The Balanced Approach Portfolio combines the Advanced Growth equity strategy with the Smart Income strategy. The stocks are selected through a screening process to find businesses trading at a reasonable price, that offer generous, sustainable dividends and earnings growth to keep up with inflation over the long-run. Investment grade, fixed income securities include bonds, convertable debentures and preferred shares to deliver high cash-flow, with investment in high yield securities limited to 20% of the total portfolio market value. The portfolio may hold Exchange Traded Funds (ETFs) and equities are constrained to Canadian companies with a market capitalization in excess of $500 million and U.S. companies in excess of $1 billion. Alternative strategies, used for diversification from time to time, are limited to 10% of the portfolio.
This portfolio seeks to provide income and to grow capital in excess of inflation and the benchmark on a risk-adjusted basis, net of fees, over a rolling three-year period. Securities are held individually in each client’s account and trades are executed simultaneously for all clients. For a detailed Investment Policy Statement (IPS), please contact our office.
Emerging Markets Equities0-5%0%MSCI Emerging Markets (including foreign currency changes)
|Canadian/U.S. Cash||0-20%||5%||DEX 91-Day T-Bill Index|
|Canadian/U.S./Global Bonds||25-60%||35%||FTSE TMX Canada Bond Index|
|Canadian Equities||15-50%||35%||S&P/TSX Canadian Stock Market Index|
|U.S. Equities||10-40%||25%||S&P500 U.S. Stock Market Index (including U.S. Dollar changes)|
|International Equities||0-25%||0%||MSCI EAFE (including foreign currency changes)|
Medium. This strategy is ideal for investors seeking income and moderate capital appreciation to outpace inflation over the long-run, and reduce volatility by reinvesting income and tactically re-balancing growth investments.
Medium-term (3-5 years). This portfolio will fluctuate moderately through economic cycles however, the income expected is typically stable.
|1 Mo||3 Mo||6 Mo||YTD||1 Yr||2 Yr||3 Yr||Since Inception*|
*Inception: May 1, 2014
Effective: July 31, 2018
There are no initial fees or commissions to invest in this portfolio, nor are there any back-end commissions to exit the portfolio. It is based on a pay-as-you-go philosophy. Fees may also be tax deductible, and are based on total family assets under management as follows:
|$250,000 – $500,000||1.75%|
|$500,000 – $1,000,000||1.50%|
|$1,000,000 – $2,000,000||1.25%|
|$2,000,000 – $3,000,000||1.00%|
Performance results set out in this document are based on a composite of CIBC Wood Gundy Advisor Managed Accounts (“AMA”) with more than $100,000 invested in a specified investment strategy managed by the AMA Portfolio Manager. Composite inception date is based after the second month the first AMA account opened in the strategy. The subsequent AMA accounts in the strategy are included after the second month following their inception. Also included in the composite are closed AMA accounts that held the strategy up to the last full month the Strategy was held. Composite performance returns are geometrically linked and calculated by weight each AMA account’s monthly performance, including changes in securities’ values, and accrued income (i.e. dividends and interest), against its market value at the beginning of each month, as represented by the market value at the opening of the first business day of each month. Performance returns are expressed in the stated strategy’s base currency and are calculated gross of fees. Individual account performance results for clients of AMA invested in the Strategy may also materially differ from the performance results set out in this document, which are based on the Composite, due to the factors described above, and other factors such as an account’s size, the length of time the Strategy has been held, cash flows in and out of the individual AMA client account, trade execution timing, market conditions and movements, trading prices, foreign exchange rates, specific client constraints and constraints against purchasing securities of related and connected issuers to CIBC Wood Gundy. Past performance is not an indication of future returns.