The performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original costs. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. To receive current performance to the most recent month-end, please call 1-800-236-3863 or visit www.bmofunds.com.

Commentary

The BMO Large-Cap Growth Fund (the Fund) returned 30.19% for the fiscal year ended August 31, 2020 versus the Russell 1000^® Growth Index and the Lipper Multi-Cap Growth Funds Index, which returned 44.34% and 39.20%, respectively.

Global equities experienced a year unlike any other as COVID-19 exploded into a worldwide pandemic during the first quarter of 2020, leading to an unprecedented economic shutdown as governments and businesses took dramatic steps to contain the virus. Investors responded to sudden expectations of a global recession, straining the liquidity of financial markets while sending equities into a steep decline in the first quarter. As financial conditions worsened in March, forced liquidations and hedge-fund deleveraging exaggerated the market selloff, driving volatility to record highs. Global stocks rebounded strongly, however, in the months following the March lows as countries began to reopen their economies and policymakers announced unprecedented fiscal and monetary support. Investors returned to risk assets relatively quickly and helped global equities finish the trailing 12-month period with double-digit returns.

Despite the U.S. taking over the global lead in COVID-19 cases during the summer of 2020, U.S. equities also rallied dramatically following March lows. As they had prior to the virus, large technology firms helped drive U.S. markets higher, signaling the continuation of concentrated leadership in U.S equities. While U.S. equities delivered strong 12-month returns across asset classes, value remained a weak spot in terms of style, continuing a long stretch in which growth stocks have consistently outperformed value names.

The Fund underperformed the Russell 1000^® Growth Index in the fiscal period; both sector allocation and stock selection were negative. The Fund’s underweight position in Materials and overweight position in Energy added to performance, while an underweight position in Consumer Discretionary and an overweight position in Industrials detracted from performance. Stock selection was strongest in Health Care and Energy and weakest in Consumer Discretionary and Information Technology. Horizon Therapeutics Public Ltd. (HZNP) (149% return, 1% of the Fund) and Fortinet Inc. (FTNT) (67% return, 2% of the Fund) added to the portfolio’s performance, while MGM Resorts International (MGM) (-49% return, <1% of the Fund) and Expedia Group Inc. (EXPE) (-40% return, <1% of the Fund) detracted from returns.

As we look ahead, the potential for heightened market volatility remains as investors continue to grapple with the lasting economic effects of COVID-19 in addition to the impact of the upcoming election cycle. Repositioning has focused on upgrading quality and reducing exposure to companies with balance sheet risk, without sacrificing valuation exposure. Furthermore, valuation spreads remain near historical levels, suggesting an opportunity for long-term alpha generation by emphasizing company valuations as a part of our multi-faceted process. At the same time, we continue to emphasize risk management during periods of heightened market volatility.

The above expense ratios are from the Funds’ Prospectus dated December 27, 2019, and are inclusive of Acquired Fund Fees and Expenses. See Note 6 in the Notes to Financial Statements for additional information. Net expense ratios reflect contractual fee waivers and/or expense reimbursements if applicable, made by BMO Asset Management Corp., the investment adviser (Adviser). The Adviser may not terminate these fee waivers and/or expense reimbursements prior to December 31, 2021 without the consent of the Board of Directors, unless the investment advisory agreement is terminated. Without these contractual waivers, the Fund’s returns would have been lower.

Portfolio composition will change due to the ongoing management of the Fund. The percentages are based on net assets as of August 31, 2020 and may not necessarily reflect adjustments that are routinely made when presenting net assets for formal financial statement processes.

Growth of an assumed $10,000 investment

See Explanation of the Indices and Notes in the Commentary for additional information. The above graph relates to the Investor Class shares of the Fund. Performance for the Institutional Class, Advisor Class and Retirement R-6 shares will vary from the performance of the Investor Class shares shown above due to differences in charges and expenses. This graph illustrates the hypothetical investment of $10,000 in the Investor Class shares of the Fund from the lesser of the Fund’s inception date or August 31, 2010 to August 31, 2020.