Company Announcements

• Designed for investors seeking regular, monthly cash flow 
• Monthly payouts calibrated to a target annualized distribution rate, ranging from 6% to 15%, depending on underlying ETF

TORONTO , Feb. 12, 2026 /CNW/ - BMO Asset Management Inc. ("BMOAM Inc."), the manager of the BMO ETFs, today announced the launch of target cash flow units (collectively, the "Target Cash Flow Units") to complement its suite of covered call strategies, as well as the BMO All-Equity ETF (collectively, the "BMO ETFs"), which are listed in the table below.

"Our new Target Cash Flow Units build on the strong demand we continue to see for covered call solutions and our asset allocation ETFs," said Sara Petrcich, Head of ETFs and Alternatives, BMO Global Asset Management. "By offering a transparent and selectable distribution target, from 6% to 15%, we're giving investors the flexibility to tailor their cash flows while benefiting from the defensive characteristics of covered call strategies. We're focused on expanding our toolkit with innovative ETF solutions that help investors plan confidently in today's market."

Each of the BMO ETFs listed above has closed its initial offering of Target Cash Flow Units and is listed and trading on the Toronto Stock Exchange.

The Target Cash Flow Units are a series of units of certain BMO ETFs designed to provide investors with a monthly distribution based on a target annual distribution rate which is based on the net asset value per unit of a series ("NAVPS") at the end of the prior year, or in the case of a newly created series (such as the series listed in the table above), based on a target annualized distribution rate which is based on the initial starting NAVPS.

The Target Cash Flow Units are subject to capital depletion risk. Target Cash Flow Units make monthly distributions of a fixed amount which may comprise, in whole or in part, of a return of capital ("ROC"). A ROC reduces the amount of an original investment and may result in the return to investors of the entire amount of an original investment. A ROC that is not reinvested will reduce the NAV of the BMO ETF, which could reduce the BMO ETF's ability to generate future income. Investors should not draw any conclusions about the BMO ETF's investment performance from the amount of this distribution. A ROC can only be made by a series of a BMO ETF to the extent that there is a positive balance in the capital account for the relevant series. To the extent that the balance in the capital account becomes, or is at risk of becoming, zero, monthly distributions may be reduced or discontinued without prior notice.

The dollar amount of the monthly distribution that investors will receive is reset at the beginning of each calendar year. The dollar amount is a factor of the annualized distribution rate for the Target Cash Flow Units (which is the rate set out in the table above and in the individual BMO ETF profiles in the simplified prospectus of the BMO ETFs), the NAVPS as of the end of the previous calendar year, and the number of Target Cash Flow Units of the BMO ETF held at the time of the distribution.

Although not expected, we may also adjust the monthly distribution during the year, if capital market conditions have significantly affected the ability of the BMO ETF to maintain the applicable distribution. If we make any such adjustment to the monthly distribution, we will issue a press release to communicate the change.

The distribution rate applicable to the Target Cash Flow Units may be higher than the rate of return or the portfolio yield of the BMO ETF that offers such Units. As a result, if investors elect to receive some or all of the regular monthly distributions in cash, the value of their investment in the BMO ETF may decline over time.

Distributions from Target Cash Flow Units will include a ROC. A ROC does not necessarily reflect the BMO ETF's investment performance and should not be confused with "yield" or "income". Investors should not draw any conclusions about the BMO ETF's investment performance from the amount of these distributions. A ROC does not create an imme­diate tax liability, but it reduces investors' Adjusted Cost Base (ACB) over time; this may affect taxes when the investment is sold. Investors should consult a tax advisor.

Further information can be found at www.bmoetfs.com. 

The Dow Jones Industrial Average Index is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI"), and has been licensed for use by the Manager. S&P^®, S&P 500^®, Select Sector^®, SPDR^®, US 500, The 500 are trademarks of S&P Global, Inc. or its affiliates ("S&P") and Dow Jones^® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"), and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by the Manager. The ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index.

Commissions, management fees, and expenses all may be associated with investments in exchange-traded funds. Please read the ETF Facts or simplified prospectus of the BMO ETF before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Exchange-traded funds are not guaranteed, their values change frequently, and past performance may not be repeated.

For a summary of the risks of an investment in the BMO ETFs, please see the specific risks set out in the simplified prospectus. Exchange-traded funds trade like stocks, fluctuate in market value, and may trade at a discount to their net asset value, which may increase the risk of loss. Distributions are not guaranteed and are subject to change and/or elimination.

BMO ETFs are managed by BMO Asset Management Inc., an investment fund manager, a portfolio manager, and a separate legal entity from Bank of Montreal.

BMO Global Asset Management is a brand name under which BMO Asset Management Inc. and BMO Investments Inc. operate.

"BMO (M-bar roundel symbol)" is a registered trademark of Bank of Montreal, used under licence.

About BMO Financial Group

BMO Financial Group is the seventh largest bank in North America by assets, with total assets of $1.5 trillion as of October 31, 2025. Serving clients for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to approximately 13 million clients across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and stronger communities.  

SOURCE BMO Financial Group