BMO Mutual Fund Report Spring 2007

BMO Mutual Fund Report Spring 2007 - BMO Investments Inc...

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BMO Investments Inc. Mutual Fund Report Submitted to: Prepared by: Date: March 5, 2007
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TABLE OF CONTENTS INDUSTRY KNOWLEDGE ................................................................................................................... 2 COMPANY KNOWLEDGE ................................................................................................................... 4 FUND KNOWLEDGE ......................................................................................................................... 12 References ......................................................................................................................................... 22 BMO Investments Inc. Mutual Fund Report INDUSTRY KNOWLEDGE PROFILE OF INDUSTRY As of January 31, 2007, the Canadian mutual funds industry was worth $673.4 billion in terms of dollar assets under administration, of which long-term mutual fund assets accounted for $627 billion. The month of January saw industry growth of 1.9%, to which long-term fund net sales contributed $4.1 billion 1 . Currently, investors can choose from more than nineteen hundred mutual funds operating within Canada. These have been divided into thirty six different categories (such as global equity funds, high yield bond funds, alternative strategies funds, etc.) by 1 Source: www.ific.ca 2
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the Canadian Investment Funds Standards Committee 2 . Also, the Investment Funds Institute of Canada has, for the first time, reported the overall activity for mutual funds by classifying them into two groups: stand-alone mutual funds and mutual funds of funds. Stand alone mutual funds account for the majority of funds in existence, with $578.2 billion in assets and $1.6 billion in 2007 net sales as of January, while funds of funds represent $95.1 billion in assets and $2.4 billion in net sales 3 . The financial services sector in Canada, in particular the mutual funds industry, is very competitive. Funds are offered by most of the country’s 6 largest banks and 13 smaller domestic banks, along with over 60 mutual fund companies, 180 investment dealers, 29 trust companies and 1300 credit unions. In fact, according to Statistics Canada’s 2005 National Balance Sheet Accounts, Canadian household financial assets (which include mutual funds) are managed by a variety of financial institutions, e.g. 20 percent are managed by banks, 69 percent are held by services providers such as pension and mutual funds, etc. Some of the reasons behind this increasing competitiveness are the disappearance of old taboos regarding institutions competing in each other’s immediate industries (e.g. banks now own investment dealers and mutual fund companies), federal law and regulation changes over the past few years that have allowed for more foreign banks to operate in Canada and for new banks to start up, and technological advancements that have led to new ways of offering products and services (such as with iShares ETFs) 4 . 2 Source: www.cifsc.org 3 Source: www.ific.ca 4 Source: www.cba.ca 3
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COMPANY KNOWLEDGE COMPANY PROFILE BMO Mutual Funds® are distributed by BMO Investment Inc., the head offices for which are located at 77 King Street West, Suite 4200, Royal Trust Tower in Toronto. It is indirectly owned wholly by BMO Financial Group, which was originally established as Bank of Montreal in 1817, making it Canada’s very first bank BMO Financial Group is comprised of three separate operating groups: Personal and Commercial Banking, Investment Banking Group and Private Client Group (under which BMO Investments Inc. operates).
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  • Spring '08
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  • ........., BMO, BMO U.S. Equity Class BMO U.S. Equity Index BMO U.S. Growth BMO U.S. Special Equity BMO World Bond Science and Technology Asia ex-Japan Equity Canadian Income Trusts International Equity International Equity Japanese Equity Canadian Money Market Canadian

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