- Launching ESG ETFs, including the first ESG asset allocation
ETF in Canada
- Adding to income solutions with additional yield ETFs
- BMO survey shows 78 per cent of high income and high net worth
investors are ESG leaning, with 22 per cent actively investing in
ESG
TORONTO, Jan. 21, 2020 /CNW/ - BMO Asset
Management Inc. today announced the launch of seven ESG
(environment, social and governance) ETFs, including the first
balanced ESG ETF in Canada.
"A recent BMO survey shows investors recognize the financial
benefit of investing with an ESG lens and are increasingly looking
for solutions that align with both their financial and social
values." said Kevin Gopaul, Global
Head of ETFs, BMO Global Asset Management. "As an asset manager we
have a responsibility to drive and encourage positive change, from
active ownership and ESG integration across investments, to product
development. This launch of ESG ETFs delivers the full range of
solutions and an all-in-one-basket across broad markets that aligns
with BMO's responsible investing strategy."
Initial results of BMO Asset Management's ESG Beliefs and
Behaviors Survey* found 78 per cent of high income and high net
worth investors are ESG leaning, with 22 per cent actively
investing in ESG and 72 per cent strongly agreeing that companies
can have positive impact and make a profit. Further, 68 per cent of
the respondents strongly agreed that companies should be held
accountable for good management and sustainable business
practices.
BMO Asset Management Inc.'s new ETFs include:
BMO Balanced ESG ETF (ZESG)
The first ESG asset
allocation ETF in Canada,
providing a one ticket low cost solution that includes both major
equity markets and fixed income securities through a balanced asset
allocation of 60 per cent equity and 40 per cent fixed income
exposure.
BMO MSCI Global ESG Leaders Index ETF (ESGG)
BMO
MSCI Canada ESG Leaders Index ETF (ESGA)
BMO MSCI EAFE
ESG Leaders Index ETF (ESGE)
BMO MSCI USA ESG Leaders Index ETF (ESGY)
These
ETFs deliver ESG exposure by following the best in class approach
of the MSCI ESG Leaders Indexes, while capturing market returns, by
targeting the top 50 per cent ESG rated equities within sectors and
industries, while excluding severe controversies and industries
such as alcohol, gambling, tobacco, and weapons.
BMO ESG Corporate Bond Index ETF (ESGB)
BMO ESG US
Corporate Bond Hedged to CAD Index ETF (ESGF)
These ETFs
invest in investment grade corporate bond fixed income issuers that
have the highest MSCI ESG Ratings.
BMO Global High Dividend Covered Call ETF (ZWG)
This
ETF is a yield solution investing in high dividend equities,
utilizing some ESG integration and building off our existing
covered call methodology.
BMO Premium Yield ETF (ZPAY, ZPAY.U, ZPAY.F)
This ETF
is a yield solution investing in a portfolio of large cap U.S.
equities combined with derivative strategies to determine equity
entry and exit strategies.
The offering of all of the new ETFs has closed, and they will
begin trading on the Toronto Stock Exchange today.
The BMO ETFs or securities referred to herein are not sponsored,
endorsed or promoted by MSCI Inc. ("MSCI"), and MSCI bears no
liability with respect to any such BMO ETFs or securities or any
index on which such BMO ETFs or securities are based. The
prospectus of the BMO ETFs contains a more detailed description of
the limited relationship MSCI has with BMO Asset Management Inc.
and any related BMO ETFs.
* BMO Asset Management ESG Beliefs and Behaviors Survey
(Top Line Results)
Fielded in November and December,
the study is based upon 2,020 high income and high net worth
working and retired individuals between the ages of 30-75
(household income of $150,000 and
higher and net worth of $1 million or
more). The sample was evenly divided between the US and
Canada. The data was collected using an online data collection
methodology. The sample size has a maximum sampling error of +/-
2.2 percentage points. A full report on the survey findings will be
completed in the coming weeks.
About BMO Exchange Traded Funds (ETFs)
Established in
May 2009, BMO Financial Group's ETF
business is a leading ETF provider in Canada. BMO ETFs provide Canadian investors
with broader choices and greater access to an innovative portfolio
of investment products.
About BMO Financial Group
Serving customers for 200
years and counting, BMO is a highly diversified financial services
provider - the 8th largest bank, by assets, in North America.
With total assets of $852 billion as of October 31,
2019, and a team of diverse and highly engaged employees, BMO
provides a broad range of personal and commercial banking, wealth
management and investment banking products and services to more
than 12 million customers and conducts business through three
operating groups: Personal and Commercial Banking, BMO Wealth
Management and BMO Capital Markets.
SOURCE BMO Financial Group