What's the strategy?
2045 Profile (PSG) is a target date fund of funds and part of the Cadence and Lifecycle series. It holds 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 significant growth potential with an effective income counterbalance. The strategy has a highly diversified equity allocation, with a preference for growth stocks and some small and mid cap exposure. The fixed income allocation includes government and credit bonds, mortgages, and foreign debt.
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 2045.
The strategy provides diversification through exposure to multiple asset classes in domestic and foreign markets and multiple active managers.
Investors benefit from tactical asset allocation decisions by the portfolio manager, including changes to the fixed income/equity allocation as well as the domestic/foreign allocation of the funds. The portfolio manager may make changes to the underlying fund mix in line with current forward-looking views on an ongoing 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 desired asset mix.