In response to deteriorating market conditions, BMO Investments Inc. has changed the asset mix in its BMO LifeStage Plus Funds to cut risk.

The portfolio for the BMO LifeStage Plus 2020 Fund, including the BMO Guardian LifeStage Plus 2020 Fund Advisor Series, will now feature a “protected” asset mix, consisting of entirely fixed income investments and cash equivalents until its target end date.

The reallocation is intended to ensure the fund has sufficient assets at maturity to pay investors the guaranteed maturity amount, BMO said in a release.

The funds are designed to protect a customer’s investment provided that the customer remains invested in a fund until its target end date.

Unitholders are currently entitled to receive $10.1859 at maturity. Given the shift to a protected portfolio, BMO LifeStage Plus 2020 Fund will be closed to all new purchases.

BMO Investments also announced a reduction in the fund’s management fee to 1.05%, plus expenses.

IE