currencies in order to seek toprotect investors from exchange rate fluctuationsbetween Canadian and foreign currencies.

Securities regulators allow index mutual funds toexceed the normal investment concentration limitsif required to allow such funds to track the relevantindex. In accordance with the regulatoryrequirements, the fund may track the index in this manner.

What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• interest rate risk• equity risk• credit risk• foreign investment risk• currency risk• derivative risk• securities lending, repurchase and reverse

repurchase transaction risk• index fund risk• large transaction risk• series risk.

Who should invest in this fund?Consider this fund if:• you want greater exposure to the growth

potential of international equities• you want an international fund that attempts to

track the performance of the MSCI-EAFE Index• you are comfortable with moderate investment


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OneYear

ThreeYears

FiveYears

TenYears

Series A $ 10.97 34.58 60.60 137.95

BMOU.S. Equity Index Fund

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Fund details


Investment objectivesThis fund’s objective is to increase the value ofyour investment over the long term by tracking theperformance of the Standard & Poor’s 500 TotalReturn Index (S&P 500 Index).

As part of its investment objective, this fund mayinvest directly in securities of companies that areincluded in the S&P 500 Index in substantially thesame proportion as the index. The fund may alsouse derivatives, as permitted by securitiesregulation, to gain exposure to some or all of thosesecurities without buying them directly.



Date started Series A: January 7, 1997Series I: October 20, 2008

Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager



Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• may use derivatives like options, futures and

forward contracts to gain market exposure. Thefund will only use derivatives as permitted byCanadian securities regulators

• may keep most of the fund’s assets in Canadianmoney market instruments, includingcommercial paper. This allows the fund to coverits commitments in the options, futures andforward contracts

• may invest directly in securities of companiesthat are included in the S&P 500 Index insubstantially the same proportion as the index.

Securities regulators allow index mutual funds toexceed the normal investment concentration limitsif required to allow such funds to track the relevantindex. In accordance with the regulatoryrequirements, the fund may track the index in this manner.

What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• interest rate risk• credit risk• equity risk• derivative risk• currency risk• securities lending, repurchase and reverse

repurchase transaction risk• index fund risk• large transaction risk• series risk.


potential of U.S. stock markets• you want a U.S. equity fund that attempts to track

the performance of the S&P 500 Index• you are comfortable with moderate investment


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OneYear

ThreeYears

FiveYears

TenYears

Series A $ 11.17 35.22 61.74 140.53

BMOInternational Equity Fund

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Fund details


Investment objectivesThis fund’s objective is to increase the value ofyour investment over the long term by investing inestablished companies around the world outsideCanada and the United States.

As part of its investment objective, this fund investsprimarily in equities of established companies thattrade on recognized exchanges in countries aroundthe world. These include Australia, Finland, France,Germany, Hong Kong, Italy, Japan, the Netherlands,New Zealand, Singapore, Spain, Sweden,Switzerland, and the United Kingdom.

It may also invest in bonds issued by governments orsupranational organizations like the World Bank.



Date started Series A: August 4, 1992Series I: March 5, 2008Series F: October 20, 2008

Securitiesoffered



Yes

Managementfee



Series F: 1.00%

Administrationfee


Portfoliomanager

Capital Guardian TrustCompany, Los Angeles, California


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• the fund’s portfolio is segmented, with each

individual manager responsible for a portion,managing it as if it were a stand alone portfolio.This allows for strong individual ideas to beacted upon while ensuring a diversity of ideasand continuity of management. The researchanalysts as a group also manage a portion of thefund’s portfolio

• based on the research carried out by the portfoliomanager’s equity analysts, individual managerslook across countries and industry sectors inselecting securities for the fund. With a long termperspective, individual managers look for qualitycompanies at attractive prices that they believewill out-perform their peers and the benchmarkover time

• in keeping with the portfolio manager’s bottom-up philosophy, the weighting for anygiven country or sector will reflect the individualmanagers’ and analysts’ assessments andoutlooks for individual companies within thecountry or sector

• the multiple individual portfolio manager systemprovides diversification of investment styles andideas. The lead manager and the investmentcommittee ensure that the fund is continuouslyscrutinized with regard to fund guidelines andobjectives and are responsible for monitoring therisk of the total fund

• although the fund does not intend to seek shortterm profits, securities in the fund will be soldwhenever the individual managers or analystsbelieve it is appropriate to do so without regardto the length of time a particular security mayhave been held

• the portfolio manager may use derivatives likeoptions, futures and forwards to:- reduce the impact of currency fluctuations on

the fund’s holdings. For example, by buying anoption to sell a currency at a specified price theportfolio manager can reduce the fund’spotential loss if the currency drops in value

- protect the fund against potential losses fromchanges in interest rates. For example, theportfolio manager may be concerned about theimpact that rising interest rates may have onthe fund. By using index futures, the portfoliomanager can reduce the impact of securityprice fluctuations

- manage foreign currency exposure- provide liquidity

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- provide exposure not otherwise available- manage risk- implement investment strategies in a more

efficient manner.


The fund may hold no more than 10% of themarket value of its net assets in securities of othermutual funds managed by us or other mutual fundmanagers.

What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• foreign investment risk• equity risk• credit risk• interest rate risk• currency risk• securities lending, repurchase and reverse


Who should invest in this fund?Consider this fund if:• you want to diversify your portfolio

internationally, outside Canada and the U.S.• you are comfortable with moderate investment






OneYear

ThreeYears

FiveYears

TenYears

Series A $ 25.11 79.17 138.76 315.86

BMOEuropean Fund

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Fund details


Investment objectivesThis fund’s objective is to increase the value ofyour investment over the long term by investing incompanies in Western Europe and the UnitedKingdom.

As part of the investment objective, this fundinvests primarily in companies that are listed onrecognized exchanges and that will likely benefitfrom merger activity and reduced trade barriers asEuropean markets and economies restructure. Itmay also invest in fixed income securities issuedby governments in Western Europe and the UnitedKingdom.


Type of fund European equity fund

Date started Series A: October 3, 1994Series F: October 20, 2008Series I: October 20, 2008

Securitiesoffered



Yes

Managementfee

Series A: 2.00%Series F: 1.00%Series I: N/A. A series I fee is


Administrationfee


Portfoliomanager

Sanford C. Bernstein & Co., LLC,New York, New York

(Portfolio Manager sinceFebruary 1998)

Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• examines the financial information of individual

companies to identify sound potentialinvestments

• creates financial forecasts on each potentialcompany and its industry before considering it asan investment

• ranks securities by their expected return andconsiders the impact of currency movements onthose returns. The highest-ranking securities areincluded in the portfolio






What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• equity risk• foreign investment risk• currency risk• interest rate risk• credit risk• derivative risk• securities lending, repurchase and reverse

repurchase transaction risk• large transaction risk• series risk.

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potential of securities of established companiesin Western Europe and the United Kingdom






OneYear

ThreeYears

FiveYears

TenYears

Series A $ 24.70 77.87 136.50 310.71

BMOU.S. Growth Fund

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Fund details


Investment objectivesThis fund’s objective is to increase the value ofyour investment over the long term by investing inequities of well-established U.S. companies.



investment, looking for:- strong price momentum—the price of the

security must be rising at an increasing rate- sustainable profits- a reasonable price

• ranks potential investments by the factors aboveand by market capitalization. The highest-rankedsecurities are included in the portfolio


Date started Series A: August 3, 1993Series I: October 20, 2008

Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager











Who should invest in this fund?Consider this fund if:• you are looking for a core U.S. equity fund for

your portfolio• you are comfortable with moderate investment



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OneYear

ThreeYears

FiveYears

TenYears

Series A $ 25.01 78.84 138.20 314.57

BMOEquity Index Fund

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Fund details


Investment objectivesThis fund’s objective is to track the performance ofthe S&P/TSX Composite Total Return Index.

As part of its investment objective, the fund investsprimarily in the securities that make up theS&P/TSX Composite Total Return Index insubstantially the same proportion as the index, as permitted.


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• tracks, as closely as possible, the securities and

their weightings in the S&P/TSX Composite TotalReturn Index

• minimizes transaction costs by rebalancing thefund’s portfolio only when necessary


Date started Series A: May 2, 1988Series I: October 20, 2008

Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager



• may use derivatives like options, futures andforward contracts to gain market exposure.


Securities regulators allow index mutual funds toexceed the normal investment concentration limitsif required to allow such funds to track the relevantindex. In accordance with the regulatoryrequirements, the fund may track the index in thismanner.


What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• equity risk• derivative risk• index fund risk• securities lending, repurchase and reverse


Who should invest in this fund?Consider this fund if:• you prefer a fund that seeks to track the

performance of the S&P/TSX Composite TotalReturn Index

• you are looking for a core Canadian equity fundthat focuses on established companies



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OneYear

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TenYears

Series A $ 10.25 32.31 56.64 128.92

BMOJapanese Fund

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Fund details


Investment objectivesThis fund’s objective is to increase the value ofyour investment over the long term by investingprimarily in equities of established Japanesecompanies and in Japanese companies withsuperior growth potential.


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• diversifies the fund’s assets by industry to help

reduce risk• may use derivatives like options, futures and

forward contracts to:- protect the fund against potential losses from


Type of fund Japanese equity fund


Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager

Martin Currie Inc., Edinburgh, Scotland





What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• equity risk• foreign investment risk• currency risk• derivative risk• securities lending, repurchase and reverse


Who should invest in this fund?Consider this fund if:• you want to diversify your portfolio with a fund

that invests only in Japan• you are comfortable with moderate investment






OneYear

ThreeYears

FiveYears

TenYears

Series A $ 25.42 80.14 140.46 319.73

BMO Aggressive Growth Funds

BMO Special Equity Fund

BMO U.S. Special Equity Fund

BMO Global Science & Technology Fund

BMO Emerging Markets Fund

BMO Resource Fund

BMO Precious Metals Fund

Our BMO Aggressive Growth Funds are designed forinvestors who want the potential for exceptional growthand are prepared to accept fluctuations in price in theshort term. These funds invest in the shares ofcompanies that are small, that are in specific industries,or that are in developing countries. Please read the funddescriptions about each fund for key information aboutthe specific characteristics of each fund.

These funds offer the potential for higher returns thanour BMO Security, BMO Income and BMO Growth Funds.They also offer the opportunity to participate in thepotential growth of new and exciting industries, ofsmall, fast-growing companies and of developingcountries. But along with that high growth potentialcomes higher risk. The value of the shares of thesecompanies can change dramatically in a short time.



It’s usually wise to hold only a small amount of BMOAggressive Growth Funds in your portfolio. But beforeyou can choose the right mix of funds, you need to askyourself what you’re expecting from your investments,for how long you’re planning to put your money away,and how much risk you’re willing to accept.

For example, if you’re looking for higher than averagegrowth potential and you’re willing to accept higher risk,you could give a growth-oriented portfolio a boost byinvesting in BMO Aggressive Growth Funds.

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BMOSpecial Equity Fund

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Fund details


Investment objectivesThis fund’s objective is to provide above-averagegrowth in the value of your investment over thelong term by investing in small and mid-sizedCanadian companies.

The fundamental investment objective may only bechanged with the approval of a majority of thevotes cast at a meeting of unitholders called forthat purpose.

Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• invests in equities, including income trusts• examines the financial statistics of each company


Type of fund Canadian small andmid-capitalization fund

Date started Series A: August 3, 1993Series I: March 5, 2008

Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager

Jones Heward Investment CounselInc., Toronto, Ontario


• may emphasize specific industry sectors withhigh potential return or companies that maybenefit from trends like an aging population


• continually monitors the companies in which thefund invests for changes that may affect theirprofitability








The fund has obtained exemptive relief fromCanadian Securities regulators that permits thefund to invest in certain commodity pools that usefinancial instruments that correlate to a multiple(or inverse multiple) of the daily performance of anunderlying index, which is a permitted index asdefined in NI 81-102. The fund may invest in thesecommodity pools from time to time as the portfoliomanager considers appropriate.

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What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• equity risk• liquidity risk• foreign investment risk• currency risk• securities lending, repurchase and reverse

repurchase transaction risk• commodity pool ETF risk• interest rate risk• commodity risk• derivative risk• large transaction risk• series risk.

Who should invest in this fund?Consider this fund if:• you are looking for a fund that invests in smaller

Canadian companies with high growth potential• you are comfortable with moderate to high

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





OneYear

ThreeYears

FiveYears

TenYears

Series A $ 24.29 76.58 134.23 305.55


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Fund Details








What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• equity risk• currency risk• liquidity risk• securities lending, repurchase and reverse


Who should invest in this fund?Consider this fund if:• you are looking for a fund that invests in smaller

U.S. companies with high growth potential• you are comfortable with moderate to high


BMOU.S. Special Equity Fund

Fund details


Investment objectivesThis fund’s objective is to provide above-averageincreases in the value of your investment over thelong term by investing in smaller and mid-sizedU.S. companies.






Type of fund U.S. small and mid-capitalizationequity fund


Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager



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OneYear

ThreeYears

FiveYears

TenYears

Series A $ 25.01 78.84 138.20 314.57

BMOGlobal Science &Technology Fund

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Fund details


Investment objectivesThis fund’s objective is to increase the value ofyour investment over the long term by investing inscience and technology companies around theworld.





• generally places equal emphasis on sciencestocks and technology stocks

Type of fund Science & technology fund


Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager









What are the risks of investing in the fund?Because the fund’s investments are concentrated ina few sectors, the value of the fund may vary morethan funds that invest in many different industries.

The investment strategies may also involve thefollowing risks, which we explain starting onpage 132:• equity risk• foreign investment risk• industry concentration risk• currency risk• derivative risk• securities lending, repurchase and reverse


Who should invest in this fund?Consider this fund if:• you are looking for the high growth potential of

science and technology stocks for your portfolio• you want to diversify your portfolio with a sector-

specific fund that invests around the world• you are comfortable with moderate to high


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OneYear

ThreeYears

FiveYears

TenYears

Series A $ 25.32 79.81 139.90 318.44

BMOEmerging Markets Fund

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Fund details


Investment objectivesThis fund’s objective is to increase the value ofyour investment over the long term by investing incompanies located in countries undergoing rapidindustrialization.

As part of this fund’s investment objective, itinvests primarily in equities of companies inemerging countries like Brazil, Chile, Greece,India, Malaysia, Mexico, Pakistan, South Africa,South Korea, Taiwan and Turkey. It may also investin fixed income securities.


Type of fund Emerging markets equity fund

Date started Series A: October 3, 1994Series I: May 9, 2008Series F: October 20, 2008

Securitiesoffered



Yes

Managementfee



Series F: 1.25%

Administrationfee


Portfoliomanager

Sanford C. Bernstein & Co., LLC,New York, New York


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• assesses the outlook for major regions and

currencies using variables like expected growth,inflation, and expected return

• analyzes the liquidity of potential investments intheir respective markets, to make sure it can buyand sell the security relatively easily

• examines the financial information of eachpotential investment to identify growthopportunities and attractive valuations

• follows up with company visits as needed toassess the company’s management

• diversifies the fund’s assets by industry andcountry to help reduce risk







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What are the risks of investing in the fund?Because the fund’s investments are concentrated indeveloping countries, the value of the fund may bemore sensitive to stock market, economic andpolitical trends, and currency exchange rates thanfunds that invest in developed countries.

The investment strategies may also involve thefollowing risks, which we explain starting onpage 132:• equity risk• foreign investment risk• currency risk• interest rate risk• credit risk• liquidity risk• securities lending, repurchase and reverse


Who should invest in this fund?Consider this fund if:• you want the high growth potential of emerging

markets for your portfolio• you want to diversify your international holdings

with investments in countries that aren’tincluded in many core international equity funds

• you are comfortable with moderate to highinvestment risk (i.e. you are willing to acceptfluctuations in the market value of yourinvestment).





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FiveYears

TenYears

Series A $ 25.93 81.75 143.29 326.18

BMOResource Fund

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Investment objectivesThis fund’s objective is to increase the value ofyour investment over the long term by investing inCanadian natural resource companies.

As part of its investment objective, this fund investsprimarily in companies that are listed on Canadianstock exchanges and that operate in the preciousmetals, base metals, oil and gas, or forest productsindustries. It may also buy precious metals directly.


Type of fund Natural resources fund

Date started Series A: August 3, 1993Series I: March 5, 2008

Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager



Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• examines the financial statistics of each company










The fund received an exemption from securitiesregulators to deviate from standard restrictions andpractices related to buying and sellingcommodities. Specifically, the fund has approval toinvest up to 10% of its assets directly incommodities such as precious and other metalsand minerals.


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What are the risks of investing in the fund?The unit price of the fund will be affected bychanges in the prices of natural resourcescommodities and precious metals.

The investment strategies may also involve thefollowing risks, which we explain starting onpage 132:• equity risk• commodity risk• liquidity risk• foreign investment risk• currency risk• derivative risk• interest rate risk• securities lending, repurchase and reverse

repurchase transaction risk• commodity pool ETF risk• industry concentration risk• large transaction risk• series risk.

Who should invest in this fund?Consider this fund if:• you want specific exposure to the growth

potential of resource securities• you are comfortable with moderate to high






OneYear

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TenYears

Series A $ 23.37 73.67 129.13 293.95

BMOPrecious Metals Fund

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Investment objectivesThis fund’s objective is to increase the value ofyour investment over the long term by investing insecurities of primarily Canadian companies in theprecious metals industry.

As part of its investment objective, this fund investsmainly in Canadian companies that are involved inthe exploration, mining, production or distributionof precious metals.


Type of fund Precious metals fund

Date started Series A: January 7, 1997Series I: May 9, 2008

Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager

Jones Heward Investment CounselInc., Toronto, Ontario


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• examines the financial statistics of each company










The fund received an exemption from securitiesregulators to deviate from standard restrictions andpractices related to buying and sellingcommodities. Specifically, the fund has approval toinvest up to 20% of its assets in precious metals,including silver and platinum.


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What are the risks of investing in the fund?The unit price of the fund will be affected bychanges in precious metals prices.

These strategies may also involve the followingrisks, which we explain starting on page 132:• equity risk• commodity risk• liquidity risk• foreign investment risk• currency risk• derivative risk• interest rate risk• securities lending, repurchase and reverse

repurchase transaction risk• industry concentration risk• commodity pool ETF risk• issuer concentration risk• large transaction risk• series risk.

Who should invest in this fund?

Consider this fund if:• you want specific exposure to the growth

potential of precious metals• you are comfortable with high investment risk

(i.e. you are willing to accept significantfluctuations in the market value of yourinvestment).





OneYear

ThreeYears

FiveYears

TenYears

Series A $ 23.68 74.64 130.83 297.81

BMO U.S. Dollar Funds

BMO U.S. Dollar Money Market Fund

BMO U.S. Dollar Monthly Income Fund

BMO U.S. Dollar Equity Index Fund

Our BMO U.S. Dollar Funds allow you to invest in afamily of U.S. dollar mutual funds using your Americanmoney. All of these funds are denominated in U.S.dollars and invest in U.S. securities. Please read the funddescriptions for each fund for key information about thespecific characteristics of each fund.

