As BMO Global Asset Management looks to expand its reach into emerging markets, it has turned to a Canadian company for assistance.
The company wants to make emerging markets more accessible for its UK clients and so it has teamed up with LGM Investments, which is owned by the Bank of Montreal.
LGM is a specialist in the emerging markets area and now BMO will be able to offer its five emerging market funds in the UK. According to Rob Thorpe, BMO’s head of wholesale and retail sales, it is important to the company to “regain its reputation in emerging markets” as that is where it first began with the Foreign & Colonial investment trust.
Whereas the Foreign and Colonial Global Emerging Market fund stands at just $37million, LGM offers far more expansive strategies: it’s Global Emerging Markets Growth and Income Strategy stands at $894million, with its Frontier strategy at $763million.
Thorpe anticipates that investors will soon look to reallocate towards emerging markets, especially as existing valuations prove too tempting to be ignored. However, the company is set to wait for client feedback before merging the funds themselves.
The move marks the second time in which BMO GAM has decided to offer funds from Bank of Montreal companies. Just last October it worked with Pyrford to bring a global absolute return fund into the UK.
Thorpe commented that the company had a good 2015 and is now focused on “our absolute return products and getting a reputation as a leader in alternative solutions.”