BMO Asset Management intends to terminate three of its target date bond exchange traded funds (ETFs).
On May 29, BMO announced that on or about August 7, it plans to terminate the BMO 2015 Corporate Bond Target Maturity ETF, the BMO 2020 Corporate Bond Target Maturity ETF, and the BMO 2025 Corporate Bond Target Maturity ETF.
Under the declaration of trust governing the funds, BMO has the ability to terminate ETFs so long as it provides investors with at least 60 days' notice. As a result, effective immediately, BMO is no longer accepting direct subscriptions for units of the three funds.
BMO says that the rights of unitholders to exchange or redeem units of the three ETFs will cease on the termination date, and all units still held by investors this date will be subject to a mandatory redemption.