BMO Financial Group today announced its Exchange Traded Fund (ETF) business has reached USD2 billion in assets under management in fewer than two years – a milestone that surpassed the company’s expectations and speaks to the rising demand among Canadian investors for innovative investment options that are transparent and low in cost.
In 2009, Bank of Montreal became the only bank in Canada to offer ETFs, through its affiliate, BMO Asset Management Inc. It has since led the industry in introducing innovative products to meet investor needs and currently offers a total of 40 ETFs in its broad product line-up.
The ETF business has doubled in the last six months within the organisation; in September, 2010 BMO Financial Group crossed the USD1 billion mark in ETF assets under management.
"We attribute much of our rapid growth to our experienced ETF team who have made it a priority to provide investors with products that cater to a wide range of needs," says Rajiv Silgardo, CEO, BMO Asset Management Inc. "We’ve built on our initial success and have evolved the ETF landscape not only in Canada but across many global markets."
Silgardo adds that a large part of the success of the ETF business comes from the company’s straightforward approach to educating investors on the many benefits of ETFs and making information readily available, whether through client materials, investor seminars, a user-friendly website or access to an experienced team of advisors.
Over the past two years, BMO ETFs have provided investors with a number of innovative market firsts, including: BMO’s ETF Portfolios provide all-in-one solutions that leverage the benefits of ETFs with the convenience of mutual funds; The BMO Junior Gold Index ETF is the first ETF in Canada to offer small cap gold exposure; BMO’s Target Maturity ETFs are the first Canadian ETFs to allow investors to plan for future expenditures through diversified fixed income portfolios with defined maturity dates; and the BMO Covered Call Canadian Banks ETF offers an income-focused strategy, enhancing yield and decreasing risk.
"Moving forward, BMO’s ETF team will continue to build on our strong success by anticipating the needs of investors and developing innovative offerings," says Silgardo.