425 1 d251797d425.htm COLUMBIA FUNDS SERIES TRUST II Columbia Funds Series Trust II

 

Filing by Columbia Funds Series Trust II pursuant to Rule 425 under the Securities Act of 1933, and deemed filed under Rule 14a-12(b) under the Securities Exchange Act of 1934.

Subject Company:

BMO Funds, Inc.

(SEC File No. 811-58433)

 

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COLUMBIA THREADNEEDLE – BMO FUND MERGER, NEW FUND LAUNCH DETAILS TRANCHE 1

As part of the Bank of Montreal integration, we previously announced our intent to launch five new Columbia funds into which several BMO funds will merge. The new Columbia funds will mirror the investment strategies of merging BMO funds and adopt standard Columbia fund contracts and fee schedules. The funds below are part of our Tranche 1 launch and merger, which were voted on and approved by shareholders. The following acquired funds are expected to merge into their corresponding acquiring at the close of business on December 10, 2021.

 

 

Acquired Fund

 

  

Acquiring Fund

 

 

BMO LGM Emerging Markets Equity

   Columbia Emerging Markets
 

BMO Core Plus Bond

   Columbia Total Return Bond
 

BMO Strategic Income

   Columbia Strategic Income
 

BMO Intermediate Tax-Free

   Columbia Intermediate Municipal Bond
 

BMO Short Tax-Free

   Columbia Short Term Municipal Bond
 

BMO Short-Term Income

   Columbia Short Term Bond
 

BMO Pyrford International Stock Fund

   Columbia Pyrford International Stock Fund (New)

Refer to the attached spreadsheet for detailed fund information.

Pricing & Merger Methodology

 

   

A 4-digit NAV (four places after the decimal) will be used on Friday 12/10/21.

   

The nightly pricing process remains unchanged on 12/10/21, so NAVs for the acquired and acquiring funds will be available as usual.

   

NOTE: Our methodology for these mergers will NOT involve merger ratios. We will be using the “NAV calculation” process described below, so merger ratios will NOT be sent.

 

NAV Calculation Formula:

 

From Side Shares x From Side NAV = From Side Gross Amount

From Side Gross Amount / To Side NAV = To Side Shares

 

Firms that trade via NSCC:

For institutional and broker/dealer use only. This material has not been filed with FINRA and may not be shown, quoted to, or used with, members of the general public.

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© 2021 Columbia Management Investment Advisers, LLC. All rights reserved.   

Columbia Management Investment Distributors, Inc.

290 Congress Street, Boston, MA 02110-2804 columbiathreadneedle.com/us

800.426.3750

   3932682 (11/21)
November 24, 2021    LOGO

 

 

 

   

After the market closes on Friday 12/10/21, the acquired CUSIPs should no longer be used.

   

Trades placed in the DCC&S cycle on 12/13/21 with the acquired CUSIPs will reject. Your firm can work with the NSCC Trading Team on 12/13/21 for price protection in the acquiring CUSIPs. Since the only price protection that can be offered on 12/13/21 is for the acquiring CUSIPs, your firm will need to calculate the buy or sell amount in the acquiring fund’s CUSIP.

   

If you have additional questions on NSCC trading, please call an NSCC Services Associate at 877.332.6207

Networking – Activity Files

 

   

Each merger will be processed as a liquidation at BMO using NSCC transaction code 02 and the purchases at CTI using NSCC transaction code 01.

   

At the close of business on 12/10/21, an F55 activity Detail Record file will be generated.

   

CTI will send F55 records identifying the purchases on 12/13/21

A reminder about merger-related distributions

 

   

As a result of the upcoming merger transactions, please be aware that certain funds may pay off-cycle ordinary income or capital gain distributions prior to the merger. Specific fund payment information can be found on the fund merger and proxy proposal news link on the homepage at columbiathreadneedleus.com.

Please have your clients read and consider investment objectives, risks, charges, and expenses carefully before investing. Remind them to contact you or visit columbiathreadneedleus.com for a prospectus or summary prospectus, which contains this and other important information about the fund.

If you have any questions about this information, please call Intermediary Services at 800.441.4020.

Investment products offered through Columbia Management Investment Distributors, Inc., member FINRA. Advisory services provided by Columbia Management Investment Advisers, LLC.

Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies.