The BMO U.S. Dollar Funds offer the potential to earnhigher returns than a traditional U.S. dollar savingsaccount. The funds cover several asset classes, so youcan create a diversified portfolio of investments inU.S. dollars.



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Fund details


Investment objectivesThis fund’s objective is to provide a high level ofU.S. dollar interest income and liquidity, whilepreserving the value of your investment.

As part of its investment objective, this fund investsprimarily in a variety of U.S. government andcorporate money market instruments.


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• buys investments, including commercial paper,

that are rated A or higher (or equivalent) by oneor more recognized North American ratingagencies, or that the portfolio managerdetermines to be of comparable quality

• maintains a unit price of US$1.00 by creditingincome daily and distributing it monthly

• may use derivatives to protect the fund againstpotential losses from changes in interest rates.

Type of fund Foreign money market fund

Date started Series A: October 1, 1998Series I: March 5, 2008

Securitiesoffered



Only eligible for self-directedregistered plans

Managementfee



Administrationfee


Portfoliomanager



For example, the portfolio manager may beconcerned about the impact that rising interestrates may have on the fund. By using indexfutures, the portfolio manager can reduce theimpact of security price fluctuations.




although we try to keep it fixed at US $1.00.

The investment strategies may also involve thefollowing risks, which we explain starting onpage 132:• interest rate risk• derivative risk• securities lending, repurchase and reverse

repurchase transaction risk• credit risk• currency risk• large transaction risk• series risk.

Who should invest in this fund?Consider this fund if:• you want a secure U.S. dollar investment with

very low investment risk• you are looking for higher yields than a U.S.

dollar bank account may offer• you want a short term investment.

Distribution policyIncome is credited daily and distributed monthly.Any capital gains are distributed in December andoutstanding units are consolidated to maintain aNAV of US $1.00. Distributions are automaticallyreinvested in additional units of the fund. Pleasesee page 154 for more information.



OneYear

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FiveYears

TenYears

Series A US$ 12.51 39.42 69.10 157.29

BMOU.S. Dollar Monthly Income Fund

Fund details


Investment objectivesThis fund’s objective is to provide a fixed monthlydistribution by investing primarily in U.S. equitiesand U.S. fixed income securities.


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• invests primarily in U.S. equities and U.S. fixed

income securities• employs tactical asset allocation based on

attractive risk/reward opportunities• may also opportunistically invest in asset classes

outside of the U.S.

Type of fund U.S. balanced fund


Securitiesoffered




Managementfee



Administrationfee


Portfoliomanager

UBS Global Asset Management(Canada) Co., Toronto, Ontario









repurchase transaction risk• derivative risk• capital depletion risk• large transaction risk• series risk.

Who should invest in this fund?Consider this fund if:• you want regular monthly cash flow in U.S.

dollars• you are comfortable with low to moderate



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Distribution policyThe fund distributes a fixed amount per unit everymonth. The amount of the monthly distribution isset at the beginning of each calendar year based onthe market outlook. The amount of the monthlydistribution may be adjusted without noticethroughout the year as market conditions change.If the fund doesn’t earn enough income and capitalgains to meet the distribution, it will return capitalto make up the difference. A return of capital willreduce the adjusted cost base of your units. Anyadditional distributions required to pay out netincome and net realized capital gains in excess ofthe aggregate fixed amount paid during the yearmay be made at various times determined by usthroughout the year. Please see page 154 for moreinformation.




OneYear

ThreeYears

FiveYears

TenYears

Series A US$ 22.04 69.47 121.77 277.19

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BMOU.S. Dollar EquityIndex Fund

Fund details


Investment objectivesThis fund’s objective is to track the performance ofthe Standard & Poor’s 500 Total Return Index(S&P 500 Index).

As part of this fund’s investment objective, itinvests primarily in:• U.S. treasury bills and other high-quality U.S.

money market instruments• options, futures and forward contracts that are

based on the S&P 500 Index.

It may also invest in:• securities that are included in the S&P 500 Index• Standard & Poor’s depository receipts and other

instruments that approximate the return of theS&P 500 Index.



Securitiesoffered




Managementfee



Administrationfee


Portfoliomanager




Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• keeps most of the fund’s assets in money market

instruments, including commercial paper. Thisallows the fund to cover its commitments in theoptions, forward and futures contracts.

Securities regulators allow index mutual funds toexceed the normal investment concentration limitsif required to track the relevant index. Inaccordance with the regulatory requirements, thefund may track the index in this manner.

In addition to direct investments, the fund obtainsits exposure to the U.S. equities market throughinvestments in derivatives.

What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• equity risk• derivative risk• securities lending, repurchase and reverse

repurchase transaction risk• interest rate risk• index fund risk• currency risk• credit risk• large transaction risk• series risk.

Who should invest in this fund?Consider this fund if:• you are looking for a U.S. dollar equity fund that

focuses on established companies• you prefer a fund that seeks to track the

performance of the S&P 500 Index• you are comfortable with moderate investment


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OneYear

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FiveYears

TenYears

Series A US$ 11.58 36.51 64.00 145.68

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BMO Global Tax Advantage Funds

BMO Short-Term Income Class

BMO Dividend Class

BMO Global Dividend Class

BMO Canadian Equity Class

BMO Global Equity Class

BMO Greater China Class

BMO Sustainable Opportunities Class

BMO Global Energy Class

BMO Sustainable Climate Class

BMO International Value Class

BMO SelectClass Security Portfolio

BMO SelectClass Balanced Portfolio

BMO SelectClass Growth Portfolio

BMO SelectClass Aggressive Growth Portfolio

BMO Global Tax Advantage Funds let you rebalance yourportfolio without realizing capital gains—something youshould think about if you’re investing outside of an RRSPor other registered plan.

Here’s how it works. Each BMO Global Tax AdvantageFund is a share class of BMO Global Tax AdvantageFunds Inc., a Canadian corporation. This share structureallows you to switch between BMO Global TaxAdvantage Funds without realizing capital gains. Youonly trigger capital gains—and pay taxes on them—when you redeem your shares for cash or switch themto a mutual fund other than a BMO Global TaxAdvantage Fund.

You can hold BMO Global Tax Advantage Funds in thesame account as your other BMO Mutual Funds, butremember, the tax deferral benefits only apply toswitches between funds that are part of BMO Global TaxAdvantage Funds Inc. Please read the fund descriptionsfor each fund for key information about the specificcharacteristics of each fund.



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BMOShort-Term Income Class

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Fund details


Investment objectivesThis fund’s objectives are:• to provide the opportunity to invest in a fixed

income fund for the short term, as an alternativeor in addition to the equity funds included in theBMO Global Tax Advantage Funds

• to provide current income while preservingcapital and maintaining liquidity.

As part of its investment objectives, the fund investsprimarily in high quality securities like Canadiantreasury bills, other Canadian short term fixedincome securities and highly rated commercialpaper with terms to maturity of less than three years.

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

Type of fund Canadian short-term bond and mortgage fund


Securitiesoffered

Shares of a mutual fund corporation


Yes

Managementfee



Administrationfee


Portfoliomanager



Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objectives:

• examines economic indicators like growth,inflation and monetary policy to provide aframework for selecting securities

• chooses a variety of investment terms based onthe interest rate outlook and term constraint

• analyzes credit ratings of various issuers todetermine the best potential investments forthe portfolio


• may invest up to 30 % of the purchase cost ofthe fund’s assets in foreign securities

• will only invest in securities rated BBB orhigher at the time of investment by Standard &Poor’s Rating Service or the equivalent ratingas defined by other recognized rating agencies.BBB-rated securities may not exceed 10% ofthe value of that portion of the fund’s assetswhich is invested in fixed income securities

• may use derivatives like options, futures andforward contracts to:






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What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• interest rate risk• credit risk• currency risk• derivative risk• issuer concentration risk• foreign investment risk• class risk• securities lending, repurchase and reverse


Who should invest in this fund?Consider this fund if:• you want the flexibility to switch to another class

of BMO Global Tax Advantage Funds Inc.without realizing capital gains

• you want to invest in a fixed income fund for theshort-term as an alternative or in addition toequity funds included in the BMO Global TaxAdvantage Funds

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

Distribution policyThe fund pays any ordinary dividends and capitalgains dividends in September. Distributions arereinvested in additional shares of the fund, unlessyou tell us in writing that you prefer to receive cashdistributions. Please see page 154 for moreinformation.




OneYear

ThreeYears

FiveYears

TenYears

Series A $ 14.86 40.85 82.12 186.94


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Fund details


• may invest up to 30 % of the purchase cost of thefund’s assets in foreign securities







What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• equity risk• interest rate risk• credit risk• foreign investment risk• currency risk• securities lending, repurchase and reverse

repurchase transaction risk• fund of funds risk• derivative risk• class risk• large transaction risk• series risk.

As of April 20, 2009, BMO FundSelect BalancedPortfolio held 11.56% of the securities of the fund.

BMODividend Class


Investment objectivesThis fund’s objective is to achieve a high level oftotal return, including dividend income and capitalgains from the value of your investment byinvesting primarily in dividend yielding commonand preferred shares of Canadian companies.

The fundamental investment objective may only bechanged with the approval of a majority of thevotes cast at a meeting of shareholders called forthat purpose.

Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• invests primarily in dividend yielding common

and preferred shares of established Canadiancompanies. It may also invest in fixed incomesecurities and income trust units

• examines the financial statistics of each companyit’s considering to determine if the equitysecurities are attractively priced


Type of fund Canadian dividend fund

Date started Series A: October 12, 2004Series I: January 28, 2008

Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager



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• you are seeking tax-efficient income in your non-registered account

• you want a Canadian equity fund that focuses onestablished companies

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

Distribution policyThe fund pays any ordinary dividends and capitalgains dividends in September. Distributions areautomatically reinvested in additional shares of thefund, unless you tell us in writing that you prefer toreceive cash distributions. Please see page 154 formore information.




OneYear

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FiveYears

TenYears

Series A $ 18.45 58.16 101.95 232.06

BMOGlobal Dividend Class

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Fund details


Investment objectivesThis fund’s objective is to achieve a high level oftotal return from the value of your investment,including dividend income and capital gains, byinvesting primarily in dividend yielding commonand preferred shares of companies from aroundthe world.

As part of its investment objectives, the fundinvests primarily in equities of companies thattrade on recognized stock exchanges in countriesaround the world.


Type of fund Global equity fund

Date started Series A: November 27, 2000Series I: May 9, 2008

Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager

KBC Asset Management International Limited,Dublin, Ireland

(Portfolio Manager since April 2007)

Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objectives:• applies quantitative screens to find stocks with

above average dividend yields relative to theirregional sector

• applies fundamental and quantitative analysis toeliminate companies that do not intentionallypay out high dividends and attempts to identifyand score high-quality companies that generate ahigh level of cash flow and have a sustainabledividend policy

• uses a proprietary optimization process to applyan asset allocation overlay aimed to select thehighest scored securities while maintaining asector and regional neutrality at the total fundlevel

• invests primarily in dividend yielding commonand preferred shares

• diversifies the fund’s assets by sector and regionto help reduce risk






The portfolio manager may frequently buy and sellinvestments for the fund. This can increase tradingcosts, which may lower the fund’s returns. It alsoincreases the chance that you may receive adividend in the year. If you hold the fund in a non-registered account, dividends are generally taxable.

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What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• interest rate risk• equity risk• foreign investment risk• large transaction risk• credit risk• currency risk• derivative risk• class risk• securities lending, repurchase and reverse

repurchase transaction risk• series risk.

As of April 20, 2009, we held 27.44% of thesecurities of the fund.



• you are looking for an equity fund that providesexposure to dividend yielding companies fromaround the world






OneYear

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TenYears

Series A $ 25.42 80.14 140.46 319.73

BMOCanadian Equity Class

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Fund details


Investment objectivesThis fund’s objective is to increase the value ofyour investment over the long term by investingprimarily in equities of well established Canadiancompanies.


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• invests in equities, including income trusts• examines the financial statistics of each company




Date started Series A: October 1, 2004Series I: May 9, 2008

Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager











What are the risks of investing in the fund?The investment strategies may involve thefollowing risks, which we explain starting onpage 132:• equity risk• foreign investment risk• currency risk• securities lending, repurchase and reverse

repurchase transaction risk• commodity pool ETF risk• derivative risk• large transaction risk• class risk• series risk.

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• you are looking for a core Canadian equity fundfor your portfolio






OneYear

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FiveYears

TenYears

Series A $ 24.50 77.23 135.36 308.13

BMOGlobal Equity Class

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Fund details


Investment objectivesThis fund’s objectives are to provide long termgrowth of capital through investment in a portfolioof equity securities of publicly traded companiesfrom around the world with significant growthpotential.

As part of its investment objectives, the fund investsprimarily in equities of companies that trade onrecognized exchanges in countries around the world.


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objectives:• develops investment themes by researching and

assessing the external environment, productstrategy and development, and managementstrategy for each company it’s considering

• emphasizes new or growing companies, andsectors and companies undergoing change


Date started Series A: November 27, 2000Series I: January 28, 2008

Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager

Insight Investment Management (Global) Limited,London, United Kingdom


• focuses on companies with increasing sales andprofitability

• analyzes earnings forecasts, sales and revenuegrowth, as well as cash flow to identifyattractively priced companies

• diversifies the fund’s assets by industry andcountry to help reduce risk







The fund will hold no more than 10% of the marketvalue of its net assets in securities of other mutualfunds managed by us or other mutual fundmanagers including our affiliates.

What are the risks of investing in the fund?These strategies may involve the following risks,which we explain starting on page 132:• equity risk• foreign investment risk• large transaction risk• currency risk• derivative risk• interest rate risk• fund of funds risk• class risk• securities lending, repurchase and reverse

repurchase transaction risk• series risk.

As of April 20, 2009, BMO FundSelect BalancedPortfolio held 11.46% of the securities of the fundand we held 19.87% of the fund.

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• you want to diversify your equity portfolioglobally






OneYear

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TenYears

Series A $ 25.32 79.81 139.90 318.44

BMOGreater China Class

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Fund details


Investment objectivesThis fund’s objective is to achieve long term capitalgrowth by investing primarily in equity securities ofcompanies in Greater China, which includes thePeople’s Republic of China, Hong Kong SAR andTaiwan, as well as in equity securities of companiesthat benefit from exposure to Greater China.


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• invests primarily in equity securities listed on

stock exchanges in the People’s Republic ofChina, Hong Kong SAR, or Taiwan and also insecurities listed on stock exchanges outside ofChina that benefit from exposure to GreaterChina

Type of fund Chinese equity fund

Date started Series A: October 12, 2004Series I: January 28, 2008

Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager

Martin Currie Inc., Edinburgh, Scotland


• may also invest in convertible securities andother equity related securities and in fixedincome securities

• seeks to invest in companies that grow fasterthan market expectations, recover more rapidly,have undiscovered value that is about to berealized, or benefit from economic or regulatorychanges in a way not yet anticipated by otherinvestors

• may use derivatives such as options, futures andforward contracts to:- protect the fund against potential losses from






What are the risks of investing in the fund?The investment strategies may involve thefollowing risks, which we explain starting onpage 132:• interest rate risk• equity risk• credit risk• foreign investment risk• currency risk• securities lending, repurchase and reverse

repurchase transaction risk• derivative risk• large transaction risk• liquidity risk• class risk• series risk.

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• you are looking for the high growth potential ofChinese equities for your portfolio

• you want to diversify your international holdingswith investments in Greater China

• you are comfortable with moderate to highinvestment risk (i.e. you are willing to acceptfluctuations in the market value of yourinvestment).





OneYear

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FiveYears

TenYears

Series A $ 28.19 88.86 155.75 354.54

BMOSustainableOpportunities Class

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Fund details


Investment objectivesThis fund’s objective is to increase the value ofyour investment over the long term by investingprimarily in equity securities of a globallydiversified portfolio of companies that are leadersin the field of sustainability.


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• invests in companies that have a focus on

sustainability as well as displaying what theportfolio manager believes is an attractiveprice/value disparity

• invests in companies within any one of thefollowing areas offering sustainabledevelopment: new energy sources, water,materials, healthy living, and climate change



Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager

SAM Sustainable Asset Management AG, Zurich, Switzerland


• examines the financial statistics of each companyto determine whether its securities areattractively priced

• reviews company operations and research anddevelopment practices to assess the company’spotential for growth

• continually monitors the companies for changesthat may affect their profitability







What are the risks of investing in the fund?The investment strategies may involve thefollowing risks, which we explain starting onpage 132:• equity risk• liquidity risk• foreign investment risk• currency risk• securities lending, repurchase and reverse

repurchase transactions risk• interest rate risk• derivative risk• industry concentration risk• large transaction risk• series risk• class risk.


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• you are looking for a global equity fund thatprovides exposure to companies displayingsustainable development business practices

• you are comfortable with moderate investmentrisk (i.e., you are willing to accept fluctuations inthe market value of your investment).

Distribution policyThe fund pays ordinary dividends and capital gainsdividends in September.

Distributions are automatically reinvested inadditional securities of the fund, unless you tell usin writing that you prefer to receive cashdistributions. Please see page 154 for moreinformation.


Fund expenses indirectly borne by investorsThis information is not available because the fundhas not yet completed a financial year and itsexpenses are not yet known.

BMOGlobal Energy Class

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Fund details


Investment objectivesThis fund’s objective is to increase the value ofyour investment over the long term by investingprimarily in equity and fixed income securities ofcompanies involved in energy, alternative energyor related industries around the world.


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• invests primarily in equity securities of

companies involved in energy, alternative energyor related industries around the world, includingcompanies involved in the exploration,development, production and distribution ofcommodities such as fossil fuels, coal, uranium,wind power and water

Type of fund Natural resources equity fund


Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager



• examines the financial statistics of each companybeing considered to determine whether theequity securities are attractively priced








The fund intends to apply for an exemption fromsecurities regulators to deviate from standardrestrictions and practices related to buying andselling commodities. Specifically, the fund willseek approval to invest up to 10% of its assetsdirectly in commodities.



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What are the risks of investing in the fund?The investment strategies may involve thefollowing risks, which we explain starting onpage 132:• equity risk• liquidity risk• commodity risk• foreign investment risk• currency risk• credit risk• interest rate risk• securities lending, repurchase and reverse

repurchase transactions risk• derivative risk• industry concentration risk• large transaction risk• series risk• class risk.




• you are looking for an equity fund that providesexposure to energy and energy relatedcompanies from around the world

• you are comfortable with moderate to highinvestment risk (i.e., you are willing to acceptfluctuations in the market value of yourinvestment).





BMOSustainable Climate Class

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Investment objectivesThis fund’s objective is to increase the value ofyour investment over the long term by investingprimarily in equity securities of companies aroundthe world that offer technologies, products orservices that are expected to reduce or delayclimate change, or somehow help to alleviate theconsequences of global warming.


