In an effort to further reinforce the branding behind BMO Guardian Funds, BMO Investments Inc. and Guardian Group of Funds Ltd. are set to amalgamate, BMO Financial Group announced on Monday.
Effective Nov. 1, BMO Investments will become the trustee and manager of all BMO Guardian Funds currently managed by Guardian Group of Funds and will continue to act as trustee and manager of the BMO Mutual Funds.
BMO Mutual Funds are primarily sold through the bank’s branches, while BMO Guardian Funds are sold by brokers. The two classes of funds will remain distinct within the new entity.
“We’re really just tying up our two legal entities, creating one,” said Ross Kappele, president of Guardian Group of Funds Ltd. “Bank of Montreal will have one fund entity and will operate in both markets.”
The announcement follows BMO’s decision to change the name of the Guardian fund family from Guardian Group of Funds to BMO Guardian Funds in the fall of 2008.
“We rebranded our broker product from GGOF to BMO Guardian at the beginning of last November to take advantage of the breadth and the strength that our bank brand brings to what our advisors offer,” said Kappele. “Really, this is just a continuation of that exercise, where we’re more formally bringing together the two fund operations.”
The bank also reinforced ties between the fund entities in November by expanding its line-up of Guardian funds to include new Guardian-series classes of many existing BMO mutual funds.
The amalgamation will allow the two fund families to operate within a more streamlined organizational structure and will provide administrative and cost benefits, according to the company.
The amalgamation will not result in any changes for financial advisors, Kappele says.
Leadership at the two entities will also remain unchanged following the amalgamation. Kappele will remain president of Guardian Group of Funds, overseeing sales and client service, while Linda Knight will remain president of BMO Investments Inc., overseeing investment products, administration and product management. The two executives share responsibility for the bank’s mutual fund entity.
BMO Investments to merge with Guardian Group of Funds
The merger will allow the firms to operate within a more streamlined organizational structure
- By: Megan Harman
- July 6, 2009 July 6, 2009
- 10:15