The Global Conservative Balanced Mandate is designed for clients with a lower level of risk tolerance than typical Balanced Mandates. Accordingly, it is skewed more towards capital preservation than long-term growth and in turn allocates a larger portion of capital to fixed income securities.
Objectives:
- Return: capital preservation is prioritized over long-term growth
- Risk: below average to average
General asset class guidelines:
- Bonds (federal, provincial, & corporate): BBB or better.
- Preferred Shares: P3 or better.
- Equities: 5% maximum allocation per position with the exception of Exchange Traded Funds (ETFs) or Unit Trusts.
Target Asset Allocation:
- 25% - 44% allocation to equities.
- 46% - 65% allocation to fixed income securities.
- 10% allocation to cash & cash equivalents.
Geographic Allocation:
- Maximum flexibility between domestic and international securities
- Maximum variations across Family Groups with a +/- 10% range.
Benchmark:
- 10% PC-Bond 91-Day T-Bill Total Return Index / 55.5% DEX Universe Bond Index / 17.25% S&P TSX Total Return Index / 17.25% MSCI World Index Total Return (C$).
