BMO Sustainable Opportunities Canadian Equity Fund (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 An underweight position in the Materials sector contributed During the Period, the Fund’s total net asset value changed to the Fund’s performance, as did an overweight position from approximately $3 million to approximately in the Health Care sector. Individual contributors to $19 million. Series A units of the Fund returned 14.56%. performance included WSP Global Inc., as it acquired Please see the Past Performance section for information on Golder Associates Ltd., which was highly accretive to its the performance returns of the Fund’s other series. earnings per share and expanded its environmental segment. CCL Industries Inc. Class B shares contributed to During the Period, Canadian equities rallied, with performance owing to the company’s organic growth. ATS performance driven by greater clarity following the U.S. Automation Tooling Systems Inc. continued to benefit from presidential election in November 2020, news about the automation in the Health Care sector and electric vehicles. efficacy of vaccines and the relatively smooth rollout of those vaccines in the first quarter of 2021. Stocks that were The outperformance of low-quality, cyclical, deep-value out-of-favour for most of 2020 garnered investor attention companies detracted from the Fund’s performance as the later in the Period, as a return to more typical economic Fund was invested in high-quality companies that can activity was expected in late 2021. The Financials, Energy compound cash flow per share over time. The underweight and Consumer Discretionary sectors outperformed over the positions in the Energy and Financials sectors also detracted Period. The Canadian yield curve steepened as shorter-term from the Fund’s performance, as did an overweight yields remained firmly anchored by steady monetary policy, position in the Utilities sector. Individual detractors from while longer-term yields rose in response to inflation performance included Andlauer Healthcare Group Inc., a expectations. As a result, the prospects for bank earnings defensive business that was able to navigate pandemic improved meaningfully. Energy stocks benefited from rising conditions well, as its stock performance pulled back with oil prices. While economic activity did not rebound to its the rotation into cyclicals stocks. Kinaxis Inc.’s fourth pre-pandemic levels during the Period, investors appeared quarter of 2020 results weighed on performance as gross to expect strong travel-related household spending and, margins and organic growth were lower than expected. therefore, higher demand for oil. Canadian equities, as The Fund’s position in Boyd Group Services Inc. was represented by the S&P/TSX Composite Index had a 17.7% increased as the portfolio manager believes that this gain over the Period. company continues to be a high-quality business that can compound earnings over the long term. The Fund’s positions in WSP Global Inc. and Boralex Inc. were trimmed to take profits and rebalanced the portfolio. BMO Sustainable Opportunities Canadian Equity Fund

Multi-Series Structure Change RELATED PARTY TRANSACTIONS On November 27, 2020, the Manager qualified BMO Private BMO Investments Inc., an indirect, wholly-owned subsidiary Sustainable Opportunities Canadian Equity Fund Series O of (“BMO”), is the Manager of the Fund. units of the Fund in addition to the types of units currently From time to time, the Manager may, on behalf of the Fund, available for sale to investors. Series O units are for enter into transactions or arrangements with or involving investors who entered into an investment management other members of BMO Financial Group, or certain other agreement with BMO Trust Company and BMO Private persons or companies that are related or connected to the Investment Counsel Inc. or have entered into an investment Manager (each a “Related Party”). The purpose of this management agreement with BMO Nesbitt Burns Inc. and section is to provide a brief description of any transaction have received the Manager’s prior consent. involving the Fund and a Related Party.

