Investors looking for a multi-asset, multi-strategy, multi-advisor approach to alternative investments have a brand new option as of December 17: The BMO Alternative Strategies Fund, which employs long/short equity, capital structure arbitrage, and event-driven strategies – among others – in pursuit of long-term capital appreciation with dampened volatility.
The fund is managed by BMO Asset Management in collaboration with CTC | myCFO, a BMO affiliate. CTC | myCFO has “decades of experience in alternative investment research and customized portfolio construction,” according to BMO’s December 17 statement announcing the launch of the new fund. CTC | myCFO will make strategic recommendations concerning the selection of sub-advisors and allocations to them, as well as providing ongoing monitoring for the fund.
- CTC myCFO, LLC – Sub-Adviser Selection and Monitoring and Allocation across Strategies
- Capstone Investment Advisors, LLC – Relative Value – Options Strategy
- Cramer Rosenthal McGlynn, LLC – Long/Short Equity/Event Driven Strategy – All Capitalization Ranges
- Iridian Asset Management LLC – Long/Short Equity Strategy – Midsize Capitalization Ranges
- Graham Capital Management, L.P. – Macro – Tactical Trend Managed Futures Strategy
- Pine River Capital Management, L.P. – Relative Value – Global Equity Strategy
- Sound Point Capital Management, L.P. – Hedged Credit/Event Driven Strategy
“Brought together to form a single fund, the underlying managers’ strategies combine to meet the overall investment objective of capital appreciation using a broad range of strategies,” said Lowel Yura, Head of Multi-Asset Solutions for BMO and portfolio manager of the fund. “When added to a portfolio of traditional equity and fixed-income strategies, we expect clients to experience less volatility as they seek to meet their return objectives.”
The BMO Alternative Strategies Fund’s multi-strategy approach is intended to emphasize absolute return, with less reliance on the direction of markets to meet client objectives. “With market conditions that can easily fluctuate, investors should pay close attention to the sources of risk when choosing investment products,” said Craig Rawlins, CIO for BMO Global Asset Management. Having an offsetting or low-correlation mix of assets and strategies within a portfolio lessens dependence on market direction.
The BMO Alternative Strategies Fund is available in Class-A (BMATX) and Class-I (BMASX) shares. The management fee on the fund is 1.70%. The Class-A shares have a 2.75% expense ratio and a $1,000 minimum investment; the Class-I shares have a 2.5% expense ratio and a $1 million minimum investment.
For more information, download a pdf copy of the fund’s prospectus.