BMO Global Asset Management has reduced fees on a number of its exchange-traded funds (ETFs).
The fee reductions come in light of economies of scale gained since global assets under management in the firm’s ETF business reached £30 billion (€33.4 billion) at the end of July.
Fee reductions are in BMO Global AM’s Income Leaders and global corporate bond fund ranges.
The ongoing charges figures (OCFs) for the firm’s equity-based income funds within the BMO Income Leaders suite across the UK, Europe and the US have been reduced from between 35–40 basis points, to 25 – 30 basis points.
The OCFs of the BMO Barclays Global Corporate Bond range, which invests in investment grade bonds, have been reduced from 30 basis points to 17 basis points, a 43% cost reduction.
Kevin Gopaul, head of quantitative strategies and ETFs at the fim, said: “As our ETF business has continued to grow globally, we have been able to build economies of scale, which means we are now in a position to pass even further cost savings onto our clients.”
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