INVESTMENTS
Strength in numbers Having a core built on the solid foundations of proven investment fundamentals makes sense . Diversification across traditional asset classes can produce a robust portfolio foundation ; for example , equities for their growth potential to counter the eroding impact of inflation and various types of fixed income assets to provide a steady source of yield . Diversification results in a portfolio spread across asset types and geographies , and that means a sizable pool of opportunity but also a number of potential risks . With that in mind , surely it also makes sense for your ‘ investment core ’ to tap into a broader array of investment expertise , rather than a single individual .
Active doesn ’ t equal complex With the right resource and capability in place , there are numerous ways value can be added without deploying opaque techniques and complex instruments . Both strategic and tactical asset allocation can be used to protect capital and derive returns , whilst within the various asset classes , careful security selection can strike the right balance between managing risk and harnessing opportunity . The concept of a well-diversified portfolio , comprised of traditional assets that are liquid , carefully selected and adjusted , isn ’ t new or particularly exciting , but it ’ s one that holds constant against a fast moving and often uncertain backdrop . As a result , it ’ s an ethos that we believe is entirely aligned with what investors should be looking for in a core holding – a ‘ sleep at night ’ base to which they can add more esoteric or headline grabbing options should they choose .
Let BMO activate your core It ’ s no surprise that components of Centralised Investment Propositions often share many of these characteristics . A real active element is commonly missing though – a function typically of the cost constraints such solutions operate under . This is where we believe our core multi-asset solution grabs attention . With ongoing charges figures ( OCFs ) from as little as 29 basis points capped , the BMO Universal MAP and BMO Sustainable Universal MAP ranges are priced at a point more commonly associated with passive investing . For that , investors can access risk-controlled portfolios investing globally , across equities and bonds , with asset allocation actively adjusted and underlying exposures managed by specialist teams .
To find out more about how the BMO Universal MAP range can be used in your clients ’ core investments , please contact the BMO sales support team .
Views and opinions expressed by individual authors do not necessarily represent those of BMO Global Asset Management .
The value of investments and any income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested .
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