Employers & Employees

Portfolio Funds (Asset Allocation Funds)

Get access to a balanced mix of as many as 16 different professionally-managed funds, but get all of that on one statement showing clear and simple returns on investment? Portfolio funds do just that.

Traditionally, an investment Advisor might make some investment choices for you based on your own level of risk tolerance -- how focused you were on growth rather than protection. They'd then try to manually create, for example, a Balanced plan based on that advice. That would be a mix of different investment choices built to get you some growth with only a mid-level of risk.

For example, for a Balanced risk tolerance, that Advisor might suggest you invest in:

• 40% Fixed Income (to protect some of your capital)
• 30% Canadian Equity (for a mix of growth and protection)
• 30% Foreign Equity (primarily growth focused but more risky)
• Portfolio funds follow that line of thinking but do it automatically. So for example, the Balanced Portfolio would have the same mix of investment streams (40/30/30). But within each of those is incredible diversity.

Within the Balanced Portfolio are 16 different funds, chosen with the same investment profile as that above mix. So, for example, 6 different funds that fall into the "Fixed Income" category. Unlike a Balanced Fund, which holds individual investments, the Balanced Portfolio actually invests in funds, that then hold those investments -- so just one of those funds might have four different investments inside it.

What does this mean to you? It means an incredible amount of diversity -- so that even in one fund ends up under-performing only a small part of your investment is tied into it. This is a great opportunity to participate in the growth of the market without having everything tied up in one investment. But for you as an investor, all of this happens in the background. It's professionally managed, and you only have to consider the net result.

How to get started?

A great place to start with Portfolio Funds is to go through the Investment Profile on our information site, Smart Path and then contact us to set up a fund based on your results!