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• invests in companies that attach increased

importance to sustainability, by striving tomaximize profits, while at the same timeconsidering ecological and social objectives



Securitiesoffered



Yes

Managementfee



Administrationfee

0.35%(for series I, separate fees andexpenses are negotiated and paid byeach series I investor)

Portfoliomanager

SAM Sustainable Asset Management AG, Zurich, Switzerland


• examines primarily the following areas whenassessing a company’s commitment tosustainability: corporate strategy; innovation;corporate governance; and consideration of theinterests of shareholders, employees and otherstakeholders

• initially performs a macroeconomic analysis toidentify trends that have a significant influenceon the climate segment and then considers theaddition of companies with business practicesthat demonstrate a clear correlation to the fund’sobjectives and that stand to benefit most from thetrends and developments identified in the initialanalysis

• examines the financial statistics of each companyto determine whether its securities areattractively priced


• continually monitors the companies in which thefund invests for changes that may affect theirprofitability or appropriateness for the fund







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What are the risks of investing in the fund?The investment strategies may involve thefollowing risks, which we explain starting onpage 132:• equity risk• liquidity risk• foreign investment risk• currency risk• securities lending, repurchase and reverse

repurchase transactions risk• derivative risk• interest rate risk• industry concentration risk• large transaction risk• series risk• class risk.




• you are looking for a global equity fund thatprovides exposure to companies with strongbusiness fundamentals and that are committed topre-determined climate change andsustainability standards






BMOInternational Value Class

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Investment objectivesThis fund’s objective is to increase the value ofyour investment over the long term by investingprimarily in equity securities of establishedcompanies located outside of Canada and theUnited States.


Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objective:• invests in equities of established companies

trading at a discount to their long term value,which trade on recognized exchanges incountries around the world. These countries mayinclude Australia, Finland, France, Germany,Hong Kong, Italy, Japan, the Netherlands, NewZealand, Singapore, Spain, Sweden, Switzerland,and the United Kingdom, among others



Securitiesoffered



Yes

Managementfee



Administrationfee


Portfoliomanager

Pyrford International Limited,London, England


• employs a value-driven, absolute returnapproach. At the stock level, the portfoliomanager identifies companies that it believes arefairly valued or undervalued in relation to theirpotential long term earnings growth. At thecountry level, the portfolio manager seeks toheavily overweight holdings in countries that areexpected to provide good value relative to theirlong term prospects and underweight or avoidholdings in countries that are not

• may invest in bonds issued by governments orsupranational organizations such as the WorldBank






What are the risks of investing in the fund?The investment strategies may involve thefollowing risks, which we explain starting onpage 132:• equity risk• liquidity risk• credit risk• foreign investment risk• currency risk• securities lending, repurchase and reverse

repurchase transactions risk• derivative risk• interest rate risk• large transaction risk• series risk• class risk.


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NA

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• you want to diversify your portfoliointernationally, outside Canada and the U.S. andinvest in a fund that uses a value investment style






BMOSelectClass Security Portfolio

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Fund details


Investment objectivesThis fund’s objective is to preserve the value ofyour investment by investing primarily in mutualfunds that invest in lower risk asset classes likecash or cash equivalents and fixed incomesecurities with only limited exposure to mutualfunds invested in equity securities. The fund mayalso invest directly in fixed income securities andcash or cash equivalents.


Type of fund Global fixed income balanced fund

Date started Series A: October 31, 2008Series I: October 31, 2008Series T6: October 31, 2008

Securitiesoffered



Yes

Managementfee



Series T6: 1.85%

There will be no duplication ofmanagement fees between the fundand the underlying mutual funds

Administrationfee


Portfoliomanager


(Portfolio Manager since October 2008)

Investment strategiesThese are the strategies the portfolio manager usesto try to achieve the fund’s objectives:• employs a strategic asset allocation strategy• may invest up to 100% of the fund’s assets in

securities of other mutual funds, which mayinclude mutual funds that are managed by us orone of our affiliates

• allocates assets among the underlying mutualfunds based on each underlying mutual fund’sinvestment objectives and strategies, amongother factors. The underlying mutual funds, aswell as the percentage holding in eachunderlying fund, may be changed without noticefrom time to time

• the fund’s underlying mutual funds maytemporarily depart from their investmentobjectives by holding a portion of their assets incash or short-term money market instrumentsand/or high quality fixed income securities whileseeking investment opportunities or for defensivepurposes to reflect economic and marketconditions

• the fund’s underlying mutual funds may usederivatives such as options, futures and forwardcontracts to:- protect that fund against potential losses from

changes in interest rates. For example, theportfolio manager of the underlying fund maybe concerned about the impact that risinginterest rates may have on that fund. By usingindex futures, the portfolio manager of theunderlying fund can reduce the impact ofsecurity price fluctuations

- reduce the impact of currency fluctuations onthe underlying fund’s holdings. For example,by buying an option to sell a currency at aspecified price, the portfolio manager of theunderlying fund can reduce the fund’spotential loss if the currency drops in value


- the fund will only use derivatives as permittedby Canadian securities regulators.

• may invest directly in fixed income securitiesand cash or cash equivalents.

The fund’s underlying mutual funds may have highportfolio turnover rates. The higher the portfolioturnover rate, the greater the possibility ofshareholders of the fund receiving a dividend in theyear as a result of frequent purchases and sales ofportfolio securities by the underlying mutual funds.

The fund’s underlying mutual funds may enter intosecurities lending, repurchase and reverserepurchase transactions.

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What are the risks of investing in the fund?The investment strategies may involve thefollowing risks, which we explain starting onpage 132:• class risk• interest rate risk• equity risk• credit risk• derivative risk• liquidity risk• foreign investment risk• securities lending, repurchase and reverse

repurchase transactions risk• currency risk• fund of funds risk• capital depletion risk (for series T6 investors

only)• series risk.


Consider this fund if:• you want the flexibility to switch to another class


• you want a conservative investment with thepotential for some capital appreciation

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

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



For series T6 securities, the fund will makemonthly distributions of an amount comprised ofROC based on 6% of the net asset value persecurity of the fund as determined on December 31of the prior year.

Returns of capital do not necessarily reflect thefund’s investment performance and should not beconfused with “yield” or “income”. You should notdraw any conclusions about the fund’s investmentperformance from the amount of this distribution.

Returns of capital will reduce the amount of youroriginal investment and may result in the return toyou of the entire amount of your originalinvestment. A return of capital made to you is notimmediately taxable in your hands but will reducethe adjusted cost base of the related securities. Youshould consult your tax advisor regarding the taximplications of receiving returns of capital on theseries T6 securities.



BMOSelectClass Balanced Portfolio

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Fund details


Investment objectivesThis fund’s objective is to provide a balancedportfolio by investing primarily in a mix of mutualfunds that invest in fixed income and equitysecurities. The fund may also invest directly infixed income securities and cash or cashequivalents.


Type of fund Global neutral balanced fund


Securitiesoffered



Yes

Managementfee



Series T6: 2.00%


Administrationfee


Portfoliomanager















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• you want a balanced investment in fixed incomeand equity mutual funds that provide thepotential for some capital appreciation

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




For series T6 securities, the fund will makemonthly distributions of an amount comprised ofROC based on 6% of the net asset value persecurity of the fund as determined on December 31of the prior year.





BMOSelectClass Growth Portfolio

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Fund details


Investment objectivesThis fund’s objective is to provide long termgrowth by investing primarily in mutual funds thatinvest in equity securities and, to a lesser extent,fixed income securities. The fund may also investdirectly in fixed income securities and cash or cashequivalents.


Type of fund Global equity balanced fund


Securitiesoffered



Yes

Managementfee



Series T6: 2.10%


Administrationfee


Portfoliomanager






• the fund’s underlying mutual funds maytemporarily depart from their investmentobjectives by holding a portion of their assets incash or short term money market instrumentsand/or high quality fixed income securities whileseeking investment opportunities or for defensivepurposes to reflect economic and marketconditions









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• you want a fund with a growth-orientedinvestment style and the potential for long termgrowth

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




For series T6 securities, the fund will make

monthly distributions of an amount comprised ofROC based on 6% of the net asset value persecurity of the fund as determined on December 31of the prior year.





BMOSelectClass AggressiveGrowth Portfolio

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Fund details


Investment objectivesThis fund’s objective is to provide long termgrowth by investing primarily in mutual funds thatinvest in equity securities. The fund may alsoinvest directly in fixed income securities and cashor cash equivalents.




Securitiesoffered



Yes

Managementfee



Series T6: 2.20%


Administrationfee


Portfoliomanager






• the fund’s underlying mutual funds maytemporarily depart from their investmentobjectives by holding a portion of their assets incash or short term money market instrumentsand/or high quality fixed income securities whileseeking investment opportunities or for defensivepurposes to reflect economic and marketconditions









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• you are seeking aggressive growth throughinvestments in growth-oriented equity mutualfunds that provide the potential for capitalappreciation

• you are comfortable with moderate investmentrisk (i.e., you are willing to accept fluctuations inthe market value of your investment)




For series T6 securities, the fund will make

monthly distributions of an amount comprised ofROC based on 6% of the net asset value persecurity of the fund as determined on December 31of the prior year.





BMO LifeStage Plus Funds

BMO LifeStage Plus 2015 Fund







Each BMO LifeStage Plus Fund has a specific Target EndDate. Simply choose the fund that’s right for you and theportfolio automatically adjusts over the life of the fund.

On the Target End Date, each BMO LifeStage Plus Fundwill pay to investors an amount per unit equal to thegreater of $10.00 per unit or the highest net asset valueper unit during the term of the fund. We refer to thisamount as the Guaranteed Maturity Amount. If, on theTarget End Date of a fund the net asset value per unitdoes not equal the Guaranteed Maturity Amount, Bankof Montreal, as sub-advisor of the fund, will pay theaggregate shortfall to the fund. Please see GuaranteedMaturity Amount risk on page 135. If you redeem yourunits prior to the Target End Date, you will receive onlythe net asset value per unit on the date of redemption,which may be less than the then Guaranteed MaturityAmount.

Please read the fund descriptions for each fund for keyinformation about the specific characteristics ofeach fund.


At BMO Mutual Funds, we recommend that you diversifyyour investments. That means building your portfoliowith a variety of funds from different categories, likeBMO Security Funds, BMO Income Funds, BMO GrowthFunds, BMO Aggressive Growth Funds, BMO Global TaxAdvantage Funds, BMO U.S. Dollar Funds, BMO LifeStagePlus Funds, BMO SelectClass Portfolios and BMOFundSelectTM Portfolios.

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BMOLifeStage Plus 2015 Fund*

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Fund details

*As at October 6, 2008, this fund was closed to all newpurchases.


Investment objectivesThis fund’s objective is to provide the opportunityfor capital appreciation during the term of the fundby investing in mutual funds, fixed incomesecurities and cash equivalents. The percentageallocated to each of these asset classes from time totime will be determined by the fund’s assetallocation strategy.

For those units that are held to the Target End Dateof June 30, 2015, the fund intends to pay an amountper unit equal to the greater of the following twovalues (the “Guaranteed Maturity Amount”): (i)$10.00 (the net asset value per unit on the start dateof the fund) or (ii) the highest net asset value perunit during the period from the start date of thefund up to and including the Target End Date. If,on the Target End Date, the net asset value per unitdoes not equal the Guaranteed Maturity Amount,Bank of Montreal, as sub-advisor of the fund, willpay the aggregate shortfall to the fund. SeeGuaranteed Maturity Amount risk on page 135.

Type of fund 2015 target date portfolio

Date started Series A: June 18, 2007

Target End Date June 30, 2015

Securitiesoffered



Yes

Managementfee

Series A: 1.05%

There will be no duplication ofmanagement fees between the fundand the funds in the Mutual FundComponent.

Administrationfee

0.25%

Portfoliomanager


(Portfolio Manager since May 2007)

Sub-advisor Bank of Montreal

Initially, the fund will invest primarily in aportfolio of mutual funds. Over time, the fund willgradually increase the percentage of its assetsallocated to fixed income securities and cashequivalents.

Prior to the Target End Date, the portfolio of thefund will be invested only in fixed incomesecurities and cash equivalents. Subject to theapproval of the independent review committee ofthe fund, it is expected that on the Target End Datethe fund will be combined with a money marketmutual fund managed by us or one of our affiliates.We will send you written notice of this merger atleast 60 days prior to the Target End Date.


Investment strategiesThe portfolio of the fund currently consists entirelyof fixed income investments (including provincialand corporate bonds) and cash equivalents, andwill continue to do so until the Target End Date.The reallocation to a fixed income portfolio isintended to ensure that the fund has sufficientassets at maturity to pay investors the GuaranteedMaturity Amount.

What are the risks of investing in the fund?The investment strategies may involve thefollowing risks which we explain starting onpage 132: • issuer concentration risk• industry concentration risk• credit risk• currency risk• derivative risk• large transaction risk• foreign investment risk• fund of funds risk• Guaranteed Maturity Amount risk• interest rate risk• portfolio composition risk• redemption prior to Target End Date risk• zero-coupon securities risk.

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Who should invest in this fund?Consider this fund if:• you are seeking preservation of capital by staying

invested until the fund’s Target End Date and thepotential for capital appreciation over a setperiod of time

• you are comfortable with low to moderateinvestment risk (i.e. you are willing to acceptsome fluctuations in the market value of yourinvestment) if your investment is redeemed priorto the Target End Date.

Distribution policyThe fund distributes any income and capital gainsin December. Distributions are automaticallyreinvested in additional units of the fund.Following each distribution, the number ofoutstanding units is immediately consolidated sothat the number of outstanding units after thedistribution is the same as the number ofoutstanding units before the distribution. Non-resident investors may have the number of unitsreduced due to withholding tax. Please seepage 154 for more information.




OneYear

ThreeYears

FiveYears

TenYears

Series A $ 26.14 82.40 144.43 328.75

BMOLifeStage Plus 2017 Fund

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Fund details



For those units that are held to the Target End Dateof June 30, 2017, the fund intends to pay an amountper unit equal to the greater of the following twovalues (the “Guaranteed Maturity Amount”): (i)$10.00 (the net asset value per unit on the start dateof the fund) or (ii) the highest net asset value perunit during the period from the start date of thefund up to and including the Target End Date. If,on the Target End Date, the net asset value per unitdoes not equal the Guaranteed Maturity Amount,


Date started Series A: October 31, 2008


Securitiesoffered



Yes

Managementfee

Series A: 2.15%

This fee will decline over the term ofthe fund. Please refer to our websitefor the management fee paid by thefund at any time. There will be noduplication of management feesbetween the fund and the funds inthe Mutual Fund Component.

Administrationfee

0.25%

Portfoliomanager




Bank of Montreal, as sub-advisor of the fund, willpay the aggregate shortfall to the fund. SeeGuaranteed Maturity Amount risk on page 135.


Prior to the Target End Date, the portfolio of thefund will be invested only in fixed incomesecurities and cash equivalents. Subject to theapproval of the independent review committee ofthe fund, it is expected that on the Target End Datethe fund will be combined with a money marketmutual fund managed by our affiliates. We willsend you written notice of this merger at least 60days prior to the Target End Date.


Investment strategiesThese are the strategies the sub-advisor uses to tryto achieve the fund’s objective:• holds a portfolio consisting of a Mutual Fund

Component and/or a Fixed Income Component:- the Mutual Fund Component invests in

securities of other mutual funds, which mayinclude mutual funds that are managed by usor our affiliates, and cash equivalents.

- the Fixed Income Component invests in fixedincome securities issued by Canadian federalor provincial governments and corporationsand cash equivalents

• initially, may invest up to 100% of the fund’sassets in the Mutual Fund Component

• allocates the Mutual Fund Component betweensecurities of other mutual funds and cashequivalents as determined by the sub-advisor

• uses an asset allocation strategy to determinewhen to shift the fund’s investments from theMutual Fund Component to the Fixed IncomeComponent based on a number of factors,including the remaining time until the TargetEnd Date, the amount of the fund’s portfoliorequired to cover the Guaranteed MaturityAmount, the state of equity markets and anychanges in interest rates. Once the fund hasincreased the percentage of its assets allocated tothe Fixed Income Component, it will not shift itsinvestments back to the Mutual FundComponent.

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What are the risks of investing in the fund?The investment strategies may involve thefollowing risks which we explain starting onpage 132:• issuer concentration risk• industry concentration risk• credit risk• currency risk• derivative risk• large transaction risk• foreign investment risk• fund of funds risk• Guaranteed Maturity Amount risk• interest rate risk• portfolio composition risk• redemption prior to Target End Date risk• zero-coupon securities risk• series risk.


Consider this fund if:• you are seeking preservation of capital by staying


• you are comfortable with low to moderateinvestment risk (i.e., you are willing to acceptsome fluctuations in the market value of yourinvestment) if your investment is redeemed priorto the Target End Date.




BMOLifeStage Plus 2020 Fund*

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Fund details

*As of November 20, 2008, this fund was closed to all newpurchases.



For those units that are held to the Target End Dateof June 30, 2020, the fund intends to pay an amountper unit equal to the greater of the following twovalues (the “Guaranteed Maturity Amount”): (i)$10.00 (the net asset value per unit on the start dateof the fund) or (ii) the highest net asset value perunit during the period from the start date of thefund up to and including the Target End Date. If,on the Target End Date, the net asset value per unitdoes not equal the Guaranteed Maturity Amount,Bank of Montreal, as sub-advisor of the fund, willpay the aggregate shortfall to the fund. SeeGuaranteed Maturity Amount risk on page 135.




Securitiesoffered



Yes

Managementfee

Series A: 1.05%

There will be no duplication ofmanagement fees between the fundand the funds in the Mutual FundComponent.

Administrationfee

0.25%

Portfoliomanager







Investment strategiesThe portfolio of the fund currently consists entirelyof fixed income investments (including provincialand corporate bonds) and cash equivalents, andwill continue to do so until the Target End Date.The reallocation to a fixed income portfolio isintended to ensure that the fund has sufficientassets at maturity to pay investors the GuaranteedMaturity Amount.

What are the risks of investing in the fund?The investment strategies may involve thefollowing risks, which we explain starting onpage 132:• issuer concentration risk• industry concentration risk• credit risk• currency risk• derivative risk• large transaction risk• foreign investment risk• fund of funds risk• Guaranteed Maturity Amount risk• interest rate risk• portfolio composition risk• redemption prior to Target End Date risk• zero-coupon securities risk• series risk.

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OneYear

ThreeYears

FiveYears

TenYears

Series A $ 27.27 85.95 150.66 342.94


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Fund details



For those units that are held to the Target End Dateof June 30, 2022 the fund intends to pay an amountper unit equal to the greater of the following twovalues (the “Guaranteed Maturity Amount”): (i)$10.00 (the net asset value per unit on the start dateof the fund) or (ii) the highest net asset value perunit during the period from the start date of thefund up to and including the Target End Date. If,on the Target End Date, the net asset value per unitdoes not equal the Guaranteed Maturity Amount,


Date started Series A: January 12, 2009


Securitiesoffered



Yes

Managementfee

Series A: 2.15%


Administrationfee

0.25%

Portfoliomanager


(Portfolio Manager since January 2009)






Investment strategiesThese are the strategies the sub-advisor uses to tryto achieve the fund’s objective: • holds a portfolio consisting of a Mutual Fund


securities of other mutual funds, which mayinclude mutual funds that are managed by usor our affiliates, and cash equivalents





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2

02

2

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What are the risks of investing in the fund?The investment strategies may involve thefollowing risks, which we explain starting onpage 132: • issuer concentration risk• industry concentration risk• credit risk• currency risk• derivative risk• large transaction risk• foreign investment risk• fund of funds risk• Guaranteed Maturity Amount risk• interest rate risk• portfolio composition risk• redemption prior to Target End Date risk• zero-coupon securities risk• series risk.






