BMO Financial Group
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BMO Financial Group

November 06, 2014 01:30 ET

BMO Global Asset Management Launches ETFs in Hong Kong

- BMO Asia USD Investment Grade Bond ETF provides access to a portfolio of high quality Asia bonds

- BMO Hong Kong Banks ETF provides targeted exposure to banking stocks listed on SEHK

- BMO Asia High Dividend ETF provides exposure to more than 150 high dividend paying companies

HONG KONG, CHINA--(Marketwired - Nov. 6, 2014) - BMO Global Asset Management, one of the fastest growing ETF providers globally, announced that BMO Financial Group has become the first Canadian bank to launch Exchange Traded Funds (ETFs) in Hong Kong (introducing them through BMO Global Asset Management).(1)

BMO Global Asset Management is a leading provider of ETFs, first introducing them in Canada in 2009. Since its inception, BMO's ETF business has grown to 62 funds. Delivering high income levels based on sustainable underlying portfolio yields has been one of the primary focuses of the platform.

Under the leadership of Managing Director Amit Prakash, the firm's Hong Kong ETF team, backed by the stability, size and global reach of BMO Financial Group, has been focused on developing ETF strategies for Hong Kong by drawing on BMO Global Asset Management's existing expertise in dividend based smart beta strategies and fixed income ETF products.

"BMO Global Asset Management is a pioneer in the ETF market and has a reputation for responding to investor needs," said Kevin Gopaul, CIO and Global Head of ETFs, BMO Global Asset Management. "Building on our strong track record and leveraging our experienced team in Canada, we're excited to be able to introduce our first three ETFs for Hong Kong investors that are designed specifically to address key investor needs in the region."

BMO Global Asset Management is introducing three ETFs in Hong Kong: BMO Asia USD Investment Grade Bond ETF (stock code: 3141), BMO Hong Kong Banks ETF (stock code: 3143) and BMO Asia High Dividend ETF (stock code: 3145). It is anticipated that these will list on the Main Board of The Stock Exchange of Hong Kong Limited (SEHK) on November 13, 2014.

BMO Global Asset Management Hong Kong ETF Profiles

BMO Asia USD Investment Grade Bond ETF is the first ETF in Hong Kong that offers Asia USD bond exposure to over 450 Asian bonds across 150 issuers, giving investors an investment vehicle that aims to provide regular income with a potential for long term capital preservation. It invests in high credit quality sovereign and corporate investment grade bonds denominated in US dollars that tracks the performance of the Barclays Asia USD Investment Grade Bond Index.

BMO Hong Kong Banks ETF is the first ETF in Hong Kong to invest in Hong Kong listed bank stocks with a potential for attractive dividend yield, to be paid out twice a year.(2) It tracks the NASDAQ Hong Kong Banks Index through a full replication strategy.(3) This ETF will provide investors access to 10 to 20 banks in one single trade, as well as exposure to a key economic sector that is a proxy for the growth of the Greater China economies.

BMO Asia High Dividend ETF seeks to track the NASDAQ Asia ex Japan Dividend Achievers Index, which consists of more than 150 stocks that offer sustainable, attractive dividends in Asia ex Japan. It is one of the very few high dividend yield ETFs that provides a broad equity exposure and generates regular income with potential for long-term capital appreciation.(2)

"In a low interest rate environment, the demand for income and growth may not be met by fixed income investments alone," said Mr. Prakash. "Dividend-paying stocks offer a competitive yield and growth potential. Investors can capitalize on the rapid development of Asian capital markets and tap the growth story in the region. As one of the top ten largest fixed income ETF providers in the world, we understand the need for income. Both the bond and equity ETFs we are launching today will pay regular dividends, allowing investors to earn income while benefiting from Asia's continued growth.(2)

"We hold a positive outlook for the region's economy and capital markets and more specifically, the financial services sector. We have seen a shift from companies using bank loans to financing expansion through capital market activity. Our ETFs allow investors to participate in these underlying trends through products which offer long-term capital preservation and appreciation potential," continued Mr. Prakash.

BMO Hong Kong Bank ETF and BMO Asia High Dividend ETF are the first ETFs that track NASDAQ indices in Hong Kong. BMO Asia USD Investment Grade Bond ETF is also the first ETFs in Hong Kong that tracks the Barclays Asia USD Investment Grade Bond Index.

