BMO Investments Inc. on Thursday announced the launch of two new equity funds designed to help Canadian investors offset Canadian market concentration by adding international exposure to their portfolios.
BMO International Equity Fund provides exposure to international equity markets, which are expected to continue to rebound based on accommodative monetary policy and lessening political risks, BMO says in its announcement. "International economies are more diversified by sector and have limited exposure to resource companies compared to Canada," it adds.
BMO Japan Fund provides access to Japanese equity markets, which are expected to benefit from stronger export-stimulated economic growth. The Japanese economy has more exposure to industrial and consumer companies and has limited exposure to resource companies compared to Canada, BMO notes.
"Many Canadian investors have a large portion of their portfolio invested in their home market, yet Canada represents only 4% of global equity markets," says Kevin Gopaul, head of BMO Global Asset Management Canada. "BMO International Equity Fund and BMO Japan Fund help build better portfolios by adding exposure to international markets that have different return drivers than Canadian markets."
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