 

 

 

 

 

 

 

 

For institutional and broker/dealer use only. This material has not been filed with FINRA and may not be shown, quoted to, or used with, members of the general public.

 

Acquired Fund     Class       Fund #     CUSIP     SYMBOL       Acquiring Fund     Class     Fund #     CUSIP     SYMBOL       Launch Date  
BMO LGM Emerging Markets Equity   I   754   09658L489   MIEMX   Columbia Emerging Markets Fund   Advisor   6562   19766M469   CEMHX    
  A   1159   09658W824   BAEMX   A   2761   19765Y878   EEMAX
BMO Core Plus Bond   Y   756   09658L877   MCYBX   Columbia Total Return Bond   A   713   19765N492   LIBAX
  A   1150   09658W725   BATCX   A   713   19765N492   LIBAX
  I   796   09658L885   MCBIX   Advisor   6291   19766M774   CBNRX
BMO Strategic Income   Y   207   09658L810   MRGIX   Columbia Strategic Income   A   716   19765L801   COSIX
  A   1158   09658W758   BMTAX   A   716   19765L801   COSIX
  I   968   09658L828   MGIIX   Advisor   6345   19766M576   CMNRX
BMO Intermediate Tax-Free   Y   347   09658L760   MITFX   Columbia Intermediate Municipal Bond   A   210   19765L686   LITAX
  A   1148   09658W766   BITAX   A   210   19765L686   LITAX
  I   1036   09658L778   MIITX   Advisor   6579   19766M428   CIMRX
BMO Short Tax-Free   I   1048   09658L646   MTFIX   Columbia Short Term Municipal Bond   Advisor   6590   19766B182   CSMTX
  A   1143   09658W782   BASFX   A   222   19765J350   NSMMX
BMO Short-Term Income   I   993   09658L570   MSIFX   Columbia Short Term Bond   Advisor   6330   19766B315   CMDRX
  A   1155   09658W774   BTMAX   A   400   19765H396   NSTRX
BMO Pyrford International Stock Fund   I   1046   09658L513   MISNX   Columbia Pyrford International Stock Fund (New)   Advisor   6948   19766Q783   PISKX   12/10/2021
  R-6   1136   09658V362   BISGX   Inst 3   6952   19766Q759   PISQX   12/10/2021
  A   1154   09658W840   BPIAX   A   6947   19766Q825   PISDX   12/10/2021
          C   6949   19766Q817   PISEX   12/13/2021
          Inst   6950   19766Q775   PISLX   12/13/2021
          Inst 2   6951   19766Q767   PISOX   12/13/2021
                  R   6953   19766Q791   PISJX   12/13/2021

CUSIP identifiers have been provided by CUSIP Global Services, managed on behalf of the American Bankers Association by Standard & Poor’s Financial Services, LLC, and are not for use or dissemination in a manner that would serve as a substitute for any CUSIP service.

The CUSIP Database, © 2011 American Bankers Association. “CUSIP” is a registered trademark of the American Bankers Association.

For institutional and broker/dealer use only. This material has not been filed with FINRA and may not be shown, quoted to, or used with, members of the general public.

 

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© 2021 Columbia Management Investment Advisers, LLC. All rights reserved.

Columbia Management Investment Distributors, Inc.

290 Congress Street, Boston, MA 02110-2804

columbiathreadneedle.com/us

800.426.3750

                                                                 3905547 (11/21)

 

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115 S LaSalle St.

11th Floor

Chicago, IL 60603

 

PRODUCT ALERT   

BMO Funds - Reorganizations

24, 2021

 

   November

 

In prior communications, we shared that the BMO Funds Board of Directors approved the planned reorganizations of several BMO Funds and that shareholder proxy statements for each reorganization were filed and mailed in October. Shareholders of each Merging Fund received a combined proxy statement and ballot that included additional information about the shareholder meeting, the plan of reorganization and the new investment advisory or subadvisory agreements.

A joint meeting of shareholders of the Merging Funds was held on November 23, 2021 at which they were asked to consider and vote on a plan with respect to their Merging Fund. Shareholders of the Pyrford Fund and LGM Fund were also asked to consider and vote on new subadvisory agreements.

