BMO launches market neutral equity fund
BMO Global Asset Management has announced the expansion of its True Styles fund range with the launch of the BMO Global Equity Market Neutral Sicav fund.
The new fund aims to offer investors access to a market neutral equity strategy combining value, momentum, volatility, size and GARP (growth at a reasonable price) styles. All investments are made on the large cap global developed markets universe as represented by MSCI World.
“Excess returns of portfolios can often be attributed to exposure to certain styles,” comments fund manager, Erik Rubingh, head of Systematic Equities at BMO Global Asset Management. “True Styles is used to focus our portfolios, only targeting the desired styles, without interference from other factors.”
We use this methodology to filter our data, which has significantly improved the predictive power of our analysis, reducing the inter-style correlations and contributing significantly to reducing inefficiencies” he adds.
The objective of the fund is to generate an annual gross return of 4.5% in excess of cash with a target volatility level of 6%, Euro and USD hedged share classes are available from launch.
The new Sicav fund has an ongoing charge of 2.15% per annum for the retail share class and 1.25% for the institutional share class.