BMO Dividend Class (the “Fund”) For the six-month period ended March 31, 2021 (the “Period”) Manager: BMO Investments Inc. (the “Manager” or “BMOII”) Portfolio manager: BMO Asset Management Inc., , (the “portfolio manager”)

2021 Semi-Annual Management Report of Fund Performance

This semi-annual management report of fund performance contains financial highlights but does not contain the complete semi-annual or annual financial statements of the Fund. If the semi-annual financial statements of the Fund do not accompany the mailing of this report, you may obtain a copy of the semi-annual or annual financial statements at your request, and at no cost, by calling 1-800-665-7700 and 1-800-668-7327, by writing to us at BMO Investments Inc., First Canadian Place, 100 King Street West, 43rd Floor, Toronto, Ontario, M5X 1A1 or by visiting our website at www.bmo.com/mutualfunds and www.bmo.com/gam/ca or SEDAR at www.sedar.com. You may also contact us using one of these methods to request a copy of the Fund’s proxy voting policies and procedures, proxy voting disclosure record and/or quarterly portfolio disclosure.

MANAGEMENT DISCUSSION OF FUND PERFORMANCE

Results of Operations which appreciated owing to an improving global economy, During the Period, the Fund’s total net asset value changed as well as improved margins and growth across all its from approximately $203 million to approximately business segments. JPMorgan Chase & Co. is a dominant $231 million. Series A shares of the Fund returned 18.03%. financial company that has benefited from earnings leverage Please see the Past Performance section for information on to the strong economic recovery, increasing interest rates the performance returns of the Fund’s other series. and regulators’ approval for dividend increases. Texas Instruments Inc. saw strong improvements in fundamentals During the Period, Canadian equities rallied, with as a result of having positioned itself to benefit from the performance driven by greater clarity following the U.S. sharp increase in demand for its semiconductors products. presidential election in November 2020, news about the efficacy of vaccines and the relatively smooth rollout of The Fund’s security selection and currency positioning those vaccines in the first quarter of 2021. Stocks that were detracted from performance. An overweight position in out-of-favour for most of 2020 garnered investor attention the Utilities sector detracted from performance, as did later in the Period, as a return to more typical economic underweight positions in the Energy and Consumer activity was expected in late 2021. The Financials, Energy Discretionary sectors. Individual detractors included a and Consumer Discretionary sectors outperformed over the defensive position in medical technology firm Becton, Period. The Canadian yield curve steepened as shorter-term Dickinson & Co., as the Health Care sector performance yields remained firmly anchored by steady monetary policy, of the S&P/TSX Composite Total Return Index was more while longer-term yields rose in response to inflation representative of cannabis-related securities, which expectations. As a result, the prospects for bank earnings materially outperformed more defensive holdings. S&P improved meaningfully. Energy stocks benefited from rising Global Inc. underperformed owing to market concerns oil prices. While economic activity did not rebound to its about its acquisition of IHS Markit Ltd. and given that the pre-pandemic levels during the Period, investors appeared company’s more defensive attributes are less attractive to expect strong travel-related household spending and, when investors have more appetite for riskier assets. TC therefore, higher demand for oil. Canadian equities, as Energy Corp. detracted as the utility-like, contracted nature represented by the S&P/TSX Composite Index had a 17.7% of its cash flows was much more defensive relative to the gain over the Period. broader Energy sector, which outperformed during the Period.

