Automatic Rebalancing Service
Simplify the process of creating and rebalancing customized client portfolios—at no additional cost to holders of BMO Mutual Funds.
For advisor use only
Many people know that diversification is a key component of risk management. When a particular asset class outperforms, that can be cause for celebration—but it may also throw off a portfolio’s intended asset allocation.
BMO GAM’s Automatic Rebalancing Service makes rebalancing a snap, helping Advisors to crystallize gains while adjusting the portfolios’ weightings to meet their original goals. For income-oriented clients, portfolio rebalancing may also limit sequence of return risk.
The Automatic Rebalancing Service can be accessed through iFast Web PLUS. See our for simple, step-by-step instructions. Alternately, the service can be accessed by filling out the PDF form below.
For more information contact your BMO Global Asset Management wholesaler.
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Resources and documents
Automatic rebalancing service FAQs
The service is available through iFast Web PLUS. Alternately, a PDF form can be found here. If you are not currently a user of Web PLUS, you can sign up here.
The rebalancing service is available for all nominee accounts, and all client name accounts except for RESP and RDSP.
The rebalancing service can be set up on both Nominee Name and Client Name Accounts.
Via Web PLUS:
BMO does not require any signatures to action the request. Advisors may still require client signatures/authorization to be kept on file to satisfy dealer compliance criteria (i.e., Letter of Direction, Limited Trading Authorization, etc.).
Via Form:
The client and their Advisor must sign for Client Name Accounts. Nominee accounts must be authorized by the dealer’s head office to be accepted.
Only BMO Investments Inc. (BMOII) Mutual Funds that are available for purchase can be held as a part of the rebalancing service.
The frequency options are monthly, quarterly (March, June, September, December), semi-annually (June & December) or annually (December) and will occur on the 15th of the month. If the 15th is not a business day, the rebalancing will occur on the next business day
No, only BMO Mutual Funds are available.
No, only BMO Mutual Funds are available.
While both CAD and USD denominated funds can be held as a part of the service, it is only available in one fund currency per account (i.e., the fund within the portfolio must be all CAD or all USD).
Yes, standalone funds can be held within the same account which will not be rebalanced if not requested.
- Fax: 1-800-200-2497
- Mail: Attn BMO Investments Inc 30 Adelaide St E, Suite 1. Toronto ON M5C 3G9
- Email (if signed up for TLS): [email protected]
Currently the only options to submit the PDF form are listed in Question 9. However, the automatic rebalancing service can also be accessed through iFast Web PLUS.
The rebalancing trades are systematic trades processed by BMOII (The Fund Company) and will appear as Management Company initiated switches.
BMOII does not charge any fees* for the service.
*Dealers may have fees associated with these transactions; Advisors should confirm this with their clients if there are any Dealer related fees that are applicable.
Rebalancing will still take place on zero balance funds so long as assets are held in other funds that are part of the portfolio.
No redemptions and purchases are processed based on how the transaction is entered/received by BMOII. There is no rebalancing completed as part of the transaction.
Yes, instructions would need to be sent manually to BMOII requesting a one time rebalance of the portfolio.
No, automatic rebalancing will only occur on the scheduled frequency that was set up. To maintain the portfolio mix it is recommended that purchases and redemptions across funds based on the portfolio mix.
No, the entire balance of funds included in the portfolio will be taken into account when rebalancing.
No, the service is only available at an individual account level and cannot rebalance across multiple accounts. If rebalancing is required across multiple accounts, a separate Web PLUS submission or form will be required for each.
Yes, dispositions could be triggered if rebalancing across different funds in non-registered accounts, which could result in capital gains/losses.
Changes to existing rebalancing setups and terminations of the service can be completed using the form, or via Web PLUS.
Disclaimers:
Commissions, trailing commissions (if applicable), management fees and expenses all may be associated with mutual fund investments. Please read the 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. Distributions are not guaranteed and are subject to change and/or elimination.
For a summary of the risks of an investment in BMO Mutual Funds, please see the specific risks set out in the prospectus.
BMO Mutual Funds are managed by BMO Investments Inc., which is an investment fund manager and a separate legal entity from Bank of Montreal.
“BMO (M-bar roundel symbol)” is a registered trademark of Bank of Montreal, used under licence.
For a summary of the risks of an investment in the BMO ETFs, please see the specific risks set out in the BMO ETF’s prospectus. BMO ETFs 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.