Canadian-based BMO Asset Management has launched another fund as part of its “True Styles’ series.
The fund is the BMO Global Equity Market Neutral fund, which is a Sicav and aims to provide investors with the opportunity to access a strategy designed to systematically capture the returns of academically proven investment styles.
The objective of the fund is to generate an annual gross return of 4.5% in excess of cash with a target volatility level of 6%. It combines five distinct styles; value, momentum, low volatility, size and GARP (Growth at a Reasonable Price). The fund aims to generate consistent returns with limited stock-specific risk and limited exposure to undesired factors such as country and sector exposures.
The firm has a long history of style-based strategies, going back to 2007, managing around £2.2 billion (€2.8 billion) in both pooled and segregated portfolios on behalf of retail and institutional investors.
“Excess returns of portfolios can often be attributed to exposure to certain styles,” said fund manager, Erik Rubingh, head of systematic equities at BMO Global Asset Management.
Here Rubingh discusses in more detail the rationale behind style investing.
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