The Fund’s overweight positions in the Financials and The portfolio manager increased the Fund’s position in Air Health Care sectors contributed to performance, as did its Products and Chemicals Inc., which provides must-have underweight positions in the Materials, Consumer Staples industrial gases to most areas of the global economy. Few and Information Technology sectors. Individual contributors included leading global label maker CCL Industries Inc., BMO Dividend Class other companies provide the same service, which sets the Administration Fee and Operating Expenses company up well to compound earnings, dividends and The Fund pays a fixed administration fee to the Manager in value for shareholders into the foreseeable future. respect of each series. The Manager in return pays the operating expenses of these series of the Fund, other than For information on the Fund’s performance and certain specified expenses that are paid directly by the Fund composition, please refer to the Past Performance section and (“Fund Expenses”). Fund Expenses, include expenses Summary of Investment Portfolio section of this report. incurred in respect of preparing and distributing fund facts, Recent Developments interest or other borrowing expenses, all reasonable costs While these are unprecedented times, the portfolio manager and expenses incurred in relation to compliance with is comforted by the fact that the response to the pandemic- National Instrument 81-107 Independent Review Committee driven economic crisis has been equally unprecedented. for Investment Funds, including compensation and Central banks and governments around the globe have expenses payable to the Fund’s independent review committed to interest rate cuts and stimulus, which has committee (“IRC”) members, taxes to which the Fund is or been extremely important in terms of market stability. In the might be subject, and costs associated with compliance with near term, financial markets will likely be unpredictable any new governmental or regulatory requirement given the uneven global vaccine rollout, ongoing lockdowns introduced after December 1, 2007. Fund Expenses are and unanticipated aftershocks. On a long-term basis, allocated proportionately among the relevant series. If the however, the portfolio manager remains positive toward Fund Expenses are specific to a series, the Fund Expenses are North American equity markets owing to the vaccine allocated to that series. The fixed administration fee is deployment, increasing consumer and business optimism calculated as a fixed annual percentage of the average net and record waves of government policy stimulus. asset value of each relevant series of the Fund. Further details about the fixed administration fee and/or Fund The portfolio manager’s strategy remains anchored to Expenses can be found in the Fund’s most recent simplified investing in high-quality, sustainable businesses with safe prospectus at www.bmo.com/mutualfunds and and growing dividend streams. The focus is on businesses www.bmo.com/gam/ca or www.sedar.com. built to last given their strong competitive advantages, attractive returns on capital and smart capital allocations Buying and Selling Securities that work to provide the best balance of offence and defence During the Period, the Fund relied on standing instructions through the business cycle. Companies with these attributes provided by the IRC for any of the following related party typically have the flexibility within their business models transactions that may have occurred in the Fund: and corporate strategies to be opportunistic and to position (a) investments in securities issued by BMO, an affiliate of themselves to create value for stakeholders following the Manager, or any other issuer related to the Manager; the pandemic. (b) investments in a class of non-government debt securities RELATED PARTY TRANSACTIONS and/or equity securities of an issuer during the period of distribution of those securities to the public and/or the BMO Investments Inc., an indirect, wholly-owned 60-day period following the distribution period where subsidiary of (“BMO”), is the Manager of BMO Nesbitt Burns Inc., an affiliate of the Manager, or the Fund. From time to time, the Manager may, on behalf of any other affiliate of the Manager acted as an the Fund, enter into transactions or arrangements with or underwriter in the distribution; involving other members of BMO Financial Group, or certain other persons or companies that are related or connected to (c) trades in debt securities in the secondary market with the Manager (each a “Related Party”). The purpose of this BMO Nesbitt Burns Inc., an affiliate of the Manager, that section is to provide a brief description of any transaction is trading with the Fund as principal; and involving the Fund and a Related Party. (d) inter-fund trades Portfolio Manager The Fund’s portfolio manager is BMO Asset Management Inc. (each, a “Related Party Transaction”). (“BMOAM”), an affiliate of the Manager. BMOAM provides portfolio management services to the Fund. BMOAM receives from the Manager a management fee based on assets under management, calculated daily and payable monthly. BMO Dividend Class

