Toronto-based BMO Investments Inc. recently released a new line of products designed to provide more income to Canadians who are living longer.
BMO Retirement Portfolios consists of three levels of risk profiles (income, conservative and balanced) that employ a strategy meant to provide portfolio growth while also delivering protection against market corrections, says Robert Armstrong, vice president and head of managed solutions at BMO Global Asset Management.
“You’re not going to get the same returns [as] with an accumulation product but an accumulation-type product goes up and down a lot more,” he says. “This is supposed to be a much smoother return stream with that downside protection.”
The funds are targeted to investors who are at or approaching retirement, which could last 20 years or longer, according to BMO, which cites Statistics Canada research concluding that the average life expectancy for men is 84 while women’s average life expectancy is 87.
The BMO products have an asset mix that includes BMO’s low volatility equity exchange-traded funds, meant to provide future growth; the BMO Risk Reduction Fixed Income Fund for the protection of capital; and BMO’s Risk Reduction Equity Fund.
The products are currently available in three series: Series A, Series T6 (for investors looking for regular monthly income) and Series F (for fee-based advisors).
Advisors and investors can learn more through BMO’s website.