ProductsOctober 1, 2012

BMO Launches Low Volatility Equity Fund

BMO Global Asset Management introduced the BMO Low Volatility Equity Fund, designed to provide long-term returns comparable to U.S. large cap stocks but with less volatility.

Reported by Jill Cornfield

It is commonly believed that investors are rewarded with higher returns for taking on more risk, but BMO’s research shows that this is not generally the case, according to Ernesto Ramos, portfolio manager and head of equities, BMO Asset Management U.S. “In fact, we found that over the last 40 years stocks with the lowest volatility had the highest returns,” Ramos said.

The fund seeks to provide investors with opportunities to diversify as well as more options to mitigate down-side risk, said Barry S. McInerney, Co-Chief Executive Officer, BMO Global Asset Management.

“Financial advisers are looking for the right tools to help build a diversified portfolio for their clients that effectively responds to volatile market conditions,” said Barry S. McInerney, co-chief executive, BMO Global Asset Management. The BMO Low Volatility Equity Fund seeks to provide investors with opportunities to diversify as well as more options to mitigate down-side risk.