Short-term tradingPlease refer to pages 145 and 152 for a discussion ofthe penalties that may apply to investors whoengage in short-term trading in units of this fund.



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Fund details



For those units that are held to the Target End Dateof June 30, 2025, the fund intends to pay an amountper unit equal to the greater of the following twovalues (the “Guaranteed Maturity Amount”): (i)$10.00 (the net asset value per unit on the start dateof the fund) or (ii) the highest net asset value perunit during the period from the start date of thefund up to and including the Target End Date. If,on the Target End Date, the net asset value per unitdoes not equal the Guarantee Maturity Amount,Bank of Montreal, as sub-advisor of the fund, willpay the aggregate shortfall to the fund. SeeGuaranteed Maturity Amount risk on page 135.




Securitiesoffered



Yes

Managementfee

Series A: 2.35%


Administrationfee

0.25%

Portfoliomanager













• uses an asset allocation strategy to determine thebalance between the Mutual Fund Componentand the Fixed Income Component based on anumber of factors, including the remaining timeuntil the Target End Date, the amount of thefund’s portfolio required to cover the GuaranteedMaturity Amount, the state of equity markets andany changes in interest rates. Once the fund hasincreased the percentage of its assets allocated tothe Fixed Income Component, it will not shift itsinvestments back to the Mutual FundComponent.

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What are the risks of investing in the fund?The investment strategies may involve thefollowing risks, which we explain starting onpage 132:• issuer concentration risk• industry concentration risk• credit risk• currency risk• derivative risk• large transaction risk• foreign investment risk• fund of funds risk• Guaranteed Maturity Amount risk• interest rate risk• portfolio composition risk• redemption prior to Target End Date risk• zero-coupon securities risk• series risk.








OneYear

ThreeYears

FiveYears

TenYears

Series A $ 28.29 89.18 156.32 355.83


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Fund details



For those units that are held to the Target End Dateof June 30, 2026 the fund intends to pay an amountper unit equal to the greater of the following twovalues (the “Guaranteed Maturity Amount”): (i)$10.00 (the net asset value per unit on the start dateof the fund) or (ii) the highest net asset value perunit during the period from the start date of thefund up to and including the Target End Date. If,on the Target End Date, the net asset value per unitdoes not equal the Guaranteed Maturity Amount,


Date started Series A: January 12, 2009


Securitiesoffered



Yes

Managementfee

Series A: 2.25%


Administrationfee

0.25%

Portfoliomanager


(Portfolio Manager since January 2009)













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What are the risks of investing in the fund?The investment strategies may involve thefollowing risks, which we explain starting onpage 132: • issuer concentration risk• industry concentration risk• credit risk• currency risk• derivative risk• large transaction risk• foreign investment risk• fund of funds risk• Guaranteed Maturity Amount risk• interest rate risk• portfolio composition risk• redemption prior to Target End Date risk• zero-coupon securities risk• series risk.






Short-term tradingPlease refer to pages 145 and 152 for a discussion ofthe penalties that may apply to investors whoengage in short-term trading in units of this fund.



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Fund details



For those units that are held to the Target End Dateof June 30, 2030, the fund intends to pay an amountper unit equal to the greater of the following twovalues (the “Guaranteed Maturity Amount”): (i)$10.00 (the net asset value per unit on the start dateof the fund) or (ii) the highest net asset value perunit during the period from the start date of thefund up to and including the Target End Date. If,on the Target End Date, the net asset value per unitdoes not equal the Guarantee Maturity Amount,Bank of Montreal, as sub-advisor of the fund, willpay the aggregate shortfall to the fund. SeeGuaranteed Maturity Amount risk on page 135.




Securitiesoffered



Yes

Managementfee

Series A: 2.35%


Administrationfee

0.25%

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• uses an asset allocation strategy to determine thebalance between the Mutual Fund Componentand the Fixed Income Component based on anumber of factors, including the remaining timeuntil the Target End Date, the amount of thefund’s portfolio required to cover the GuaranteedMaturity Amount, the state of equity markets andany changes in interest rates. Once the fund hasincreased the percentage of its assets allocated tothe Fixed Income Component, it will not shift itsinvestments back to the Mutual FundComponent.

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OneYear

ThreeYears

FiveYears

TenYears

Series A $ 28.29 89.18 156.32 355.83

What are the risks of investing in the fund?The investment strategies may involve thefollowing risks, which we explain starting onpage 132:• issuer concentration risk• industry concentration risk• credit risk• currency risk• derivative risk• large transaction risk• foreign investment risk• fund of funds risk• Guaranteed Maturity Amount risk• interest rate risk• portfolio composition risk• redemption prior to Target End Date risk• zero-coupon securities risk.




BMO FundSelectTM Portfolios

BMO FundSelectTM Security Portfolio

BMO FundSelectTM Balanced Portfolio

BMO FundSelectTM Growth Portfolio

BMO FundSelectTM Aggressive Growth Portfolio

BMO FundSelectTM Portfolios are designed as an all-in-onediversified portfolio solution. These Portfolios proactivelyhelp to manage your investment risk by maintaining astrategic presence in BMO Mutual Funds, as well as arange of mutual funds from other Canadian fundcompanies. Each diversified Portfolio will be allocatedacross cash, fixed income, and equity investments fromthese mutual fund companies in harmony with yourpersonal investment preference. Your investments canmeet your own unique needs by matching yourinvestment risk profile to that of a portfolio. Now that’smaking sure your eggs aren’t all in one basket. Whetherit’s for smart retirement planning or managing yourinvestment risk, participating in the combineddiversification and earnings momentum that theseportfolios offer puts you in high-gear for life’s challenges.


At BMO Mutual Funds, we recommend that you diversifyyour investments. That means building your portfoliowith a variety of funds from different categories, likeBMO Security Funds, BMO Income Funds, BMO GrowthFunds, BMO Aggressive Growth Funds, BMO Global TaxAdvantage Funds, BMO U.S. Dollar Funds, BMO LifeStagePlus Funds, BMO SelectClass Portfolios and BMOFundSelectTM Portfolios.

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BMOFundSelectTM

Security Portfolio

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Fund details


Investment objectivesThis fund’s objective is to preserve the value ofyour investment and to provide interest income byinvesting primarily in mutual funds invested inmore secure asset classes like cash or cashequivalents and fixed income investments withonly a limited exposure to mutual funds investedin equity securities. The fund may also investdirectly in fixed income securities and cash or cashequivalents.


Investment strategies

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

achieve the fund’s investment objective

Type of fund Canadian balanced – fixed income focus


Securitiesoffered



Yes

Managementfee




Administrationfee

0.20%(for series I, separate fees andexpenses are negotiated andpaid by each series I investor)

Portfoliomanager



• may invest up to 100% of the fund’s assets insecurities of other mutual funds which mayinclude mutual funds that are managed by us orone of our affiliates

• allocates assets among the underlying mutualfunds based on each underlying mutual fund’sinvestment objectives and strategies, amongother factors. The underlying mutual funds maybe changed without notice from time to time aswell as the percentage holding in eachunderlying fund


• the fund’s underlying mutual funds may usederivatives like options, futures and forwardcontracts to:- protect themselves against potential losses

from changes in interest rates. For example, theportfolio manager of an underlying mutualfund may be concerned about the impact thatrising interest rates may have on such fund. Byusing index futures, the portfolio manager canreduce the impact of security price fluctuations

- reduce the impact of currency fluctuations onan underlying mutual fund’s holdings. Forexample, by buying an option to sell a currencyat a specified price, the portfolio manager of anunderlying mutual fund can reduce such fund’spotential loss if the currency drops in value


- reduce risk.• the fund will only use derivatives as permitted by

Canadian securities regulators• may invest directly in fixed income securities

and cash or cash equivalents.

The fund’s underlying mutual funds may have highportfolio turnover rates. The higher the portfolioturnover rate, the greater the possibility ofunitholders of the fund receiving income or taxablecapital gains as a result of frequent purchases andsales of portfolio securities by the underlyingmutual funds.


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What are the risks of investing in the fund?The investment strategies may involve thefollowing risks, which we explain starting onpage 132:• interest rate risk• equity risk• credit risk• derivative risk• liquidity risk• foreign investment risk• securities lending, repurchase and reverse

repurchase transaction risk• currency risk• fund of funds risk• large transaction risk• series risk.

Who should invest in this fund?Consider this fund if:• you want a conservative investment with the

potential for some capital appreciation• you are comfortable with low investment risk






OneYear

ThreeYears

FiveYears

TenYears

Series A $ 23.47 74.00 129.70 295.23


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BMOFundSelectTM

Balanced Portfolio


Investment objectivesThis fund’s objective is to provide you with abalance of income and growth by investingprimarily in a mix of mutual funds invested infixed income and equity securities. The fund mayalso invest directly in fixed income securities andcash or cash equivalents.


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

achieve the fund’s investment objective• may invest up to 100% of the fund’s assets in

securities of other mutual funds which mayinclude mutual funds that are managed by us orone of our affiliates

Type of fund Global balanced


Securitiesoffered



Yes

Managementfee




Administrationfee


Portfoliomanager



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repurchase transactions risk• currency risk• fund of funds risk• large transaction risk• series risk.

Who should invest in this fund?Consider this fund if:• you want a balanced investment with investment

in fixed income and equity mutual funds thatprovide the potential for some capitalappreciation






OneYear

ThreeYears

FiveYears

TenYears

Series A $ 25.22 79.49 139.33 317.15

BMOFundSelectTM

Growth Portfolio

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Fund details


Investment objectivesThis fund’s objective is to provide you with long-term growth and protection against inflation byinvesting primarily in mutual funds invested inequity securities and, to a lesser extent, in mutualfunds invested in fixed income securities. The fundmay also invest directly in fixed income securitiesand cash or cash equivalents.




securities of other mutual funds which mayinclude mutual funds that are managed by us orour affiliates

Type of fund Global balanced – equity focus


Securitiesoffered



Yes

Managementfee




Administrationfee


Portfoliomanager














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Who should invest in this fund?Consider this fund if:• you want a growth-oriented investment with the

potential for long term growth and protectionagainst inflation






OneYear

ThreeYears

FiveYears

TenYears

Series A $ 26.24 82.72 144.99 330.04

BMOFundSelectTM

Aggressive Growth Portfolio

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Fund details


Investment objectivesThis fund’s objective is to provide you withexceptional long term growth by investingprimarily in higher risk mutual funds invested inequity securities. The fund may also invest directlyin fixed income securities and cash or cashequivalents.




securities of other mutual funds which mayinclude mutual funds that are managed by us orour affiliates

Type of fund Global equity


Securitiesoffered



Yes

Managementfee




Administrationfee


Portfoliomanager














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Who should invest in this fund?Consider this fund if:• you want an aggressive growth investment with

investments in growth-oriented equity mutualfunds that provide the potential for capitalappreciation






OneYear

ThreeYears

FiveYears

TenYears

Series A $ 27.88 87.89 154.05 350.67

132

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

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

Mutual funds come in many varieties that aredesigned to meet the differing needs of investors. Afund could hold investments like stocks, bonds, cash,derivatives, other mutual funds or some combinationof these, depending on its investment objectives.

The value of these investments can go up or down.They’re affected by things such as changes in interestrates or exchange rates, economic conditions inCanada or abroad, or news about the companies thefund invests in. When the value of the investmentschange, it can make the price of the mutual fundsecurities rise or fall. That’s why mutual fundinvestments can increase or decrease in value afteryou buy them and why the value of your investmentin a mutual fund may be more or less when youredeem it than when you purchased it.

Under exceptional circumstances, a mutual fundmay not allow you to redeem your securities. SeeWhen you may not be allowed to redeem yoursecurities on page 148 for more information.

How mutual funds are structuredA mutual fund can be set up as a mutual fund trust oras a mutual fund corporation. Both allow you to poolyour money with other investors, but there are somedifferences. When you invest in a mutual fund trust,you buy units of the trust. When you invest in amutual fund corporation, you buy shares of thecorporation. A mutual fund corporation can issueseveral classes of shares. Simply put, each shareclass works like a separate mutual fund with its owninvestment objectives.

The main difference between an investment in amutual fund trust and an investment in a mutualfund corporation is in how your investment is taxed,which may be important if you’re investing outsideof a registered plan. You can switch between classesof a mutual fund corporation without paying taxes oncapital gains at the time of the switch. You cannotswitch between mutual fund trusts on such a tax-deferred basis. A mutual fund corporation distributesits earnings by declaring ordinary dividends orcapital gains dividends. A mutual fund trustdistributes all of its income and sufficient netrealized capital gains so that the fund will not besubject to tax. For tax purposes, these distributions tounitholders generally retain the same character asthe income that is received by the trust.

Mutual fund trusts and mutual fund corporationsmay issue different series of securities. Each series isintended for different kinds of investors and hasdifferent fees and expenses.

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

Every fund has a different degree of volatility, whichdepends largely on the securities in which the fundinvests. For example, if a fund invests only ininterest-paying money market instruments offered bythe Canadian government, it will be subject to verylittle volatility. That’s because the governmentguarantees to pay a certain interest rate and there’slittle chance it will fail to keep its promise. On theother hand, some funds invest heavily in technologystocks. Technology stocks can have frequent, largechanges in value as their products go in and out offavour, so funds that invest mostly in technologystocks can be quite volatile.

A general rule in investing is that the higher the risk,the higher the potential for gains (and losses), andthe lower the risk, the lower the potential for gains(and losses). The key to reducing the overallvolatility of your portfolio is to hold a wide variety ofinvestments.

What is a mutual fund and what are the risksof investing in a mutual fund?

133When you’re deciding in which funds to invest, youneed to ask yourself how comfortable you’ll be withtheir volatility. Here are some important points thatcan help you decide:• the length of time you’re prepared to invest. The

more time you have until you need to cash in yourinvestments, the more you should be thinkingabout investing in funds that specialize in stockinvestments, also known as equities. These can bevolatile in the short term, but over the long term,they’ve tended to provide higher returns than otherkinds of investments

• your investment goals. Your goals are unique andwill influence the amount of risk you’ll want tothink about taking. If you can reach your goal onlyby earning higher returns on your investments, youmay want to think about taking on more risk bymaking more volatile funds a larger part of yourportfolio

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

Mutual fund investments aren’t guaranteedUnlike bank accounts or GICs, BMO Mutual Fundsaren’t covered by the Canada Deposit InsuranceCorporation or the Régie de l’assurance-dépôts duQuébec and, except for BMO LifeStage Plus Funds(which are dealt with below), aren’t guaranteed byBank of Montreal. The value of each fund will varywith changes in the value of the fund’s investments.In the case of BMO LifeStage Plus Funds, Bank ofMontreal has agreed that on the Target End Date ofthese funds, it will pay to each fund any shortfallbetween the net asset value per unit and theGuaranteed Maturity Amount. See GuaranteedMaturity Amount risk on page 135.

Under exceptional circumstances, a fund maysuspend redemptions. See Redeeming funds onpage 148.

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

Capital depletion riskSeries T6 securities make monthly distributions of anamount comprised of ROC based on 6% of the netasset value per security of the fund as determined onDecember 31 of the prior year. As well, certain of theBMO Trust Funds may make distributionscomprised, in whole or in part, of ROC. A ROCreduces the amount of your original investment andmay result in the return to you of the entire amountof your original investment. This distribution shouldnot be confused with “yield” or “income”. Returns ofcapital that are not reinvested will reduce the netasset value of the fund, which could reduce thefund’s ability to generate future income. You shouldnot draw any conclusions about the fund’sinvestment performance from the amount of thisdistribution. Returns of capital can only be made by aseries of the BMO Global Tax Advantage Funds to theextent that there is a positive balance in the capitalaccount for the relevant series. To the extent that thebalance in the capital account becomes, or is at riskof becoming, zero, monthly distributions may bereduced or discontinued without prior notice. Seepage 5 for additional information about ROC.

Class riskEach of the BMO Global Tax Advantage Funds is aclass of shares of BMO Global Tax Advantage FundsInc. Each class has its own fees and expenses, whichare tracked separately, but if a class can’t meet itsfinancial obligations, the other classes areresponsible for making up the difference. This isbecause the corporation as a whole is legallyresponsible for the financial obligations of all of theclasses.

Commodity pool ETF riskThe funds have obtained relief from the Canadiansecurities regulatory authorities to invest in certainexchange traded funds that seek to provide returnssimilar to a particular benchmark, industry sectorindex, or commodity and utilize leverage in anattempt to magnify returns by either a multiple or aninverse multiple of that benchmark, index orcommodity. Investments in these ETFs are highlyspeculative and involve a high degree of risk. TheseETFs are also subject to increased volatility as theyseek to achieve a multiple or inverse multiple of abenchmark, index or commodity. The relief does notpermit the funds to invest in these ETFs that have anunderlying index that is based (directly or indirectlythrough a specified derivative or otherwise) on aphysical commodity other than gold.

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Commodity risk

If a fund has exposure to a company whose businessis dependent on commodities such as oil or gold, ordirectly in commodities, the value of the fund’sportfolio may be affected by movements in the priceof commodities. If commodities prices decline, anegative impact can be expected on the earnings ofcompanies whose businesses are dependent oncommodities and the performance of funds thatinvest in such companies.

Credit riskCredit risk is the risk that the company, governmentor other entity (including a special purpose vehicle)that issued a bond or other fixed-income security(including asset backed and mortgage backedsecurities) can’t pay interest or repay principal whenit’s due. This risk is lowest among issuers that have ahigh credit rating from a credit rating agency. It’shighest among issuers that have a low credit rating orno credit rating. Investments with a lower creditrating usually offer a better return than higher-gradeinvestments, but have the potential for substantialloss as well as gain, as will the funds that buy them.

High-yielding, higher risk income securities in whichsome of the funds may invest are subject to greaterrisk of loss of principal and income than higher-ratedfixed income securities, and are considered to be lesscertain with respect to the issuer’s capacity to payinterest and repay principal.

Currency riskFunds that invest in foreign securities buy themusing foreign currency. For example, funds use U.S.dollars to buy U.S. stocks or bonds. Becausecurrencies change in value against each other, it’spossible that an unfavourable move in the exchangerate may reduce, or even eliminate, any increase inthe value of that investment. The opposite can alsobe true—the fund can benefit from changes inexchange rates.

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

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

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

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

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

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

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

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

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

• the cost of the derivative contracts may increase.

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

Funds that invest in trust units, such as oil and gasroyalty trusts, real estate investment trusts, limitedpartnerships and income trusts, will have varyingdegrees of risk depending on the sector and theunderlying asset or business and may therefore besusceptible to risks associated with the industry inwhich the underlying business operates, to changesin business cycles, commodity prices, and to interestrate fluctuations and other economic factors.

