BMO Investments makes changes to its mutual fund lineup

Toronto-based BMO Investments Inc. announced late on Monday that it has rolled out several new mutual fund series as well as reduced fees across its mutual fund lineup.

BMO Investments had previously introduced series F4 to five of its ETF portfolios as part of a bid to offer more cash-flow solutions. Now, the firm has also added series F to several index funds, which aim to offer global exposure, and is tacking on series F and the advisor series to BMO’s risk-reduction funds as a means of giving investors access to fixed-income and equity products that focus on downside protection.

“The need to generate greater returns at a lower cost, while managing volatility, is driving client demands for new and innovative products,” says Kevin Gopaul, head of BMO Global Asset Management, Canada and global head of ETFs and chief investment officer at BMO Global Asset Management Inc. “We’ve responded with the launch of risk-reduction funds, as they go beyond traditional equity and fixed-income solutions.”

BMO Investments has also cut management fees by up to 45 basis points, as of April 24, on “certain series A, series D, series F, series T5 and advisor series of 12 BMO mutual funds,” the firm’s news release says. For example, the management fee of BMO Canadian Equity ETF Fund’s series A class was lowered to 0.75% from 0.85%.

In addition, BMO has lowered the administration fee for nine of its mutual funds and has cut the trailing commission or service fee across its target education portfolios to 0.60% from 0.75%.

As well, BMO has tweaked the risk rating for two of its funds, BMO LifeStage Plus 2017 and BMO LifeStage Plus 2020, both of which have gone to a low rating from a low-to-medium rating.

The new ratings are in response to “a shift in the funds’ investments as they approach their respective target end date,” the firm says. BMO LifeStage Plus 2017 Fund, which is nearing its maturity date, is slated for a merger with BMO Money Market around June 30.

(A complete list of the affected funds is available in the company release.)

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