For information on the Fund’s performance and composition, Portfolio Manager please refer to the Past Performance section and Summary of The Fund’s portfolio manager is BMO Asset Management Inc. Investment Portfolio section of this report. (“BMOAM”), an affiliate of the Manager. BMOAM provides Recent Developments portfolio management services to the Fund. BMOAM receives While these are unprecedented times, the portfolio manager from the Manager a management fee based on assets under is comforted by the fact that the response to the pandemic- management, calculated daily and payable monthly. driven economic crisis has been equally unprecedented. Operating Expenses Central banks and governments around the globe have The Fund pays all of its operating expenses directly. These committed interest rate reductions and stimulus measures, operating expenses include administration expenses and which have been extremely important in terms of market fund expenses. These operating expenses are allocated stability. That said, the speed and severity with which the proportionately among the relevant series. Operating markets are reacting to news and rumours makes it expenses that are specific to a series are allocated to that impossible to provide a short-term analysis of markets or series. Operating expenses, include expenses incurred in individual stocks with any confidence. respect of preparing and distributing fund facts, interest or While the portfolio manager believes there are currently other borrowing expenses, all reasonable costs and pockets of euphoria in the markets, the level of innovation expenses incurred in relation to compliance with National in the health care system, the well-capitalized nature of the Instrument 81-107 Independent Review Committee for financials system and strong responses by governments and Investment Funds, including compensation and expenses policymakers provide reasons for optimism towards North payable to the Fund’s independent review committee American equity markets in the medium-to-long term. (“IRC”) members, taxes to which the Fund is or might be subject, and costs associated with compliance with any new The portfolio manager’s investment process is based on governmental or regulatory requirement introduced after owning a concentrated portfolio of durable businesses with December 1, 2007. The Manager may, at their discretion, high barriers to entry, strong cash flows, long secular trends absorb all or a portion of the operating expenses at any given and strong management teams that will allocate capital time. Separate fees and expenses are negotiated and paid appropriately to drive long-term shareholder value. directly by each Series I investor. Further details about the Fund’s operating expenses can be found in the Fund’s most While the current environment represents considerable recent simplified prospectus at www.bmo.com/mutualfunds uncertainty, the portfolio manager remains highly confident and www.bmo.com/gam/ca or www.sedar.com. in the Fund’s holdings and will make changes where there are structural challenges or where the overall quality of the portfolio can be improved. The portfolio manager remains highly confident that the Fund’s holdings will not only survive but, given their market dominance, will be in advantageous positions to take market share and create significant shareholder value. BMO Sustainable Opportunities Canadian Equity Fund

Buying and Selling Securities Brokerage Commissions During the Period, the Fund relied on standing instructions The Fund pays standard brokerage commissions at market provided by the IRC for any of the following related party rates to BMO Nesbitt Burns Inc., an affiliate of the Manager, transactions that may have occurred in the Fund: for executing a portion of its trades. The brokerage commissions charged to the Fund (excluding exchange and (a) investments in securities issued by BMO, an affiliate of other fees) during the period indicated was as follows: the Manager, or any other issuer related to the Manager; Period ended (b) investments in a class of non-government debt Mar. 31, 2021 $000 securities and/or equity securities of an issuer during the period of distribution of those securities to the Total brokerage commissions 3 public and/or the 60-day period following the Brokerage commissions paid distribution period where BMO Nesbitt Burns Inc., an to BMO Nesbitt Burns Inc. 1 affiliate of the Manager, or any other affiliate of the Manager acted as an underwriter in the distribution; Distribution Services The Manager markets and distributes the Fund through (c) trades in debt securities in the secondary market with BMO branches and/or (depending on the series) through BMO Nesbitt Burns Inc., an affiliate of the Manager, that registered dealers and brokers, including BMO InvestorLine is trading with the Fund as principal; and Inc. and BMO Nesbitt Burns Inc., both affiliates of the (d) inter-fund trades Manager. The Manager pays to these affiliates a service fee called a “trailing commission” based on the average daily (each, a “Related Party Transaction”). value of the units and/or shares that are held in investor accounts. This service fee is paid monthly or quarterly and In accordance with the IRC’s standing instructions, in varies by purchase option and by series. making a decision to cause the Fund to enter into a Related Party Transaction, the Manager and the portfolio manager FINANCIAL HIGHLIGHTS of the Fund are required to comply with the Manager’s written policies and procedures governing the Related Party The following tables show selected key financial information Transaction and report periodically to the IRC, describing about the Fund and are intended to help you understand each instance that the Manager relied on the standing the Fund’s financial performance for the periods indicated. instructions and its compliance or non-compliance with the The Fund’s Net Assets per Unit (1) governing policies and procedures. The governing policies and procedures are designed to ensure that each Related Series A Units Period ended Party Transaction (i) is made free from any influence of Mar. 31 Periods ended Sep. 30 (5) 2021 2020) BMO, BMO Nesbitt Burns Inc. or an associate or affiliate of

