TORONTO, Dec. 29,
2023 /CNW/ - BMO Asset Management Inc., as manager of
the BMO ETFs, today announced a special reinvested distribution for
unitholders of BMO NASDAQ 100 Equity Hedged to CAD Index ETF (ZQQ)
and BMO MSCI Canada Value Index ETF (ZVC).
The reinvested distributions for BMO NASDAQ 100 Equity Hedged to
CAD Index ETF (ZQQ) and BMO MSCI Canada Value Index ETF (ZVC)
generally represent net realized capital gains and net income. They
are not paid in cash but are reinvested in additional units of the
relevant BMO ETF at a price equal to the net asset value per unit
of the BMO ETF.
Non-resident unitholders may have the number of additional units
of the relevant BMO ETF reduced because of withholding tax. The
additional units will be immediately consolidated with the
previously outstanding units such that the number of outstanding
units following the distribution will be equal the number of units
outstanding prior to the distribution. Reinvested
distributions will increase the unitholder's adjusted cost base for
BMO NASDAQ 100 Equity Hedged to CAD Index ETF (ZQQ) and BMO MSCI
Canada Value Index ETF (ZVC), as applicable.
Unitholders of record of ZQQ and ZVC at the close of business
on December 29, 2023, will receive the special reinvested
distribution. 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 2024.
The special reinvested distribution amounts per unit of BMO
NASDAQ 100 Equity Hedged to CAD Index ETF (ZQQ) and BMO MSCI Canada
Value Index ETF (ZVC) are as follows:
Fund
Name
|
Ticker
(TSX)
|
Special
Reinvested
Distribution
per Unit ($)
|
BMO NASDAQ 100 Equity
Hedged to CAD Index ETF
|
ZQQ
|
0.009
|
BMO MSCI Canada Value
Index ETF
|
ZVC
|
0.024
|
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.
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 gains of a BMO ETF
will be included in the unitholder's income for tax purposes in the
year they are paid, 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. If a unitholder's adjusted
cost base goes below zero, such unitholder will have to pay capital
gains tax on the amount below zero. Please refer to the summary of
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.
Nasdaq® is a registered trademark of Nasdaq, Inc. (which with
its affiliates is referred to as the "Corporations") and is
licensed for use by BMO Asset Management Inc., the manager of the
BMO ETFs. BMO NASDAQ 100 Equity Hedged to CAD Index ETF (ZQQ) has
not been passed on by the Corporations as to its legality or
suitability. ZQQ is not issued, endorsed, sold, or promoted by the
Corporations. The Corporations make no warranties and bear no
liability with respect to ZQQ.
BMO MSCI Canada Value Index ETF (ZVC) is not sponsored,
endorsed, or promoted by MSCI and MSCI bears no liability with
respect to ZVC or any index on which such exchange traded fund is
based. ZVC's prospectus contains a more detailed description of the
limited relationship MSCI has with BMO Asset Management Inc., as
manager, and any related BMO ETFs.
®/™Registered trademarks/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 12 years, with over 100 strategies, over 25 per cent market
share in Canada1, and $87.6 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
2022
About BMO Financial Group
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of
$1.3 trillion as of October 31, 2023. 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.
SOURCE BMO Financial Group