The Missing Piece Between Equities and Fixed Income

Introducing the BMO Strategic Equity Yield Fund from our new Convergence investing suite—a unique offering that replicates an exposure of structured notes to complement your traditional balanced portfolio.

Elevate your investment solutions.

Advisors have an age-old problem. Clients need higher income to fulfill their investment goals, yet are sensitive to market volatility.
Our solution: Convergence investing.

Monthly Cash Flow

Low to Medium
Risk Rating

Convergence investing,
explained.

Convergence investing aims to democratize access to capital markets solutions. Our mission is to provide investors with sophisticated, defined-outcome investment tools in the format of a traditional mutual fund.

Our core offering, the BMO Strategic Equity Yield Fund, brings the power of structured notes into a managed solution available to all Investment Advisors.

Capital Markets

Mutual Fund

Okay. Tell me more about structured notes.

Structured notes are hybrid investments engineered to achieve a specific investment outcome. With the BMO Strategic Equity Yield Fund, the goal is to replicate an exposure that blends the properties of equities and fixed income. To land somewhere in the middle, offering higher potential returns than a standard bond fund with a risk rating lower than the usual basket of stocks.

Right in the sweet spot.

Notes to match clients’ needs.

Broadly speaking, structured notes fall on a spectrum between income and growth.

The BMO Strategic Equity Yield Fund will focus on replicating exposure to notes focused on income generation, while also maintaining contingent downside protection. Our dedicated team of structured product professionals seeks to achieve above market returns and exposure to North American and/or global equity markets through the use of derivatives and/or structured products.

The secret sauce: autocallable notes.

For illustrative purposes only.

Canada’s wealthiest investors have used structured notes for decades¹. Now you can, too.

The process of managing a portfolio of structured notes can be expensive and time-consuming for Advisors. Hundreds of hours may be spent analyzing strike prices, yields, risk barriers and buffers—time that could be spent with clients.

The BMO Strategic Equity Yield Fund makes it simple and stress-free to replicate that exposure, putting a whole new asset class within reach.

Monthly Cash Flow Contingent Downside Protection Time Savings Diversification Experienced Managers

We’re one of the only asset managers in Canada with a dedicated team for structured products.

We have established the first in-house division for Convergence investing in Canada. Our team is composed of highly tenured experts with a combined 100+ years of experience in capital markets. Led by BMO Global Asset Management CEO Bill Bamber and Head of Synthetic Asset Management, Sara Petrcich, the specialized group will continue to build defined-outcome investment products that enhance traditional asset allocation.

Bill Bamber CFA, MBA, MMA

Chief Executive Officer,
BMO Global Asset Management Read Bio

Sara Petrcich

Managing Director and Head of Synthetic Asset Management,
BMO Global Asset Management Read Bio

Get the Final Puzzle Piece

Markets are evolving fast—and investors need every tool available to meet their investment outcomes. To assist with your client conversations, request your resource package for the BMO Strategic Equity Yield Fund.

What's included:

BMO Strategic Equity Yield Fund - Visual Explainer BMO Strategic Equity Yield Fund - Sales Aid BMO Strategic Equity Yield Fund - Presentation Introducing: BMO Strategic Equity Yield Fund – Video Convergence Investing, Explained – Video

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Disclosures

Distributions are not guaranteed and may fluctuate. Distribution rates may change without notice (up or down) depending on market conditions. The payment of distributions should not be confused with an investment fund’s performance, rate of return or yield. If distributions paid by an investment fund are greater than the performance of the fund, your original investment will shrink. Distributions paid as a result of capital gains realized by an investment fund, and income and dividends earned by an investment fund, are taxable in your hands in the year they are paid. Your adjusted cost base will be reduced by the amount of any returns of capital. If your adjusted cost base goes below zero, you will have to pay capital gains tax on the amount below zero. Please refer to the distribution policy for BMO Mutual Fund set out in the prospectus.
Distributions, if any, for all series of securities of a BMO Mutual Fund (other than ETF Series) are automatically reinvested in additional securities of the same series of the applicable BMO Mutual Fund, unless the securityholder elects in writing that that they prefer to receive cash distributions. For ETF Series securities of a BMO Mutual Fund, distributions, if any, may be paid in cash or reinvested automatically in additional ETF Series securities of the applicable BMO Mutual Fund and the ETF Series securities will be immediately consolidated such that the number of outstanding ETF Series securities following the distribution will equal the number of ETF Series securities outstanding prior to the distribution. If a securityholder is enrolled in a distribution reinvestment plan, distributions, if any, will be automatically reinvested in additional ETF Series securities of the applicable BMO Mutual Fund pursuant to the distribution reinvestment plan. For further information, see the distribution policy for the applicable BMO Mutual Fund in the simplified prospectus.
Commissions, trailing commissions (if applicable), management fees and expenses all may be associated with mutual fund investments. Please read the fund facts or prospectus of the relevant mutual fund before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Distributions are not guaranteed and are subject to change and/or elimination.
For a summary of the risks of an investment in BMO Mutual Funds, please see the specific risks set out in the prospectus.
BMO Mutual Funds are managed by BMO Investments Inc., which is an investment fund manager and a separate legal entity from Bank of Montreal.
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