CORRECTED: Bank of Montreal expands sustainable lineup with launch of four new retail funds

September 15, 2020. Print article

Investments launched four new sustainable funds, creating new options for retail investors interested in low-risk sustainable investing, as it catches up on the surging environmental, social and governance trend.

The investment wing of Canada’s fourth-largest bank said Monday that it created four portfolios with varying ratios of fixed income to equity securities, with low to low-to-medium risk ranges.

"We are proud of our 35-year history in responsible investing, and are firmly committed to advancing the ESG dialogue,” said Mark Raes, head of product for Canada.  

BMO’s portfolios will use a rating system to pick funds that outperform their peers on environmental, social and governance metrics. Each fund carries a management fee of 1.60%.

While these are not the first sustainable investment offerings from BMO Financial Group, which had $974 billion in assets as of July 31, the bank has offered relatively few, compared to many investment houses, which have been zealously adding such funds to their lineups. The four new funds are the only ones listed by BMO as sustainable mutual funds.

, the country’s largest bank, launched four new sustainable exchange-traded funds in August. The majority of Canadian funds listed this year have been sustainability-focused, according to .

Correction: A previous version of this story misstated the number of BMO's existing sustainable funds and the total assets BMO Financial Group had under management. The errors have been corrected.