In accordance with the IRC’s standing instructions, in FINANCIAL HIGHLIGHTS making a decision to cause the Fund to enter into a Related The following tables show selected key financial information Party Transaction, the Manager and the portfolio manager about the Fund and are intended to help you understand of the Fund are required to comply with the Manager’s the Fund’s financial performance for the periods indicated. written policies and procedures governing the Related Party Transaction and report periodically to the IRC, describing The Fund’s Net Assets per Share (1) each instance that the Manager relied on the standing Series A Shares instructions and its compliance or non-compliance with the Period ended Mar. 31 Periods ended Sep. 30 governing policies and procedures. The governing policies 2021 2020 2019 2018 2017 2016 and procedures are designed to ensure that each Related Net assets, beginning of period $ 16.06 17.80 17.04 16.63 15.68 15.02 Party Transaction (i) is made free from any influence of Increase (decrease) from operations: BMO, BMO Nesbitt Burns Inc. or an associate or affiliate of Total revenue $ 0.25 0.53 0.50 0.47 0.43 0.46 BMO and/or BMO Nesbitt Burns Inc., and without taking Total expenses (2) $ -0.16 -0.32 -0.32 -0.32 -0.31 -0.30 into account any considerations relevant to BMO, BMO Realized gains (losses) Nesbitt Burns Inc. or an associate or affiliate of BMO and/or for the period $ 0.24 0.33 0.41 0.94 1.17 1.07 Unrealized gains (losses) BMO Nesbitt Burns Inc.; (ii) represents the business for the period $ 2.56 -1.67 0.85 0.27 0.39 0.66 judgment of the Manager, uninfluenced by considerations Total increase (decrease) other than the best interests of the Fund; and (iii) achieves a from operations (3) $ 2.89 -1.13 1.44 1.36 1.68 1.89 Distributions: fair and reasonable result for the Fund. From income (excluding dividends) $ — — — — — — Brokerage Commissions From dividends $ — 0.46 0.44 0.41 0.39 0.32 The Fund pays standard brokerage commissions at market From capital gains $ 0.00 0.17 0.32 0.53 0.34 0.35 rates to BMO Nesbitt Burns Inc., an affiliate of the Manager, Return of capital $ — — — — — — Total Annual Distributions (4) $ — 0.63 0.76 0.94 0.73 0.67 for executing a portion of its trades. The brokerage Net assets, end of period $ 18.95 16.06 17.80 17.04 16.63 15.68 commissions charged to the Fund (excluding exchange and other fees) during the periods indicated, were as follows: Advisor Series Shares Period ended Period ended Period ended Mar. 31 Periods ended Sep. 30 Mar. 31, 2021 Mar. 31, 2020 2021 2020 2019 2018 2017 2016 $000 $000 Net assets, beginning of period $ 15.77 17.48 16.72 16.31 15.37 14.73 Total brokerage commissions 1 14 Increase (decrease) from operations: Brokerage commissions paid Total revenue $ 0.25 0.51 0.49 0.46 0.42 0.45 to BMO Nesbitt Burns Inc. 0 0 Total expenses (2) $ -0.16 -0.31 -0.31 -0.31 -0.30 -0.30 Realized gains (losses) for the period $ 0.24 0.33 0.41 0.91 1.14 0.91 Distribution Services Unrealized gains (losses) The Manager markets and distributes the Fund through BMO for the period $ 2.52 -1.67 0.85 0.22 0.38 0.25 branches and/or (depending on the series) through Total increase (decrease) from operations (3) $ 2.85 -1.14 1.44 1.28 1.64 1.31 registered dealers and brokers, including BMO InvestorLine Distributions: Inc. and BMO Nesbitt Burns Inc., both affiliates of the From income Manager. The Manager pays to these affiliates a service fee (excluding dividends) $ — — — — — — From dividends $ — 0.45 0.42 0.40 0.37 0.34 called a “trailing commission” based on the average daily From capital gains $ 0.00 0.16 0.32 0.52 0.33 0.34 value of the units and/or shares that are held in investor Return of capital $ — — — — — — accounts. This service fee is paid monthly or quarterly and Total Annual Distributions (4) $ — 0.61 0.74 0.92 0.70 0.68 Net assets, end of period $ 18.62 15.77 17.48 16.72 16.31 15.37 varies by purchase option and by series. BMO Dividend Class

