Wolf Report is a senior analyst and private portfolio manager with over 10 years of generating value ideas in European and North American markets. He is a contributing author and analyst for the investing group iREIT®+HOYA Capital and Wide Moat Research LLC where in addition to the U.S. market, he covers the markets of Scandinavia, Germany, France, UK, Italy, Spain, Portugal and Eastern Europe in search of reasonably valued stock ideas. Learn moreAnalyst’s Disclosure:I/we have a beneficial long position in ...

Economic Overview - Canada's GDP increased in September, allowing the country to avoid a technical recession despite ongoing trade war and tariff uncertainties [2][8] - The unemployment rate fell slightly in October, marking the first drop in three months, but remains around 7%, the highest in four years [3][8] Consumer Behavior - Average household spending per capita fell by 0.2% from July to September, with 41% of Canadians planning to spend less during the holidays compared to last year [5][10] - Consumer confidence has been at historic lows throughout the year, reflecting concerns about the overall economy and job market [2][8] Price Trends - The Consumer Price Index for October showed an average price increase of 2.2% compared to the same period in 2022, with food prices rising by 3.4% [7][8] - Despite some positive economic indicators, consumers are facing higher prices than the previous year, leading to increased precautionary savings [9][10] Economic Sentiment - Experts suggest that while macroeconomic indicators may show growth, individual experiences can vary significantly, with many feeling economically strained [6][11] - The Bank of Canada noted the cautious consumer sentiment, attributing it to concerns about job security and economic stability [10][11]

Financial Sector Earnings - The upcoming week features significant earnings reports from major Canadian financial institutions, including Royal Bank of Canada on Wednesday and Toronto Dominion Bank, Bank of Montreal, and Canadian Imperial Bank of Commerce on Thursday [1] - The earnings reports from these banks are expected to provide insights into the Canadian financial sector's performance and outlook [1] Software Sector Earnings - The week is also packed with software earnings reports, with CrowdStrike Holdings Inc. and Marvell Technology Inc. reporting after market close on Tuesday, followed by Salesforce Inc. and Snowflake Inc. on Wednesday [1] - These earnings are anticipated to reflect trends and developments in the software industry, which may influence investor sentiment and market dynamics [1]

Core Insights - The article emphasizes the construction of investment portfolios focused on generating additional income through dividends, highlighting the importance of companies with competitive advantages and strong financials [1] Group 1: Investment Strategy - The strategy involves identifying companies that provide attractive Dividend Yield and Dividend Growth, allowing for an increase in annual dividend income [1] - A well-diversified portfolio across various sectors and industries is recommended to minimize volatility and mitigate risk [1] - Incorporating companies with a low Beta Factor is suggested to further reduce the overall risk level of the investment portfolio [1] Group 2: Portfolio Composition - Suggested investment portfolios typically consist of a blend of ETFs and individual companies, emphasizing broad diversification and risk reduction [1] - The selection process for high dividend yield and dividend growth companies is meticulously curated, focusing on total return, which includes both capital gains and dividends [1] - This approach aims to maximize returns while considering a full spectrum of potential income sources [1]

Core Insights - Bank of Montreal (BMO) has initiated a reorganization within its capital markets unit, resulting in the departure of two long-serving managing directors [1][3] Group 1: Departures - Alena Vinogradova, who worked at BMO for over 12 years and was the managing director and head of XVA trading, left the bank last week [2] - Nancy Branch, a managing director with approximately 24 years at BMO and head of cross business structuring, also departed [3] Group 2: Reorganization - BMO is restructuring its capital markets team, appointing John Mitrano as the sole head of global equities and Darren Campbell as the head of global markets Canada in September [3] - The bank has not provided comments regarding these changes [3]

Bank of Montreal let go of two longtime managing directors in its capital markets unit https://t.co/Q8AswgwRBE ...

Core Viewpoint - BMO Asset Management Inc. and BMO Investments Inc. announced the estimated annual reinvested distributions for BMO Exchange Traded Funds (ETFs) and ETF Series for 2025, which are primarily composed of realized capital gains and special income to avoid ordinary income tax liabilities for the funds [1][2][3] Distribution Details - Unitholders of record as of December 31, 2025, will receive the annual reinvested distributions, with final amounts expected to be announced around December 18, 2025 [2] - The estimated annual reinvested distributions have been calculated based on forward-looking information as of September 30, 2025, and may change if the underlying information changes [3][10] Estimated Distribution Amounts - The per-unit estimated annual reinvested distribution amounts for various BMO ETFs are detailed, with notable distributions including: - BMO Canadian Dividend ETF (ZDV): 2.074 - BMO International Dividend ETF (ZDI): 2.207 - BMO Equal Weight Gold Index ETF (ZGD): 15.398 - BMO NASDAQ 100 Equity Hedged to CAD Index ETF (ZQQ): 7.118 - BMO US Dividend ETF (ZDY): 2.276 [3][4][5][6][7] Fund Management - BMO ETFs are managed by BMO Asset Management Inc., while the ETF Series of BMO Mutual Funds are managed by BMO Investments Inc., both of which are separate legal entities from Bank of Montreal [9][21]