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Recent changes to the Tax Act impose tax on thenon-portfolio earnings of income trusts and treatdistributions of those earnings as a taxable dividendfrom a Canadian corporation. These changes apply,beginning in the 2007 taxation year to an incometrust, the units of which were first listed for publictrading after October 31, 2006. Otherwise they willapply, beginning with the 2011 taxation year of anincome trust, subject to the earlier application wherecertain Growth Guidelines issued by the Departmentof Finance are exceeded. These changes will reducethe tax effectiveness of holding units of incometrusts, and may negatively impact the value ofincome trusts units held by a fund.

Foreign investment riskWhen a fund invests in foreign securities, its value isaffected by financial markets and general economictrends in the countries where the securities areissued. While the U.S. market has standards that aresimilar to those in Canada, other foreign marketsmay not. For example, some foreign markets may notbe as strictly regulated as Canadian and U.S. markets.Their laws might make it difficult to protect investorrights. The political climate might be less stable andsocial, religious and regional tensions may exist.Business disclosure and accounting standards maybe less stringent than in Canada and the U.S., makingit difficult to obtain complete information about apotential investment. Securities markets may besmaller than in more developed countries, making itmore difficult to sell securities in order to take profitsor avoid losses. As a result, the value of foreignsecurities, and the value of funds that hold them,may rise or fall more rapidly and to a greater degreethan Canadian and U.S. investments. In general,securities issued in more developed markets, likeWestern Europe, have lower foreign investment risk.Securities issued in emerging or developing markets,like Southeast Asia, Latin America or India, havehigher foreign investment risk. Funds thatconcentrate their investments in a single country orregion of the world tend to be riskier than funds withgreater geographic diversification because prices ofsecurities in the same markets tend to move up anddown together.

Fund of funds riskCertain funds invest directly in, or obtain exposureto, other funds as part of their investment strategy.Therefore, these funds will be subject to the risks ofthe underlying funds. Also, if an underlying fundsuspends redemptions, the investment fund will beunable to value part of its portfolio and may beunable to redeem securities.

Guaranteed Maturity Amount risk Bank of Montreal, as sub-advisor, intends to managethe allocation between the Mutual Fund Componentand the Fixed Income Component of each BMOLifeStage Plus Fund so that the fund will havesufficient assets to pay to investors the GuaranteedMaturity Amount on the fund’s Target End Date. Inaddition, if on a fund’s Target End Date there is ashortfall between the net asset value per unit and theGuaranteed Maturity Amount, Bank of Montreal hasagreed to pay the fund the amount of any suchshortfall (the “Shortfall”) pursuant to the Sub-Advisory Agreement. This obligation may beterminated by a party if one of the other partiescommits a fraudulent act, fails to discharge itsmaterial duties, engages in wilful misconduct ornegligence, takes steps to be dissolved, becomesinsolvent or bankrupt or is in default of itsobligations and does not remedy such breach within30 days after it receives notice. The requirement topay the Shortfall to the fund is an obligation of Bankof Montreal. Accordingly, the likelihood that the fundwill receive any Shortfall payment that may be owedto the fund will be dependent upon the financialhealth and creditworthiness of Bank of Montreal. Ifits obligations have been terminated or Bank ofMontreal defaults on its obligations and a BMOLifeStage Plus Fund does not have sufficient assets topay the Guaranteed Maturity Amount to investors onits Target End Date, investors who remain in thefund until the Target End Date will only receive thenet asset value per unit, less any applicable charges.

Receipt by a BMO LifeStage Plus Fund of an amountfrom Bank of Montreal (under this obligation) mayresult in taxable distributions to investors withrespect to such amount.

Index fund riskIndexing strategies involve tracking the performanceof an index by tracking the performance of theinvestments included in the index. It’s unlikely that afund will be able to track its index perfectly becausethe fund has its own operating and trading costs,which lower returns. Indices don’t have these costs.

Also, an index fund may, in basing its investmentdecisions on an index, have more of its net assetsinvested in one or more issuers than is usuallypermitted for mutual funds. In these circumstances,index funds may tend to be more volatile and lessliquid than more diversified funds as they’re affectedmore by the performance of individual issuers.

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Further, concentrating its investments in thesecurities of a particular index allows an index fundto focus on that index’s potential, but it also meansthat it tends to be more volatile than a fund thatinvests in the securities of a variety of indicesbecause prices of securities on the same index tendto move up and down together. The index fund mustcontinue to invest in the securities of the index, evenif the index is performing poorly. That means thefund won’t be able to reduce risk by diversifying itsinvestments into securities listed on other indices.Also, if the stock market upon which the index isbased is not open, the fund will be unable todetermine the net asset value of a unit of the fund,and so may be unable to satisfy redemption requests.

Industry concentration riskSome mutual funds concentrate their investments ina particular industry. This allows them to focus onthat industry’s potential, but it also means that theytend to be more volatile than funds that invest inmany industries. Securities in the same industry tendto be affected in the same way by changes ineconomic, regulatory, financial and marketconditions. Where required to invest in a particularindustry by their investment objectives, these fundsmust continue to invest in that industry, even if theindustry is performing poorly. That means the fundswon’t be able to reduce risk by diversifying theirinvestments into other industries.

Interest rate riskThe value of funds that invest in fixed-incomesecurities can move up or down as interest rateschange. Here’s why. Fixed-income securities—including bonds, mortgages, treasury bills andcommercial paper—pay a rate of interest that’s fixedwhen they’re issued. Their value tends to move inthe opposite direction to interest rate changes. Forexample, when interest rates rise, the value of anexisting bond will fall because the interest rate onthat bond is less than the market rate. The opposite isalso true. These changes in turn affect the value ofany fund investing in fixed-income securities.

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

Issuer concentration riskSome mutual funds concentrate their investments ina particular issuer. This allows them to focus on thatissuer’s potential, but it also means that they tend tobe more volatile than more diversified funds. Theirliquidity, and therefore their ability to satisfyredemption requests, may be adversely affected. Andbecause these funds invest in fewer issuers, they’reaffected more by the performance of individualissuers. These funds may be riskier than other fundsthat hold a greater number of issuers in theirportfolios.

Large transaction riskA fund may have one or more investors who hold oracquire a significant amount of securities of therelevant fund, including another mutual fund. Forexample, a financial institution may buy or sell largeamounts of the securities of a fund to hedge itsobligations relating to a guaranteed investmentproduct whose performance is linked to theperformance of the relevant fund. As well, certainmutual funds, including mutual funds managed byus, may invest directly in the funds. If one or more ofthese investors (including these investing funds)decides to redeem its investment in a fund, the fundmay have to make large sales of securities to meetthese requests. The portfolio manager may have tochange the composition of the fund’s portfoliosignificantly or may be forced to sell investments atunfavourable prices, which can negatively impactthe fund’s returns. Conversely, if one or more ofthese investors decides to increase its investment in afund, the fund may have to hold a relatively largeposition in cash for a period of time while theportfolio manager attempts to find suitableinvestments. This could negatively impact the fund’sreturn.

Liquidity riskSome securities may be difficult to buy or sellbecause they’re not well known or because politicalor economic events significantly affect them. Theseinclude investments in specific sectors, especiallycommodity sectors, and investments in developingor smaller markets. In addition, smaller companiesmay be hard to value because they’re developingnew products or services for which there is not yet adeveloped market or revenue stream. They may onlyhave a small number of shares in the market, whichmay make it difficult for a fund to buy or sell shareswhen it wants to. The value of funds that hold theseinvestments may rise or fall substantially.

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Portfolio composition risk By using the Fixed Income Component of a BMOLifeStage Plus Fund to seek to cover the GuaranteedMaturity Amount per unit as of the Target End Date,the percentage of the fund’s portfolio invested in theFixed Income Component will increase as thescheduled Target End Date approaches. As well, ifthere is a significant decline in interest rates and/or ifthere is a significant decline in equity markets, theallocation of the fund’s assets may change from theMutual Fund Component to the Fixed IncomeComponent at an earlier date, thereby reducing theexposure of the fund to returns on the Mutual FundComponent. As a result, the potential for equityinvestment return of the fund may be reduced oreliminated.

Redemption prior to Target End Date riskThe BMO LifeStage Plus Funds are designed forinvestors with long-term investment horizons whoare prepared to hold the units of the fund to theTarget End Date. They are not designed as a short-term investment. The Guaranteed Maturity Amountis only available if you hold your units until theTarget End Date. If you redeem before the Target EndDate, you will receive only the current net assetvalue per unit for your redeemed units, which maybe less than the Guaranteed Maturity Amount.

Securities lending, repurchase and reverse repurchase transactions riskFunds may engage in securities lending, repurchaseand reverse repurchase transactions. Securitieslending is an agreement whereby a fund lendssecurities through an authorized agent in exchangefor a fee and a form of acceptable collateral. Under arepurchase transaction, a fund agrees to sellsecurities for cash while, at the same time, assumingan obligation to repurchase the same securities forcash (usually at a lower price) at a later date. Areverse repurchase transaction is a transactionpursuant to which a fund buys securities for cashwhile, at the same time, agreeing to resell the samesecurities for cash (usually at a higher price) at alater date.

The risks associated with securities lending,repurchase or reverse repurchase transactions arisewhen a counterparty defaults under the agreementevidencing the transaction and the fund is forced tomake a claim in order to recover its investment. In asecurities lending or a repurchase transaction, a fundcould incur a loss if the value of the securities loanedor sold has increased in value relative to the value ofthe collateral held by the fund. In the case of areverse repurchase transaction, a fund could incur aloss if the value of the securities purchased by thefund decreases in value relative to the value of thecollateral held by the fund.

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

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

• repurchase transactions and securities lendingagreements are limited to 50% of a fund’s assets.Collateral held for loaned securities and cash paidfor received securities are not included whenmaking this calculation

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

Series riskSome of the funds issue more than one series ofsecurities. Each series has its own fees and expenses,which are tracked separately; however, if a seriescan’t meet its financial obligations, the other seriesare responsible for making up the difference. This isbecause the fund as a whole is legally responsible forthe financial obligations of all of the series.

Zero-Coupon Securities riskCertain funds may invest in zero-coupon securities.Zero-coupon securities tend to be more highlysensitive to interest rate fluctuations than securitieswith similar terms to maturity that pay a coupon.

138

Auditors The auditors audit the funds’ annual financialstatements to ensure that these statements fairlypresent the financial position and results of operationsof each of the funds in accordance with Canadiangenerally accepted accounting principles. The auditorsare independent of BMO Investments Inc. and thefunds. Although you will not approve any change ofauditor, you will receive written notice of any suchproposed change at least 60 days prior to the change.

PricewaterhouseCoopers LLP,

Chartered Accountants

Toronto, Ontario

Registrar The registrar keeps a register of the owners ofsecurities for each fund, processes orders, and issuesaccount statements to securityholders. The registrarmay arrange for third parties to provide such registryservices to the funds. Bank of Montreal InvestmentServices is a department of Bank of Montreal.

Bank of Montreal

Investment Services

Montréal, Québec

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

CIBC Mellon Trust Company

Toronto, Ontario

Principaldistributor

The principal distributor markets and distributes BMO Mutual Fund securities directly through Bank of Montreal branches and through registered dealers and brokers.

BMO Investments Inc.

Toronto, Ontario

Trustee All of the funds, except the BMO Global Tax AdvantageFunds, are organized as trusts. The trustee holds title tothe securities owned by those funds on behalf ofunitholders, has exclusive authority over their assetsand affairs and has a fiduciary responsibility to act inthe best interest of the unitholders.

The BMO Global Tax Advantage Funds are organizedas classes of a corporation and do not have a trustee,but have a board of directors.


Toronto, Ontario

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


77 King Street West, Suite 4200Toronto, Ontario M5K 1J5

BMO Investissements Inc.

129, rue St. Jacques, 12e étage Montréal, Québec H2Y 1L6

1-800-665-7700

Organization and managementof the BMO Mutual Funds

139

IndependentReviewCommittee

The funds are required to have an IRC in accordancewith National Instrument 81-107. The mandate of the IRCis to review conflict of interest matters identified andreferred to the IRC by the manager and to give itsapproval or recommendation, depending on the natureof the conflict of interest matter. In each instance where aconflict of interest matter is identified and referred to theIRC, the focus of the IRC is to determine if the manager’sproposed action achieves a fair and reasonable result forthe funds.

The IRC currently is composed of five members and eachmember is independent of the funds, the manager andother companies related to the manager. The IRC willprepare, for each financial year of the funds, a report tosecurityholders that describes the IRC and its activitiesfor the financial year. Securityholders can get a copy ofthis report, at no cost, by calling 1-800-665-7700, bywriting to BMO Investments Inc. at 77 King Street West,42nd Floor, Toronto, Ontario, M5K 1J5 or by visiting ourwebsite at www.bmo.com/mutualfunds or SEDAR atwww.sedar.com.

Additional information about the IRC, including thenames of IRC members, is available in the funds’ annualinformation form.

Organization and management of BMO Mutual Funds (continued)

140

Portfolio managersThe portfolio managers provide investment advice to the manager on the investment portfolios of the funds.We’ve hired the following companies to manage the investment portfolios of the funds. See the funddescriptions starting on page 7 for the portfolio managers for each fund.

KBC Asset ManagementInternational Limited,Dublin, Ireland(“KBC”)

KBC is a wholly-owned subsidiary of KBC Asset Management Ltd, Dublin, whichhas been managing assets for over 25 years and is ultimately owned by the KBCGroup, a financial services provider headquartered in Brussels and publicly listedon the Euronext Stock Exchange in Brussels with operations in over 30 countries.KBC and related companies had more than $8 billion (Cdn) in assets undermanagement as of December 31, 2008.

Jones HewardInvestment Counsel Inc., Toronto, Ontario(“Jones Heward”)

Jones Heward has managed money for Canadians since 1925. Jones Heward is awholly-owned, indirect subsidiary of Bank of Montreal, the parent company ofBMO Investments Inc. and had over $29.5 billion (Cdn.) in assets undermanagement as of December 31, 2008. The Jones Heward equity team employs a“bottom-up” investment process using fundamental analysis to identify attractivelypriced equities. Research responsibilities are divided by sector.

Insight InvestmentManagement (Global) Limited, London, U.K.(“Insight”)

Insight is a company incorporated in the United Kingdom and formerly carried onbusiness as Rothschild Asset Management Limited. It became a subsidiary of HBOSplc on January 31, 2003 and changed its name to Insight Investment Management(Global) Limited on April 30, 2003. It is the autonomous asset management businessof the HBOS Group. Insight and related companies had more than $217.4 billion(Cdn) in assets under management as of December 31, 2008.

HIM Monegy, Inc.Toronto, Ontario(“HIM Monegy”)

HIM Monegy is part of Chicago-based Harris Investment Management, Inc., andoperates within the BMO Financial Group. It is a wholly-owned, indirect subsidiaryof Bank of Montreal, the parent company of BMO Investments Inc. HIM Monegy’sexperienced group of professionals is dedicated to managing high yield bonds,loans and credit default swaps. As of December 31, 2008, assets under managementfor HIM Monegy were approximately $1 billion (Cdn.).

Harris InvestmentManagement, Inc.,Chicago, Illinois(“Harris”)

Harris had approximately $11.7 billion (Cdn.) in assets under management as ofDecember 31, 2008 and began managing money over 100 years ago. Harris is awholly-owned, indirect subsidiary of Bank of Montreal, the parent company ofBMO Investments Inc.

Guardian Capital LP,Toronto, Ontario

Guardian Capital LP is a Canadian-based investment management organizationproviding investment management services. Guardian traces its origins back to1962 when it was incorporated as GDN Management Limited. Its name changed in1987 to Guardian Capital Inc, and in 2004 to Guardian Capital LP. Total assets undermanagement as of December 31, 2008 were $10.8 billion (Cdn.).

Capital Guardian Trust Company, Los Angeles, California (“Capital Guardian”)

Capital Guardian is a part of The Capital Group Companies, Inc., a privately-ownedinvestment management group which traces its roots back to 1931. Capital Guardianwas chartered in 1968 and is one of the world’s largest investment managementfirms. As of December 31, 2008 Capital Guardian managed approximately$79.67 billion (Cdn.) on behalf of a diverse group of clients.

141Portfolio managers (continued)

UBS Global AssetManagement (Canada) Inc., Toronto, Ontario

UBS Global Asset Management was formed in 1998 through the merger of UnionBank of Switzerland and Swiss Bank Corporation. In August 2001 UBS Global AssetManagement acquired a large Canadian institutional investment manager andformed UBS Global Asset Management (Canada) Co. The firm employs a bottom upfundamental approach to investment management with a focus on determiningintrinsic value. As of December 31, 2008 UBS Global Asset Management had$655 billion (Cdn.) in assets under management.

State Street GlobalAdvisors, Ltd., Montréal, Québec(“State Street”)

State Street is a Canadian resident subsidiary of State Street Corp. of Boston, one ofthe largest money managers in the U.S. with $1.4 trillion (Cdn.) in assets undermanagement as of December 31, 2008. State Street has provided investmentmanagement services since 1978, including the first international index fund.

Sanford C. Bernstein & Co., LLC, New York, New York(“Sanford Bernstein”)

Sanford Bernstein provides investment management services through theinvestment management professionals of its parent company, AllianceBernsteinL.P., a U.S.-based investment advisor formerly known as Alliance CapitalManagement Corporation (Alliance Capital). AllianceBernstein is a research-drivenorganization that is global in scope and client-focused in its mission. It delivers toclients around the world pre-eminent investment services in key asset classes:Bernstein Value Equities, Alliance Growth Equities, AllianceBernstein BlendStrategies, AllianceBernstein Fixed Income and AllianceBernstein AlternativeInvestments.

Sanford Bernstein was founded in 1967 to provide investment research and tomanage assets for both private and institutional investors. Assets undermanagement for the combined companies were approximately $570 billion (Cdn.)as of December 31, 2008.

SAM Sustainable Asset Management, AGZurich, Switzerland(“SAM”)

SAM was founded in 1995 as an independent asset management company forsustainability investments and has grown to become one of the world’s leadinginstitutions in this field. SAM is headquartered in Zurich, Switzerland and ispresent in Europe, North America, Australia and Asia. Assets under managementand advice as of December 31, 2008 were greater than $11.1 billion CAD.

Pryford InternationalLimited,London, England(“Pyrford”)

Pyrford is a provider of international asset management services for pension funds,charities, endowments, foundations and high net worth individuals. The companyhas been operating from its London, UK base since 1987. Pyrford is a wholly-owned,indirect subsidiary of Bank of Montreal, the parent company of BMO InvestmentsInc. and has USD $2 billion in assets under management as of December 31, 2008.

PIMCO Canada Corp.,Toronto, Ontario(“PIMCO”)

PIMCO is a wholly-owned subsidiary of Pacific Investment Management CompanyLLC (“PIMCO LLC”). PIMCO LLC is a Delaware limited liability company and amajority-owned subsidiary of Allianz Global Investors of America L.P. (“AllianzLP”). Allianz Aktiengesellschaft (“Allianz AG”) is the indirect majority owner ofAllianz LP. Allianz AG is a European-based, multinational insurance and financialservices holding company. Pacific Life Insurance Company holds an indirectinterest in Allianz LP. As of December 31, 2008 PIMCO LLC had $747 billion (Cdn.)in assets under management.