Series F Shares Ratios and Supplemental Data Period ended Mar. 31 Periods ended Sep. 30 Series A Shares (6) 2021 2020 2019 2018) Period ended Mar. 31 Periods ended Sep. 30 Net assets, beginning of period $ 10.12 11.03 10.39 10.00)* 2021 2020 2019 2018 2017 2016 Increase (decrease) Total net asset value (000’s) (1) $ 138,542 121,137 141,656 147,201 151,593 153,882 from operations: Number of shares Total revenue $ 0.16 0.33 0.31 0.18 outstanding (000’s) (1) 7,309 7,543 7,957 8,638 9,117 9,811 Total expenses (2) $ -0.04 -0.08 -0.08 -0.05 Management expense ratio (2) % 1.82 1.82 1.82 1.82 1.84 1.91 Realized gains (losses) Management expense ratio for the period $ 0.16 0.11 0.28 0.55 before waivers or absorptions % 1.82 1.82 1.82 1.82 1.85 1.91 Unrealized gains (losses) Trading expense ratio (3) % 0.00 0.01 0.01 0.02 0.03 0.03 for the period $ 1.60 -0.87 0.75 0.33 Portfolio turnover rate (4) % 0.57 12.96 3.77 18.41 17.41 20.55 Total increase (decrease) Net asset value per share $ 18.95 16.06 17.80 17.04 16.63 15.68 from operations (3) $ 1.88 -0.51 1.26 1.01 Distributions: Advisor Series Shares From income Period ended (excluding dividends) $ — — — — Mar. 31 Periods ended Sep. 30 From dividends $ — 0.23 0.22 0.08 2021 2020 2019 2018 2017 2016 From capital gains $ 0.00 0.10 0.20 — Total net asset value (000’s) (1) $ 67,610 60,223 67,273 67,194 66,456 63,085 Return of capital $ — — — — Number of shares Total Annual Distributions (4) $ — 0.33 0.42 0.08 outstanding (000’s) (1) 3,632 3,818 3,848 4,019 4,075 4,104 Net assets, end of period $ 12.01 10.12 11.03 10.39 Management expense ratio (2) % 1.81 1.81 1.81 1.81 1.83 1.90 Management expense ratio Series D Shares before waivers or absorptions % 1.81 1.81 1.81 1.81 1.84 1.90 Period ended Trading expense ratio (3) % 0.00 0.01 0.01 0.02 0.03 0.03 Mar. 31 Periods ended Sep. 30 (4) (5) Portfolio turnover rate % 0.57 12.96 3.77 18.41 17.41 20.55 2021 2020 2019 2018) Net asset value per share $ 18.62 15.77 17.48 16.72 16.31 15.37

Net assets, beginning of period $ 9.80 10.75 10.15 10.00*) Increase (decrease) Series F Shares from operations: Period ended Total revenue $ 0.16 0.33 0.30 0.23 Mar. 31 Periods ended Sep. 30 (6) 2021 2020 2019 2018) Total expenses (2) $ -0.06 -0.11 -0.10 -0.09 Realized gains (losses) Total net asset value (000’s) (1) $ 16,852 13,375 9,652 5,942 for the period $ 0.14 0.24 0.25 0.63 Number of shares Unrealized gains (losses) outstanding (000’s) (1) 1,403 1,321 875 572 for the period $ 1.57 -1.09 0.75 -0.15 Management expense ratio (2) % 0.70 0.70 0.70 0.71 Total increase (decrease) Management expense ratio from operations (3) $ 1.81 -0.63 1.20 0.62 before waivers or absorptions % 0.70 0.70 0.70 0.71 (3) Distributions: Trading expense ratio % 0.00 0.01 0.01 0.02 (4) From income Portfolio turnover rate % 0.57 12.96 3.77 18.41 (excluding dividends) $ — — — — Net asset value per share $ 12.01 10.12 11.03 10.39 From dividends $ — 0.26 0.21 0.05 From capital gains $ 0.00 0.10 0.19 0.31 Return of capital $ — — — — Total Annual Distributions (4) $ — 0.36 0.40 0.36 Net assets, end of period $ 11.62 9.80 10.75 10.15

