News Releases
In response to the success of its Mutual Fund Model Portfolios that offer investors the choice of pre-selected investment portfolios, BMO InvestorLine today launched two new options. In an exclusive partnership with Ranga Chand, one of Canada’s leading mutual fund analysts, the line-up will now include Index and Tax Efficient Model Portfolios.
This guided approach to investing has been extremely popular with online investors. Since the launch of Ranga Chand’s Heavy Hitter® Mutual Fund Select Model Portfolios in 2003, trading volume in the funds represented by the Model Portfolios has increased by 143 per cent. Using Chand’s third party expertise as an investment guide, Model Portfolios take the complexity out of investing, and allow investors to easily select the portfolio that best fits their risk profile.
The growing interest in Model Portfolios reflects the trend in self-directed investing where investors are shifting from short-term trading to long-term financial planning. BMO InvestorLine developed the Model Portfolio line-up for its clients to use as a long-term investment guide. These portfolios offer diversified and actively managed investment options that can be customized according to each investor’s profile.
“We continue to provide our clients with investment solutions that offer investors value, simplified investment options and the control to make their own investment decisions,” said Tom Flanagan, President and COO, BMO InvestorLine. “The introduction of the Ranga Chand Heavy Hitter Index and Tax Efficient Model Portfolios will enhance our clients’ ability to diversify their investments with low cost and tax efficient investment options that they can easily incorporate into their long-term financial plan.”
With the addition of Index and Tax Efficient Model Portfolios, BMO InvestorLine clients will have access to two new types of models under Ranga Chand’s Heavy Hitter line-up and four types of Model Portfolios in total.
About BMO InvestorLine’s Model Portfolio Line-up
Ranga Chand Heavy Hitter Model Portfolios:
Heavy Hitter Tax Efficient Model Portfolios: Allows investors to take advantage of tax efficiencies and minimize the impact of capital gains, dividend and interest income taxation, especially in non-registered accounts.
Launched: November 1, 2005
Key Features:
- Tax efficient – for investors holding assets in non-registered taxable accounts
- Low management expense ratio (MER)
- Actively managed
- Automatic dividend reinvestment
- RRSP eligible
Index Model Portfolios: Investors get cost-effective exposure to a market index such as the S&P/TSX 60, Dow Jones Industrial or the S&P 500.
Launched: November 1, 2005Key Features:
- Low management expense ratio (MER)
- Tax efficiency
- Auto dividend reinvestment
- RRSP eligible
Heavy Hitter Select Model Portfolios: Provides a customized list of mutual funds from the major asset categories specific to each investor’s investment objectives and risk tolerance.
Launched: Late 2003Key Features:
- Low management expense ratio (MER)
- Actively managed
- Automatic Dividend Reinvestment
- RRSP eligible
Exchange Traded Fund (ETF) Model Portfolios:
ETF Model Portfolios: Designed and managed by ETF expert, Howard Atkinson, Head of Public Funds for Barclays Global Investors Canada Limited, six Asset Allocation Model Portfolios are based on different risk tolerances and objectives. Each ETF Model Portfolio is a combination of pre-selected funds designed to match the investor’s profile and take the guesswork out of choosing which funds are right for them. For every investment objective - security, balanced, growth or aggressive growth - there is an ETF model portfolio to suit an investor’s particular need.
Launched: August 1, 2005Key Features:
- Low management expense ratio (MER)
- Tax efficiency
- Flexibility
- Fully invested
- Transparency
- RRSP eligible
About BMO InvestorLine
BMO InvestorLine, ranked Canada’s best Online broker by The Globe and Mail for four consecutive years, offers self-directed investors a straightforward and fully customizable online investing platform. Its comprehensive suite of financial planning tools and investment products is particularly valuable for investors looking for a long-term and strategic portfolio solution.
BMO InvestorLine is BMO Financial Group’s direct brokerage firm and is part of the organization’s Private Client Group. The Private Client Group provides integrated wealth management services in Canada and the United States and had total assets under management and administration and term investments of $295.3 billion as at July 31, 2005.
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