Toronto-based BMO Investments Inc. launched five new mutual funds on Monday.
The new funds are directed towards investors seeking income. “We’ve introduced these new funds for investors who are looking for income but want to protect against interest rate volatility,” said Kevin Gopaul, chief investment officer and senior vice president, BMO Asset Management Inc. in a statement. “These additions to our mutual fund lineup make it easier for Canadians who are seeking innovative income-based products to access a wider variety of asset classes.”
The new funds are as follows:
> BMO Preferred Share Fund: this fund invests in a high-demand asset class that offers more tax efficient income than debt investments;
> BMO Tactical Dividend ETF Fund: an actively managed fund of exchange-traded funds (ETF) using a Canadian core and global active allocation strategy. The fund will be managed by Larry Berman;
> BMO U.S. Dollar Dividend Fund: a fund for income-seeking investors interested in higher yields than other debt markets and equity growth opportunities in U.S. dollars;
> BMO U.S. Dollar Balanced Fund: provides investors with a total return approach for accessing U.S. growth; and
> BMO Emerging Markets Bond Fund: gives investors access to the fixed income sector of emerging markets.
The estimated target management expense ratios (MER) for the funds range between 1.80% and 1.95%.
As well, BMO Investments also announced the launch of two managed solutions: SelectTrust Portfolios and ETF Portfolios.
The new solutions offer six risk-differentiated portfolios and expanded conservative options: fixed income, security, conservative, balanced, growth and equity growth. Individual portfolios use actively managed fund and/or passively managed ETFs for increased diversification.
The estimated target MER for each of the SelectTrust portfolios range from 2.18% and 2.62% while the estimated target MERs for the ETF portfolios range from 1.61% to 1.81%.