BMO Strategic Equity Yield Fund

The missing piece between equities and fixed income

Introducing the BMO Strategic Equity Yield Fund from our new Convergence investing suite—a unique offering that replicates an exposure of structured notes to complement your traditional balanced portfolio.

Reach for yield. Not risk.

That age-old problem – you need higher income to fulfill your investment goals, yet are sensitive to market volatility. Our solution: Convergence investing.

Higher level of monthly cash flow*

Low to medium risk rating

* As compared to traditional Fixed Income investments. Source: Halo Investing, “Structured Notes 101 – Infographic,” Halo Journal, August 31, 2022.

Convergence investing, explained.

Convergence investing aims to democratize access to capital markets solutions. Our mission is to provide investors with sophisticated, defined-outcome investment tools in the format of a traditional mutual fund.

Our core offering, the BMO Strategic Equity Yield Fund, brings the power of structured notes through replication in a managed solution.*

* The BMO Strategic Equity Yield Fund will focus on replicating exposure to notes focused on income generation, while also maintaining contingent downside protection. Our dedicated team of structured product professionals seeks to achieve above market returns and exposure to North American and/or global equity markets through the use of derivatives and/or structured products.

What are structured notes?

Structured notes are hybrid investments engineered to achieve a specific investment outcome. With the BMO Strategic Equity Yield Fund, the goal is to replicate an exposure that blends the properties of equities and fixed income. To land somewhere in the middle, offering higher potential returns than a standard bond fund with a risk rating* lower than the usual basket of stocks.

Right in the sweet spot.

Risk is defined as the uncertainty of return and the potential for capital loss in your investments

Fund investment strategy

Broadly speaking, structured notes fall on a spectrum between income and growth.
The BMO Strategic Equity Yield Fund aims to replicate exposure to notes focused on income generation, while also maintaining contingent downside protection. Our dedicated team of structured product professionals seeks to achieve above market returns and exposure to North American and/or global equity markets through the use of derivatives and/or structured products.

Top-down fundamental research

Macroeconomic trends, central bank policies, interest rate forecasts.

Bottom-up analysis

Financial statement analysis, security screening (i.e volatility and dividend sustainability)

Active portfolio management

Technical indicators, derivative hedging, value-at-risk analysis

For illustrative purposes only.

Canada’s wealthiest investors have used structured notes for decades.1 Now you can, too.

The process of managing a portfolio of structured notes can be expensive and time-consuming. Hundreds of hours may be spent analyzing strike prices, yields, risk barriers and buffers.
The BMO Strategic Equity Yield Fund makes it simple and stress-free to replicate that exposure, putting a whole new asset class within your reach.

* As compared to traditional Fixed Income investments. Source: Halo Investing, “Structured Notes 101 – Infographic,” Halo Journal, August 31, 2022.

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If you are an investor, you can speak to your financial advisor, or email us directly.

BMO Strategic Equity Yield Fund FAQ

What are the benefits of the BMO Strategic Equity Yield Fund?
What is an autocallable coupon note?
What is a structured note?
What is convergence investing?

Disclosures

1 Halo Investing, “Structured Notes 101 –Infographic,” Halo Journal, August 31, 2022.

 

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