The Balanced Fund is invested primarily in Canadian stocks and bonds, foreign stocks and money market instruments. Asset mix will be based on forecasted risks and returns from the capital markets over future twelve month periods.
Maintaining a widely diversified portfolio and a long-term focus helps minimize the potential for negative surprises. Gradual adjustments are made to the asset mix in response to changing market conditions. The Fund's objective is to provide consistent above-average returns on an annual basis and to provide added value above the benchmark index for each asset class. Canadian stocks and bonds are the main holdings, and will thus have the largest impact on the Fund's return.
Our philosophy calls for the prudent management of risk. Proper diversification within each asset class and prudent asset mix management ensures that our clients' assets are not exposed to undue risk.
The Fund is suited for investors with a long-term outlook (minimum 5 to 10 years). It offers investors the ability to invest in the U.S. market. Historically, investors willing to accept the higher short-term risk in the stock market have been rewarded with higher long-term returns (compared to less risky investments).