A blended balanced fund that emphasizes long-term growth while also providing income.
Is this fund right for you?
- You’re looking to preserve your investment while still allowing it to grow.
- You want to invest in foreign equity securities and foreign fixed-income securities.
- You're comfortable with a low to moderate level of risk.
Risk Rating
How is the fund invested?
(as of December 31, 2024)
Asset allocation (%)
|
Name |
Percent |
|
US Equity |
52.3 |
|
International Equity |
20.9 |
|
Foreign Bonds |
17.4 |
|
Domestic Bonds |
3.9 |
|
Canadian Equity |
3.0 |
|
Cash and Equivalents |
2.1 |
|
Other |
0.4 |
Geographic allocation (%)
|
Name |
Percent |
|
United States |
64.5 |
|
Canada |
8.5 |
|
United Kingdom |
7.5 |
|
Germany |
4.6 |
|
France |
2.4 |
|
Ireland |
2.4 |
|
Switzerland |
2.3 |
|
Netherlands |
1.3 |
|
Spain |
1.2 |
|
Other |
5.3 |
Sector allocation (%)
|
Name |
Percent |
|
Fixed Income |
21.3 |
|
Technology |
21.3 |
|
Financial Services |
13.9 |
|
Healthcare |
9.9 |
|
Consumer Services |
9.3 |
|
Consumer Goods |
6.8 |
|
Industrial Goods |
6.8 |
|
Industrial Services |
6.7 |
|
Cash and Cash Equivalent |
2.1 |
|
Other |
1.9 |
Growth of $10,000
(since inception)
Data not available based on date of inception
Fund details
(as of December 31, 2024)
| Top holdings |
% |
| Alphabet Inc Cl A |
3.7 |
| Berkshire Hathaway Inc Cl B |
3.2 |
| Brookfield Corp Cl A |
2.9 |
| Amazon.com Inc |
2.9 |
| Microsoft Corp |
2.9 |
| Apple Inc |
2.7 |
| Texas Instruments Inc |
2.5 |
| Amphenol Corp Cl A |
2.5 |
| Automatic Data Processing Inc |
2.5 |
| Accenture PLC Cl A |
2.4 |
| Total allocation in top holdings |
28.2 |
| Portfolio characteristics |
|
| Standard deviation |
9.4% |
| Dividend yield |
1.5% |
| Yield to maturity |
5.1% |
| Duration (years) |
7.3 |
| Coupon |
4.1% |
| Average credit rating |
A+ |
Understanding returns
Annual compound returns (%)
| 1 MO |
3 MO |
YTD |
1 YR |
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| 3 YR |
5 YR |
10 YR |
INCEPTION |
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Calendar year returns (%)
|
2024 |
2023 |
2022 |
2021 |
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|
2020 |
2019 |
2018 |
2017 |
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Range of returns over five years
(August 1, 2018 - February 28, 2025)
| Best return |
Best period end date |
Worst return |
Worst period end date |
|
9.2% |
Feb. 2025 |
3.6% |
Sept. 2023 |
| Average return |
% of periods with positive returns |
Number of positive periods |
Number of negative periods |
|
6.1% |
100.0% |
20 |
0 |
Q4 2024 Fund Commentary
Market commentary
During the quarter, economic activity continued to moderate yet inflation persisted. Global equity markets rose, led by the U.S.
The uncertain impact of economic policies from the new U.S. administration led to higher long-term bond yields globally. The U.S. dollar strengthened against most global currencies.
Most central banks continued to reduce interest rates. By the end of the quarter, however, markets were expecting a much slower pace of rate reductions than previously anticipated.
Performance
The Fund’s relative exposure to Alphabet Inc. and Brookfield Corp. had a positive impact on performance. Lack of exposure to Tesla Inc. had a negative impact on performance.
Alphabet Inc. benefited from market enthusiasm for mega-capitalization U.S. stocks, new artificial intelligence models and the expansion of its autonomous driving subsidiary, Waymo. The sub-advisor believes Alphabet Inc. is appropriately allocating capital to areas with long-term potential.
Brookfield Corp.’s share price rose because of good business performance and improved sentiment towards alternative asset managers. Extra share price support was provided by related business, Brookfield Asset Management Ltd., which continued to simplify its corporate structure. Brookfield Asset Management Ltd. is also working to move its head office to New York as it seeks inclusion in the S&P 500 Index.
Shares of Tesla Inc. returned more than 60% in Canadian dollar terms, accounting for 10% of the benchmark return.
At the sector level, stock selection in industrials and underweight exposure to the materials sector had a positive impact on performance. Stock selection in information technology and consumer discretionary had a negative impact.
Regionally, stock selection in Canada had the most positive impact on performance. Stock selection in the U.S. was negative for performance.
During the quarter, the sub-advisor added Amazon.com Inc. and Apple Inc. to the Fund.
Amazon.com Inc. was added based on its leading positions in cloud infrastructure and e-commerce. The sub-advisor believes the company’s culture of innovation and efficiency could create above-average growth opportunities. Apple Inc. was added because of its strong brand, loyal customer base and potential for sustainable sales growth through new services, devices and accessories. The company also has a strong balance sheet.
The sub-advisor increased exposure to Amphenol Corp. and Texas Instruments Inc. Amphenol Corp. holds a competitive position in the growing data centre market, and has a strong decentralized business model. Texas Instruments Inc. was increased during a rebalancing of the Fund’s portfolio.
The sub-advisor sold Seven & I Holdings Co. Ltd. and Heineken NV. Following a takeover offer, Seven & I Holdings Co. Ltd.’s share price rose to a level that made its risk-reward profile unattractive, in the sub-advisor’s view. The sub-advisor believes Heineken NV’s quality has deteriorated. Progress by management to improve the company’s culture and inject more capital and operational discipline has been slower than expected.
The sub-advisor decreased exposure to Industria de Diseno Textil SA and Admiral Group PLC. Diseno Textil SA’s stock price rose, and the sub-advisor’s return expectations fell given the higher valuation. Admiral Group PLC faced a volatile cycle in the U.K. automobile insurance market.
Outlook
Following two years of strong gains in global markets, mostly concentrated in the U.S., stock valuations were elevated at the end of the quarter. Still, some gains haven’t been evenly distributed, and some areas of the market were in line with or better than previous valuations. The equity portion of the Fund is relatively defensively positioned, which reflects the more attractive valuations the sub-advisor has found in more defensive market areas. (Defensive stocks are generally less sensitive to changes in the economy.)
The new U.S. administration’s potential 25% tariffs pose significant risks for Canada, in the sub-advisor’s view, and could be inflationary. The sub-advisor believes uncertainty around long-term rates, with 30-year Canadian yields significantly lower than U.S. yields, could make Canadian bonds less attractive to investors.
U.S.–Canadian trade tensions could also affect Canadian corporate bond spreads (the difference in yield between corporate and government bonds). Until more clarity emerges, the sub-advisor remains focused on improving credit quality and liquidity rather than increasing exposure to corporate bonds.
The Fund’s most overweight durations (higher sensitivity to interest rates) are outside of the eurozone and the U.S. The sub-advisor favours New Zealand bonds for their compelling real yields. The sub-advisor also finds Canadian bonds attractive as a weakening economy could justify lower interest rates.