Martin Currie Inc.,Edinburgh, Scotland(“Martin Currie”)

Martin Currie is an affiliate of Martin Currie Investment Management Limited, aleading Scottish investment management company. It was originally founded as anaccountancy practice in 1881 and has been involved in managing investmentportfolios for over 100 years. Since 1958, investment management has been its onlyarea of activity. As of December 31, 2008, Martin Currie managed approximately$9.9 billion (Cdn.) in client assets.

142We may have difficulty enforcing legal rights against Capital Guardian, Harris, Insight, KBC, Martin Currie,Pyrford and SAM because they’re resident outside of Canada and their assets are located outside of Canada.These portfolio managers are not fully subject to the requirements of securities legislation in Canada and theregulations concerning proficiency, capital, insurance, record keeping, segregation of funds and securities, andstatements of account and portfolio. The name and address of the agent for service in Canada for theseportfolio managers is available from the Ontario Securities Commission. It may also be difficult to enforce legalrights against Sanford Bernstein because most of its assets are outside of Canada.

The securities of underlying funds held by a fund that we, or one of our affiliates or associates, manage will notbe voted on unless, at our discretion, we arrange for securities of the underlying fund to be voted by thesecurityholders of the fund.

In certain circumstances, in place of you approving a fund merger, the IRC is permitted under securitieslegislation to approve the fund merger. In these circumstances, you will receive written notice of any proposedfund merger at least 60 days prior to the change.

Portfolio managers (continued)

143

You can buy, switch, or redeem Series A and T6securities of the funds at no charge:• in person, at any Bank of Montreal branch• by telephone, once you’ve made arrangements for

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

1-800-665-7700• through the internet at www.bmomutualfunds.com,

once you’ve made authorization arrangements• by mail. Your order to buy must be mailed with a

certified cheque made out to the fund you’rebuying. For units of BMO U.S. Dollar Funds andunits of BMO U.S. Equity Fund and BMO U.S.High Yield Bond Fund that are to be purchased inU.S. currency, the cheque must be drawn on a U.S.dollar bank account

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

You can also buy, switch, or redeem BMO MutualFunds through a registered dealer or broker. Somedealers or brokers may charge you a fee for theirservices.

You can buy series F securities only through dealerswho have entered into a Series F Agreement with usand only with our prior approval. A dealer’sparticipation in series F securities is subject to ourterms and conditions.

How the funds are structuredThere are two different types of mutual fundsoffered through this simplified prospectus:• mutual fund trusts that issue securities called

units.• the BMO Global Tax Advantage Funds, each of

which is a class of shares of BMO Global TaxAdvantage Funds Inc., a mutual fund corporationthat issues securities called shares.

When you invest in a fund that is organized as atrust, you buy units. A mutual fund trust distributesits earnings by allocating its income to unitholders.Income can include interest and other income,dividends and capital gains. In general, incomedistributed to you from a trust is taxed as if youreceived it directly.

BMO Global Tax Advantage Funds Inc. is aCanadian corporation. Its capital is divided intoseries of classes. Each class of shares corresponds toa different pool of investments with differentobjectives. When you invest in a BMO Global TaxAdvantage Fund, you buy shares in a series of a classof the corporation. Distributions from a corporationare ordinary dividends, or capital gains dividends orreturns of capital for income tax purposes.

About the series of securitiesSome of the funds issue more than one series ofsecurities. You’ll find the type of securities each fundoffers in the Fund details section of its funddescription. Only series A, series I, series T6 andseries F securities are offered through this simplifiedprospectus. Other series of the funds may be offeredthrough a separate simplified prospectus. Eachseries is intended for different kinds of investors andhas different fees and expenses. See Fees andexpenses and Dealer compensation for details.• Series A and series T6 securities are available

to all investors. You can buy series A andseries T6 securities directly from us by mail,by telephone (once you’ve made arrangementsfor payment) or through the internet atwww.bmo.com/mutualfunds or at any branchof Bank of Montreal in Canada or at the BMOInvestment Centre.

• Series F securities are for investors who areenrolled in dealer-sponsored wrap programs orflat fee accounts. Instead of paying a commissionon each transaction, these investors pay an annualfee based on the value of their assets. Series Fsecurities are also available to other investors forwhom we do not incur substantial distributioncosts. The management fee is reduced for theseinvestors because our costs are reduced.

• Series I securities are for institutional investors foruse within managed asset programs or structuredproducts. These investors negotiate and pay aseparate fee to us. The fee is paid by cheque or byredeeming series I securities held by the investoror dealer. The fund doesn’t pay a management feeon its series I securities because the investor ordealer pays a series I fee to us directly.

Purchases, switches and redemptions

144

If you or your dealer are no longer eligible to holdseries F or series I securities (as the case may be), wemay change your series F or series I securities (asapplicable) into series A securities of the same fund.If we do this, we’ll give you 30 days notice. Inaddition, if we redesignate your securities of a fundinto securities of another series of the same fund,service commissions payable to registered dealersand brokers, if any, are disclosed in the simplifiedprospectus and may be higher than the series thatyou previously owned.

Provided the conditions set out below are met, wemay, in our discretion, redesignate your securities ofa fund into securities of another series of the samefund. We may only redesignate your securities if:

- you receive securities of the same value;- the management fee and administration fee of

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

- the redesignation is done at no cost to you;- the redesignation is not a disposition for tax

purposes; and- the service commissions payable to registered

dealers and brokers, if any, remains the same.

The price of a security

When you buy, switch or redeem securities of amutual fund, you do so at the net asset value (NAV)of the security. This is also called the fund’s unit orshare price. We calculate the price of each securityfor each series of each fund as at 4:00 p.m. EasternTime on each valuation day. A valuation day is eachday that the Toronto Stock Exchange is open fortrading or such other time as we may from time totime determine to be a day of valuation for any fund.Prices for some series of securities may be publishedin major Canadian newspapers the following day and are published on the internet atwww.bmo.com/mutualfunds.

Funds that issue only series A securitiesWe calculate the price of each fund that offers asingle series of securities by:• adding up the fund’s assets

(its investments and cash)• subtracting the fund’s liabilities

(any money the fund owes)• dividing by the number of securities held by all

investors in the fund.

How to calculate a fund’s NAV per security

assets – liabilitiesnumber of securities

=priceof a

security= NAV

per security

Funds that issue multiple seriesFor each fund, we calculate the price for eachseries by:• adding up the market value of each series’

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

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

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

How we process your orderYour order to buy, switch or redeem securities isforwarded to us the same day a Bank of Montrealbranch or dealer receives it. If we receive your orderby 4 p.m. Eastern Standard Time (EST) on avaluation day, we’ll process it at that day’s price persecurity. If we receive your order after 4 p.m. (EST),we’ll process it at the next valuation day’s price. Ifthe Toronto Stock Exchange closes earlier than4 p.m. (EST) on a valuation day, we may impose anearlier deadline. We’ll process your order only if it’sin good order. The issue and redemption price of thesecurities of a fund is based on the mutual fund’ssecurities’ net asset value next determined afterreceipt by the mutual fund of your order.

If you’re buying securities, you must includepayment with your order. If we do not receivepayment within three (3) business days ofprocessing your purchase order for any securities,we must redeem your securities on the nextbusiness day. If the proceeds are greater than thepayment you owe, the relevant fund keeps thedifference. If the proceeds are less than the paymentyou owe, we will pay the difference to the relevantfund on your behalf, and collect this amount fromyour dealer who may collect the amount from you.

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

series’ proportionateshare of assets –

series’ proportionateshare of liabilities

number of securitiesof that series

=priceof a

security=

NAVper

security

145

For units of BMO U.S. Dollar Funds, and units ofBMO U.S. Equity Fund and BMO U.S. High YieldBond Fund that are to be purchased in U.S.currency, your payment must be in U.S. dollars.Note that the ability to purchase units of BMO U.S.Equity Fund and BMO U.S. High Yield Bond Fund inU.S. dollars is offered as a convenience for investorsand does not act as a currency hedge between theCanadian and U.S. dollars. For purchases of units ofBMO U.S. Equity Fund and BMO U.S. High YieldBond Fund in U.S. dollars, the NAV per unit iscomputed by converting the Canadian dollar valueinto U.S. dollars based on current exchange rates.For fund units purchased in U.S. dollars, switcheswill be processed in U.S. dollars and redemptionproceeds will be paid in U.S. dollars. We’ll pay to thefund you’re buying any interest earned between thetime you make payment and the time the purchaseis completed. We generally don’t issue certificates.

We may accept or reject an order to buy within onebusiness day of receiving the order. If we acceptyour order, your broker, dealer or we will send youconfirmation of your order, which is your proof ofthe transaction. If you sign up for our ContinuousSavings Plan or Systematic Withdrawal Plan, you’llonly receive confirmation of the first transactionmade under the plan. If we reject your order, we’llreturn any money we’ve received, without interest.

If you’re redeeming securities, we’ll transfer or mailthe proceeds to you within three (3) business daysafter we determine the redemption price providedall necessary documents and/or information hasbeen received. You will receive U.S. dollars whenyou redeem units of the BMO U.S. Dollar Funds orunits of BMO U.S. Equity Fund and BMO U.S. HighYield Bond Fund that were purchased in U.S.dollars. You will receive Canadian dollars when youredeem securities of all other funds.

Short-term tradingWe discourage investors from short term trading.

Short term trading can harm a fund’s

performance and the value of other investors’

holdings in a fund because such trading can

increase brokerage and other administrative costs

of a fund and interfere with the long-term

investment decisions of the portfolio manager.

Short term trading may be particularly

problematic when large sums are involved. Short

term trading can include buying and then

redeeming or switching a large number of

securities of a fund within 30 days of buying or

switching them. We have policies and procedures

to detect and deter short term trading that include

the ability to refuse your present or future

order(s) to buy or switch securities. If, in our sole

discretion, we determine that you are engaging in

short-term trading, in addition to taking other

available remedies, the relevant fund may charge

a short-term trading penalty to be paid directly to

the fund out of the redemption proceeds, reducing

the amount otherwise payable to you on the

redemption or switch (see page 152 for more

information). We have the option to waive this

penalty at any time.

The restrictions imposed on short-term trading,

including the short-term trading fees, will

generally not apply in connection with

redemptions or switches: from money market

funds and similar funds; initiated by us; under

special circumstances, as determined by us in our

sole discretion; or made under optional plans

including rebalancing in connection with the

BMO MatchMaker Strategic Portfolios and BMO

Intuition RESP Strategic Portfolios or pursuant to

Systematic Withdrawal Plans. The annual

information form includes a description of all

arrangements, whether formal or informal, with

any person or company, to permit short-term

trades of securities of the funds.

Despite these restrictions and our procedures to

detect and deter short-term trading, we cannot

ensure that such trading will be completely

eliminated.

146 Your guide to buying, switching and redeeming the fundsThe following tables show you the minimum amounts for buying, switching and redeeming securities of afund, and for maintaining an account or an investment in a fund. These amounts depend on the kind ofaccount and fund you choose. If the value of your securities falls below the minimum balance, we may buyyour securities from you or redeem them for you. If the value of your units in BMO Premium Money MarketFund falls below the minimum balance, after providing advanced notice, we may either switch your units toBMO Money Market Fund or redeem them for you. We may change the minimum amounts at any timewithout notice. Any minimum amounts for series I securities are determined on a contract basis.

BMO SelectClass/BMO FundSelect™ PortfoliosSINGLE PURCHASE $1,000 $100 $1,000CONTINUOUS SAVINGS PLAN $100 a month for 10 months — —

BMO Premium Money Market FundSINGLE PURCHASE $150,000 $5,000 $150,000CONTINUOUS SAVINGS PLAN $150,000 $1,500 $150,000

Buying funds Minimum amount you can buy Minimum balance

Your first purchase Each additional purchase

ALL FUNDS except BMO Premium Money Market Fund, the BMO SelectClass Portfolios, the BMO FundSelect™ Portfolios and series I securitiesSINGLE PURCHASERegular account

(US$ for BMO U.S. Dollar Funds) $500 $50 $500

BMO MatchMaker® account $1,000 $100 $1,000BMO Intuition® account $1,000 $100 $1,000RRIF account $5,000 — —CONTINUOUS SAVINGS PLANRegular account

(US$ for BMO U.S. Dollar Funds and U.S. currency version of BMO U.S. Equity Fund and BMO U.S. High Yield Bond Fund)

$50 a month for 10 months

— —

BMO MatchMaker account $100 a month for 10 months

— —

BMO Intuition account $100 a month for 10 months(for a portfolio) $50 a month for 10 months(for individual funds)

—

—

—

—

147

Switching fundsA switch involves moving money from one fund orseries to another fund or series. We describe thekinds of switches you can make below. When wereceive your order to switch, we’ll redeem orconvert securities of the first fund or series and then

use the proceeds to buy securities of the second fundor series. You’ll find the minimum amounts neededfor switches in the table on page 147. For detailsabout how switches are taxed, see Income taxconsiderations for investors.

BMO SelectClass Portfolios/BMO FundSelect™ PortfoliosSingle redemption $500 $1,000Systematic withdrawal plan $100 monthly, quarterly or semi-annually $25,000RRIF, LIF and LRIF accounts Minimum amount required under the Tax Act

BMO Premium Money Market FundSingle redemption $5,000 $150,000Systematic withdrawal plan $1,500 monthly, quarterly or semi-annually $150,000RRIF, LIF and RLIF accounts Minimum amount required under the Tax Act

Redeeming funds Minimum amount you can redeem Minimum balance

ALL FUNDS except BMO Premium Money Market Fund, the BMO SelectClass Portfolios, the BMO FundSelect™ Portfolios and series I securitiesSINGLE REDEMPTIONAll accounts


$500 $500

RRIF, LIF and LRIF accounts Minimum amount required under the Tax ActSYSTEMATIC WITHDRAWAL PLANAll accounts


$100 monthly, quarterly or semi-annually $10,000

BMO SelectClass/BMO FundSelect™ PortfoliosAll accounts $1,000 $1,000

BMO Premium Money Market FundAll accounts $500 $150,000

Switching between funds Minimum amount you can switch Minimum balance

ALL FUNDS except BMO Premium Money Market Fund, the BMO SelectClass Portfolios, the BMO FundSelect™ Portfolios and series I securitiesSINGLE PURCHASERegular account


$500 $500

BMO MatchMaker account $1,000 $1,000BMO Intuition account $1,000 $1,000

148

BMO Trust FundsThere are two kinds of switches you can make:• Switching between BMO Trust Funds

You can switch units of one BMO Trust Fund intounits of the same series of another BMO TrustFund. This is a disposition for income taxpurposes. Switching units you hold in a non-registered account, including a BMO MatchMakeraccount, may result in a capital gain or loss.Capital gains are taxable.

• Switching between series of the same fund

You can switch your units of one series of a fundinto units of another series of the same fund, if youqualify. This is called a redesignation, and is not adisposition for income tax purposes.

There may be fees or charges associated with thepurchase, holding or redemption of the other seriesof units, depending upon the series of units and thearrangements between you and your dealer. Pleasesee Fees and expenses on page 151 for moreinformation.

BMO U.S. Dollar Funds and U.S. currency versions ofBMO U.S. Equity Fund and BMO U.S. High Yield Bond FundBecause BMO U.S. Dollar Funds, and units of theBMO U.S. Equity Fund and BMO U.S. High YieldBond Fund that are purchased in U.S. currency,are denominated in U.S. dollars, you can’t switchbetween these funds and our Canadian dollarfunds. You can switch between funds denominatedin the same currency only.

BMO Global Tax Advantage FundsWhen you switch shares of a mutual fundcorporation, it’s called a conversion.

You can convert your shares of one series of aBMO Global Tax Advantage Fund into shares of thesame or a different series of another BMO GlobalTax Advantage Fund, assuming you are qualified forthe series you are switching into. This is not adisposition for income tax purposes.

You can also switch your shares of a BMO GlobalTax Advantage Fund into the same series of units ofa BMO Trust Fund. This is a disposition for incometax purposes. Switching securities you hold in anon-registered account, including a BMOMatchMaker account, may result in a capital gainor loss. Capital gains are taxable.

Redeeming fundsSee the table on page 147 for the minimum amountsneeded for redemptions. If you’re redeeming units ofBMO Mortgage and Short-Term Income Fund worthmore than $1 million, you must give us 30 days’notice in writing.

If we have not received all the necessarydocumentation and/or information needed to settleyour redemption request within ten business days,we are required under securities legislation topurchase the equivalent number of securities yourequested to be redeemed as of the close of businesson the tenth business day. If the purchase price ofthe securities is less than the original redemptionprice, the fund will keep the difference. If theamount of the purchase price exceeds the originalredemption price, BMO Investments Inc. (theprincipal distributor) will pay the difference to thefund and may seek reimbursement from you or yourdealer, together with additional costs. Your dealermay be entitled to recover these amounts from you.

Redeeming securities you hold in a non-registeredaccount, including a BMO MatchMaker account,may result in a capital gain or loss. Capital gainsare taxable.

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

futures exchange in Canada or outside Canada inwhich securities or derivatives that make up morethan 50% of the value or underlying exposure ofthe fund’s total assets are traded, and

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

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

149

This section tells you about the plans and services thatare available to BMO Mutual Fund investors. Call us at1-800-665-7700 or ask your dealer for full details.

Continuous Savings PlanYou can make weekly, bi-weekly, semi-monthly,monthly or quarterly investments in the funds usingour Continuous Savings Plan. Here’s how the planworks:• You must meet the minimum requirements in the

table on page 146 under Buying funds• We’ll automatically transfer money from your bank

account to buy securities of the funds you choose• If you choose BMO U.S. Dollar Funds, or BMO U.S.

Equity Fund or BMO U.S. High Yield Bond Fund tobe purchased in U.S. currency, we’ll withdrawmoney from your U.S. dollar bank account.

The funds have received relief from the requirementto deliver the annual renewal simplified prospectusand any amendments thereto (the “RenewalProspectus”) to participants in a ContinuousSavings Plan unless they request it. You may requesta copy of the Renewal Prospectus by calling us at 1-800-665-7700. The Renewal Prospectus may also befound on the SEDAR website at www.sedar.com oron our website at www.bmo.com/mutualfunds.

You do not have a statutory right to withdraw fromyour purchase of mutual funds pursuant to aContinuous Savings Plan, other than in respect of yourinitial purchase. However, you will continue to haveall other statutory rights under securities law,including a misrepresentation right (see page 156under What are your legal rights?), whether or not yourequest the Renewal Prospectus. You will continue tohave the right to terminate your participation in aContinuous Savings Plan at any time, upon providingnotice to us at least four days before the nextscheduled investment date.

Systematic Withdrawal PlanYou can withdraw money monthly, quarterly or semi-annually from your funds using our SystematicWithdrawal Plan. Here’s how the plan works:

Averaging the cost of your investmentsMaking regular investments through ourContinuous Savings Plan can reduce the cost ofinvesting. Here’s how. Let’s say you invest $100 in afund monthly. That money will buy more securitiesof the fund when prices are low and fewersecurities when prices are high. Over time, this canmean a lower average cost per security than if youhad made one lump-sum purchase.

