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BMO Launches Global Long/Short Equity Fund


Date: Wednesday, September 23, 2015
Author: News Release

BMO Global Asset Management recently launched a pair of new mutual funds, one of which is a liquid alts fund: The BMO Global Long/Short Equity Fund (BGAQX), which employs an alternative long/short strategy, buying U.S. and international equities expected to outperform, while short-selling shares expected to lag; and the BMO Disciplined International Equity Fund (BDAQX), a long-only traditional mutual fund with a focus on companies listed outside of North America.

“We are excited to offer these two new funds, both of which combine an experienced investment management team and a proven approach to adding value to investors,” said BMO Chief Investment Officer Craig Rawlins, in a recent statement. “We continue to be committed to creating and delivering a wide range of investments that our clients and their advisors can use to build well-diversified portfolios tailored to meet their objectives.”

BMO’s Global Long/Short Equity Fund may provide volatility-dampening and diversification benefits when implemented within a broader portfolio strategy. Although categorized along with the Disciplined International Equity Fund as one of BMO’s “International & Global” funds, the Global Long/Short Equity Fund’s long/short approach makes it BMO’s second alternative mutual fund, alongside the BMO Alternative Strategies Fund (BMATX) that was launched in December of last year.

The Global Long/Short Equity Fund’s investment objective is capital appreciation, and it pursues this end by means of using a quantitative approach, with a fundamental bottom-up and top-down analysis, to select U.S. and non-U.S. stocks likely to out- and underperform. Projected outperformers are held as long positions within the fund’s portfolio, while projected underperformers are sold short. Typically, the fund will have net long exposure equal to between 40% and 80% of its assets, and at least 40% of the fund’s assets will be invested in securities from outside the United States.

Shares of the BMO Global Long/Short Equity Fund, which debuted on September 17, are available in four classes: A (BGAQX), I (BGIQX), R3 (no ticker), and R6 (no ticker). A and I shares have respective net-expense ratios of 2.15% and 1.90%, while R3 and R6 fees are listed at 2.40% and 1.75%. Class A shares have a $1,000 initial minimum investment, while the minimum for I shares is $2 million, and R3 and R6 shares have no minimums for qualifying investors.

For more information, view the fund’s web page.