* Initial net assets. (1) This information is derived from the Fund’s unaudited semi-annual and audited annual financial statements. (2) Includes commissions and other portfolio transaction costs and withholding taxes. (3) Net assets and distributions are based on the actual number of shares outstanding at the relevant time. The increase/decrease from operations is based on the weighted average number of shares outstanding over the financial period. This table is not intended to be a reconciliation of beginning to ending net assets per share. (4) Distributions were either paid in cash or reinvested in additional shares of the Fund, or both. (5) The information shown in this column is for the period beginning November 20, 2017 (the series’ inception date) and ending September 30, 2018. (6) The information shown in this column is for the period beginning January 29, 2018 (the series’ inception date) and ending September 30, 2018. BMO Dividend Class

Series D Shares PAST PERFORMANCE Period ended Mar. 31 Periods ended Sep. 30 The Fund’s performance information assumes that all (5) 2021 2020 2019 2018) distributions made by the Fund in the periods shown were Total net asset value (000’s) (1) $ 8,084 7,933 1,175 625 Number of shares used to purchase additional securities of the Fund and is outstanding (000’s) (1) 696 809 109 62 based on the net asset value of the Fund. The reinvestment Management expense ratio (2) % 0.97 0.97 0.95 0.99 of distributions increases returns. The performance Management expense ratio before waivers or absorptions % 0.97 0.97 0.95 1.08 information does not take into account sales, redemption, Trading expense ratio (3) % 0.00 0.01 0.01 0.02 distribution, other optional charges or income taxes payable Portfolio turnover rate (4) % 0.57 12.96 3.77 18.41 that, if applicable, would have reduced returns or performance. Net asset value per share $ 11.62 9.80 10.75 10.15 Please remember that how the Fund has performed in the (1) This information is provided as at March 31 or September 30 of the period shown, as applicable. past does not indicate how it will perform in the future. (2) Management expense ratio is based on total expenses (excluding commissions and other portfolio transaction costs) for the stated period and is expressed as an annualized percentage of daily average net asset value during the period. The returns of each series may differ from one another for a (3) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an number of reasons, including if the series was not issued annualized percentage of daily average net asset value during the period. and outstanding for the entire reporting period and because (4) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio manager manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the of the different levels of management fees and expenses securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of an investor allocated and payable by each series. receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. On February 1, 2017, the administration fee applicable to (5) The information shown in this column is for the period beginning November 20, 2017 (the series’ inception date) and ending September 30, 2018. the Fund was lowered from 0.22% to 0.13%. This change (6) The information shown in this column is for the period beginning January 29, 2018 (the series’ inception date) could have affected the performance of the Fund had it and ending September 30, 2018. been in effect throughout the performance measurement Management Fees periods presented. The Manager is responsible for the day-to-day management Year-by-Year Returns of the business and operations of the Fund. The Manager The following bar charts show the performance of each monitors and evaluates the Fund’s performance, pays for the series of the Fund for each of the financial years shown and investment advice provided by the Fund’s portfolio manager for the six-month period ended March 31, 2021. The charts and provides certain administrative services required by the show in percentage terms how an investment made on the Fund. As compensation for its services, the Manager is entitled first day of each financial year would have increased or to receive a management fee payable monthly, calculated decreased by the last day of each financial year. based on the daily net asset value of each series of the Fund Series A Shares at the annual rate set out in the table below. 30% As a Percentage 20.31 18.03 of Management Fees 15% 11.51 10.82 General 8.50 9.09 8.28 9.22 Annual Administration, 0.32 Management Dealer Investment 0% Fee Rate Compensation Advice and Profit -1.54 % % % -6.31 -15% Series A Shares 1.50 67 33 Advisor Series Shares 1.50 64 36 Series F Shares 0.50 0 100 -30% Series D Shares 0.75 33 67 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021(3) BMO Dividend Class

