CHICAGO, Nov. 29, 2012 /PRNewswire/ -- BMO Global Asset Management announced today the addition of the BMO Short Tax-Free Fund (MTFYX, MTFIX). By primarily investing in municipal bonds, the Fund will seek to provide current income exempt from federal income tax consistent with the preservation of capital. It will typically maintain a dollar weighted effective maturity between one and three years. The benchmark for the Fund will be the Barclays Municipal Short (1-5 Year) Index. The BMO Short Tax-Free Fund will be managed by the same investment team – and with a parallel philosophy and process – as the BMO Ultra Short Tax-Free (MUYSX, MUISX) and Intermediate Tax-Free Funds (MITFX, MIITX). The BMO Intermediate Tax-Free Fund received the 2012 Lipper Fund Award for best risk-adjusted performance over five years among 125 Intermediate Municipal Debt Funds. "Our clients, and prospective clients, are looking for yield curve opportunities in the municipal markets, opportunities that offer optimal tax solutions," said Barry S. McInerney, Co-Chief Executive Officer, BMO Global Asset Management. "This new fund adds to the diverse stable of funds we offer, ensuring a wide selection of choices, depending on a client's risk tolerance." Continuing the growth of the BMO Funds family, the new BMO Short Tax-Free Fund adds to an already impressive suite of investment options from BMO Global Asset Management. This marks the sixth new fund the firm has launched over the past 12 months, bringing the current total to 24. BMO Funds offers actively managed mutual funds across the risk/reward spectrum – funds that are designed to be the building blocks of a well-diversified portfolio. "With the addition of the BMO Short Tax-Free Fund to the BMO Funds Tax-Free suite, an investor can set up a liquidity tiering strategy to help create a more effective fixed income portfolio," said Duane McAllister, co-Portfolio Manager. "By allocating their assets into four distinct segments based on their short and intermediate-term requirement, an investor is able to increase the overall return while maintaining a measure of stability and liquidity." Most recently, the BMO Low Volatility Equity Fund (MLVYX, MLVEX) was launched in October. It is designed to provide investors with long-term returns similar to U.S. large cap stocks, but with less volatility. The Fund seeks capital appreciation by investing in stocks of large-sized U.S. companies similar in size to those within the Russell 1000 ® Index. In January, the organization introduced four additional funds: the BMO Pyrford Global Strategic Return Fund (MGRYX, MGRNX), BMO Pyrford International Stock Fund (MISYX, MISNX), BMO Monegy High Yield Bond Fund (MHBYX, MHBNX) and BMO Dividend Income Fund (MDIYX, MDIVX).