BMO rolls out responsible-investing portfolios

Four new 'all-in-one' asset-allocation products build on success of ESG ETFs and sustainable mutual funds

BMO rolls out responsible-investing portfolios

Shortly after RBC iShares’ announced its first suite of ESG ETF portfolios, BMO Investments has introduced its own set of fund portfolios that invest in companies with a commitment to positive ESG outcomes.

“We are excited to continue expanding our responsible investment offerings, and build off the success of our ESG ETFs and Sustainable Opportunities mutual funds,” Mark Raes, head of product at BMO Global Asset Management Canada, said in a statement. “These funds will provide Canadians with all-in-one solutions to align their investments with their values, while also achieving their investment goals.”

The new portfolios include a blend of equity and fixed-income ETFs that reflect the performance of companies with high ESG ratings relative to their peers, as well as active funds that can offer risk mitigation as well as the potential for market-beating performance.

The four new solutions, which are designed to cover a variety of investor risk tolerances, include:

  • BMO Sustainable Income Portfolio – 75% to 80% fixed income, 20% to 25% equity;
  • BMO Sustainable Conservative Portfolio – 60% to 70% fixed income, 30% to 40% equity;
  • BMO Sustainable Balanced Portfolio – 40% to 50% fixed income, 50% to 60% equity; and
  • BMO Sustainable Growth Portfolio – 15% to 30% fixed income, 70% to 85% equity

Portfolio holdings are managed using a combination of top-down analysis, which consider economic factors and political events that can shape future global growth; bottom-up analysis of ESG factors that impact individual companies; and a proprietary five-lens approach that BMO uses to build managed investment solutions.

"We are proud of our 35-year history in responsible investing, and are firmly committed to advancing the ESG dialogue,” Raes said.


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