BMO Intermediate Tax-Free Fund Surpasses $1 Billion in Assets Under Management

MILWAUKEE, Aug. 1, 2012 /PRNewswire/ -- BMO Global Asset Management today announced that BMO Intermediate Tax-Free Fund (Y Shares) has surpassed $1 billion in assets under management (AUM). In the first six months of 2012 alone, the fund's AUM grew by 49 percent.

BMO Intermediate Tax-Free Fund, which invests in municipal securities of different geographical locations, reached this milestone by addressing a growing demand among American investors for tax-exempt income. The fund has been particularly popular with Baby Boomers heading into retirement because it seeks to provide a high level of current income each and every month. The fund has increased from $85 million to more than $1 billion in just five years.

"The fund has gained traction with investors across the country," said Duane McAllister, CFA, Co-Portfolio Manager, BMO Asset Management Corp.  "The municipal asset class is a fairly stable, high-quality asset class in a volatile world. At the same time, there is an increasing desire for income as more and more Baby Boomers retire.  A fund such as this provides a very competitive tax-free yield option to the ten thousand people who enter retirement each day."

McAllister, who has been managing the fund since 2007, added that an intermediate maturity fund is the "sweet spot" of the market because it offers a strong risk-reward position on the yield curve, "Instead of going into long-term bonds, investors get the majority of the yield in the intermediate part of the curve but significantly less volatility."

BMO Intermediate Tax-Free Fund seeks to provide a high level of current income that is exempt from federal income tax and is consistent with preservation of capital. Fund returns are compared to the Lipper Intermediate Municipal Debt Index and the Barclays Capital Municipal Bond 1-15 Year Blend Index. The management of the fund includes exploiting market inefficiencies and employing tax-loss swapping strategies.

"The success of this fund is another proof-point that supports our ongoing commitment to bringing innovative investment products to market that address the needs of investors," said Barry McInerney, Co-CEO, BMO Global Asset Management. "While it's been a strong period for the overall income market, our fund in particular has captured the attention of investors largely because of its consistent performance.  This is what clients expect of us and we're proud to be able to partner with them in helping achieve their financial goals."

Earlier this year, BMO Intermediate Tax-Free Fund (Y shares) and BMO Small-Cap Growth Fund (Y shares) were both recognized by the Lipper Fund Awards, one of the industry's most respected award programs, for best risk-adjusted performance over five and 10 years, respectively. The awards honor asset managers and individual mutual funds in the U.S. that have excelled in delivering consistently strong risk-adjusted performance relative to their peers.

For more information, please visit: www.bmofundsus.com.

About BMO Global Asset Management:
BMO Global Asset Management comprises BMO Asset Management U.S., BMO Asset Management (Canada)®, and BMO's specialized investment boutiques: Monegy, Inc.®, Pyrford International Ltd, Lloyd George Management, and Taplin, Canida & Habacht, LLC.  BMO Asset Management U.S. consists of BMO Asset Management Corp., BMO Asset Management Canada includes BMO Asset Management Inc. and Lloyd George Management consists of the subsidiaries of LGM (Bermuda) Ltd.  BMO Global Asset Management is part of the BMO Financial Group, a service mark of Bank of Montreal (BMO).  M&I Investment Management Corp. merged into BMO Asset Management Corp. (formerly Harris Investment Management Inc.) on June 1, 2012.

Certain companies within BMO Global Asset Management offer a number of products and services designed specifically for various categories of investors in a number of different countries and regions. These products or services are only offered to such investors in those countries and regions in accordance with applicable laws and regulations.

Investors should carefully consider the investment objectives, risks, charges and expenses of the BMO Funds. This and other important information is contained in the prospectuses and/or summary prospectuses, which can be obtained by calling 1-800-580-3863 or by visiting our website at bmofundsus.com. Please read carefully before investing.

Lipper Fund Awards
The Lipper Fund Awards are part of the Thomson Reuters Awards for Excellence, a global family of awards that celebrate exceptional performance throughout the professional investment community. The Thomson Reuters Awards for Excellence recognize the world's top funds, fund management firms, sell-side firms, research analysts, and investor relations teams. The Thomson Reuters Awards for Excellence also include the Extel Survey Awards, the IFR Awards, the PFI Awards, the StarMine Analyst Awards, and the StarMine Broker Rankings. For more information, please contact [email protected] or visit excellence.thomsonreuters.com  

Investors should carefully consider the investment objectives, risks, charges and expenses of the BMO Funds. This and other important information is contained in the prospectuses and/or summary prospectuses, which can be obtained by calling 1-800-580-3863 or by visiting our website at bmofundsus.com. Please read carefully before investing.

BMO Intermediate Tax-Free Fund (Y Shares) inception date: 02/02/1994
Average annualized total return since inception: 4.85%
Gross Expense Ratio: 0.78%
Net Expense Ratio: 0.56%

BMO Small Cap Growth Fund (Y Shares) inception date: 11/01/1995
Average annualized total return since inception: 10.90%
Gross Expense Ratio: 1.46%
Net Expense Ratio: 1.44%

Performance data quoted represents past performance and past performance is not a guarantee of future results. Investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Mutual fund performance changes over time and current performance may be lower or higher than what is stated. To receive the most recent month-end performance, call 1-800-580-3863 or visit bmofundsus.com. Performance quoted does not reflect the effect of a 2% redemption fee which is imposed on any shares redeemed or exchanged within 30 days.

For more information about performance, please contact your investment professional. The net expense ratio shown reflects contractual expense waivers made by the Adviser. These contractual expense waivers may not be terminated by the Adviser prior to July 6, 2013 unless the investment advisory agreement is terminated. Without these contractual waivers, the Fund's return would have been lower.

BMO Asset Management Corp. is the investment adviser to the BMO Funds. M&I Distributors LLC is the distributor.

Intermediate Tax-Free Fund: Interest income from the Fund's investments may be subject to the federal alternative minimum tax (AMT) for individuals and corporations, and state and local taxes. Keep in mind that as interest rates rise, bond prices fall. This may have an adverse effect on the Fund's portfolio.

Investments are: Not FDIC Insured | No Bank Guarantee | May Lose Value

SOURCE BMO Global Asset Management