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.

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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.

Target Yield for F-Series*

Low to Medium Risk Rating

* Estimated Distribution Yield was calculated by using the expected annualized distribution yield (which may be based on income, dividends, return of capital, and option premiums as applicable) of the underlying portfolio and excluding any capital gains from portfolio turnover, less expenses. The distribution rate is based on the starting NAV of $10. Distribution yield is not an indicator of overall performance and will change based on market conditions, NAV fluctuations, and is not guaranteed.

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.

The secret sauce: auto-callable notes.

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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.
  • 8% Target Yield for Series F*
  • Contingent Downside Protection
  • Time Savings
  • Diversification
  • Experienced Managers
* Estimated Distribution Yield was calculated by using the expected annualized distribution yield (which may be based on income, dividends, return of capital, and option premiums as applicable) of the underlying portfolio and excluding any capital gains from portfolio turnover, less expenses. The distribution rate is based on the starting NAV of $10. Distribution yield is not an indicator of overall performance and will change based on market conditions, NAV fluctuations, and is not guaranteed.
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BMO GAM is the first Canadian asset manager with a dedicated structured products team.

We have established the first in-house division for Convergence investing in Canada. Our team is composed of highly tenured experts with a combined 100+ years of experience in capital markets. Led by BMO Global Asset Management CEO Bill Bamber and Head of Synthetic Asset Management, Sara Petrcich, the specialized group will continue to build defined-outcome investment products that enhance traditional asset allocation.

Sara Petrcich

Head of ETF & Structured Solutions, BMO Global Asset Management

Sara Petrcich has over 20 years of Capital Markets experience as well as one and a half years in the Bank doing a secondment for the CFO and Treasurer at one of Canada’s largest banks. Her experience has been predominantly as a derivatives trader in structured and exotic products including commodities, equities, rates and credit. She has an exceptionally strong risk management background as a result. At BMO Global Markets she was head of Risk Strategy, reporting into the head of Global Markets as their exclusive and trusted risk advisor. She oversaw the entire portfolio of trading book risk across the Capital Markets businesses as well as the associated risk metrics governing the businesses. She was responsible for implementing macro hedges to manage tail risk and optimize Capital Market’s risk taking capabilities vis a vis customer activities as well as managing regulatory metrics impacting the businesses’ balance sheet. She was appointed as Managing Director and Head of Synthetic Asset Management in August 2022 where she led the build out and creation of synthetic funds and products within BMO Global Asset Management (BMO GAM). Sara leads the ETF & Structured Solutions team, which subsequently came from the combination of the ETF and Synthetic Asset management businesses. Sara is also responsible for building out a macro hedging framework for the CEO of BMO GAM and Head of Wealth. She is currently on the PineBridge Risk Committee and the Executive BMO GAM sponsor for Diversity, Equity, and Inclusion (DE&I).

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Bill Bamber, CFA

Chief Executive Officer, BMO Global Asset Management

Bill Bamber joined BMO Wealth Management in April 2022 as Head of Synthetic Asset Management and is currently the CEO of BMO Global Asset Management. Bill has more than 30 years of experience in the Financial Services Industry, including extensive experience in International Capital Markets, most notably in exotic derivatives spanning all asset classes as well as global structuring and structured products.

Prior to joining BMO, Bill oversaw Structured Products and Quantitative Investment Strategy businesses globally and led many ground-breaking initiatives and innovative indices. He has held senior positions at International and North American financial institutions including a focus on equity derivative structuring in the Americas.

Bill is well-known as an innovator in the investment industry with an outstanding track record for product firsts around the world. This includes pioneering the world’s first Emerging Market ETF (STX40 SJ Equity) and creating the first MLP-linked security both inside (AMJ US Equity) and outside of the U.S. He was also the first to create a listed trading platform for zero-coupon South African gilts.

Bill is a Chartered Financial Analyst (CFA) and holds both a Master of Management Analytics and a Master of Business Administration from Queen’s University.

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Get the Final Puzzle Piece – Invest with BMO GAM

Markets are evolving fast—and investors need every tool available to meet their investment outcomes. Download the reference documents below to assist you.

Invest with us

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

If you are an advisor, please contact your BMO wholesaler.

Strategic Equity Yield Fund FAQs

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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