TORONTO, June 5, 2024 /CNW/ - BMO Asset Management Inc., the manager of the BMO ETFs, today announced a special reinvested distribution for unitholders of BMO MSCI USA ESG Leaders Index ETF (TSX: ESGY).
The reinvested distributions for BMO MSCI USA ESG Leaders Index ETF generally represent net realized capital gains and net income. They are not paid in cash, but are reinvested in additional Canadian dollar denominated units of BMO MSCI USA ESG Leaders Index ETF at a price equal to the net asset value per unit of the BMO ETF.
The additional units will be immediately consolidated with the previously outstanding units such that the number of outstanding units following the special distribution will be equal to the number of units outstanding prior to the special distribution. Reinvested distributions will increase the unitholder's adjusted cost base for BMO MSCI USA ESG Leaders Index ETF. Non-resident unitholders may have the number of additional units reduced because of withholding tax.
Unitholders of record at the close of business on June 12, 2024, will receive the reinvested distribution on June 12, 2024. The actual taxable amount of the special reinvested distribution, including its tax characteristic, will be reported to brokers through CDS Clearing and Depository Services Inc. (CDS) in early 2025.
The special reinvested distribution amount per unit of BMO MSCI USA ESG Leaders Index ETF is as follows:
Name of BMO ETF
TSX Ticker Symbol
Special Reinvested Distribution per Unit ($)
BMO MSCI USA ESG Leaders Index ETF
ESGY
1.410000
Further information about BMO ETFs can be found at www.bmo.com/etfs.
Commissions, management fees and expenses all may be associated with investments in BMO ETFs. Please read the ETF facts or prospectus of the relevant BMO ETF before investing. BMO ETFs are not guaranteed, their values change frequently, and past performance may not be repeated.
For a summary of the risks of an investment in the BMO ETFs, please see the specific risks set out in the prospectus. BMO ETFs trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase the risk of loss.
BMO ETFs are managed by BMO Asset Management Inc., which is an investment fund manager and a portfolio manager, and a separate legal entity from Bank of Montreal.
The ETF referred to herein is not sponsored, endorsed, or promoted by MSCI or Bloomberg and they each bear no liability with respect to any such ETF or any index on which such ETF is based. The ETF's prospectus contains a more detailed description of the limited relationship MSCI or Bloomberg have with the Manager and any related ETF.
Distributions are not guaranteed and may fluctuate. Distribution rates may change without notice (up or down) depending on market conditions. The payment of distributions should not be confused with an investment fund's performance, rate of return or yield. If distributions paid by an investment fund are greater than the performance of the fund, your original investment will shrink.
Distributions of net income and net taxable capital gains of a BMO ETF will be included in the unitholder's income for tax purposes in the year they are paid or payable, whether or not such amounts are reinvested in additional units. A unitholder's adjusted cost base will be reduced by the amount of any returns of capital paid or payable by a BMO ETF. To the extent that a unitholder's adjusted cost base would otherwise be a negative amount, the negative amount will be deemed to be a capital gain realized by the unitholder and the unitholder's adjusted cost base will be nil immediately thereafter. The foregoing is a summary of a general nature. For more detailed information, please refer to the principal income tax considerations set out in the prospectus for the relevant BMO ETF. Investors should also consult their own tax advisors about their individual circumstances.
"BMO (M-bar roundel symbol)" is a registered trademark of Bank of Montreal, used under licence.
About BMO Exchange Traded Funds (ETFs) BMO Exchange Traded Funds has been an ETF provider in Canada for more than 14 years, with over 1800 strategies, over 23 per cent market share in Canada1, and $97.5 billion in assets under management. BMO ETFs are designed to stay ahead of market trends and provide compelling solutions to help advisors and investors. This includes a comprehensive suite of ETFs developed in Canada for Canadians, such as cost effective core equity ETFs following market leading indexes, and a broad range of fixed income ETFs; solution-based ETFs responding to client demand; and innovation with smart beta ETFs, as well as combining active and passive investing with ETF series of active mutual funds.
1Morningstar, December 2023
About BMO Financial Group BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.4 trillion as of April 30, 2024. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to 13 million customers across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and inclusive society.
