BMO launches ETFs in Europe

Canadian manager BMO Global Asset Management has launched its first ETFs targeting UK and European investors.

The nine ETFs are listed on the London Stock Exchange. All are Ucits compliant and registered in Ireland under the Irish Collective Asset management Vehicle (“ICAV”) structure.

BMO’s range includes four global corporate bond ETFs aiming to attract investors who want to diversify their exposure to global investment grade corporate bonds and high yield bonds, and five equity ETFs targeting high quality income.

Among the nine ETFs are three global corporate bond ETFs across a range of maturity bands.  They track the Barclays Very Liquid Index (VLI), a subset of the Barclays Global Aggregate Bond Index. The Barclays Global Corporate VLI applies filters to exclude more illiquid bond issues. Another BMO’s global high yield ETF is following the same index.

As for the five other ETFs, BMO has developed new equities indices with index provider MSCI, that apply filters to select the companies with the highest quality scores and higher than average dividend yields.

All nine ETFs are listed in sterling and those that invest in non-sterling investments are offered as sterling-hedged funds to mitigate this currency risk.

“Establishing our ETF offering in Europe is a key strategic milestone for us as we continue to expand across the region,” said Richard Wilson, CEO, BMO Global Asset Management (EMEA).

“We are very proud of our track record of developing relevant, innovative and client-focused products. Since the launch of the BMO Global Asset Management brand in Europe earlier this year, we have successfully brought our investment expertise to help new clients in new markets. Building on this momentum, we have used our experience managing ETFs in Canada and Hong Kong to develop and deliver a tailored offering for European investors, marking another step in delivering on the ambitious plans we have for the business.”

BMO managed over $244bn (€226.5bn) in assets as at 31 July 2015.

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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