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BMO Elkhorn DWA MLP Select™ Index Exchange Traded Notes


Base Data

Primary Exchange Nasdaq Global Market
ETN Ticker BMLP
ETN Intraday Indicative Value Ticker BMLP.IV
Bloomberg ETN Intraday Indicative Value Ticker BMLPIV <Index>
Index Ticker DWAMLP
CUSIP 063679104
Issue Date Dec 20, 2016
Maturity Date Dec 8, 2036

Daily Market Data (as of Jul 20, 2018)

Closing Indicative Value $50.3557
Market Capitalization $52,873,513
ETNs Outstanding 1,050,000

Description


The return on the BMO Elkhorn DWA MLP Select™ Index Exchange Traded Notes (ETNs) is linked to the performance of the DWA MLP Select™ Index (Index). The Index is composed of publicly traded master limited partnerships (MLPs) that are selected based on the Dorsey Wright Relative Strength Ranking Methodology. Relative strength measures how one security is performing in relation to another in an effort to identify which security is outperforming the other. On a monthly basis, the Index rebalances the equally-weighted basket by selecting the top 15 MLPs exhibiting the largest positive relative strength characteristics.

Key Risks


An investment in the BMO Elkhorn DWA MLP Select™ Index Exchange Traded Notes (ETNs) involves risks. Selected risks are summarized here, but we urge you to read the more detailed explanation of risks described under “Risk Factors” in the Bank of Montreal prospectus dated June 27, 2014, prospectus supplement dated June 27, 2014 and pricing supplement dated December 19, 2016.

Uncertain Principal Repayment - You may receive less than the principal amount of your ETNs at maturity, call or upon redemption. If the level of the Index decreases, or does not increase, by an amount equal to the percentage of the principal amount represented by the Accrued Tracking Fee and the Redemption Fee, if applicable, you will receive less, and possibly significantly less, than your original investment in the ETNs.

Credit Risk of Bank of Montreal - The ETNs are unsecured debt obligations of the issuer, Bank of Montreal, and are not, either directly or indirectly, an obligation of or guaranteed by any third party. Any payments you are entitled to receive on your ETNs, including any payment at maturity, call or redemption, are subject to our ability to pay our obligations as they come due. As a result, the actual and perceived creditworthiness of Bank of Montreal will affect the market value, if any, of the ETNs prior to maturity, call or redemption. In addition, in the event that Bank of Montreal were to default on its obligations, you may not receive any amounts owed to you under the terms of the ETNs.

No Fixed Interest Payments - You will not receive any fixed periodic interest payments on the ETNs, and your quarterly Coupon Payments are uncertain and could be zero.

A Trading Market for the ETNs May Not Continue Over the Term of the ETNs - The ETNs are listed on Nasdaq under the symbol “BMLP”. However, a trading market for your ETNs may not continue for the term of the ETNs. We are not required to maintain any listing of the ETNs on Nasdaq or any other exchange or quotation system.

The intraday indicative value and the closing indicative value are not the same as the closing price or any other trading price of the ETNs in the secondary market - The closing indicative value will be published on each Index Business Day under the Bloomberg ticker symbol “BMLPIV <Index>”. The intraday indicative value of the ETNs is based on the most recent intraday level of the Index and will be calculated and published every 15 seconds on each Index Business Day during normal trading hours. The trading price of the ETNs at any time is the price at which you may be able to sell your ETNs in the secondary market at such time, if one exists. The trading price of the ETNs at any time may vary significantly from their intraday indicative value at such time.

Paying a premium purchase price over the intraday indicative value of the ETNs could lead to significant losses in the event you sell the ETNs at a time when that premium is no longer present in the market place or the ETNs are called - Paying a premium purchase price over the intraday indicative value of the ETNs could lead to significant losses in the event you sell the ETNs at a time when such premium is no longer present in the market place or the notes are called, in which case you will receive a cash payment in an amount based on the index closing levels of the notes during the call measurement period.

Call Feature - Your ETNs may be repurchased on or after June 22, 2017 at the issuer’s option and without your consent. In the event that the ETNs are called, the call settlement amount may be significantly less than the stated principal amount of the ETNs or the price at which you purchased your ETNs.

The Index has a limited performance history - The DWA MLP Select™ Index was launched on May 1, 2015, and therefore has no performance history prior to that date. Consequently, little or no historical information will be available for you to consider in making an independent investigation of the Index’s performance, which may make it difficult for you to make an informed decision with respect to an investment in the ETNs.

Restrictions on Repurchases by the Issuer - You must offer the applicable minimum redemption amount of $2,500,000 (50,000 ETNs) to the issuer for your offer for redemption to be considered.

Tax Treatment - Significant aspects of the tax treatment of the ETNs are uncertain and may be less favorable than a direct investment in MLPs. You should consult with your own tax advisor about your own tax situation.

Disclaimer


Elkhorn Capital Group, LLC ("Elkhorn") and Dorsey, Wright & Associates, LLC ("DWA") makes no warranty, express or implied, as to the results to be obtained by Bank of Montreal, the investors in the ETNs, or any other person or entity from the use of the DWA MLP SelectTM Index or the ETNs. Elkhorn and DWA expressly disclaims all warranties of merchantability or fitness for a particular purpose or use of the ETNs. Elkhorn, DWA and BMO shall have no liability to each other or to any third party for lost profits or indirect, punitive, special or consequential damages (including lost profits) arising out of the licensing arrangements between the parties, even if advised of the possibility of such damages.