BMO Monthly Income Fund How to buy
Fund Profile

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Fund Facts
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Who Should Buy This Fund?

Consider this fund if:
  • you want regular monthly cash flow with the potential for capital gains
  • you're comfortable with low to medium investment risk
  • you plan to hold this investment for the medium to long term.

Investment Objectives and Strategies

This fund's objective is to provide a fixed monthly distribution while preserving the value of your investment. The fund invests primarily in Canadian fixed-income securities with higher-than-average yields, issued by the federal government, provincial governments, government agencies and corporations, as well as preferred and common shares, real estate investment trusts (REITs), royalty trusts and other high-yielding investments.

For fixed-income investments, a disciplined investment approach is used based on the portfolio manager's interest rate outlook. Overall maturity structure and sector positioning of the fund's portfolio are based on anticipated changes in the direction of interest rates, while the selection of individual securities is determined by fundamental analysis and relative valuations.

For the equity portion of the portfolio, the portfolio manager applies a bottom-up fundamental investment process to identify attractively priced securities. This process includes analyzing financial statements, company management and valuations, with an emphasis on companies that generate stable and predictable cash flows.