BMO Cuts Fees on Global Dividend and International Equity Mutual Funds

Benzinga reported Thursday that BMO mutual funds fee reduction moves took effect immediately across two flagship products. BMO Investments Inc., the Toronto-based manager of the BMO Mutual Fund suite, announced lower charges and revised risk classifications for several funds.

Fee Cuts Hit Global Dividend and International Equity

The BMO Global Dividend Fund saw its administration fees trimmed from 0.35% to 0.19% across multiple series. Affected classes include Series A, Series T6, Series F, Series F6, and Advisor Series securities. Management fees for those same series were also reduced simultaneously.

The BMO International Equity Fund received a parallel treatment. Management fees fell across Series A, Series F, and Advisor Series securities. Additionally, the fund’s operating expense burden was restructured. BMO Investments will now absorb general administration costs directly. The fund itself will continue covering its own specific fund expenses.

Also Read: What Are Mutual Fund Management Expense Ratios and Why Do They Matter?

Why Fee Pressure Has Been Building

The mutual fund industry has faced sustained pressure to lower costs for years. Low-cost index funds and exchange-traded funds have drawn billions away from actively managed products. Canadian regulators have also pushed greater fee transparency under the Client Focused Reforms framework. BMO Investments’ move reflects that broader competitive reality. Funds with high fee structures have increasingly struggled to justify their cost relative to net returns.

Also Read: Canada’s Client Focused Reforms and What They Mean for Fund Managers

Risk Ratings Across the Lineup Also Revised

Beyond the fee changes, BMO Investments updated the risk ratings assigned to several other funds in its broader mutual fund family. The announcement did not specify which direction individual ratings moved. Risk ratings in Canada follow a standardized methodology. They guide investors toward products appropriate for their tolerance levels. Changes can reflect shifts in a fund’s volatility history or benchmark composition.

What This Means for Investors

Lower fees translate directly into improved net returns for investors over time. Even a reduction of 0.10% to 0.20% compounded over a decade can meaningfully alter outcomes. BMO Investments manages its fund lineup under the BMO Global Asset Management brand. That brand operates as a unit of Bank of Montreal, one of Canada’s six largest financial institutions. The two entities remain legally separate for regulatory purposes.

Read Next: What Falling Fund Fees Mean for Long-Term Portfolio Returns