BMO Global Asset Management
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BMO Global Asset Management

September 02, 2015 08:00 ET

BMO Global Asset Management White Paper: A Case for Active Investing in Low Volatility Equity

Latest white paper examines risk, return potential and adaptability in advocating active approach to low volatility equities

CHICAGO, ILLINOIS--(Marketwired - Sept. 2, 2015) - BMO Global Asset Management has released its latest white paper, Low Volatility Equity Insights: A Case for Active Investing in Low Volatility Equity. The paper explores BMO Global Asset Management's argument favoring actively-managed, low-volatility equity strategies with regard to risk reduction, return generation potential and investment adaptability.

According to the paper, one of the key advantages of active management is the ability to measure and manage risk in multiple ways. The typical passive strategy relies on a single risk tool; that one tool is unlikely to change, even as market conditions evolve.

The paper also highlights the capability of an active manager to include return forecasts into the portfolio construction process. The research from BMO Global Asset Management notes that a low volatility strategy with the ability to adapt to changing market conditions has an additional and significant advantage.

"It is vital for investors to understand the dual importance of identifying a manager with both a successful track record in picking stocks and a strategy with a sophisticated risk-management model," said Jason Hans, CFA, Quantitative Portfolio Manager, BMO Asset Management U.S.

The paper notes that as investor attention has turned increasingly toward outcome-based solutions and smart-beta products, low-volatility equity strategies are expected to continue growing in popularity.

Mr. Hans added that investors should keep in mind that not all strategies are created equal and should consider the inherent advantages of active management when choosing a strategy that suits their investment goals.

To view the white paper, please visit: http://bmogamviewpoints.com/asset-management/asset-manager-insights/.

For more information on BMO Global Asset Management, visit http://www.bmo.com/gam/asset-management.

About 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 nondiscretionary assets, BMO Global Asset Management had more than USD $244 billion in assets under management, as of July 31, 2015.

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 the soon to be called BMO Real Estate Partners, F&C Investments, 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 $672 billion as of July 31, 2015, and more than 47,000 employees

Disclosures

All investments involve risk, including the possible loss of principal.

This is not intended to serve as a complete analysis of every material fact regarding any company, industry or security. The opinions expressed here reflect our judgment at this date and are subject to change. Information has been obtained from sources we consider to be reliable, but we cannot guarantee the accuracy. This presentation may contain forward-looking statements. "Forward-looking statements," can be identified by the use of forward-looking terminology such as "may", "should", "expect", "anticipate", "outlook", "project", "estimate", "intend", "continue" or "believe" or the negatives thereof, or variations thereon, or other comparable terminology. Investors are cautioned not to place undue reliance on such statements, as actual results could differ materially due to various risks and uncertainties. This publication is prepared for general information only. This material does not constitute investment advice and is not intended as an endorsement of any specific investment. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investment involves risk. Market conditions and trends will fluctuate. The value of an investment as well as income associated with investments may rise or fall. Accordingly, investors may receive back less than originally invested.

BMO Global Asset Management is the brand name for various affiliated entities of BMO Financial Group that provide investment management, retirement, and trust and custody services. Certain of the products and services offered under the brand name BMO Global Asset Management are designed specifically for various categories of investors in a number of different countries and regions and may not be available to all investors. Products and services are only offered to such investors in those countries and regions in accordance with applicable laws and regulations. BMO Financial Group (NYSE: BMO), is a service mark of Bank of Montreal (BMO).

BMO Asset Management U.S. consists of BMO Asset Management Corp.

BMO Asset Management Corp. is the investment adviser to the BMO Funds. BMO Investment Distributors, LLC is the distributor. Member FINRA/SPIC. BMO Funds are not marketed or sold outside the United States.

Investment products are: Not FDIC Insured / No Bank Guarantee / May Lose Value

©2015 BMO Financial Corp.

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