Replay Market Monitor – Evaluating Opportunities and Risks
PW: BMOGAM (all caps)
Today’s market has eclipsed both the Global Financial Crisis and Tech Bubble in terms of the underperformance of value investing - this call is an opportunity to hear directly from the investment team how BMO interprets these events and reacts to them via proprietary tools and processes.
Led by Chris Jenks (Client Portfolio Manager, Disciplined Equities) and David Corris (Head of Disciplined Equities, Portfolio Manager), we’ll discuss:
• The current state of markets viewed through BMO’s in-house developed Market Monitor tool
• Our analysis of market dislocations, risks, and alpha generation opportunities
• Thoughts on how investors might think about factor allocations in today’s market and how our client portfolios reflect that positioning
Listen/watch replay here
All investments involve risk, including the possible loss of principal. Past performance is not a guarantee of future results.
This recording is for general information purposes only; we will not update this recording or advise you if there is any change to this information. The information is based on sources believed to be reliable; however we do not represent or warrant that the information is accurate or complete. This presentation contains targeted returns and forward-looking statements. Investors are cautioned not to place undue reliance on such returns and statements, as actual returns and results could differ materially due to various risks and uncertainties. This material does not constitute investment advice. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may listen to this recording. Investors should seek advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended and should understand that statements regarding future prospects may not be realized. Market conditions and trends will fluctuate. Keep in mind that as interest rates rise, bond prices fall. This may have an adverse effect on a fixed income portfolio. Interest income from tax-fee municipal investments may still be subject to the federal alternative minimum tax, and state or local taxes. Investments cannot be made in an index.
The Russell 1000® Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and includes approximately 1,000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000® represents approximately 92% of the Russell 3000® Index.
The Russell 1000® Growth Index measures the performance of those Russell 1000® companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000® Index measures the performance of the 1,000 largest companies in the Russell 3000® Index, which represents approximately 92% of the total market capitalization of the Russell 3000® Index.
The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000® Index, which represents approximately 8% of the total market capitalization of the Russell 3000® Index. Investments cannot be made in an index.
The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. As of June 2007 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. The Gross Dividend series approximates the maximum possible dividend reinvestment. The amount reinvested is the entire dividend distributed to individuals resident in the country of the company, but does not include tax credits. Investments cannot be made in an index.
The MSCI Canada Investable Market Index (IMI) is designed to measure the performance of the large, mid and small cap. segments of the Canada market. With 299 constituents, the index covers approximately 99% of the free float-adjusted market capitalization in Canada.
The MSCI Canada Index is designed to measure the performance of the large and mid-cap segments of the Canada market. With 89 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in Canada
J.P. Morgan Global Trade & COVID-19 Sensitive Underperformers Index (JPAMCVSU) is comprised of stocks that are at risk of further COVID-19 outbreak. Based on textual analysis, these stocks had higher discussions around the virus in their corporate call transcripts and underperformed their sectors in the recent COVID-19–related sell-off. Stocks with high idiosyncratic performance were excluded.
J.P. Morgan Global Trade & COVID-19 Sensitive Outperformers Index (JPAMCVSO) is comprised of stocks that are key beneficiaries in the event of further outbreak. The stocks had higher discussions around the virus in their corporate call transcripts and are the outperformers in the recent COVID-19–related sell-off. We further excluded the stocks with high idiosyncratic performance.
BMO Asset Management Corp., a registered investment adviser, is a wholly owned subsidiary of BMO Financial Corp., a wholly owned subsidiary of Bank of Montreal (BMO). This is not intended to serve as a complete analysis of every material fact regarding any company, industry or security. The opinions expressed here reflect our judgment at this date and are subject to change. Information has been obtained from sources we consider to be reliable, but we cannot guarantee the accuracy. This publication is prepared for general information only. This material does not constitute investment advice and is not intended as an endorsement of any specific investment. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investment involves risk. Market conditions and trends will fluctuate. The value of an investment as well as income associated with investments may rise or fall. Accordingly, investors may receive back less than originally invested. Investments cannot be made in an index. Past performance is not necessarily a guide to future performance.
BMO Global Asset Management comprises BMO Asset Management U.S., BMO Asset Management (Canada)®, and BMO’s specialized investment boutiques: Pyrford International Ltd., LGM Investments Ltd., and Taplin, Canida & Habacht, LLC. BMO Asset Management U.S. consists of BMO Asset Management Corp., BMO Asset Management Canada includes BMO Asset Management Inc. and LGM Investments Ltd. consists of the subsidiaries of LGM (Bermuda) Ltd. BMO Global Asset Management is part of the BMO Financial Group, a service mark of Bank of Montreal (BMO). M&I Investment Management Corp. merged into BMO Asset Management Corp. (formerly Harris Investment Management Inc.) on June 1, 2012. Certain companies within BMO Global Asset Management offer a number of products and services designed specifically for various categories of investors in a number of different countries and regions. These products or services are only offered to such investors in those countries and regions in accordance with applicable laws and regulations.
All investments involve risk, including the possible loss of principal.
Investment products are: NOT FDIC INSURED — NOT A DEPOSIT — NOT BANK GUARANTEED — MAY LOSE VALUE.