BMO Global Asset Management
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BMO Global Asset Management

February 17, 2016 20:00 ET

BMO Global Asset Management Introduces New ETFs in Hong Kong

Four new additions are structured to provide investors with access to key sectors and global markets

HONG KONG, CHINA--(Marketwired - Feb. 17, 2016) - BMO Global Asset Management, a part of BMO Financial Group, today launched four Exchange Traded Funds (ETFs) in Hong Kong.

"These four equity ETFs are all firsts for this market and reflect BMO Global Asset Management's ongoing commitment to offering relevant, innovative and client-focused products," said Ravi Sriskandarajah, Managing Director and Head, BMO Global Asset Management (Asia Pacific).

The following ETFs are listing today on the Stock Exchange of Hong Kong:

  • BMO NASDAQ 100 ETF (3086.HK): The first Nasdaq 100 ETF in Hong Kong, this ETF provides investors with exposure to innovative and growth oriented companies, with a focus on the technology sector.
  • BMO MSCI Asia Pacific Real Estate ETF (3121.HK): Structured to provide exposure to regional property markets. It includes coverage across 13 countries, dominated by Japan, Hong Kong, Australia, China and Singapore. This ETF is a good alternative solution for investors seeking access to the real estate market and who want to diversify outside of Hong Kong.
  • BMO MSCI Japan Hedged to USD ETF (3160.HK) and BMO MSCI Europe Quality Hedged to USD ETF (3165.HK): The first USD hedged ETFs in Hong Kong, these offer exposure to two very important markets - Japan and Europe - while limiting the impact of currency fluctuations.

In November 2014, BMO Global Asset Management launched its first ETFs in the region, becoming the first Canadian banking group to have ETFs listed in Hong Kong. These three initial offerings were structured to help address the demand for income and growth and access to the region's robust financial sector. The four ETFs being launched today build on this existing platform by providing investors with exposure to key sectors and global markets.

"Introducing our second series of ETFs in Hong Kong is another key milestone for BMO Global Asset Management and reflects our commitment to expanding our offerings and presence in the region," commented Mr. Sriskandarajah. "Leveraging BMO's institutional quality platform, these ETFs are structured to provide opportunities to invest across different geographic locations and sectors, and to help investors build stronger and more diverse investment portfolios."

BMO Global Asset Management offers more than 80 ETFs globally and is the fastest-growing and second-largest provider of ETFs in Canada. The three ETFs the firm introduced in Hong Kong in 2014 drew on BMO's existing expertise in dividend-based smart beta strategies and fixed income ETF products. In 2015, it launched nine ETFs in the UK, becoming the first Canadian bank to offer ETFs in that region.

"The Hong Kong ETF market is still fairly homogenous and tends to be dominated by products that focus on Greater China equity," said Kevin Gopaul, Head of ETFs, BMO Global Asset Management. "Working with our local team, we've harnessed our global ETF expertise to deliver differentiated offerings that provide more investment options to regional investors who increasingly see the importance of diversification in a volatile market."

Notes to Editors:

BMO Global Asset Management has launched the following ETFs available for distribution in Hong Kong:

ETF Name OCF* Bloomberg ETF Ticker
BMO NASDAQ 100 ETF 0.30% 3086 HK
BMO MSCI Asia Pacific Real Estate ETF 0.45% 3121 HK
BMO MSCI Japan Hedged to USD ETF 0.50% 3160 HK
BMO MSCI Europe Quality Hedged to USD ETF 0.50% 3165 HK

*OCF (ongoing charges figures)

For more information, please visit: http://www.bmo.hk/etfs

About BMO Global Asset Management

BMO Global Asset Management (Asia) Limited is part of BMO Global Asset Management.

BMO Global Asset Management is the brand name for various affiliated entities of BMO Financial Group that provide investment management, trust and custody services.

BMO Global Asset Management is a global investment manager delivering service excellence from 27 offices in 17 countries to clients across five continents. Including discretionary and nondiscretionary assets, BMO Global Asset Management had more than USD237 billion in assets under management, as of October 31, 2015.

BMO Global Asset Management has been recognised by Pension & Investments as one of the world's largest 50 asset managers based on combined assets under management as of 31 December 2014 and is a signatory of the United Nations-supported Principles for Responsible Investment initiative (UN PRI).

