BMO cuts ETF fees, cites scale

BMO Global Asset Management has applied reduced fees as of 1 September on certain ETFs in its BMO Income Leaders and BMO Barclays Global Corporate Bond fund ranges, with the manager citing economies of scale for the move, as total ETF assets globally hit some CAD$50bn by the end of July.

The manager says that its ongoing charges figures on the BMO Income Leaders suite of UK, Europe and US funds have been trimmed to 25-30bps from 35-40bps previously.

The OCFs on the BMO Barclays Global Corporate Bond range have been trimmed to 17bps from 30bps previously.

Kevin Gopaul, head, Quantitative Strategies & ETFs at BMO Global Asset Management said: “As our ETF business has continued to grow globally, we have been able to build economies of scale, which means we are now in a position to pass even further cost savings onto our clients.”

Rob Thorpe, managing director, head of Distribution, Intermediary, UK at BMO Global Asset Management said: “We are always listening to clients and are acutely aware that cost is a real focus for many. As such, through offering our innovative ETFs at this reduced rate, we are able to offer even better value for money in the ETF space.”

 

ABOUT THE AUTHOR
Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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