Commenting on the partnership with NASDAQ and Barclays, Mr. Prakash concluded, "Both NASDAQ and Barclays have significant expertise and knowledge in the areas where our products are focused. Barclays' track record in fixed income is arguably unrivalled, and NASDAQ has developed a strong reputation for custom-designed indices. This gives us the confidence we can work well together and continue to develop innovative and responsible ETFs to Hong Kong investors."

About BMO Global Asset Management

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

BMO Global Asset Management is a global investment manager delivering service excellence from 24 offices in 14 countries to clients across five continents. Including discretionary and non-discretionary assets, BMO Global Asset Management had more than US$280 billion in assets under management, as of July 31, 2014.

Headquartered by four multi-disciplined investment teams based in Toronto, Chicago/Milwaukee, London and Hong Kong, the organization is complemented by a network of world-class boutique managers strategically located across the globe. They include LGM Investments, Monegy, Inc., Pyrford International Ltd., and Taplin, Canida & Habacht, LLC. With operations throughout North America and Europe, and in Abu Dhabi, Mumbai, Beijing, Shanghai, Hong Kong, Melbourne and Sydney, BMO Global Asset Management has been recognized by Pension & Investments as one of the world's largest 100 asset managers based on combined assets under management as of December 31, 2013 and is a signatory of the United Nations-supported Principles for Responsible Investment initiative (UNPRI).

BMO Global Asset Management is a part of BMO Financial Group (NYSE:BMO), a fully diversified financial services organization with C$587 billion total assets and more than 47,000 employees as of July 31, 2014.

IMPORTANT: BMO Asia USD Investment Grade Bond ETF, BMO Hong Kong Banks ETF and BMO Asia High Dividend ETF (collectively, "Sub-Funds") are established under BMO ETF, an umbrella unit trust. The Sub-Funds may not be suitable for all investors. Investors may lose part or all of investment capital. Investors should not invest in the Sub-Funds base on this marketing material alone. Investors should refer to the prospectus for BMO ETF and the Sub-Funds for details, including product features and risk factors, before making any investment decision. The prospectus of BMO ETF and the Sub-Funds is available on the website www.bmo.hk/etfs.

  • BMO Asia USD Investment Grade Bond ETF aims to provide investment results that, before fees and expenses, closely correspond to the performance of the Barclays Asia USD Investment Grade Bond Index. To achieve the investment objective, this Sub-Fund primarily invests in USD-denominated government and corporate investment grade bonds in both developed and emerging Asia markets. Such investments involve special risks including interest rate risk, issuer counterparty risk and illiquidity of bonds close to maturity risk.
  • BMO Hong Kong Banks ETF aims to provide investment results that, before fees and expenses, closely correspond to the performance of the NASDAQ Hong Kong Banks Index. To achieve the investment objective, this Sub-Fund primarily invests in securities that are listed on The Stock Exchange of Hong Kong Limited and classified as banks by the index provider. This Sub-Fund is subject to concentration risk as a result of tracking the performance of a single geographical region (Hong Kong) and sector (banking). 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 Hong Kong and the banking sector.
  • BMO Asia High Dividend ETF aims to provide investment results that, before fees and expenses, closely correspond to the performance of the NASDAQ Asia ex Japan Dividend Achievers Index. To achieve the investment objective, this Sub-Fund primarily invests in high dividend yield securities in Asia. High dividend yield securities are subject to risks that the dividend could be reduced or abolished, or the risks that the value of the securities could decline or have lower-than average potential for price appreciation.
  • 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.
  • 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 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.

Commissions, management fees and expenses all may be associated with investments in exchange traded funds. BMO ETF may not be suitable for all investors. Investors should not invest based on this marketing material alone. Investors should read the prospectus before investing for further details, including product features and risk factors. Exchange traded funds are not guaranteed, their values change frequently and past performance information presented is not indicative of future performance.

This communication is intended for informational purposes only and is not, and should not be construed as, 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.

(1) The Hong Kong ETFs are managed by BMO Global Asset Management (Asia) Ltd

(2) There is no guarantee of regular distribution

(3) The Manager may, in the appropriate circumstances, choose to use a representative sampling strategy

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