IMPORTANT: BMO NASDAQ 100 ETF, BMO MSCI Asia Pacific Real Estate ETF, BMO MSCI Japan Hedged to USD ETF and BMO MSCI Europe Quality Hedged to USD ETF (collectively, the "Sub-Funds") are established under BMO ETF, an umbrella unit trust. Commissions, management fees and expenses all may be associated with investments in exchange traded funds (ETFs). The Sub-Funds may not be suitable for all investors and investors should not invest based on this material alone. Investors should exercise caution before investing and read the BMO ETF prospectus for further details, including product features and risk factors. ETFs are not guaranteed and past performance is not indicative of future performance. The value of investments and the income from them can go down as well as up as a result of stock market and currency movements, and investors may not get back the original amount invested. The BMO ETF prospectus is available on the website (www.bmo.hk/etfs).

  • BMO NASDAQ 100 ETF aims to provide investment results that, before fees and expenses, closely correspond to the performance of the NASDAQ-100 Index. This Sub-Fund concentrates its investment in securities listed on the NASDAQ Stock Market and is subject to concentration risk as a result of tracking the performance of markets in a single country (the US) and securities listed on a single exchange (the NASDAQ Stock Market). It is likely to be more volatile than a broad-based fund as it is more susceptible to fluctuations in value resulting from adverse conditions in the US.
  • BMO MSCI Asia Pacific Real Estate ETF aims to provide investment results that, before fees and expenses, closely correspond to the performance of the MSCI AC Asia Pacific Real Estate Index. This Sub-Fund primarily invests in securities in the real estate sector in the Asia Pacific region, including real estate investment trusts (REITs) and is subject to concentration risk as a result of tracking the performance of a single geographical region (Asia) and industry (real estate sector). It is likely to be more volatile than a broad-based fund as it is more susceptible to fluctuations in value resulting from adverse conditions in Asia and the real estate sector. There are risks associated with the real estate sector and REITs in particular. Investing in emerging markets involves a greater risk of loss than investing in more developed markets due to, among other factors, greater political, tax, economic, foreign exchange, liquidity and regulatory risks.
  • BMO MSCI Japan Hedged to USD ETF aims to provide investment results that, before fees and expenses, closely correspond to the performance of the MSCI Japan 100% Hedged to USD Index. This Sub-Fund concentrates its investment in Japanese securities and is subject to concentration risk as a result of tracking the performance of a single country (Japan). It is likely to be more volatile than a broad-based fund as it is more susceptible to fluctuations in value resulting from adverse conditions in Japan.
  • BMO MSCI Europe Quality Hedged to USD ETF aims to provide investment results that, before fees and expenses, closely correspond to the performance of the MSCI Europe Quality 100% Hedged to USD Index. This Sub-Fund concentrates its investment in European securities and is subject to concentration risk as a result of tracking the performance of a single geographical region (Europe). It is likely to be more volatile than a broad-based fund as it is more susceptible to fluctuations in value resulting from adverse conditions in Europe.
  • BMO MSCI Japan Hedged to USD ETF and BMO MSCI Europe Quality Hedged to USD ETF invest in currency forward contracts for hedging purposes and there are associated risks involved including costs of hedging, derivative and OTC transactions risks.
  • The value of securities in the respective portfolios of BMO NASDAQ 100 ETF and BMO MSCI Europe Quality Hedged to USD ETF may change on days when investors will not be able to purchase or sell units of these Sub-Funds as the NASDAQ Stock Market and European stock exchanges will be open when units of these Sub-Funds are not priced.
  • The units of the Sub-Funds may trade at a substantial premium or discount to their NAV.
  • The Sub-Funds are subject to tracking error risks due to factors such as fees and expenses, cost of hedging and the representative sampling strategy that may be adopted by the Manager.

BMO ETFs are managed and administered by BMO Global Asset Management (Asia) Limited, an investment fund manager and portfolio manager and separate legal entity from the Bank of Montreal.

This document is issued by BMO Global Asset Management (Asia) Limited. It has not been reviewed by the Securities and Futures Commission of Hong Kong. BMO Global Asset Management (Asia) Limited is incorporated in Hong Kong under Registered Number 325754 and has its registered office at 36/F and Suite 3808, One Exchange Square, Central, Hong Kong. It is authorised and regulated in Hong Kong by the Securities and Futures Commission.

This communication is intended for informational purposes only and is not, and should not be construed as an offer, solicitation, or investment and/or tax advice to any individual. Particular investments and/or trading strategies should be evaluated relative to each individual's circumstances. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment.

®"BMO (M-bar roundel)" is a registered trade-mark of Bank of Montreal, used under licence.

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