Income trust-focused fund broadens mandate to provide income by investing
in a diversified portfolio of Canadian securities
TORONTO, Sept. 18 /CNW/ - BMO Harris Investment Management Inc. (BHIMI),
the investment management arm of BMO Harris Private Banking, today announced
that it has enhanced its income equity platform by broadening the mandate of
the BMO Harris Diversified Trust Portfolio.
The investment objective and name of the BMO Harris Diversified Trust
Portfolio, established in November 2002, have been changed to reflect a
broader income-focused strategy. Effective today, the name of this fund has
been changed to the BMO Harris Diversified Yield Portfolio.
The new investment objective of this Portfolio is to provide income by
investing primarily in a diversified portfolio of Canadian securities. This is
broader than the Fund's prior mandate, which was focused on investments that
are structured as income trusts.
"In addition to income trusts, we expect the Fund to include common
equities, as well as other higher yielding strategies, such as preferred
shares," notes Lutz Zeitler, Portfolio Manager, BHIMI.
"A few factors spurred the broadening of the fund's mandate. The first
was the Canadian government's decision to reduce the tax advantage that the
income trust structure provided to businesses. Also, our expectation for
traditional fixed income solutions to underperform equity markets meant that
we had to consider other options to maintain a yield component within an
investor's portfolio," said Zeitler.
Paul Taylor, Chief Investment Officer, BHIMI, added "the repositioning of
this fund provides exposure to some of the capital appreciation potential of
equities but with stability characteristics more closely associated with fixed
The changes to this fund continue to complement BMO Harris Private
Banking's existing large cap Canadian equity strategies, also managed by
BHIMI's Canadian equity team.
About BMO Harris Private Banking
BMO Harris Private Banking serves the needs of high net worth clients and
their families, to help them deal with a wide range of complex financial
issues, providing comprehensive wealth management expertise. The bank's team
of professionals is comprised of leading specialists in a variety of
disciplines including banking, investment management, estate, trust and
various family office services such as philanthropic and business succession
BMO Harris Private Banking is part of BMO Financial Group's Private
Client Group. The Private Client Group provides integrated wealth management
services in Canada and the United States and had total assets under
administration and term investments of $277.19 billion as at July 31, 2007.
For further information:
For further information: JoAnne Hayes, Toronto, firstname.lastname@example.org,
(416) 867-3996; Lucie Gosselin, Montreal, email@example.com, (514)
877-8224; Laurie Grant, Vancouver, firstname.lastname@example.org, (604) 665-7596;