Net assets, beginning of period $ 10.20 10.00)* BMO and/or BMO Nesbitt Burns Inc., and without taking Increase (decrease) into account any considerations relevant to BMO, BMO from operations: Nesbitt Burns Inc. or an associate or affiliate of BMO and/or Total revenue $ 0.10 0.08 (2) BMO Nesbitt Burns Inc.; (ii) represents the business Total expenses $ -0.11 -0.07 Realized gains (losses) judgment of the Manager, uninfluenced by considerations for the period $ 0.04 -0.02 other than the best interests of the Fund; and (iii) achieves a Unrealized gains (losses) fair and reasonable result for the Fund. for the period $ 1.08 0.59 Total increase (decrease) from operations (3) $ 1.11 0.58 Distributions: From income (excluding dividends) $ — — From dividends $ — — From capital gains $ — — Return of capital $ — — Total Annual Distributions (4) $ — — Net assets, end of period $ 11.68 10.20 BMO Sustainable Opportunities Canadian Equity Fund

Advisor Series Units Series D Units Period ended Period ended Mar. 31 Periods ended Sep. 30 Mar. 31 Periods ended Sep. 30 (5) (5) 2021 2020) 2021 2020)

Net assets, beginning of period $ 10.20 10.00)* Net assets, beginning of period $ 10.21 10.00)* Increase (decrease) Increase (decrease) from operations: from operations: Total revenue $ 0.11 0.03 Total revenue $ 0.10 0.04 Total expenses (2) $ -0.11 -0.03 Total expenses (2) $ -0.06 -0.02 Realized gains (losses) Realized gains (losses) for the period $ 0.06 -0.01 for the period $ 0.05 -0.01 Unrealized gains (losses) Unrealized gains (losses) for the period $ 0.60 0.06 for the period $ 0.27 0.20 Total increase (decrease) Total increase (decrease) from operations (3) $ 0.66 0.05 from operations (3) $ 0.36 0.21 Distributions: Distributions: From income From income (excluding dividends) $ — — (excluding dividends) $ — — From dividends $ — — From dividends $ — — From capital gains $ — — From capital gains $ — — Return of capital $ — — Return of capital $ — — Total Annual Distributions (4) $ — — Total Annual Distributions (4) $ — — Net assets, end of period $ 11.68 10.20 Net assets, end of period $ 11.74 10.21

Series F Units Series I Units Period ended Period ended Mar. 31 Periods ended Sep. 30 Mar. 31 Periods ended Sep. 30 (5) (5) 2021 2020) 2021 2020)

Net assets, beginning of period $ 10.21 10.00)* Net assets, beginning of period $ 10.22 10.00)* Increase (decrease) Increase (decrease) from operations: from operations: Total revenue $ 0.12 0.09 Total revenue $ 0.11 0.07 Total expenses (2) $ -0.05 -0.02 Total expenses (2) $ -0.00 -0.01 Realized gains (losses) Realized gains (losses) for the period $ 0.06 0.01 for the period $ 0.04 0.41 Unrealized gains (losses) Unrealized gains (losses) for the period $ 0.43 1.34 for the period $ 0.89 0.86 Total increase (decrease) Total increase (decrease) from operations (3) $ 0.56 1.42 from operations (3) $ 1.04 1.33 Distributions: Distributions: From income From income (excluding dividends) $ — — (excluding dividends) $ — — From dividends $ — — From dividends $ — — From capital gains $ — — From capital gains $ — — Return of capital $ — — Return of capital $ — — Total Annual Distributions (4) $ — — Total Annual Distributions (4) $ — — Net assets, end of period $ 11.76 10.21 Net assets, end of period $ 11.82 10.22 BMO Sustainable Opportunities Canadian Equity Fund

Series O Units Advisor Series Units Period ended Period ended Mar. 31 Mar. 31 Periods ended Sep. 30 (6) (5) 2021) 2021 2020)

(1) Net assets, beginning of period $ 10.00*) Total net asset value (000’s) $ 120 13 Increase (decrease) Number of units from operations: outstanding (000’s) (1) 10 1 Total revenue $ 0.07 Management expense ratio (2) % 1.92 1.92 Total expenses (2) $ -0.01 Management expense ratio Realized gains (losses) before waivers or absorptions % 6.03 9.95 for the period $ 0.03 Trading expense ratio (3) % 0.06 0.24 Unrealized gains (losses) Portfolio turnover rate (4) % 16.30 4.33 for the period $ 0.01 Net asset value per unit $ 11.68 10.20 Total increase (decrease) from operations (3) $ 0.10 Series F Units Distributions: Period ended Mar. 31 Periods ended Sep. 30 From income (5) 2021 2020) (excluding dividends) $ — (1) From dividends $ — Total net asset value (000’s) $ 2,014 57 From capital gains $ — Number of units (1) Return of capital $ — outstanding (000’s) 171 6 (2) Total Annual Distributions (4) $ — Management expense ratio % 0.79 0.79 Net assets, end of period $ 10.49 Management expense ratio before waivers or absorptions % 1.00 9.40

