BMO MMFs Merging Into Goldman
A recent Prospectus Supplement for BMO Funds tells us, "On October 18, 2021, the Board of Directors of BMO Funds, Inc. approved an agreement and plan of reorganization providing for the reorganization of each of the BMO Government Money Market Fund, BMO Prime Money Market Fund and BMO Tax-Free Money Market Fund, each a series of the Corporation, into a corresponding series of Goldman Sachs Trust. BMO Asset Management Corp., investment adviser to each of the BMO Money Market Funds, recommended that the Board approve the Reorganizations in connection with its decision to exit the mutual fund investment advisory business in the United States, including ceasing management of each BMO Money Market Fund. BAMC's decision to exit the mutual fund investment advisory business is connected to the decision by Bank of Montreal, BAMC's parent, to sell the entities representing its EMEA (Europe, the Middle East and Africa) asset management business to Ameriprise Financial, Inc. To ensure that shareholders of the BMO Money Market Funds have continued access to a large and stable mutual fund platform, BAMC has proposed reorganizing the BMO Money Market Funds into the corresponding Acquiring Funds. Goldman Sachs Asset Management, L.P. serves as investment adviser to each of the Acquiring Funds." Regarding the "Proposed Reorganizations from the Corporation into GST and Share Class Mapping," the filing explains, "If a BMO Money Market Fund's shareholders approve a Reorganization, the BMO Money Market Fund shareholders will receive shares of the corresponding Acquiring Fund and share class:" BMO Government Money Market Fund Investor (Class Y) and Premier will go into Goldman Sachs Financial Square Government Fund Administration and Institutional, respectively. BMO Prime Money Market Fund Investor (Class Y) and Premier will go into Goldman Sachs Investor Money Market Fund Administration and Class I, respectively. BMO Tax-Free Money Market Fund Investor (Class Y) and Premier will go into Goldman Sachs Investor Tax-Exempt Money Market Fund Administration and Class I. The supplement adds, "BMO Money Market Funds Shareholder Meeting. The Board will call a joint meeting of shareholders of the BMO Money Market Funds at which shareholders of each BMO Money Market Fund will be asked to consider and vote on a Plan with respect to their BMO Money Market Fund. The joint shareholder meeting is expected to take place in the first quarter of 2022. Shareholders of each BMO Money Market Fund will receive a combined prospectus/proxy statement with additional information about the shareholder meeting and the Reorganizations. Please read the proxy materials carefully, as they will contain a more detailed description of the proposal." For more on mergers and liquidations in the money fund sector, see: "Western Files to Liquidate Tiny MMFs" (6/7/21), "AIG Govt MMF, MuniFund Liquidate" (8/3/21), "March MFI: Liquidations, Changes; Ameriprise's Chris Melin; Deposits" (3/5/21), "Delaware Liquidates Govt Cash Mgmt" (1/11/21), "BMO Liquidating Inst Prime MMF (11/17/20), "Franklin, Legg Mason Deal Signals More Consolidation; More Liquidations" (2/20/20), "TDAM Liquidating Money Funds" (10/15/18) and "Reich & Tang Announces Liquidation of Money Market Mutual Fund" (3/13/15).
