Interview with BMO Asset Management
Geoff Waters is Vice President at BMO Asset Management Inc., a Canadian investment counselor responsible for $34 billion in assets. BMO Asset Management Inc. has been managing Educators Financial Group’s Growth Fund and Dividend Fund since 2004.
The BMO Asset Management team manages the two funds based on the investment guidelines established by Educators Financial Group’s Board of Directors. “With the Growth Fund, the investment style is called “GARP” or Growth At a Reasonable Price,” explains Geoff. “That means investment in equities where we consider growth in earnings, cash flow and revenue among other measures relative to the value or market price of the stock. For the Dividend Fund, BMO Asset Management looks for dividend-paying companies with the ability to make their dividends grow over the next 1-3 years.” He adds that, historically, dividend growth has exceeded the rate of inflation over most time periods.
Investment professionals often employ “top-down” or “bottom-up” investment styles. BMO Asset Management uses more of a bottom-up approach. “We look at the merits of each individual security by checking financial reports and other investment information to determine the growth potential and value of each security,” says Geoff. “But we do use the top-down style to some extent to scan macro-economic factors such as GDP growth, inflation and consumer spending to see which sectors may or may not benefit from these conditions.”
As for Educators Financial Group’s education market, Geoff summarizes: “We’re keenly aware that our investors are members of the Teachers Pension Plan. Using our proven investment strategies and following the guidelines established by Educators Financial Group’s Board, our goal is to supplement that pension by delivering stable returns over time from high quality, diversified mutual fund portfolios.”
