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.”