BMO target date fund moves to protection mode

BMO Investments has shifted its BMO LifeStage Plus 2017 Fund asset allocation to a “protected” asset mix, and will exclusively hold fixed income securities and cash until its target end date.

“In keeping with the fund’s investment strategies, this reallocation to a fixed income portfolio is intended to ensure the fund maintains sufficient assets, at its target end date, to pay investors the Guaranteed Maturity Amount(+/-),” the managers of the fund said in a press release. “Unitholders are currently entitled to receive $12.03 at the Fund’s target end date.”

The management fee has been reduced to 1.05%, plus expenses.

As a result of this change, BMO LifeStage Plus 2017 Fund will no longer be available for purchase by investors, including under any pre-authorized contribution plan.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.