Multi-Asset

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BMO’s multi-asset capabilities and funds are designed around helping investors meet their long-term investment goals. Our teams work to achieve the right balance between managing risks and grasping opportunities – both elements are important as we work to deliver the outcomes our clients seek.

The principle of diversification is a powerful one and each of our portfolios is made up of a blend of different asset types. Active management is key and strategic and tactical asset allocation as well as the selection of individual portfolio components all play a role.

Our multi-asset range includes risk-managed options providing scope for clear alignment with individual risk profiles as well as funds seeking to provide above inflation total returns.

Our Five Lenses approach

Our asset allocation views are formed by fundamental and quantitative analysis across asset classes, taking the global macroeconomic backdrop, valuation metrics and policy considerations into account.

The Five Lenses approach helps explain the drivers of asset allocation decisions.

Lens 1: Asset Class

  • Equities
  • Fixed Income

Key influences:

  • Economic outlook
  • Policy
  • Business cycle
  • Investment sentiment

Lens 2: Equity

  • Canada, U.S., International
  • Emerging Markets
  • Sectors
  • Alternatives

Key influences:

  • Economy
  • Policy
  • Valuation
  • Behavioural

Lens 3: Fixed Income

  • Duration
  • Credit
  • Yield Curve
  • Region
  • Alternatives

Key influences:

  • Economy
  • Policy
  • Rates and inflation
  • Credit

Lens 4: Currency

  • Hedging
  • Currency overlay

Key influences:

  • GDP growth
  • Policy
  • Commodity cycle

Lens 5: Factors

  • Value, Growth, Momentum, Quality, Yield, Size, Volatility
  • Carry

Key influences:

  • Relative value
  • Relative strength
  • Income
  • Volatility

Multi-Asset Insights

Multi-Asset
economic uncertainty
June 2022

June Monthly Market Commentary: The Economy to Face Increasing Chill, not a Hurricane

Expectations for Fed and Bank of Canada (BoC) tightening continue to firm up as monetary stimulus is getting removed at a quick pace to lean against excessive inflationary pressures. Rising rates should weigh on the growth outlook and equity valuation, but we do not expect a recession over the next 6 to 9 months.
Multi-Asset
economic uncertainty
May 2022

May Monthly MAST Commentary: Rising commodity prices continue to support the inflation outlook while supply-chains are still exposed to disruptions

Monetary stimulus from the U.S. Federal Reserve (the “Fed”) and Bank of Canada (BoC) is getting removed at a quick pace to lean against excessive inflationary pressures. Rising rates should weigh on the growth outlook and equity valuation, but we do not expect a recession over the next 12 months.
Multi-Asset
economic uncertainty
April 2022

April Monthly MAST Commentary: Fear of War is Coming Down, but Fear Over the Fed’s Soft-landing is Rising

The conflict in Ukraine keeps on raging, but fear of an escalation has come down. However, the impact on commodity prices will continue as prices remain elevated and long-term supply remains an issue, most notably for Europe and other commodity importing countries.
Multi-Asset
Bubbles floating in front of a green forest background
August 2021

How long will high inflation last?

Fred Demers & Brittany Baumann share their views on temporary inflation drivers and how to position institutional portfolios for what’s ahead.
Multi-Asset
Focused woman working from home
June 2021

Positioning for Peak Growth and High Inflation

Two concerns are top of mind for investors: inflation overheating and peak economic growth.
Multi-Asset
Business analyst looking at four computer screens
May 2021

New highs for S&P 500: Don’t be afraid of heights

As the global economy emerges from the pandemic, central banks are starting to reduce emergency stimulus.
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Risk Disclaimer

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.