Shareholders of the BMO Pyrford International Stock Fund approved a new investment subadvisory agreement between BMO Asset Management Corp. and Pyrford International Ltd. which took effect on or about November 24, 2021. Shareholders of the BMO LGM Emerging Markets Fund approved a new investment subadvisory agreement between BMO Asset Management Corp. and LGM Investments Ltd. which took effect on or about November 24, 2021.

The following mergers were approved by shareholders of each Merging Fund, and Merging Fund shareholders for each share class will receive shares of the corresponding share class of the Acquiring Fund as set forth in the table below. These reorganizations are expected to close on or about December 10, 2021 and in anticipation of these reorganizations, the last day for purchases, exchanges and redemptions will be December 9, 2021.

 

 

 Merging Fund

 

  

Share Class

 

  

Ticker

 

  

CUSIP

 

       

Acquiring Fund

 

  

Share Class

 

  

Ticker

 

  

CUSIP

 

 BMO Pyrford International Stock    A

I

R6

   BPIAX

MISNX

BISGX

   09658W840

09658L513

09658V362

     

Columbia Pyrford

International Stock*

   A

Advisor

Institutional 3

   PISDX

PISKX

PISQX

   19766Q825

19766Q783

19766Q759

 BMO LGM Emerging

 Markets Equity

   A

I

   BAEMX

MIEMX

   09658W824

09658L489

     

Columbia Emerging

Markets

   A

Advisor

   EEMAX

CEMHX

   19765Y878

19766M469

 BMO Core Plus Bond    A

Y

I

   BATCX

MCYBX

MCBIX

   09658W725

09658L877

09658L885

     

Columbia Total Return

Bond

   A

A

Advisor

   LIBAX
LIBAX
CBNRX
   19765N492

19765N492

19766M774

 BMO Short-Term Income    A

I

   BTMAX

MSIFX

   09658W774

09658L570

     

Columbia Short Term

Bond

   A

Advisor

   NSTRX

CMDRX

   19765H396

19766B315

 BMO Strategic Income    A

Y

I

   BMTAX

MRGIX

MGIIX

   09658W758

09658L810

09658L828

      Columbia Strategic Income    A

A

Advisor

   COSIX

COSIX

CMNRX

   19765L801

19765L801

19766M576

 BMO Intermediate Tax-Free    A

Y

I

   BITAX

MITFX

MIITX

   09658W766

09658L760

09658L778

     

Columbia Intermediate

Municipal Bond

   A

A

Advisor

   LITAX

LITAX

CIMRX

   19765L686

19765L686

19766M428

 BMO Short Tax-Free    A

I

   BASFX

MTFIX

   09658W782

09658L646

     

Columbia Short Term

Municipal Bond

   A

Advisor

   NSMMX

CSMTX

   19765J350

19766B182

* Denotes newly-registered funds created to retain the corresponding BMO Fund; all other Columbia Funds are currently in operation.

 

FOR FINANCIAL PROFESSIONAL USE ONLY

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115 S LaSalle St.

11th Floor

Chicago, IL 60603

 

PRODUCT ALERT   

BMO Funds - Reorganizations

24, 2021

 

   November

 

 

Shareholders of each Merging Fund will become shareholders of the corresponding Acquiring Fund, receiving shares of the Acquiring Fund equal in value to the shares of the Merging Fund held by the shareholders prior to the applicable reorganization. The reorganizations themselves are not expected to result in the recognition of gain or loss by the Merging Fund or its shareholders for federal tax purposes. Shareholders of the Merging Funds and the Acquiring Funds will not bear the costs of the reorganizations. Certain Merging Funds will reposition their portfolios prior to the reorganizations. Any resulting net capital gains will be distributed to shareholders in early December.

Both capital gains as well as ordinary income distributions will be paid in accordance with the applicable dates below.

 

   

Record Date: 12/6/2021

 

   

Ex-Date and Reinvestment Date: 12/7/2021

 

   

Payment Date: 12/8/2021

The table below shows the additional reorganizations that were approved by the BMO Funds Board of Directors. At the joint meeting of shareholders held on November 23, 2021, shareholders of each of the BMO Dividend Income Fund, BMO Large-Cap Value Fund, BMO Mid-Cap Growth Fund, BMO Small-Cap Growth Fund, BMO Disciplined International Equity Fund, BMO Ultra Short Tax-Free Fund, and BMO Growth Allocation Fund approved the applicable reorganization. The joint meeting of shareholders was adjourned for the other Merging Funds in the table and will reconvene on January 7, 2022 for the consideration of the remaining proposed reorganizations. Pending shareholder approval, the anticipated merger date for the Merging Funds in the table below will be January 21, 2022.