• you must hold your funds in a non-registeredaccount

• you must meet the minimum requirements in thetable on page 147 under Redeeming funds

• we’ll redeem enough securities to withdraw moneyfrom your account and make payments to you

• if you hold BMO U.S. Dollar Funds, or BMO U.S.Equity Fund or BMO U.S. High Yield Bond Fundpurchased in U.S. currency, we’ll deposit thepayments directly to your U.S. dollar bank account.

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

BMO registered plans We can set up a Registered Retirement Savings Plan(“RRSP”), Locked-in Registered Retirement SavingsPlan (“LRSP”), Locked-in Retirement Account(“LIRA”), Restricted Locked-in Savings Plan (“RLSP”),Registered Retirement Income Fund (“RRIF”), LifeIncome Fund (“LIF”), Restricted Life Income Fund(“RLIF”), Locked-in Retirement Income Fund(“LRIF”), Prescribed Retirement Income Fund(“PRIF”), Registered Education Savings Plan (“RESP”),Tax-Free Savings Account (“TFSA”) or RegisteredDisability Savings Plan (“RDSP”) for you. See Fees andexpenses for fees that may apply.

BMO MatchMaker Investment ServiceBMO MatchMaker helps you match your investmentgoals and risk tolerance to one of our strategic BMOMutual Fund portfolios or savings portfolios. You payno fee for this service. Here’s how it works:• Your contributions will be allocated automatically

among the investments in the portfolio you’vechosen, based on the weighting designated foreach investment within that portfolio

• If you choose a strategic portfolio, it will bereviewed during the last month of each calendarquarter (i.e. March, June, September andDecember). If the percentage weighting of anysingle mutual fund held in your portfolio varies bymore than its set target range, all of the mutualfunds in your portfolio will be automaticallyrebalanced to return them to their target ranges, ator near the end of the quarter. The set target rangesfor the portfolios are listed in the table below. Pleasesee Income tax considerations for investors.

• We have obtained regulatory relief to permit JonesHeward to review the make up of each of thestrategic and savings portfolios on a periodic basis.Pursuant to this relief, Jones Heward will exerciselimited discretionary authority to make changes inyour portfolio upon such periodic reviews bychanging the percentage weightings of funds (and

Optional Services

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GICs in the case of savings portfolios) in, and/oradding and/or removing funds from, each portfoliowith a view to optimizing your return while havingregard to your tolerance for risk. You would beadvised in writing that Jones Heward will exercisethis limited discretionary authority over yourportfolio. You should not opt for a BMO MatchMakerportfolio if you are not willing to have Jones Hewardexercise such limited discretionary authority overyour portfolio. There will be no charge for thisfeature to the BMO MatchMaker service.

BMO Intuition Investment ServiceBMO Intuition, our registered education savings planproduct, offers you a choice of several strategicportfolios and a savings portfolio. You pay no fee forthis service. Here’s how it works:• Your contributions will be allocated among the

investments in the portfolio you’ve chosen, based onthe weighting designated for each investmentwithin that portfolio

• If you choose a strategic portfolio, it will be reviewedduring the last month of each calendar quarter (i.e.March, June, September and December). If thepercentage weighting of any single mutual fundheld in your portfolio varies by more than its settarget range, all of the mutual funds in your portfoliowill be automatically rebalanced to return them totheir target ranges, at or near the end of the quarter.The set target ranges for the portfolios are listed inthe table below

• We have obtained regulatory relief to permit JonesHeward to review the make up of each of thestrategic and savings portfolios on a periodic basis.Pursuant to this relief, Jones Heward will exerciselimited discretionary authority to make changes inyour portfolio upon such periodic reviews bychanging the percentage weightings of funds (andGICs in the case of savings portfolios) in, and/oradding and/or removing funds from, each portfoliowith a view to optimizing your return while havingregard to your tolerance for risk. You would beadvised in writing that Jones Heward will exercisethis limited discretionary authority over yourportfolio. You should not opt for a BMO Intuitionportfolio if you are not willing to have Jones Hewardexercise such limited discretionary authority overyour portfolio. There will be no charge for thisfeature of the BMO Intuition service.

Rebalancing targets for BMO MatchMakerStrategic Portfolios and BMO Intuition RESPStrategic PortfoliosAs described above, one of the primary benefits ofinvesting in a BMO MatchMaker Strategic Portfolio orBMO Intuition RESP Strategic Portfolio is the

automatic rebalancing of your portfolio to help ensurethat your portfolio continues to provide the bestpotential returns for your level of risk tolerance.However, your portfolio will only be automaticallyrebalanced if the percentage weightings of at least oneof the mutual funds held in your portfolio varies bymore than its set target range. The set target ranges forthe mutual funds held in each strategic portfolio arelisted in the table below.

In June 2009, it is anticipated that Jones Heward willstrategically rebalance the portfolios. At that time it isexpected that the BMO MatchMaker StrategicPortfolios will be consolidated and renamed and thatthe set target ranges for the mutual funds held in eachstrategic portfolio will change to the following:

For more information about our BMO MatchMaker orIntuition portfolios, including details on the mutualfunds held in the various portfolios, please visit ourwebsite at www.bmo.com/mutualfunds, call us at 1-800-665-7700, or visit your nearest Bank of Montrealbranch.

BMO MatchMaker Strategic Portfolios

Set Target Rangefor Automatic

Rebalancing

BMO MatchMaker Security Portfolio Plus or minus 2.0%

BMO MatchMaker Balanced Portfolio Plus or minus 3.0%

BMO MatchMaker Growth Portfolio Plus or minus 4.0%

BMO MatchMaker Aggressive Growth Portfolio Plus or minus 4.5%

BMO Intuition RESP Strategic Portfolios


Rebalancing

BMO Intuition RESP Security Portfolio Plus or minus 2.0%

BMO Intuition RESP Balanced Portfolio Plus or minus 3.0%

BMO Intuition RESP Growth Portfolio Plus or minus 4.0%

BMO Intuition RESP Aggressive Growth Portfolio Plus or minus 4.5%

BMO MatchMaker Strategic Portfolios


Rebalancing

BMO MatchMaker Security 1 Non-RRSP & RRSP Portfolios Plus or minus 1.5%

BMO MatchMaker Security 2 Non-RRSP & RRSP Portfolios Plus or minus 2.0%

BMO MatchMaker Balanced 1 Non-RRSP & RRSP Portfolios Plus or minus 2.5%

BMO MatchMaker Balanced 2 Non-RRSP & RRSP Portfolios Plus or minus 3.0%

BMO MatchMaker Growth 1 Non-RRSP & RRSP Portfolios Plus or minus 3.5%

BMO MatchMaker Growth 2 Non-RRSP & RRSP Portfolios Plus or minus 4.0%

BMO MatchMaker Aggressive Growth Non-RRSP & RRSP Portfolios Plus or minus 4.5%

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The following table shows the fees and expensespayable by the fund and the fees and expenses youmay have to pay if you invest in the funds. Fees arepaid by the funds before they calculate their price persecurity. These fees indirectly reduce the value of yourinvestment.

If the basis of the calculation of a fee or expense thatis charged to a series of a fund offered through thissimplified prospectus (or is charged directly to suchsecurityholders by the fund or by us in connectionwith the holding of securities of the fund) is changedin a way that could result in an increase in charges tothe series or to its securityholders or if such afee or expense is introduced, the approval ofsecurityholders will not be obtained. In that case,securityholders will be sent a written notice advisingat least 60 days prior to such increase being effective.

If a fund holds securities of an underlying fund, feesand expenses are payable by the underlying fund inaddition to the fees and expenses payable by the fund.No management fees or incentive fees are payable bythe fund that, to a reasonable person, would duplicatea fee payable by the underlying fund for the sameservice. Further, no sales or redemption fees arepayable by the fund in relation to its purchases orredemptions of the securities of the underlying fund ifwe or one of our affiliates or associates manage theunderlying fund. No sales fees or redemption fees arepayable by the fund in relation to its purchases orredemptions of the underlying fund that, to areasonable person, would duplicate a fee payable byan investor in the fund.

Fees and expenses

Fees and expenses payable by the fund

Operating expenses The manager pays certain operating expenses of the funds. These expenses includeaudit and legal fees and expenses; custodian and transfer agency fees; costsattributable to the issue, redemption and change of units/shares, including the cost ofthe securityholder record keeping system; expenses incurred in respect of preparingand distributing prospectuses, financial reports and other types of reports, statementsand communications to securityholders; fund accounting and valuation costs; filingfees, including those incurred by the manager. In return, each fund pays a fixedadministration fee to the manager. The administration fee may vary by fund. See theAdministration fee information in the Fund details table for each fund. For series Isecurities, separate fee and expense arrangements are negotiated with each series Iinvestor. Administration fees are subject to sales tax.

Management fees Each fund pays us a fee for our management services. The management fee for eachseries is expressed as a percentage of the daily net asset value of the series and variesby fund and series. The fee is calculated daily and payable monthly. You’ll find themaximum management fee for the series of each fund offered through this simplifiedprospectus in the Fund details section. For each series, we may, at our discretion,waive a portion or the entire amount of the management fee chargeable at any giventime. For series I securities, separate fees are negotiated and paid by each series Iinvestor. Because we pay lower or no distribution, service or trailing fees on series Iand series F securities, series I and series F securities have lower fees compared toseries A or series T6 securities. Management fees are subject to sales tax.

Depending on several factors, we may rebate all or a portion of the management feefor certain investors in a fund. These factors include the value of an investment inthe funds and the nature of an investment, such as investments by institutionalinvestors. See Fees and Expenses in the funds’ annual information form.

Fees and expenses payable by the fund (continued)

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Fees and expenses payable by the fund (continued)

Other fees and expenses Continuous Savings Plan – None; Systematic Withdrawal Plan – NoneBMO MatchMaker Strategic Investment Service – None; BMO Intuition – NoneYour dealer may charge a fee for similar services

Registered plan fees An annual administration fee of $10 (plus applicable taxes) is charged for eachRegistered Retirement Savings Plan and Registered Education Savings Plan account.

A fee of $50 (plus applicable taxes) may be applied to a registered plan account ifand at such time as you transfer it, in whole or in part, to another institution.

Short-term trading fee Short term trading by investors may adversely affect all investors in a fund. Todiscourage short term trading, a fund may, at our sole discretion, charge a short-termtrading penalty of up to 2% of the amount that you redeem or switch if you buy orswitch and then redeem or switch securities of the fund within 30 days ofpurchasing or switching them. This penalty will be paid directly to the fund. Whilethis penalty generally will be paid out of the redemption proceeds of the fund inquestion, we have the right to redeem such other funds in any of your accountswithout further notice to pay this penalty. We may in our sole discretion decidewhich securities will be redeemed in such manner as we may determine. You will beresponsible for any costs and expenses, as well as any tax consequences, resultingfrom the collection of this penalty. We have the option to waive this penalty at anytime. Please see page 145 under Short-term trading.

Series I fees For series I securities, separate fees are negotiated and paid by each series Iinvestor.

Sales charges, switchfees and redemptionfees

None. You may have to pay sales charges, switch fees and redemption charges if youinvest through a registered broker or dealer other than us.

Fees and expenses payable directly by you

Operating expenses(continued)

Each fund also pays certain operating expenses directly (“Fund Expenses”),including interest or other borrowing expenses; costs and expenses related to theoperation of the IRC, including fees and expenses of IRC members; taxes of all kindsto which the fund is or might be subject; and costs associated with compliance withany new governmental or regulatory requirement introduced after December 1,2007. Funds that offer more than one series of securities allocate Fund Expensesproportionately among the series. Fund Expenses that are specific to a series areallocated to that series.

Each IRC member receives compensation for the duties he or she performs as an IRCmember. In aggregate, the five members of the IRC are currently entitled tocompensation of approximately $202,443 each year.

We will not reimburse the funds for any costs associated with compliance withNI 81-107 Independent Review Committee for Investment Funds.

The administration fee and Fund Expenses are included in the MER of a fund.

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Impact of sales chargesSeries A, series I and series T6 securities of the funds,and securities of certain funds are no load if you buy,redeem or switch such securities through BMOInvestments Inc., or the BMO Investment Centre.Series F securities of the funds are no load. Thatmeans you pay no sales or redemption charges onthese transactions.

The following table shows the maximum amount offees that you would have to pay if you made aninvestment of $1,000 in series A, series I, series T6 orseries F securities of a fund, held that investment forone, three, five or ten years and redeemedimmediately before the end of the period.

Dealer compensation

We pay sales commissions to some Bank of Montrealemployees.

We may also pay an annual service commission toregistered dealers and brokers based on the value ofthe securities of the funds that their clients hold,according to the following tables:

BMO Global High Yield Bond FundBMO U.S. High Yield Bond Fund

up to 0.75%

BMO Equity Index FundBMO U.S. Equity Index FundBMO International Index FundBMO U.S. Dollar Equity Index Fund

up to 0.50%

BMO Mortgage and Short-Term Income FundBMO Bond FundBMO Monthly Income FundBMO World Bond FundBMO Income Trust Fund

up to 0.60%

BMO T-Bill FundBMO Money Market FundBMO AIR MILES®† Money Market FundBMO Premium Money Market FundBMO U.S. Dollar Money Market FundBMO Short-Term Income Class

up to 0.20%

BMO Mutual Fund

Maximum annualservice commission

series A and T6(as applicable)

Atpurchase

OneYear

ThreeYears

FiveYears

TenYears

No load option none none none none none

BMO Global Monthly Income FundBMO Diversified Income Fund BMO Asset Allocation FundBMO Dividend Fund BMO Equity FundBMO U.S. Growth FundBMO U.S. Equity FundBMO International Equity FundBMO North American Dividend FundBMO European FundBMO Japanese FundBMO Special Equity FundBMO U.S. Special Equity FundBMO Resource FundBMO Precious Metals FundBMO Global Science & Technology FundBMO Emerging Markets Fund BMO U.S. Dollar Monthly Income Fund BMO Dividend Class BMO Canadian Equity Class BMO Global Dividend ClassBMO Global Equity ClassBMO Greater China ClassBMO Sustainable Opportunities ClassBMO Global Energy ClassBMO Sustainable Climate ClassBMO International Value ClassBMO SelectClass Security PortfolioBMO SelectClass Balanced PortfolioBMO SelectClass Growth PortfolioBMO SelectClass Aggressive Growth PortfolioBMO FundSelect™ Security PortfolioBMO FundSelect™ Balanced PortfolioBMO FundSelect™ Growth PortfolioBMO FundSelect™ Aggressive Growth Portfolio

up to 1.00%

BMO LifeStage Plus 2015 FundBMO LifeStage Plus 2017 FundBMO LifeStage Plus 2020 FundBMO LifeStage Plus 2022 FundBMO LifeStage Plus 2025 FundBMO LifeStage Plus 2026 FundBMO LifeStage Plus 2030 Fund

up to 1.05%

BMO Mutual Fund

Maximum annualservice commission

series A and T6(as applicable)

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Other sales incentivesWe’ll pay for any new compensation programs that wemay introduce as well as a portion of marketing andeducational programs; neither the funds nor theirsecurityholders pay for any compensation programs.

Sales incentive programsWe pay for marketing materials we give to dealers tohelp support their sales efforts. We may also sharewith dealers up to 50% of their costs in marketing thefunds.

We may pay up to 10% of the costs of some dealers tohold educational seminars or conferences for theirrepresentatives to teach them about, among otherthings, new developments in the mutual fundindustry, financial planning or new financial products.The dealer makes all decisions about where and whenthe conference is held and who can attend.

We may arrange seminars for representatives of thedealers where we inform them about newdevelopments in our mutual funds, our products andservices and mutual fund industry matters. We invitedealers to send their representatives to our seminarsand we do not decide who attends. Therepresentatives must pay their own travel,accommodation and personal expenses in connectionwith attending our seminars.

Equity InterestsBank of Montreal Holding Inc. owns 100% of theissued shares of BMO Investments Inc. Bank ofMontreal Holding Inc. is a wholly-owned subsidiary ofBank of Montreal. BMO Nesbitt Burns Inc. and BMOInvestorLine Inc., both indirect subsidiaries of Bank ofMontreal, may sell securities of the funds. Such salesare made on the same basis as those made by otherdealers, with no preferential compensation.

Dealer compensation from management fees

During the financial year ended September 30, 2008,we paid approximately 4.95% of total managementfees we received to registered dealers in sales andservice commissions for selling BMO Mutual Funds.

Income tax considerationsfor investors

This information is a general summary of the currentCanadian federal income tax rules under the IncomeTax Act (Canada) (the Tax Act). It assumes that youare a Canadian resident individual and hold securitiesof the funds as capital property.

When you earn incomeIf you hold units of a BMO Trust Fund, you earnincome on your investment when:• the BMO Trust Fund pays a distribution out of its net

income or net realized capital gains; or• you redeem or switch your units of the BMO Trust

Fund and realize a capital gain.

If you hold shares of a BMO Global Tax AdvantageFund, you generally earn income on your investmentwhen:• BMO Global Tax Advantage Funds Inc. pays an

ordinary dividend or a capital gains dividend; or• you redeem your shares of the BMO Global Tax

Advantage Fund and realize a capital gain.

Adjusted cost baseThe cost of your securities for calculating capital gainsor losses for income tax purposes is called theadjusted cost base (ACB). For most situations, you canuse the following formula to calculate the aggregateACB of your securities of a fund:

Funds held in non-registered accounts

BMO Trust Funds

DistributionsDistributions (which may include management feedistributions) of a fund’s income and capital gains aregenerally taxable, in Canadian dollars, in the year theyare paid or payable to you, whether you received themin cash or had them reinvested in additional units.The amount of reinvested distributions is added to theACB of your units.

Distributions may include capital gains, taxableCanadian dividends, foreign non-business income and

Your initial investmentplus additional investmentsplus reinvested distributions (including returns ofcapital) or dividendsminus returns of capitalminus the ACB of any previous redemptions

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other income. These are taxed as if you had receivedthe amounts directly. You may also be eligible forforeign tax credits in respect of foreign taxes paid by afund. In general, the higher a fund’s portfolio turnoverrate, the greater the chance the fund may have taxabledistributions. Distributions may include a return ofcapital. A return of capital is not taxable to you, butwill reduce the ACB of the related units. If the ACB ofyour units is reduced to less than zero, you will realizea capital gain, to the extent of the negative amount andyour ACB will be increased to zero.

The unit price of a fund may include income andcapital gains that the fund has accrued or realized butnot yet distributed. If you invest in a fund before adistribution date, you’ll have to pay tax on thatdistribution, even though the fund earned the amountbefore you owned it. For example, many of the fundsmake their only, or most significant, distribution ofincome and capital gains in December. If you invest ina fund late in the year, you may have to pay tax on itsearnings for the whole year.