* Initial net assets. Trading expense ratio (3) % 0.06 0.24 (1) This information is derived from the Fund’s unaudited semi-annual and audited annual financial statements. Portfolio turnover rate (4) % 16.30 4.33 (2) Includes commissions and other portfolio transaction costs and withholding taxes. Net asset value per unit $ 11.76 10.21 (3) Net assets and distributions are based on the actual number of units outstanding at the relevant time. The increase/decrease from operations is based on the weighted average number of units outstanding over the financial period. This table is not intended to be a reconciliation of beginning to ending net assets per unit. Series D Units Period ended (4) Distributions were either paid in cash or reinvested in additional units of the Fund, or both. The allocation Mar. 31 Periods ended Sep. 30 (5) of the distributions from each of income, dividends, capital gains and return of capital is based on the 2021 2020) Manager’s estimate as at March 31 or September 30 of the period shown, as applicable, which is the Fund’s financial year-end. However, the actual allocation of distributions is determined as at December 15, the Total net asset value (000’s) (1) $ 40 1 Fund’s tax year-end. Accordingly, the actual allocation among income, dividends, capital gains and return of Number of units capital may differ from these estimates. outstanding (000’s) (1) 3 0 (5) The information shown in this column is for the period beginning May 22, 2020 (the series’ inception date) Management expense ratio (2) % 1.07 1.07 and ending September 30, 2020. Management expense ratio (6) The information shown in this column is for the period beginning November 27, 2020 (the series’ inception date) and ending March 31, 2021. before waivers or absorptions % 10.92 67.76 Trading expense ratio (3) % 0.06 0.24 Ratios and Supplemental Data Portfolio turnover rate (4) % 16.30 4.33 Net asset value per unit $ 11.74 10.21 Series A Units Period ended Series I Units Mar. 31 Periods ended Sep. 30 Period ended (5) 2021 2020) Mar. 31 Periods ended Sep. 30 (5) Total net asset value (000’s) (1) $ 10,458 2,320 2021 2020) Number of units Total net asset value (000’s) (1) $ 5,166 131 outstanding (000’s) (1) 896 228 Number of units Management expense ratio (2) % 1.92 1.58 outstanding (000’s) (1) 437 13 Management expense ratio Management expense ratio + % — — before waivers or absorptions % 2.21 3.39 Management expense ratio Trading expense ratio (3) % 0.06 0.24 before waivers or absorptions + % — — Portfolio turnover rate (4) % 16.30 4.33 Trading expense ratio (3) % 0.06 0.24 Net asset value per unit $ 11.68 10.20 Portfolio turnover rate (4) % 16.30 4.33 Net asset value per unit $ 11.82 10.22 BMO Sustainable Opportunities Canadian Equity Fund