 

 

Merging Fund

 

    

 

Acquiring Fund

 

BMO Corporate Income Fund      Columbia Corporate Income Fund
BMO Ultra Short Tax-Free Fund      Columbia Ultra Short Term Municipal Bond Fund*
BMO Large-Cap Growth Fund           Columbia Integrated Large Cap Growth Fund*
BMO Large Cap Value Fund      Columbia Integrated Large Cap Value Fund*
BMO Mid-Cap Growth Fund      Columbia Mid Cap Growth Fund
BMO Mid-Cap Value Fund      Columbia Select Mid Cap Value Fund
BMO Small-Cap Growth Fund      Columbia Integrated Small Cap Growth Fund*
BMO Small-Cap Value Fund      Columbia Small Cap Value Fund II
BMO Dividend Income Fund      Columbia Integrated Large Cap Value Fund*
BMO Low Volatility Equity Fund      Columbia Integrated Large Cap Value Fund*
BMO Disciplined International Equity Fund      Columbia Overseas Value Fund
BMO Conservative Allocation Fund      Columbia Capital Allocation Conservative Portfolio
BMO Moderate Allocation Fund      Columbia Capital Allocation Moderate Portfolio
BMO Balanced Allocation Fund      Columbia Capital Allocation Moderate Aggressive Portfolio
BMO Growth Allocation Fund      Columbia Capital Allocation Aggressive Portfolio
BMO Aggressive Allocation Fund      Columbia Capital Allocation Aggressive Portfolio
* Denotes newly-registered funds created to retain the corresponding BMO Fund; all other Columbia Funds are currently in operation.

 

FOR FINANCIAL PROFESSIONAL USE ONLY

LOGO

115 S LaSalle St.

11th Floor

Chicago, IL 60603

 

PRODUCT ALERT   

BMO Funds - Reorganizations

24, 2021

 

   November

 

 

If you have any questions about this information, please call 1-844-BMO-FUND (266-3863).

All investments involve risk, including the possible loss of principal.

BMO Global Asset Management is the brand name for various affiliated entities of BMO Financial Group that provide investment management, retirement, and trust and custody services. Certain of the products and services offered under the brand name BMO Global Asset Management are designed specifically for various categories of investors in a number of different countries and regions and may not be available to all investors. Products and services are only offered to such investors in those countries and regions in accordance with applicable laws and regulations. BMO Financial Group is a service mark of Bank of Montreal (BMO).

Investment products are: NOT A DEPOSIT – NOT FDIC INSURED - NO BANK GUARANTEE – MAY LOSE VALUE

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 1-800-236-3863. Please read carefully before investing.

BMO Asset Management Corp. is the investment adviser to the BMO Funds. BMO Funds are distributed by Foreside Financial Services, LLC.

Important Additional Information and Where to Find It

BMO Funds, its directors and officers are deemed to be participants in the solicitation of proxies from BMO Funds’ shareholders in connection with the matters to be considered at the joint meeting of shareholders described herein. Information regarding the names of the directors and officers of BMO Funds, and their interests in BMO Funds by security holdings or otherwise, can be found in the most recent statement of additional information of BMO Funds, filed with the Securities and Exchange Commission (“SEC”) on July 6, 2021. A combined prospectus/proxy statement will be filed with the SEC in connection with the solicitation of proxies from BMO Funds’ shareholders in connection with each Plan of Reorganization and, as applicable, the new investment advisory and subadvisory agreements. SHAREHOLDERS ARE STRONGLY ENCOURAGED TO READ ANY SUCH PROSPECTUS/PROXY STATEMENT CAREFULLY AND IN ITS ENTIRETY WHEN IT BECOMES AVAILABLE, AS IT WILL CONTAIN IMPORTANT INFORMATION. Shareholders will be able to obtain copies of the combined prospectus/proxy statement and other documents filed by BMO Funds with the SEC for no charge at the SEC’s website at www.sec.gov. Copies will also be available at no charge by contacting BMO Funds’ proxy solicitor toll free at 888-991-1289.

 

 

FOR FINANCIAL PROFESSIONAL USE ONLY