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More income with less volatility:

More income with less volatility:

BMO GAM Covered Call Mutual Funds and ETFs

  • Exposure to high dividend equities, biased toward quality
  • Writing call option contracts enhances cash flow with the call option premium
  • As markets fluctuate, covered call strategies tend to provide the exposure of the underlying stocks, with less volatility due to the premium
  • Additional income generated by covered call strategies is generally treated as capital gains, reducing the overall tax impact
  • Enhanced level of yield
  • Tax-efficiency
  • Lower volatility
  • Lower cost
  • Growth potential
  • Versatility of Mutual Fund and ETF options



The challenge: meeting your clients’ income needs

The challenge: meeting your clients’ income needs

Source: Bloomberg. Data are through November 30th , 2018

Search for yield has become increasingly difficult

Despite recent tightening, yields remain very low relative to historical norms. Aging clients – retirees and pre-retirees – require higher yields and sustainable monthly income.



Having a dividend matters

Historically, dividend growers tend to outperform over time, with lower levels of volatility. Investments with higher yield and lower volatility can help to meet your clients’ income needs, while offering a smoother investment experience.

Source: BMO Investment Strategy Group, unweighted. As at July 31st, 2018 (Analysis begins in January 1990.)



Source: BMO Global Asset Management. Distribution yield of F Series funds and indices as of Novemeber 1st, 2018

Yield: We offer more than the index

BMO GAM’s four covered call strategies provide exposure to dividend yielding companies in Canada, U.S. and Europe, with lower volatility and higher income.




Learn about more options for enhanced income

Learn about more options for enhanced income




Resources for you and your business

Resources for you and your business

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Commissions, trailing commissions (if applicable), management fees and expenses all may be associated with mutual fund investments. Please read the ETF facts, fund facts or prospectus of the relevant mutual fund before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

For a summary of the risks of an investment in the BMO Mutual Funds, please see the specific risks set out in the prospectus. ETF Series of the BMO Mutual Funds trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase the risk of loss. Distributions are not guaranteed and are subject to change and/or elimination.

The BMO ETFs or securities referred to herein are not sponsored, endorsed or promoted by MSCI Inc. (“MSCI”), and MSCI bears no liability with respect to any such BMO ETFs or securities or any index on which such BMO ETFs or securities are based. The prospectus of the BMO ETFs contains a more detailed description of the limited relationship MSCI has with BMO Asset Management Inc. and any related BMO ETFs.

BMO Global Asset Management is a brand name that comprises BMO Asset Management Inc., BMO Investments Inc., BMO Asset Management U.S. and BMO’s specialized investment management firms.

BMO ETFs are managed and administered by BMO Asset Management Inc., an investment fund manager and portfolio manager and separate legal entity from the Bank of Montreal. BMO Mutual Funds refers to certain mutual funds and/or series of mutual funds offered by BMO Investments Inc., a financial services firm and separate legal entity from Bank of Montreal.

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