Series O Units PAST PERFORMANCE Period ended Mar. 31 The Fund’s performance information assumes that all (6) 2021) distributions made by the Fund in the periods shown were Total net asset value (000’s) (1) $ 1,220 used to purchase additional securities of the Fund and is Number of units outstanding (000’s) (1) 116 based on the net asset value of the Fund. The reinvestment Management expense ratio (2) % 0.13 of distributions increases returns. The performance Management expense ratio information does not take into account sales, redemption, before waivers or absorptions % 0.13 Trading expense ratio (3) % 0.06 distribution, other optional charges or income taxes payable Portfolio turnover rate (4) % 16.30 that, if applicable, would have reduced returns or performance. Net asset value per unit $ 10.49 Please remember that how the Fund has performed in the + Operating expenses are paid by BMOII and management fees are paid directly to BMOII as negotiated with past does not indicate how it will perform in the future. the investor. (1) This information is provided as at March 31 or September 30 of the period shown, as applicable. The returns of each series may differ from one another for a (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 number of reasons, including if the series was not issued asset value during the period. and outstanding for the entire reporting period and because (3) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the period. of the different levels of management fees and expenses (4) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio manager manages its portfolio allocated and payable by each series. investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the 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 Year-by-Year Returns receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover The following bar charts show the performance of each rate and the performance of a fund. (5) The information shown in this column is for the period beginning May 22, 2020 (the series’ inception date) series of the Fund for each of the financial years shown and and ending September 30, 2020. for the six-month period ended March 31, 2021. The charts (6) The information shown in this column is for the period beginning November 27, 2020 (the series’ inception date) and ending March 31, 2021. show in percentage terms how an investment made on the first day of each financial year would have increased or Management Fees decreased by the last day of each financial year. The Manager is responsible for the day-to-day management Series A Units of the business and operations of the Fund. The Manager 20% monitors and evaluates the Fund’s performance, pays for the 14.56 investment advice provided by the Fund’s portfolio manager and provides certain administrative services required by the 10% Fund. As compensation for its services, the Manager is entitled 2.23 to receive a management fee payable monthly, calculated 0% based on the daily net asset value of each series of the Fund -10% at the annual rate set out in the table below.

As a Percentage -20% of Management Fees 2020(1) 2021(3) General Advisor Series Units Annual Administration, Management Dealer Investment 20% Fee Rate* Compensation Advice and Profit 14.50 % % % Series A Units 1.50 47 53 10% Advisor Series Units 1.50 64 36 2.29 Series F Units 0.50 0 100 0% Series D Units 0.75 31 69 Series I Units — — — Series O Units 0.05 0 100 -10%

* For Series I Units, separate Series I fees are negotiated and paid by each Series I investor. The management fee for Series I Units will not exceed the management fee charged for Advisor Series or Series A Units. -20% (1) (3) * For Series O Units, a wealth management fee is paid by each Series O investor to their dealer, a portion of 2020 2021 which may be paid to the Manager. This fee is set by the dealer. BMO Sustainable Opportunities Canadian Equity Fund

Series F Units

20% 15.16

10% 2.44 0%

-10%

-20% 2020(1) 2021(3)

Series D Units

20% 15.00

10% 2.39 0%

-10%

-20% 2020(1) 2021(3)

Series I Units

20% 15.60

10% 2.52 0%

-10%

-20% 2020(1) 2021(3)

Series O Units

20%

10% 4.47

0%

-10%

-20% 2021(2) (1) For the period beginning with the performance launch date of August 17, 2020 to September 30, 2020. (2) For the period beginning with the performance launch date of December 17, 2020 to March 31, 2021. (3) For the six-month period ended March 31, 2021. BMO Sustainable Opportunities Canadian Equity Fund

SUMMARY OF INVESTMENT PORTFOLIO As at March 31, 2021 % of Net Top 25 Holdings % of Net Portfolio Allocation Asset Value Issuer Asset Value Financials 27.2 Royal Bank of 6.5 Industrials 24.0 Toronto-Dominion Bank, The 6.0 Information Technology 13.9 Brookfield Asset Management Inc., Class A 5.9 Real Estate 11.4 Canadian National Railway Company 5.8 Utilities 8.9 Inc., Class A 5.7 Communication Services 4.0 Waste Connections, Inc. 4.4 Materials 3.3 Inc., Class B 4.0 Cash/Receivables/Payables 3.0 Tricon Capital Group Inc. 4.0 Consumer Staples 2.7 FirstService Corporation 3.9 Health Care 1.6 Boyd Group Services Inc. 3.9 Total Portfolio Allocation 100.0 Bank of Montreal 3.8 WSP Global Inc. 3.8 Morneau Shepell Inc. 3.5 Canadian Apartment Properties REIT 3.5 CCL Industries Inc., Class B 3.3 Algonquin Power & Utilities Corp. 3.3 Brookfield Renewable Partners L.P. 3.0 Cash/Receivables/Payables 3.0 Financial Corporation 2.8 Empire Company Limited, Class A 2.7 Boralex Inc., Class A 2.6 ATS Automation Tooling Systems Inc. 2.6 Descartes Systems Group Inc., The 2.5 Kinaxis Inc. 2.2 Intact Financial Corporation 2.2 Top Holdings as a Percentage of Total Net Asset Value 94.9 Total Net Asset Value $19,018,456

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.