While geopolitical concerns between Russia and the Ukraine have dominated headlines, the main headwind for assets has been inflation and central bank efforts to tame its effects through the unwinding of many COVID-19-response policies.
CFA, CMT, DMS, Director, BMO ETFs
Portfolio Manager & Investment Strategist BMO Asset Managment Inc.
Alfred is a portfolio manager and investment strategist at BMO ETFs, where he currently heads up the index equity team. His team currently manages some of the largest ETFs in Canada. In addition to his portfolio manager duties, Alfred also serves as the investment strategist for the team, putting together trade ideas and model portfolios for institutional and retail clients. Prior to moving to equities, Alfred was a lead portfolio manager on the entire fixed income BMO ETF line up and also spent a year seconded to the Bank of Canada, managing their Provincial Bond Purchase Program (PBPP), one of the central bank’s emergency asset purchase programs in 2020. Prior to joining BMO, Alfred worked at two other Canadian banks as a research analyst, focusing on macro-economics and ETFs and also worked in an institutional consultant practice of a major bank.
Current Trade Ideas
It’s becoming apparent that maintaining a green agenda and keeping the price of fossil fuels low is impossible with the current infrastructure. Although the controversial Keystone XL pipeline, is unlikely to be resurrected, Canadian energy companies are currently in discussions with the government to explore ways of increasing utilization of existing pipelines and exporting oil through railway.
This week, the Fed raised its key interest rate by another 75 basis points in an effort to tame inflation. As we teeter between a soft and hard landing, could this aggressive move tip the scales? In today’s episode, portfolio managers Alfred Lee, Matt Montemurro, and your host, Mark Raes, discuss how the market seems to be striking off bad news. They also look at mid-year tax-loss selling, a big week for Nasdaq companies, and a potential commodity supercycle.
After a volatile start to the year, headline risk stemming from the Russian invasion of Ukraine and COVID-19 takes a backseat to sticky inflation. As a result, investors are faced with a potential economic slowdown unlike any seen before. How should they prepare? In this episode, Alfred Lee and Erika Toth discuss the latest quarterly Portfolio Strategy and Fixed Income Strategy Reports, including current views on inflation’s trajectory, portfolio construction across various asset classes, real yields, structural supply issues, and strategies for protecting against falling equities.
Under the cloud of a potential recession, investors are looking for shorter-term solutions, such as money market ETFs, to weather the storm with rate protection. In today’s episode, portfolio managers Alfred Lee, Chris McHaney, and your host, Kevin Prins, discuss which direction the sideways market will go. They also look at income-oriented solutions, oil and gas markets, and Canadian housing.
With a possible recession on the horizon, investors are wondering if there are similarities between the current environment and economic downturns in 2008 and 2020. In today’s episode, portfolio managers Chris McHaney, Alfred Lee, and your host, Mark Raes, discuss what makes this situation different. They also look at the yield curve, mortgage-backed securities, dividend ETFs, and Canadian banks.
Given ongoing uncertainties around interest rates, inflation, and the Russia-Ukraine conflict, what approach should Advisors and investors be taking when it comes to portfolio construction? In this episode, Alfred Lee and Erika Toth discuss the latest quarterly Portfolio Strategy and Fixed Income Strategy Reports, including asset allocation considerations, the outlook for the Energy, Banks, and Real Estate Investment Trusts sectors, and fixed income positioning.
The new BMO Canadian Bank Income Index ETF (Ticker: ZBI) is an innovation in fixed income, but how does it fit into a portfolio? In this episode, Alfred Lee and Rob Butler dive deep into the benefits of fixed income ETFs, the process behind creating ZBI and the objectives in crafting its investment exposure, the three components that make up ZBI, and expectations for the future.
Performance and Strategy Updates
Fixed Income ETFs
This report highlights our fixed income positioning strategies for the third quarter beginning July 1, 2022 (calendar year)