BMO Global Asset Management has expanded its Multi-Asset Portfolios range (MAP) with three new sustainable funds.
The new funds are designed to be actively managed, low cost, multi-asset solutions, aligned with attitude to risk tools commonly used by UK advisers, BMO said in a note.
The company also said that what differentiated the new funds trio from the existing MAP range is the incorporation of sustainability criteria in asset and security selection across them.
The three strategies will be run by BMO Global Asset Management's Multi-Asset Team, which is led by Paul Niven, alongside Simon Holmes as lead manager on the sustainable range.
The underlying investments will be principally selected from BMO GAM's Responsible and Sustainable Opportunities strategies and is consistent with BMO GAM's ‘Invest, Avoid, Improve' responsible investment philosophy. This approach to sustainability encompasses avoiding assets with unsustainable practices and selecting those that make a positive contribution, whilst also proactively encouraging best practice management of ESG issues through engagement and voting.
The funds seek to provide growth, combining capital and income, over the long term (at least five years) consistent with their respective risk profiles over the same time period. All funds are in the IA Volatility Managed sector. They include:
- BMO Sustainable Universal MAP Cautious, which targets a return of CPI + 2% over 5 years and is benchmarked against the IA Mixed Investment 20-60% Shares sector average.
- BMO Sustainable Universal MAP Balanced, which targets a return of CPI + 3% over 5 years and is benchmarked against the IA Mixed Investment 20-60% Shares sector average.
- BMO Sustainable Universal MAP Growth,which targets a return of CPI + 4% over 5 years and is benchmarked against the IA Mixed Investment 40-85% Shares sector average.
The launches follow the expansion of the Universal MAP range earlier this year to offer two additional risk-targeted growth funds and an income fund. There are now nine funds in the range.
Rob Thorpe, head of Distribution - Intermediary, UK and Europe at BMO Global Asset Management, said: "Our Universal MAP range responds to a gap in the market, bringing low-cost, active solutions to cost-focused advisers and clients. We've seen significant demand for the funds, since launch two years ago.
"Extending the range to include sustainable solutions was a natural next step. BMO has extensive, institutional-scale expertise in responsible investing. We're applying this to provide retail investors with a low-cost approach to sustainable investing."
Launched in November 2017, BMO Universal MAP provides advisers with investment strategies that suit clients focused on keeping costs down. Most low-cost solutions for investors depend on passive strategies. Bucking this trend, BMO's Universal MAP range is actively managed and at low-cost. It brings retail and wholesale investors institutional product design and expertise, without significant fees.