Page 2 Fixed Income Quarterly—Appendix: Disclosures
with Talisman. Accordingly, it is possible that individual employees at BMO NBI may have material non-public information or opinions which are not included in, and may not be consistent with, the information and advice in this research report.
BMO – Securities legislation in certain Canadian provinces prohibits registrants from recommending, or cooperating with any other person in recommending, in any circular, pamphlet or similar publication that is distributed with reasonable regularity in the ordinary course of its business, that securities of the registrant or a related issuer, or in the case of a distribution, that securities of a connected issuer, be purchased, sold or held unless such publication contains a statement of the relationship or connection between the registrant and the issuer. BMO Nesbitt Burns Inc. is an indirect wholly-owned subsidiary of Bank of Montreal. Accordingly, Bank of Montreal is a related and connected issuer of BMO Nesbitt Burns Inc. TO U.S. RESIDENTS: This publication, to the extent it refers to Bank of Montreal securities, has not been approved or distributed by BMO Capital Markets Corp. or BMO Nesbitt Burns Securities Ltd. and affiliates of BMO Nesbitt Burns Inc. It is intended for distribution in the U.S. by BMO Nesbitt Burns Inc. only to Major U.S. Institutional Investors (as defined in SEC Rule 15a-6 under the Securities Exchange Act of 1934, as amended).
BNS – BMO Nesbitt Burns Inc., Scotia Capital Inc. (a subsidiary of Bank of Nova Scotia), along with others, were named as defendants in two proposed Ontario class actions relating to a public offering of securities of Armtec Infrastructure Inc. No assessment of the risks created by these legal actions or of the potential for additional claims against the defendants or others arising from this public offering was undertaken in prepar- ing this report and none is reflected herein.
FB – Along with other underwriters for the Facebook IPO which priced on May 17, 2012, BMO Capital Markets Corp. has been named as a defendant in several putative class action lawsuits. No assessment of the risks created by these legal actions or of the potential for additional claims against the defendants or others arising from this public offering was undertaken in preparing this report and none is reflected herein.
SNC – BMO Nesbitt Burns Inc., and certain SNC-Lavalin companies are defendants, along with others, in several Canadian legal actions brought by shareholders of Bre-X Minerals Ltd. At present, these actions are either dismissed, provisionally dismissed or largely dormant. No assessment of the risks created by any of the legal actions or of the potential for adverse claims between or among defendants was undertaken in preparing this report and none is reflected herein.
SNC – SNC-Lavalin has been named as one of the defendants in a proposed Ontario class action. The action pertains to certain public offerings of Canadian Royalties Inc. securities. Other defendants include Canadian Royalties, and the underwriters (including BMO Nesbitt Burns Inc.). No assessment of the risks created by this legal action or of the potential for additional claims against SNC-Lavalin or others arising from the aforementioned public offerings was undertaken in preparing this report and none is reflected herein.
TD – BMO Nesbitt Burns Inc., TD Securities Inc. (a subsidiary of TD Bank), along with others, were named as defendants in two proposed Ontario class actions relating to a public offering of securities of Armtec Infrastructure Inc. No assessment of the risks created by these legal ac- tions or of the potential for additional claims against the defendants or others arising from this public offering was undertaken in preparing this report and none is reflected herein.
TLM – BMO Nesbitt Burns Inc. (“BMO NBI”) has been retained as exclusive financial advisor with respect to Talisman’s North Duvernay as- sets. BMO NBI will be paid a fee conditionally based on the successful completion of the transaction. BMO NBI follows information control procedures which prevent its research analysts who are issuing research from having access to non-public information received by BMO NBI’s investment banking personnel in connection with the proposed amendments. Accordingly, it is possible that individual employees at BMO NBI may have material non-public information or opinions which are not included in, and may not be consistent with, the information and advice in this research report.
TLM – BMO Nesbitt Burns Inc. (“BMO NBI”) is acting as a financial advisor to Talisman Energy (“Talisman”) on their sale of a minority inter- est in Oleoducto Central S.A. (“Ocensa”) to an investor group led by Advent International (“Advent”). BMO NBI will be paid a fee based on the completion of the transaction. BMO NBI follows information control procedures which prevent its research analysts who are issuing research from having access to non-public information received by BMO NBI’s investment banking personnel in connection with the investment banking advisory mandates with Talisman. Accordingly, it is possible that individual employees at BMO NBI may have material non-public information or opinions which are not included in, and may not be consistent with, the information and advice in this research report.
Distribution of Ratings (December 31, 2013)
* Reflects rating distribution of all companies covered by BMO Capital Markets Corp. equity research analysts.
** Reflects rating distribution of all companies from which BMO Capital Markets Corp. has received compensation for Investment Banking services as percentage within ratings category.
*** Reflects rating distribution of all companies from which BMO Capital Markets Corp. has received compensation for Investment Banking services as percentage of Investment Banking clients.
**** Reflects rating distribution of all companies covered by BMO Capital Markets equity research analysts.
***** Reflects rating distribution of all companies from which BMO Capital Markets has received compensation for Investment Banking services as percentage of Investment Banking clients.
Rating Category
BMO Rating
BMOCM US Universe*
BMOCM US IB Clients**
BMOCM US IB Clients***
BMOCM Universe****
BMOCM IB Clients*****
Starmine Universe
Buy
Outperform
38.0%
20.4%
49.0%
38.8%
50.4%
52.5%
Hold
Market Perform
56.1%
13.8%
49.0%
54.0%
46.5%
41.8%
Sell
Underperform
5.8%
5.6%
2.0%
7.2%
3.1%
5.7%