The Fund seeks to generate a consistent stream of income and capital appreciation by investing primarily in Canadian equity and fixed-income securities.
40% FTSE Canada Universe Bond Index
60% S&P/TSX Composite Index
Philosophy and process
High-conviction and value-based security selection through a bottom-up approach driven by fundamental analysis with a layer of quantitative valuation. The fundamental analysis process considers five key elements: sustainability of cash flows; profitability; valuation; catalyst for change; and risk analysis.
Macro analysis of systemic risks and opportunities. Portfolios are constantly monitored and refined in accordance with a 12-month strategic outlook on markets.
Portfolio risk is managed through broad diversification and currency management.
Up to 49% of the assets may be invested in foreign securities, allowing the Fund to expand its Canadian market sector exposure. Foreign currency exposure is 50-95% hedged.
The Fund has a maximum 70% allocation in either fixed income or equity.
Issuer exposure generally does not exceed 5%.
Why invest in these strategies?
Flexible income-focused balanced fund with ability to adjust asset allocation in accordance with market conditions.
Expertise in assessing relative value across a company’s capital structure.
Diversification through high-yield debt securities, which allows the Fund’s fixed-income allocation to keep a generally low-duration profile.
Rigorous and active investment process that focuses on income safety and a macro outlook.