What’s the strategy?
The Income Balanced (GLC) portfolio strategy is a pure Canadian investment approach of high-quality securities, both fixed income and equity. The fixed income component enhances yield through exposure to investment-grade corporate credit while the equity component provides the opportunity for capital appreciation as well as the benefits of compounding dividend income over time.
The Global Multi-Asset Strategy team leverages the broad skill set of a multi-disciplinary team to make tactical and strategic moves within asset classes and regional exposures of the portfolio. The portfolio managers identify current risks and opportunities within each asset class, as well as macro trends in economic and market cycles to guide the longer term asset mix positioning.
The overall asset mix is actively managed as are the underlying securities. The long-term target exposure is 30% dividend-paying equities and 70% bonds and short-term investments, with maximum equity exposure of 40%.
Why invest in this portfolio strategy?
Portico’s income strategy offers a pure Canadian investment approach of high-quality securities, both fixed income and equity. The fixed income component enhances yield through exposure to investment-grade corporate credit while the equity component provides the opportunity for capital appreciation as well as the benefits of compounding dividend income over time.
The income-oriented composition and active security selection for each of the portfolio’s asset class components means this Income Balanced (GLC) portfolio can offer:
- The potential to add value through various market conditions and reduce volatility during times of market turbulence.
- A track record of historically lower volatility versus the benchmark and a tendency to outperform in down equity markets.
- Investment-grade fixed income holdings and high-quality dividend-paying equity holdings.
It is a low risk Canadian balanced strategy that is focused on income generation. This portfolio is designed to provide long-term investors with capital appreciation, dividend and interest income opportunities.
Data for institutional investors
Benchmark sources: Copyright®, FTSE is a trade mark of FTSE International Ltd and is used under license. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); and TSX® is a registered trademark of TSX. Copyright®, MSCI Inc.
Portfolio attributes and rates of return reflect the portfolio strategy used by the London Life segregated fund shelf.
Past performance is no guarantee of future results.
There is no guarantee that investment objectives, or risk or return targets discussed in this material will be achieved. No part of this material may be reproduced or redistributed in any form without express written permission of GLC Asset Management Group Ltd. The data provided is for information purposes only. This material is not intended to be read in isolation and may not provide a full explanation of all the topics that are presented and discussed. Information contained in this material has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. Furthermore, there can be no assurance that any trends described in this material will continue or that forecasts will occur; economic and market conditions change frequently. This material should not be considered a recommendation or offer to purchase or sell any particular investment.
Composite benchmark is 70% FTSE Universe, 30% S&P/TSX Composite (effective November 10, 2016). Previously the composite benchmark was 75% FTSE Universe, 25% S&P/TSX Composite.