Core Points - BMO Investments Inc. plans to change the listing venue of its mutual fund's ETF series from the Toronto Stock Exchange to Cboe Canada, having received conditional approval for the listing [1] - The voluntary delisting from the TSX is expected to occur at the close of business on November 26, 2025, with the new listing on Cboe Canada set for November 27, 2025 [2] - No securityholder approval is required for the delisting as the funds will be listed on Cboe Canada immediately after [2] Company Overview - BMO Financial Group is the seventh largest bank in North America by assets, with total assets of $1.4 trillion as of July 31, 2025 [5] - The company has been serving customers for 200 years, providing a wide range of banking, wealth management, and investment banking services to 13 million customers across Canada, the U.S., and select global markets [5] - BMO is committed to driving positive change in the economy, promoting sustainability, and fostering an inclusive society [5]

Core Insights - BMO Global Asset Management received twelve awards at the 2025 Canada LSEG Lipper Fund Awards, highlighting its excellence in providing strong, risk-adjusted returns across various investment solutions [1][2] Fund Performance - BMO Growth & Income Fund (Series F) was recognized as the Best Canadian Dividend & Income Equity fund over 3 years and 5 years, with performance metrics of 27.88% (1 year), 23.71% (3 years), 19.8% (5 years), 11.08% (10 years) [4][14] - BMO Monthly Dividend Fund Ltd. (Series F) won Best Canadian Fixed Income Balanced fund over 3 years and 5 years, achieving returns of 16.56% (1 year), 13.69% (3 years), and 12.70% (5 years) [4][15][16] - BMO European Fund (Series F) was awarded Best European Equity fund over 10 years, with returns of 12.52% (1 year), 24.72% (3 years), and 11.81% (5 years) [4][17] - BMO Global Infrastructure Fund (Series F) received recognition as the Best Global Infrastructure Equity fund over 5 years, with performance of 18.40% (1 year), 17.00% (3 years), and 13.24% (5 years) [4][18] - BMO U.S. Small Cap Fund (Series F) was awarded Best US Small/Mid Cap Equity fund over 5 years, with returns of 16.15% (1 year), 20.58% (3 years), and 19.17% (5 years) [4][19] ETF Performance - BMO Canadian Bank Income Index ETF (Ticker: ZBI) was recognized as the Best Canadian Fixed Income ETF over 3 years, with a return of 6.59% (1 year) and 7.47% (3 years) [5][20] - BMO Mid Provincial Bond Index ETF (Ticker: ZMP) won Best Canadian Fixed Income ETF over 10 years, achieving returns of 4.34% (1 year) and 5.24% (3 years) [5][21] - BMO Ultra Short-Term US Bond ETF (USD Units) (Ticker: ZUS.U) was awarded Best Global Fixed Income ETF over 3 years and 5 years, with returns of 4.79% (1 year) and 5.13% (3 years) [5][22] - BMO MSCI USA High Quality Index ETF (Ticker: ZUQ) received recognition as the Best US Equity ETF over 10 years, with performance metrics of 13.88% (1 year), 27.33% (3 years), and 15.93% (5 years) [5][23] Company Overview - BMO Financial Group is the seventh largest bank in North America by assets, with total assets of $1.4 trillion as of July 31, 2025, serving 13 million customers across Canada, the United States, and select global markets [24]

Core Viewpoint - BMO Asset Management Inc. and BMO Investments Inc. announced changes in portfolio management for certain BMO Exchange Traded Funds (ETFs) and BMO Mutual Funds, effective October 28, 2025, and January 30, 2026, respectively [1][2][3]. Group 1: Management Changes - BMO Capital Markets Corp. and Brian Belski will cease to act as sub-advisors for specified BMO ETFs and Mutual Funds, while BMO Asset Management Inc. will remain as the portfolio adviser and manager [2][3]. - Fullgoal Asset Management (HK) Limited will replace Polen Capital HK Limited as the portfolio manager of the BMO Greater China Fund, effective on or about January 30, 2026 [3]. Group 2: Fund Information - The fundamental investment objectives and risk ratings of the affected BMO ETFs and Mutual Funds will remain unchanged despite the management changes [4]. - A list of affected funds includes BMO Canadian Core Plus US Balanced ETF, BMO Canadian Equity Plus ETF, BMO US Dividend Growth ETF, and others [3]. Group 3: Company Overview - BMO Financial Group is the seventh largest bank in North America by assets, with total assets of $1.4 trillion as of July 31, 2025, serving 13 million customers across Canada, the U.S., and select global markets [8][9].