BMO Advantaged Canadian Q-Model® Fund; BMO Advantaged U.S. Q-Model® Fund; BMO Canadian Q-Model® Trust; and BMO U.S. Q-Model® Trust to be Wound Up
Sep 26, 2019, 13:20 ET
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TORONTO, Sept. 26, 2019 /CNW/ - BMO Advantaged Canadian Q-Model® Fund, BMO Advantaged U.S. Q-Model® Fund, BMO Canadian Q-Model® Trust, and BMO U.S. Q-Model® Trust (each, a "Fund" and collectively, the "Funds") announced today that BMO Nesbitt Burns Inc. (the "Manager"), the manager of the Funds, has decided to terminate the Funds on December 13, 2019 or as soon as practicable after such date.
As previously announced on March 20, 2019, BMO Advantaged Canadian Q-Model® Fund and BMO Advantaged U.S. Q-Model® Fund (together, the "Advantaged Funds") would be impacted by certain amendments to the Income Tax Act (the "Tax Act") proposed by the Minister of Finance in the Federal Budget on March 19, 2019. As a result of the proposed changes to the Tax Act, the Manager believes that it is no longer commercially feasible to continue the Advantaged Funds and that it is in the best interests of unitholders of each of the Advantaged Funds ("Unitholders") to terminate the Advantaged Funds. The distribution of the Advantaged Funds was suspended by the Manager on March 20, 2019 until further notice and, effective today, the Manager confirms that the Advantaged Funds will no longer accept additional investments.
While BMO Canadian Q-Model® Trust and BMO U.S. Q-Model® Trust (together, the "Bottom Trusts") were not directly impacted by the proposed changes to the Tax Act in the Federal Budget, the Manager has also decided to terminate the Bottom Trusts since these Funds have become too small to effectively manage. Effective today, the Bottom Trusts will no longer accept additional investments.
In accordance with applicable law, the Manager may, in its discretion, on 60 days' notice to Unitholders, terminate the applicable Fund. Upon termination, following the conversion of the assets of the applicable Fund to cash, and the satisfaction of, or provision for, all liabilities of the applicable Fund, the units of the applicable Fund will be redeemed and the net assets distributed to Unitholders in payment of the redemption price based on the number and class of units held whereupon the applicable Fund will terminate.
SOURCE BMO Financial Group
For further information: please contact BMO Capital Markets at 1.866.864.7760 (English) or 1.866.529.0017 (French).
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