BMO Investments announced the introduction of a new sustainability themed Canadian equity fund, as part of a launch of a suite of new investment funds and ETFs. The new BMO Sustainable Opportunities Canadian Equity Fund will invest in a portfolio of high-growth Canadian companies that demonstrate a clear commitment to sustainability.
ESG Today spoke with representatives at BMO who provided additional information on the new ESG-themed product. The objective of the new fund is to focus on companies who stand to benefit or contribute to trends in sustainable development, particularly companies with products and services or actions align to UN Sustainable Development Goals (SDGs). The fund will be a create a high conviction, concentrated portfolio of approximately 20-40 stocks, across all cap levels. Stocks will be chosen from the S&P/TSX composite universe, with soft exclusions of tobacco, alcohol and weapons.
BMO will utilize multiple ESG information sources in constructing and managing the portfolio, including conferences, company meetings, company financial filings, and ESG service providers, as well as firm’s Responsible Investment Team’s proprietary ESG scores.
BMO intends to utilize an active ownership model for the fund, using a combination of engagement and proxy voting to effect change. The firm will work constructively and confidentially with management teams and Boards of Directors, engage with companies to address ESG issues, and collaborate with other investors to magnify influence through joint engagement/statements.
The BMO Sustainable Opportunities Canadian Equity Fund was launched along with a suite of other ETFs and funds. Mark Raes, Head of Product, BMO Global Asset Management Canada, said:
“We are pleased to continue expanding our offerings, providing investors solutions that align with their investment priorities. These funds and portfolios reinforce both our commitment to offering investors differing currency solutions, and our leadership in ETF-based funds and responsible investing.”