BMO launches multi-asset portfolios

BMO launches multi-asset portfolios

BMO Global Asset Management has launched an actively managed range of low-cost multi-asset portfolios.

The three funds launched within the Universal Multi-Asset Portfolios range are allocated globally across equities and fixed income, blending a range of investment styles and techniques. 

They mostly comprise of active strategies, providing a high allocation to active stock picking skills, but will access passive investments if appropriate. 

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They are managed by BMO Global-Asset Managements Multi-Asset investment team, which is led by Paul Niven.

The three portfolios are risk-targeted with an aim to provide long-term growth, consistent with a specific volatility level.

Rob Thorpe, head of UK intermediary at BMO Global Asset Management (EMEA), said: "Up until now, investors seeking a low-cost multi-asset fund have mostly been limited to portfolios made up of passive solutions. 

"We saw a clear gap in the market to provide a low-cost active management solution, particularly at a time of change within the retirement landscape and when many market commentators are arguing that market conditions appear to be favouring a more active approach to investing. 

"We also recognise that investors and their advisers want a clear understanding of the likely volatility of their investments, which is why each fund is risk-targeted.”

The BMO Universal MAP Cautious targets a cautious volatility level of 6 to 8 per cent, the BMO Universal MAP Balanced targets a balanced volatility level of 8 to 10 per cent and BMO Universal MAP Growth targets a mid to high volatility level of 10 to 12 per cent.

Each of the funds has a medium return expectation in excess of the consumer prices index and they have a capped ongoing charge figure of 0.29 per cent.

Dan Russell, managing director of SimplyBiz Investment Services, said: "Our job at SimplyBiz Investment Services is to curate a supply chain of investment solutions that help advisers deliver exceptional client outcomes. 

"We believe the new BMO Universal MAP range is an innovative addition to our supply chain that will provide advisers with a new option to blend active and passive management at an attractive cost. 

"We believe this will be an interesting option for advisers, particularly in price sensitive financial planning scenarios. 

"This sort of innovation in the multi-asset market is to be encouraged."