BMO Global Asset Management White Paper: A Case for Active Investing in Low Volatility Equity
OREANDA-NEWS. September 04, 2015. BMO Global Asset Management has released its latest white paper, Low Volatility Equity Insights: A Case for Active Investing in Low Volatility Equity. The paper explores BMO Global Asset Management's argument favoring actively-managed, low-volatility equity strategies with regard to risk reduction, return generation potential and investment adaptability.
According to the paper, one of the key advantages of active management is the ability to measure and manage risk in multiple ways. The typical passive strategy relies on a single risk tool; that one tool is unlikely to change, even as market conditions evolve.
The paper also highlights the capability of an active manager to include return forecasts into the portfolio construction process. The research from BMO Global Asset Management notes that a low volatility strategy with the ability to adapt to changing market conditions has an additional and significant advantage.
"It is vital for investors to understand the dual importance of identifying a manager with both a successful track record in picking stocks and a strategy with a sophisticated risk-management model," said Jason Hans, CFA, Quantitative Portfolio Manager, BMO Asset Management U.S.
The paper notes that as investor attention has turned increasingly toward outcome-based solutions and smart-beta products, low-volatility equity strategies are expected to continue growing in popularity.
Mr. Hans added that investors should keep in mind that not all strategies are created equal and should consider the inherent advantages of active management when choosing a strategy that suits their investment goals.
To view the white paper, please visit: http://bmogamviewpoints.com/asset-management/asset-manager-insights/.
For more information on BMO Global Asset Management, visit http://www.bmo.com/gam/asset-management.
About BMO Global Asset Management
BMO Global Asset Management is a global investment manager delivering service excellence from 24 offices in 14 countries to clients across five continents. Including discretionary and nondiscretionary assets, BMO Global Asset Management had more than USD \\$244 billion in assets under management, as of July 31, 2015.
Headquartered by four multi-disciplined investment teams based in Toronto, Chicago/Milwaukee, London and Hong Kong, the organization is complemented by a network of world-class boutique managers strategically located across the globe. They include the soon to be called BMO Real Estate Partners, F&C Investments, LGM Investments, Monegy, Inc., Pyrford International Ltd., and Taplin, Canida & Habacht, LLC. With operations throughout North America and Europe, and in Abu Dhabi, Mumbai, Beijing, Shanghai, Hong Kong, Melbourne and Sydney, BMO Global Asset Management has been recognized by Pension & Investments as one of the world's largest 100 asset managers based on combined assets under management as of December 31, 2013 and is a signatory of the United Nations-supported Principles for Responsible Investment initiative (UNPRI).
BMO Global Asset Management is a part of BMO Financial Group (NYSE: BMO), a fully diversified financial services organization with \\$672 billion as of July 31, 2015, and more than 47,000 employees
Disclosures
All investments involve risk, including the possible loss of principal.
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