BMO Global Asset Management has launched a trio of Universal Multi-Asset Portfolios.
BMO Global Asset Management announced via a statement that has launched the BMO Universal Multi-Asset Portfolios (MAP), an actively managed range of low-cost multi-asset solutions, that bring “institutional product design and expertise” to the retail and wholesale market, providing investors with “active management for the cost typically found in portfolios made up primarily with passive solutions”.
The portfolios have been designed for the adviser community, aimed at cost-constrained areas such as auto-enrolment or pension transfers where investment pots may be smaller and overall costs of advice and delivery may be a prohibiting factor, the company said.
Blended global allocation
The three funds launched within the BMO Universal MAP 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, BMO said.
They are managed by BMO Global-Asset Managements (EMEA) Multi-Asset Investment team, which is headed by Paul Niven, who will utilise BMO Global Asset Management’s global fund management capabilities in constructing the portfolios.
The three BMO Universal MAP are risk-targeted with an aim to provide long-term growth, consistent with a specific volatility level, and include:
- BMO Universal MAP Cautious, which targets a cautious volatility level of 6 – 8%
- BMO Universal MAP Balanced, targeting a balanced volatility level of 8 – 10%
- BMO Universal MAP Growth, which targets a mid to high volatility level of 10%-12%
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.”
The funds are now available to retail investors in the UK. The funds have a capped ongoing charge figure (OCF) of 0.29%.