BMO GAM set to close absolute return fund as assets plummet

‘No longer commercially viable’

clock • 1 min read

BMO Global Asset Management (BMO GAM) has confirmed it is closing the BMO Global Equity Market Neutral fund following redemptions after a period of underperformance.

In a statement, BMO GAM said: "We have been in active communication with investors in the fund following the recent redemptions we have seen. "While the fund remains able to meet its liquidity obligations, we believe it is no longer commercially viable and, acting in the best interest of investors, are in the process of preparing an application to the Financial Conduct Authority to close the fund." In February, Investment Week reported that funds in the UT Targeted Absolute Return sector had shed £14.7bn in assets under management over the 12 months to 28 January 2020. Targeted AR ...

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