Exchange Bulletin
BMO Floating Rate High Yield ETF (ZFH) To Trade On Toronto Stock Exchange
BMO Floating Rate High Yield ETF(the "BMO ETF") - An application has been granted for the original listing in the Industrial category of 200,000 CAD Units (the "Units) of the BMO ETF, all of which will be issued and outstanding upon completion of an initial public offering (the "Offering").
Listing of the Units will become effective at 5:01 p.m. on Thursday, February 13, 2014 in anticipation of the Offering closing prior to the opening of business on Friday, February 14, 2014. The Units will be posted for trading at the opening of business on February 14, 2014 upon confirmation of the closing of the Offering.
The BMO ETF is authorized to issue an unlimited number of Units, each of which represents an equal, undivided interest in the net assets of the BMO ETF. Units of the BMO ETF are being issued and sold on a continuous basis and there is no maximum number of Units that may be issued.
Registration of interests in, and transfer of, the Units will be made only through CDS Clearing and Depository Services Inc. ("CDS"). Beneficial owners will not have the right to receive physical certificates evidencing their ownership of the Units. Units must be purchased, transferred and surrendered for exchange or redemption only through a CDS participant.
Additional information on the Units may be found in the final prospectus dated January 30, 2014 (the "Prospectus"), which is available at www.SEDAR.com. Capitalized terms not otherwise defined herein are as defined in the Prospectus.
| Stock Symbol: "ZFH" | CUSIP: 05579G 10 4 | Currency CDN$ |
| Designated Market Maker: | BMO Nesbitt Burns Inc. |
| Other Markets: | None |
| Head Office Address: | 100 King Street West, 43rd Floor Toronto, ON M5X 1A1 |
| Website: | www.bmo.com/etfs |
| Email: | kevin.gopaul@bmo.com |
| Head Office Telephone Number: | (416) 359-7635 |
| Fax Number: | (416) 359-5991 |
| Investor Relations: | Kevin R. Gopaul (416) 359-7635 Email: kevin.gopaul@bmo.com |
| Chief Financial Officer: | Robert J. Schauer |
| Secretary: | Penelope Muradya |
| Incorporation: | The BMO ETF was established under the laws of the Province of Ontario on January 29, 2014 pursuant to an amended and restated master declaration of trust executed by BMO Asset Management Inc., as trustee and manager. |
| Manager and Trustee: | BMO Asset Management Inc. |
| Transfer Agent & Registrar: | CST Trust Company at its principal offices in Toronto. |
| Fiscal Year End: | December 31 |
| Nature of Business: | The BMO ETF seeks to provide Unitholders with exposure to a diversified portfolio of debt securities of high yield bond issuers while mitigating the effects of interest rate fluctuations on the BMO ETF. The BMO ETF invests primarily in securities or specified derivatives that provide exposure to the credit risk of non-investment grade issuers, and Government of Canada T-Bills. To gain high yield credit exposure, the BMO ETF may invest directly in debt securities, other ETFs, mutual funds or public investments and may utilize derivatives, such as credit default swaps (CDS), indices of CDS, interest rate swaps and other derivatives. |
| Distributions: | Cash distributions on Units of the BMO ETF are expected to be paid on a monthly basis primarily out of dividends or distributions, and other income or gains, received by the BMO ETF less the expenses of the BMO ETF. To the extent that the expenses of the BMO ETF exceed the income generated by the BMO ETF in any given month, no monthly distribution will be paid. On an annual basis, the BMO ETF will ensure that all of its income and net realized capital gains have been distributed to Unitholders to such an extent that the BMO ETF will not be liable for ordinary income tax thereon. |
| Initial Issuance of Units: | Pursuant to the terms of the Prospectus, Units will be issued and sold on a continuous basis and there will be no maximum number of Units that may be issued. Units sold in connection with the Offering for the BMO ETF will amount to 200,000 CAD Units at a price of $15 per Unit. |
