BMO GAM: Launch of Sustainable Multi-Asset Income Fund

BMO GAM: Launch of Sustainable Multi-Asset Income Fund

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BMO Global Asset Management today announces the launch of the Sustainable Multi-Asset Income fund, bringing together its market leading positions in Multi-Asset and Responsible Investment for the first time.

The BMO Sustainable Multi-Asset Income fund will be run by BMO’s Multi-Asset Team in London, with Simon Holmes as the lead portfolio manager. The Fund provides investors with a conservatively run portfolio that looks to preserve capital in most market conditions.

“We have launched the new fund as part of the natural evolution of our fund range. We have managed Multi-Asset and ESG funds for over 30 years and, as part of growing investor need for holistic investment solutions with an ESG integration, it seemed only natural to launch a Sustainable Multi-Asset fund”, said Simon Holmes, Lead Portfolio Manager BMO Global Asset Management.

“Underpinning the launch, we have seen a marked increase in interest in ESG products in the last 12 to 18 months. The coming EU wide and country specific regulations will further increase the client need to consider ESG issues as part of their investment decisions.”, Holmes added.

The Fund gives investors with an environmental, social and governance (ESG) mindset a single product that they can invest in for capital and income returns. The typical asset allocation for the Fund will be between 30% and 70% invested in fixed income, between 15% and 45 % investment in global equities and a 5% to 15% allocation to Alternatives, such as sustainable Infrastructure and Property, all which have links to sustainability.

Like all other Responsible and Sustainable strategies run by BMO Global Asset Management, the new fund will map every one of its holdings to the UN Sustainable Development Goals, providing transparency to investor on how the fund is positively aligned.

“We realise that it is no longer enough for investors to claim they are investing in a sustainable way – we need to do what we can to measure the impact we have, both positive and negative, through the companies we invest in and the way we act as investors,” said Rob Thorpe, Head of Distribution – Intermediary, UK and Europe at BMO Global Asset Management.

The BMO Sustainable Multi-Asset Income Fund will launch with approximately €118m and will be targeted to both retail and institutional investors. The ongoing charge for the A share class is 1.25%, for the R and the I EUR share class is 0.6%. The fund is registered in Austria, Belgium, Finland, France, Germany, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden and Switzerland.