Advisor Series Shares

30% 20.32 18.03 15% 11.54 10.83 8.53 9.10 8.30 9.23

0.34 0% -1.52 -6.31 -15%

-30% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021(3)

Series F Shares

30% 18.69

15% 10.30 10.44

0% -5.26 -15%

-30% 2018(2) 2019 2020 2021(3)

Series D Shares

30% 18.53

15% 10.16 4.82 0% -5.51 -15%

-30% 2018(1) 2019 2020 2021(3)

(1) For the period beginning with the performance launch date of November 21, 2017 to September 30, 2018. (2) For the period beginning with the performance launch date of February 13, 2018 to September 30, 2018. (3) For the six-month period ended March 31, 2021. BMO Dividend Class

SUMMARY OF INVESTMENT PORTFOLIO As at March 31, 2021 % of Net Top 25 Holdings % of Net Portfolio Allocation Asset Value Issuer Asset Value Financials 40.2 Royal Bank of 7.7 Industrials 11.9 Toronto-Dominion Bank, The 7.0 Utilities 10.1 Bank of Nova Scotia, The 5.7 Information Technology 9.2 Brookfield Asset Management Inc., Class A 5.6 Energy 8.0 Canadian National Railway Company 5.1 Real Estate 5.0 Brookfield Infrastructure Partners L.P. 4.2 Communication Services 4.0 Microsoft Corporation 3.8 Materials 2.7 Inc. 3.7 Consumer Discretionary 2.6 Financial Corporation 3.5 Consumer Staples 2.4 JPMorgan Chase & Co. 3.2 Cash/Receivables/Payables 1.6 TC Energy Corporation 3.0 Health Care 1.4 Bank of Montreal 2.9 Money Market Investments 0.9 Inc., Class B 2.7 Total Portfolio Allocation 100.0 Waste Connections, Inc. 2.7 Intact Financial Corporation 2.5 Algonquin Power & Utilities Corp. 2.4 Texas Instruments Incorporated 2.3 Limited 1.8 Fortis Inc. 1.8 Northland Power Inc. 1.7 S&P Global Inc. 1.7 CCL Industries Inc., Class B 1.7 Cash/Receivables/Payables 1.6 Visa Inc., Class A 1.6 Motorola Solutions, Inc. 1.5 Top Holdings as a Percentage of Total Net Asset Value 81.4 Total Net Asset Value $231,087,738

The summary of investment portfolio may change due to the Fund’s ongoing portfolio transactions. Updates are available quarterly. BMO Investments Inc. First Canadian Place, 43rd Floor 100 King Street West Toronto, Ontario M5X 1A1 www.bmo.com/mutualfunds and www.bmo.com/gam/ca

If you have any questions, please give us a call as follows: • If you purchased BMO Mutual Funds through a BMO Bank of Montreal branch or BMO Online Banking, please call 1-800-665-7700. • If you purchased BMO Mutual Funds through a full-service or discount broker, please call 1-800-668-7327 or email [email protected].

Caution regarding forward-looking statements This document may contain forward-looking statements relating to anticipated future events, results, circumstances, performance or expectations that are not historical facts but instead represent our beliefs regarding future events. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions and other forward-looking statements will not prove to be accurate. We caution readers of this document not to place undue reliance on our forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed or implied in the forward-looking statements. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including but not limited to market and general economic conditions, interest rates, regulatory and statutory developments, the effects of competition in the geographic and business areas in which the Fund may invest in and the risks detailed from time to time in BMO Mutual Funds’ simplified prospectus. We caution that the foregoing list of factors is not exhaustive and that when relying on forward-looking statements to make decisions with respect to investing in the Fund, investors and others should carefully consider these factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. Due to the potential impact of these factors, BMO Investments Inc. does not undertake, and specifically disclaims, any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

BMO Mutual Funds are offered by BMO Investments Inc., a financial services firm and separate legal entity from Bank of Montreal. ®/™ Registered trade-marks/trade-mark of Bank of Montreal, used under licence.