What's the strategy?
2020 Continuum (PSG) is a target date fund of funds, holding underlying funds that invest in asset classes including Canadian and foreign fixed income, Canadian mortgages, Canadian real estate, and Canadian and foreign equity.
It is constructed to provide strong income, modest growth opportunity, and low volatility, as well as a consideration to inflation protection. The strategy has diversified allocations to both fixed income and equity. The fixed income component includes allocations to government and credit bonds, mortgages, and foreign debt. The equity component is relatively style neutral and has a preference for large cap stocks, although allocations also include some exposure to smaller cap stocks and income-oriented mandates.
The strategy uses a “to retirement” glide path. Each quarter until the retirement date, the fixed income allocation is increased and the equity allocation is decreased as the portfolio shifts along the glide path.
Why invest in this portfolio strategy?
Ideal for investors seeking a diversified portfolio with a targeted retirement date of 2020.
The strategy provides diversification through exposure to multiple asset classes in domestic and foreign markets and multiple active managers.
Investors benefit from active management by the portfolio manager, including changes to underlying fund weights, the removal of an existing underlying fund, or addition of a new underlying fund. The portfolio manager may make changes to the underlying fund mix in line with current forward looking views on a quarterly basis. In addition, investors benefit from the active management of the underlying fund managers. Investors further benefit from automatic rebalancing, ensuring the asset mix stays close to the mandated asset mix.