BMO Investments has introduced two new international funds, BMO International Equity Fund and BMO Japan Fund. BMO says the new funds are aimed at helping Canadian investors diversify on a global level.
"Many Canadian investors have a large portion of their portfolio invested in their home market, yet Canada represents only four per cent of global equity markets, said Kevin Gopaul, head of BMO Global Asset Management Canada. "BMO International Equity Fund and BMO Japan Fund help build better portfolios by adding exposure to international markets that have different return drivers than Canadian markets."
Accommodative monetary policy
The BMO International Equity Fund "provides exposure to international equity markets, which are expected to continue to rebound based on accommodative monetary policy and lessening political risks," says BMO.
The BMO Japan Fund offers access to Japanese equity markets, “which are expected to benefit from stronger export-stimulated economic growth,” says BMO. Compared to Canada, Japan’s resource market is limited and is more exposed to industrial and consumer companies.