BMO Asset Management Inc. Announces Unit Splits, Enhancing Accessibility to BMO Asset Allocation Exchange Traded Funds
TORONTO, Aug. 1, 2025 /CNW/ - BMO Asset Management Inc. ("BMO AM") today announced that it intends to split the units of certain series of several BMO Asset Allocation Exchange Traded Funds (the "BMO ETFs"), which are listed and trading on the Toronto Stock Exchange (the "TSX").
"By lowering fees recently and by announcing these unit splits today, BMO AM is delivering on its commitment to make its Asset Allocation ETFs even more accessible to Canadian investors," said Sara Petrcich, Head, ETFs & Alternatives, BMO Global Asset Management.
Each unit split will be payable on August 15, 2025 (the "Payment Date") to unitholders of record of the applicable BMO ETF on August 13, 2025 (the "Record Date"). The units of each BMO ETF will trade on a "due bill" basis, as described below, from the opening of the TSX on August 13, 2025, until the close of the TSX on August 15, 2025, inclusive (the "due bill period"). Each affected BMO ETF will begin trading on the TSX on a split-adjusted basis on August 18, 2025.
The "split ratio" shown in the table below indicates the number of units that a unitholder of the affected BMO ETF will hold after the split in relation to the number of units of such BMO ETF held by the unitholder before the split.
ETF | Series of Units | Ticker | Unit Split Ratio |
BMO Conservative ETF | CAD Units | ZCON | 3-for-1 |
BMO Balanced ETF | CAD Units | ZBAL | 3-for-1 |
Fixed Percentage Distribution Units | ZBAL.T | 3-for-1 | |
BMO Growth ETF | CAD Units | ZGRO | 3-for-1 |
Fixed Percentage Distribution Units | ZGRO.T | 3-for-1 | |
BMO All-Equity ETF | CAD Units | ZEQT | 3-for-1 |
BMO Monthly Income ETF* | USD Units | ZMI.U | 3-for-1 |
BMO Balanced ESG ETF | CAD Units | ZESG | 3-for-1 |
* The CAD Units of this ETF, which trade under the ticker ZMI, will not be split.
Unitholders of each of the series of units listed in the table above will receive two additional units of the applicable series of units of the BMO ETF for every unit of the BMO ETF they own on that date.
Unit splits increase the number of outstanding units of each affected BMO ETF, while simultaneously lowering the unit price. When a unit split occurs, the net asset value per unit is decreased by the split ratio, resulting in no impact to the market value of an investor's unit position. An investor's cost per unit is also decreased by the same split ratio, although their total cost amount remains unchanged. The unit split is not a taxable event.
The "due bill" trading procedures of the TSX will apply to each BMO ETF's split of its units. A due bill is an entitlement attached to listed securities undergoing a corporate action, such as a unit split. Any trades executed on the TSX during the due bill period will be identified to ensure purchasers of the units of the applicable BMO ETF receive the entitlement to the applicable unit split. The due bill redemption date is expected to be August 18, 2025.
Investor Information
Unitholders of the BMO ETFs do not need to take any action to effect these transactions and brokerage accounts will be automatically updated to reflect the split(s).
A broker may take several days to reflect these transactions in a unitholder's account (the "Settlement Period"). However, units of the BMO ETFs may still be traded during the Settlement Period. BMO AM recommends investors contact their broker should they wish to trade post-split units during the Settlement Period.
Further information about BMO ETFs can be found at www.bmoetfs.com.
Commissions, management fees and expenses all may be associated with investments in BMO ETFs. Please read the applicable ETF Facts document or simplified prospectus of the BMO ETFs before investing. Exchange-traded funds 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 BMO ETF's simplified 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. Distributions are not guaranteed and are subject to change and/or elimination.
BMO ETFs are managed and administered by BMO Asset Management Inc., an investment fund manager and a portfolio manager, and a separate legal entity from Bank of Montreal.
"BMO (M-bar roundel symbol)" is a registered trademark of Bank of Montreal, used under licence.
About BMO Financial Group
BMO Financial Group is the seventh largest bank in North America by assets, with total assets of $1.4 trillion as of April 30, 2025. 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
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