Our balanced strategy leverages our firm-wide experience and disciplined, active investment processes, providing clients with well-diversified exposure to fixed income and a broad range of Canadian, U.S. and international equities.
Beutel Goodman has an asset mix committee that steers the balanced asset allocation process. The committee consists of the following members:
- Colin Ramkissoon, MBA, CFA, Vice President, U.S. and International Equities
- Pat Palozzi, CFA, Vice President, Canadian Equities
- David Gregoris, MBA, CFA, Managing Director, Fixed Income
- Glenn Fortin, CFA, Vice President, U.S. and International Equities
- Derek Brown, MBA, CFA, Senior Vice President, Fixed Income
- Jeffrey Young, MBA, CFA, Managing Director, Private Client Group
- Tim Hylton, CFA, Senior Vice President, Institutional Client Service
Asset mix decisions are a by-product of our fundamental bottom-up approach to equity valuation and fixed income outlook. When common stock prices are attractive and investment opportunities plentiful, the equity content of a balanced portfolio will approach the upper limit of Beutel Goodman's or the client's policy range. When common stock prices are expensive and individual holdings achieve their target prices, they are sold from the portfolio. If market conditions are such that attractive alternatives cannot be found, the invested portion in equities declines and allocations to fixed income increase.
Asset mix decisions for all balanced clients are driven by this process, although the resulting weights may vary within a segregated account based on a client’s policy ranges.
Inception date: January 1, 1985
Benchmark: 5% 91-Day T-Bill Index, 40% FTSE Canada Universe Bond Index, 30% S&P/TSX Composite Index, 12% S&P 500 Index and 13% MSCI EAFE Index
Lead Portfolio Manager(s): Colin Ramkissoon
Objective: The balanced strategy seeks to preserve capital and maximize portfolio returns through capital enhancement and investment income.
Composition: The strategy will invest in a variety of asset classes, including fixed-income securities, Canadian, U.S. and international equity securities, and cash and cash equivalents.
The fixed income component comprises a well-diversified portfolio of Canadian government and Canadian corporate bonds of various maturities. The bonds will usually have a credit rating of BBB or higher by a recognized rating agency. The average minimum quality of the fixed income portfolio will be A.
The equity component comprises high-conviction mid- to large-cap stocks listed in Canada, the U.S. and EAFE regions; geographic limits are typically in place to ensure appropriate diversification by country.
The cash and cash equivalent component may include a variety of instruments, such as Government of Canada treasury bills, short-term government and corporate bonds, commercial paper, chartered bank or trust company deposit receipts with a rating of A-1 or R-1 (low) depending on the rating agency, with a term to maturity of less than a year.