BMO Global Asset Management Expands Equity Market Neutral Fund Family

Apr 25 2016 | 10:56pm ET

BMO Global Asset Management has launched a liquid alternative version of one of its global equity market neutral funds. 

The BMO Global Equity Market Neutral SICAV fund aims to generate an annual gross return of 4.5% in excess of cash with a target volatility of 6%, according to the company. It invests in global large-cap stocks and seeks absolute return through the use of an enhanced leveraged long/short market neutral strategy.

The new offering expands BMO’s “True Styles” range of absolute return funds and was in response to consumer demand following the success of BMO’s £214 million F&C Global Equity Market Neutral unit trust. It uses a combination of value, momentum, low volatility, size and GARP strategies to generate consistent returns with limited exposure to specific stocks, countries and sectors.

The new vehicle will be managed by Erik Rubingh and Chris Childs, who manage the existing fund. It is domiciled in Luxembourg and reportedly passported Austria, Belgium, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK.

BMO has been managing style-based strategies since 2007, according to Citywire, and has approximately €2.8 billion in both pooled and segregated portfolios on behalf of retail and institutional investors.  

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