BMO Universal MAP Balanced swaps fixed income for cash

Universal MAP range exceeds £1bn in AuM

Disappointing returns from fixed income have prompted the £355.7m BMO Universal MAP Balanced fund to move into cash for capital preservation and reduce duration by selling out of inflation-linked bonds entirely.

Keith Balmer, director and product specialist, multi-asset at BMO GAM, said that government bonds face particular pressure, given their link to interest rates, but that across the Universal MAP range there still needs to be a "reasonable allocation" to fixed income. The Universal MAP range, which launched in November 2017, recently exceeded £1bn in assets under management. The Balanced fund sits in the middle of the range, so "anything we do on Balanced we effectively do to a greater or lesser degree on the rest of the range", Balmer added. Given the manager's view on bonds, there is ...