BMO Global Long/Short Equity Fund
Data updated: 2020-01-23
C000159353 — BMO Global Long/Short Equity Fund. Emerging Markets Equity · $1.16M AUM · 1.41% expense ratio. Holdings, fees, performance and SEC filings.
C000159353 Fund Overview
BMO Global Long/Short Equity Fund is a US mutual fund managed by Bmo Funds, Inc., categorised as Emerging Markets Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Bmo Funds, Inc.
- Category: Emerging Markets Equity
- Assets under management: $1.16M
- SEC CIK: 0000889366
- SEC series ID: S000050479
- Share class ID: C000159353
C000159353 Investment Objective and Strategy
BMO Global Long/Short Equity Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Bmo Funds, Inc..
Investment objective
To provide capital appreciation.
Principal investment strategy
The Fund invests at least 80% of its net assets in equity securities or equity-related securities, including both long and short positions and derivative instruments that provide exposure to equity securities. The Fund plans to implement its investment strategy by purchasing securities to establish long positions and entering into a total return swap that provides exposure to short equity security positions. The Fund also may take short positions in securities directly and may include exposure to long equity positions in a total return swap. The Fund normally invests at least 40% of its net assets in equity securities, equity-related securities, or derivative instruments that provide exposure to equity securities of companies located outside the United States, including emerging market countries, and will be diversified among at least three countries.
Equity securities in which the Fund may invest or seek exposure to include common stock, preferred stock, depositary receipts, rights, warrants, and exchange-traded funds (ETFs). In determining where a company is located, the Adviser primarily relies on the country where the company is incorporated, but also may consider the country where the companys revenues are derived and the primary market listing for the class of shares to be purchased. The Fund may invest in companies across all market capitalizations and may at times focus its investments in one or more sectors. The Adviser makes its investment decisions by combining a quantitative approach with a fundamental bottom-up (company-specific) and top-down (market-level) analysis that seeks to provide the Fund with lower downside risk and meaningful upside participation relative to the MSCI All Country World Index, the Funds primary benchmark index.
When entering into a swap for purposes of obtaining exposure to equity securities, the Adviser provides the counterparty with the list of positions that will comprise the reference basket of securities upon which the swap is based. The swap generally will be rebalanced every 30-45 days. The Funds Adviser focuses on companies for long positions that it believes are fundamentally strong, have attractive valuations, possess growing investor interest, and may outperform the overall equity market. Using a unique approach which combines the use of proprietary analytical tools and the qualitative judgments of the investment team, the Adviser selects equity securities that it believes will provide higher returns than its benchmark index. As part of this process, the Adviser considers numerous factors including (but not limited to) valuation, earnings quality, earnings growth potential, and earnings and price momentum.
The Adviser invests in those securities it believes will provide a better return relative to their risk than other securities. The Adviser may sell a security for numerous reasons, including if a companys fundamentals deteriorate or the Adviser believes a companys fundamentals will deteriorate, if another security appears to provide the potential for a better return relative to its risk, if the Adviser believes the security is no longer attractively valued, or if the Adviser believes the security will no longer help the Fund achieve its investment objective. The Adviser also may sell a security to manage the size of a holding or sector weighting or to fund redemptions. The Funds Adviser focuses on companies for short positions that it believes are fundamentally challenged, are overvalued, are experiencing deteriorating investor interest, and may underperform the overall equity market.
The Adviser uses essentially the same approach described above to identify potential short opportunities, but augments its process to account for securities that are difficult to short due to size and availability of securities and to eliminate short positions with risk profiles the Adviser considers unattractive. In addition to using a total return swap to implement its investment strategy, the Fund may invest in various other derivatives instruments for purposes of pursuing its investment objective, for risk management, portfolio management, earning income, managing target duration, gaining exposure to a particular asset class, or hedging its exposure to particular investments or non-U.S. currencies. Such derivative instruments may include: (i) currency futures, forwards, options, and swaps; (ii) index futures, forwards, options, and swaps; (iii) equity futures, forwards, options, and swaps; and (iv) forward foreign currency exchange contracts.
The Advisers long/short exposure will vary over time based on the Advisers assessments of market conditions and other factors. In implementing the investment strategies, the Adviser may engage in frequent trading. From time to time, the Fund maintains a portion of its assets in cash. The Fund may increase its cash holdings in response to market conditions or in the event attractive investment opportunities are not available.
C000159353 Costs and Fees
C000159353 costs about $141 per $10,000 invested per year in fund expenses.
- Net expense ratio: 1.41%
- Gross expense ratio: 2.66%
- Portfolio turnover: 79%
- Brokerage commissions: 11.31 bps of average net assets (SEC N-CEN)
C000159353 Cashflows
Over the 12 months to 2019-11, BMO Global Long/Short Equity Fund had net outflows of $1.51M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2019-11 | −$1.36M |
| 2019-10 | −$42.40K |
| 2019-09 | −$105.21K |
C000159353 Debt Constituents
No individual debt constituents are reported in BMO Global Long/Short Equity Fund's latest SEC N-PORT filing.
C000159353 Prospectus and SEC Filings
Official BMO Global Long/Short Equity Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
Related Funds
Other Emerging Markets Equity funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.