- The strategy combines value, momentum, low volatility, size and GARP (Growth at a Reasonable Price) styles
- The fund is co-managed by Erik Rubingh and Chris Childs
BMO Global Asset Management has launched BMO Global Equity Market Neutral Sicav fund, in its popular ‘True Styles’ series, a strategy that combines value, momentum, low volatility, size and GARP (Growth at a Reasonable Price) styles.
The investments are all made on the large cap global developed markets universe as represented by MSCI World. The choice of this universe as well as the strict liquidity limits that are applied in portfolio construction ensure that investors in the fund have access to a truly liquid alternative strategy.
“Excess returns of portfolios can often be attributed to exposure to certain styles,” said fund manager, Erik Rubingh, Head of Systematic Equitiesat BMO Global Asset Management. “True Styles is used to focus our portfolios, only targeting the desired styles, without interference from other factors.”
Mandy Mannix, Head of Client Management, BMO Global Asset Management (EMEA), declares: “Our clients believe the BMO Global Equity Market Neutral (SICAV) will deliver an ideal building block for their multi-asset portfolios as it is liquid, highly diversified, with proven low correlation to major asset classes and the strategy has delivered considerably better returns than a passive index with lower volatility.”
The objective of the fund, co-managed by Erik Rubingh and Chris Child, is to generate an annual gross return of 4.5% in excess of cash with a target volatility level of 6%. Euro and US$ hedged share classes are available from launch.