Here are some other things to know aboutdistributions from some of the BMO Trust Funds:• distributions from BMO Security Funds and BMO

U.S. Dollar Money Market Fund are alwaysreinvested in the funds

• the funds generally distribute all earnings fromfutures contracts as ordinary income, rather thancapital gains

• BMO Precious Metals Fund and BMO ResourceFund distribute gains from the sale of preciousmetals as ordinary income, rather than capital gains

• income earned by BMO U.S. Dollar Money MarketFund, BMO U.S. Dollar Monthly Income Fund andBMO U.S. Dollar Equity Index Fund must bereported in Canadian dollars for income taxpurposes. When the fund sells or maturesinvestments in U.S. dollars, it may realize a gain orloss on the exchange rate when converted toCanadian dollars. This is treated as a capital gain orloss for income tax purposes. BMO U.S. DollarMoney Market Fund distributes any capital gainsand consolidates outstanding units in December tomaintain an NAV of US$1.00

• the receipt by a BMO LifeStage Plus Fund of anamount from Bank of Montreal pursuant to the Sub-Advisory Agreement in order to cover a Shortfallmay result in a taxable distribution to unitholderswith respect to such amount

• Your units of the BMO LifeStage Plus Funds will beconsolidated immediately after a distribution isreinvested so that the number of units of the fund

you hold after the consolidation is the same asbefore the distribution. This will not result in adisposition of your units. On the consolidation, theaggregate ACB of your units of the fund will notchange, but the ACB per unit will increase.

Redeeming or switching unitsIf you redeem units or switch between funds, you’llrealize a capital gain (or loss). The capital gain (orloss) is the difference between the amount you receivefor the redemption or switch and the ACB of the units,less any costs of disposition.

Redesignation of unitsA redesignation of units of one series of a fund forunits of another series of the same fund is not adisposition for income tax purposes and will not resultin a capital gain or loss. The cost of the units youreceive from a redesignation is equal to the ACB of theunits that were redesignated.

In general, you must include one-half of capital gainsin computing your income for tax purposes. One-halfof capital losses may be used to offset taxable capitalgains.

We’ll provide you with details on the proceeds from aredemption or switch. However, in order to calculateyour gain or loss, you need to know the ACB of yourunits before the disposition.

BMO Global Tax Advantage Funds

DividendsDividends from BMO Global Tax Advantage FundsInc. are taxable in the year you received them,whether you received them in cash or had themreinvested in additional shares. Dividends mayinclude ordinary dividends and capital gainsdividends.

Ordinary dividends are treated as taxable dividendsyou received directly and are subject to the gross-upand dividend tax credit rules that apply to taxabledividends paid by mutual fund corporations. Anenhanced gross-up and dividend tax credit is availablefor certain eligible dividends paid by BMO Global TaxAdvantage Funds Inc. Capital gains dividends aretreated as realized capital gains. In general, you mustinclude one-half of capital gains in your income. Areturn of capital is not taxable to you, but will reducethe ACB of your shares of the fund. If the ACB of yourshares is reduced to less than zero, you will realize acapital gain to the extent of the negative amount, andyour ACB will be increased to zero. Monthlydistributions on series T6 shares will be comprised of

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return of capital. The share price of a BMO Global TaxAdvantage Fund may include income and capitalgains that the fund has accrued or realized but not yetpaid out as a dividend. If you invest in a BMO GlobalTax Advantage Fund before a dividend is declared(which is usually at the end of September), you mayhave to pay tax on that dividend.

Generally, you are required to include in your incomeany management fee rebates received. However, insome circumstances you may instead elect to reducethe ACB of your shares by the amount of the rebate.

Converting sharesA conversion from one class or series of shares ofBMO Global Tax Advantage Funds Inc. to anotherclass or series of shares of BMO Global Tax AdvantageFunds Inc. is not a disposition for income taxpurposes. You won’t realize a capital gain (or loss) forincome tax purposes when you convert your shares.The cost of the shares you receive from a conversion isequal to the ACB of the shares that were converted.

Redeeming sharesIf you redeem shares or switch your shares of a BMOGlobal Tax Advantage Fund for units of a BMO TrustFund, you’ll realize a capital gain (or loss). The capitalgain (or loss) is the difference between the amountyou receive for the sale or switch and the ACB of theshares, less any costs of disposition.

In general, you must include one-half of capital gainsin computing your income for tax purposes. One-halfof capital losses may be used to offset taxable capitalgains.

We’ll provide you with details on the proceeds from aredemption or switch. However, in order to calculateyour gain or loss, you need to know the ACB of yourshares before the disposition.

Tax reporting

Each year, we’ll send you a tax slip with detailedinformation about the dividends and distributionspaid to you. You should keep detailed records of thepurchase cost, dividends and distributions related toyour investments so you can calculate your ACB.

Funds held in registered plansIf you hold securities in a registered plan, yougenerally pay no tax on income earned from, or capitalgains realized on the disposition of, those securities aslong as they remain in the registered plan. However,withdrawals from a registered plan may be subject totax. You should consult your tax advisor about thespecial rules that apply to each particular registeredplan.

What are your legal rights?

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

within two business days of receiving the simplifiedprospectus

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

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

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

For more information, refer to the securities legislationof your province or territory or consult your lawyer.

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We’ve received an exemption from Canadiansecurities regulators to enable the funds that aredeemed to be “dealer-managed” funds in securitieslegislation, subject to certain conditions imposed bythe regulators, to purchase equity securities during theperiod of distribution of such securities, and duringthe 60-day period following the distributions, wherethe distribution of those securities is made by “privateplacement” (an offering exempted from theprospectus requirements), notwithstanding that anunderwriter related to the portfolio manager of thefunds has acted as underwriter in such offering.

The funds are permitted to purchase debt securitiesfrom entities related to us (“Manager Affiliates”) whohold that debt security as principal and/or sell a debtsecurity to a Manager Affiliate who purchases thatdebt security as principal pursuant to an exemptionwe have received from Canadian securities regulators,subject to the following conditions: (i) the purchase orsale is consistent with, or is necessary to meet, theinvestment objectives of the funds; (ii) the IRC for thefunds approves the transactions; (iii) we comply withour obligations, as manager of the funds, under NI 81-107; (iv) we and the IRC of the funds complywith any standing instructions the IRC provides inconnection with the transactions; (v) the bid and askprice of the security is readily available; (vi) apurchase is not executed at a price which is higherthan the available ask price and a sale is not executedat a price which is lower than the available bid price;(vii) the purchase or sale is subject to “market integrityrequirements”; and (viii) the funds keep the writtenrecords required by NI 81-107.

Subject to certain conditions, and pursuant toexemptive relief granted by Canadian securitiesregulators, the IRC for the funds has provided us withapproval to enable the funds to:• invest in or continue to invest in securities of Bank

of Montreal;• invest in securities during the period of distribution

of those securities or during the period of 60 daysfollowing the distribution period where a ManagerAffiliate acted as an underwriter in the distributionof those securities; and

• purchase debt securities from a Manager Affiliatethat holds that debt security as principal and/or sella debt security to a Manager Affiliate that purchasesthat debt security as principal

(collectively, the “Related Party Transactions”).

For each Related Party Transaction, the IRC has issuedstanding instructions. These standing instructionsrequire the Manager to follow governing policies andprocedures and to report periodically to the IRC. Thepolicies and procedures require, among other things,that the affected investment decisions: (i) be consistentwith, or be necessary to meet, the investmentobjectives of the funds; (ii) be free from any influenceby a Manager Affiliate and without taking into accountany consideration relevant to a Manager Affiliate;(iii) represents our business judgment uninfluencedby considerations other than the best interests of thefunds; (iv) is in compliance with the Related PartyTransaction’s governing policy and procedures; and(v) achieves a fair and reasonable result for the funds.In the event an investment decision in respect of aRelated Party Transaction is not made in accordancewith the foregoing requirements, we are required tonotify the IRC and the IRC, as soon as practicable, isrequired to notify the Canadian securities regulators.This information is also included in the annual reportprepared by the IRC for securityholders.

Additional information about the mandate andresponsibilities of the IRC is disclosed in the funds’annual information form.

We have applied for exemptive relief which, if grantedand subject to certain conditions, will permit certainBMO Mutual Funds to enter into foreign currencyhedging transactions with related parties, includingBank of Montreal. Such foreign currency hedgingtransactions may include the use of forward contracts,options on such forward contracts, and swaps.

Additional information about exemptive reliefreceived by the funds is also disclosed in the funds’annual information form.

BMO International Index Fund

THIS FUND IS NOT SPONSORED, ENDORSED, SOLD ORPROMOTED BY MSCI INC. (“MSCI”), ANY OF ITSAFFILIATES, ANY OF ITS INFORMATION PROVIDERS ORANY OTHER THIRD PARTY INVOLVED IN, OR RELATED TO,COMPILING, COMPUTING OR CREATING ANY MSCI INDEX(COLLECTIVELY, THE “MSCI PARTIES”). THE MSCI INDEXESARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THEMSCI INDEX NAMES ARE SERVICE MARK(S) OF MSCI ORITS AFFILIATES AND HAVE BEEN LICENSED FOR USE FORCERTAIN PURPOSES. NONE OF THE MSCI PARTIES MAKESANY REPRESENTATION OR WARRANTY, EXPRESS ORIMPLIED, TO THE ISSUER OR OWNERS OF THIS FUND ORANY OTHER PERSON OR ENTITY REGARDING THEADVISABILITY OF INVESTING IN FUNDS GENERALLY OR INTHIS FUND PARTICULARLY OR THE ABILITY OF ANY MSCIINDEX TO TRACK CORRESPONDING STOCK MARKET

Additional information

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PERFORMANCE. MSCI OR ITS AFFILIATES ARE THELICENSORS OF CERTAIN TRADEMARKS, SERVICE MARKSAND TRADE NAMES AND OF THE MSCI INDEXES WHICHARE DETERMINED, COMPOSED AND CALCULATED BY MSCIWITHOUT REGARD TO THIS FUND OR THE ISSUER OROWNERS OF THIS FUND OR ANY OTHER PERSON ORENTITY. NONE OF THE MSCI PARTIES HAS ANYOBLIGATION TO TAKE THE NEEDS OF THE ISSUER OROWNERS OF THIS FUND OR ANY OTHER PERSON ORENTITY INTO CONSIDERATION IN DETERMINING,COMPOSING OR CALCULATING THE MSCI INDEXES. NONEOF THE MSCI PARTIES IS RESPONSIBLE FOR OR HASPARTICIPATED IN THE DETERMINATION OF THE TIMING OF,PRICES AT, OR QUANTITIES OF THIS FUND TO BE ISSUEDOR IN THE DETERMINATION OR CALCULATION OF THEEQUATION OR THE CONSIDERATION INTO WHICH THISFUND IS REDEEMABLE. FURTHER, NONE OF THE MSCIPARTIES HAS ANY OBLIGATION OR LIABILITY TO THEISSUER OR OWNERS OF THIS FUND OR ANY OTHERPERSON OR ENTITY IN CONNECTION WITH THEADMINISTRATION, MARKETING OR OFFERING OF THISFUND.

ALTHOUGH MSCI SHALL OBTAIN INFORMATION FORINCLUSION IN OR FOR USE IN THE CALCULATION OF THEMSCI INDEXES FROM SOURCES THAT MSCI CONSIDERSRELIABLE, NONE OF THE MSCI PARTIES WARRANTS ORGUARANTEES THE ORIGINALITY, ACCURACY AND/OR THECOMPLETENESS OF ANY MSCI INDEX OR ANY DATAINCLUDED THEREIN. NONE OF THE MSCI PARTIES MAKESANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TOBE OBTAINED BY THE ISSUER OF THE FUND, OWNERS OFTHE FUND, OR ANY OTHER PERSON OR ENTITY, FROM THEUSE OF ANY MSCI INDEX OR ANY DATA INCLUDEDTHEREIN. NONE OF THE MSCI PARTIES SHALL HAVE ANYLIABILITY FOR ANY ERRORS, OMISSIONS ORINTERRUPTIONS OF OR IN CONNECTION WITH ANY MSCIINDEX OR ANY DATA INCLUDED THEREIN. FURTHER, NONEOF THE MSCI PARTIES MAKES ANY EXPRESS OR IMPLIEDWARRANTIES OF ANY KIND, AND THE MSCI PARTIESHEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OFMERCHANTABILITY AND FITNESS FOR A PARTICULARPURPOSE, WITH RESPECT TO EACH MSCI INDEX AND ANYDATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THEFOREGOING, IN NO EVENT SHALL ANY OF THE MSCIPARTIES HAVE ANY LIABILITY FOR ANY DIRECT, INDIRECT,SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHERDAMAGES (INCLUDING LOST PROFITS) EVEN IF NOTIFIEDOF THE POSSIBILITY OF SUCH DAMAGES.

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Mutual Fund Dealers Association of CanadaClient Complaint Information

Clients of a mutual fund dealer who are not satisfied with a financial product or servicehave a right to make a complaint and to seek resolution of the problem. If you have acomplaint, these are some of the steps you can take.

• Your complaint should first be explained to your financial advisor. The personwho sold you the product or service will solve most problems quickly.

• Contact your mutual fund dealer. Member firms are responsible to you, theinvestor, for monitoring the actions of their representatives to ensure that theyare in compliance with the legislation, rules and guidelines governing theiractivities.

Some problems are easily solved by a phone call. Some matters can be resolvedthrough the Branch Manager. The dealer’s Compliance Department willinvestigate any complaint that you initiate in writing and respond back to you withthe results of their investigation.

• Contact the Mutual Fund Dealers Association of Canada (MFDA), which is theself-regulatory organization in Canada to which your mutual fund dealerbelongs. The MFDA investigates complaints about mutual fund dealers andtheir representatives, and takes enforcement action where appropriate. Thereis no cost to clients for referring a complaint to the MFDA. The MFDA can becontacted:

• by telephone in Toronto at (416) 361-6332, or toll free at 1-888-466-6332• by e-mail at [email protected], or• in writing, using the complaint form which is available on the MFDA

website at www.mfda.ca

• Contact the Ombudsman for Banking Services and Investments (OBSI), anorganization independent of the MFDA, government, and the financial servicesindustry. OBSI provides an independent and impartial process for theinvestigation and resolution of complaints about the provision of financialservices to clients. OBSI will investigate your complaint only if you have firstexhausted your firm’s internal complaint-handling processes. OBSI can make anon-binding recommendation that your firm compensate you (up to $350,000)if it determines that you have been treated unfairly, taking into account thecriteria of good financial services and business practice, relevant codes ofpractice or conduct, industry regulation and the law. The OBSI process is freeof charge and is confidential. OBSI can be contacted:

• by telephone in Toronto at (416) 287-2877, or toll free at 1-888-422-4519, or• by e-mail at [email protected]

• Retain a lawyer to assist with the complaint.

bmo.com/mutualfunds bmo.com/fonds

BMO Security FundsBMO T-Bill Fund (series A, I and

BMO Guardian T-Bill Fund Series F)BMO Money Market Fund (series A and I)BMO AIR MILES®† Money Market Fund

(series A and I)BMO Premium Money Market Fund

(series A and I)

BMO Income FundsBMO Mortgage and Short-Term Income Fund

(series A and I)BMO Bond Fund (series A, I and

BMO Guardian Bond Fund Series F)BMO Monthly Income Fund

(series A, I and BMO Guardian Monthly Income Fund Series F)

BMO World Bond Fund (series A, I and BMO Guardian World Bond Fund Series F)

BMO Diversified Income Fund (series A and I)BMO Global Monthly Income Fund

(series A and I)BMO Global High Yield Bond Fund

(series A and I)BMO U.S. High Yield Bond Fund

(series A, I and BMO GuardianU.S. High Yield Bond Fund Series F)

BMO Income Trust Fund (series A and I)

BMO Growth FundsBMO Asset Allocation Fund (series A and I)BMO Dividend Fund (series A, I and

BMO Guardian Dividend Fund Series F)BMO U.S. Equity Fund (series A, I and

BMO Guardian U.S. Equity Fund Series F)BMO Equity Fund (series A, I and

BMO Guardian Equity Fund Series F)BMO North American Dividend Fund

(series A and I)BMO International Index Fund (series A and I)

BMO U.S. Equity Index Fund (series A and I)BMO International Equity Fund

(series A, I and BMO Guardian International Equity Fund Series F)

BMO European Fund (series A, I and BMO Guardian European Fund Series F)

BMO U.S. Growth Fund (series A and I)BMO Equity Index Fund (series A and I)BMO Japanese Fund (series A and I)

BMO Aggressive Growth FundsBMO Special Equity Fund (series A and I)BMO U.S. Special Equity Fund (series A and I)BMO Global Science & Technology Fund

(series A and I)BMO Emerging Markets Fund

(series A, I and BMO Guardian Emerging Markets Fund Series F)

BMO Resource Fund (series A and I)BMO Precious Metals Fund (series A and I)

BMO U.S. Dollar FundsBMO U.S. Dollar Money Market Fund

(series A and I)BMO U.S. Dollar Monthly Income Fund

(series A and I)BMO U.S. Dollar Equity Index Fund

(series A and I)

BMO Global Tax Advantage Funds±BMO Short-Term Income Class (series A and I)BMO Dividend Class (series A and I)BMO Global Dividend Class (series A and I)BMO Canadian Equity Class (series A and I)BMO Global Equity Class (series A and I)BMO Greater China Class (series A and I)BMO Sustainable Opportunities Class

(series A and I)BMO Global Energy Class (series A and I)BMO Sustainable Climate Class

(series A and I)

BMO International Value Class(series A and I)

BMO SelectClass Security Portfolio(series A, I and T6)

BMO SelectClass Balanced Portfolio(series A, I and T6)

BMO SelectClass Growth Portfolio(series A, I and T6)

BMO SelectClass Aggressive GrowthPortfolio (series A, I and T6)

BMO LifeStage Plus FundsBMO LifeStage Plus 2015 Fund

(series A)BMO LifeStage Plus 2017 Fund






(series A)

BMO FundSelect™ PortfoliosBMO FundSelect™ Security Portfolio

(series A and I)BMO FundSelect™ Balanced Portfolio

(series A and I)BMO FundSelect™ Growth Portfolio

(series A and I)BMO FundSelect™ Aggressive

Growth Portfolio (series A and I)

± Each fund within this category is a classof BMO Global Tax Advantage Funds Inc.,a mutual fund corporation

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

How to reach us:BMO Investments Inc., 77 King Street West, Suite 4200, Toronto, Ontario M5K 1J5BMO Investissements Inc., 129, rue St. Jacques, 12e étage, Montréal, Québec H2Y 1L6

1-800-665-77007 a.m. to 11 p.m. (E.S.T.), Monday through Friday9 a.m. to 5 p.m. (E.S.T.), Saturday

A member of BMO Financial Group

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

If you would like a copy of these documents, call us at 1-800-665-7700. There’s no charge for these documents. You’ll also find copies of them, and other informationabout the funds, on the Internet at www.bmo.com/mutualfunds or www.sedar.com. BMO Mutual Funds are offered by BMO Investments Inc.®Registered trade-mark of Bank of Montreal, used under licence

™Trade-mark of Bank of Montreal, used under licence ®† Trade-marks of AIR MILES International Trading B.V. Used under licence by Loyalty Management Group Canada Inc. and BMO Investments Inc.

Simplified Prospectus - BMO

Documents

Transcript of Simplified Prospectus - BMO