The primary objective of the strategy is to provide a conservative balanced portfolio that emphasizes income generation, with some level of growth of capital, through diversified investments in Canadian and foreign equity or equity-related securities and in fixed-income securities, either long-term or short-term.
The strategy invests in securities of other investment funds managed by Guardian and GuardCap, and may also invest in other securities, including exchange traded funds, to achieve its objectives. We use strategic and tactical asset allocation to create a portfolio diversified by investment style, asset class and geographic region, with an emphasis on income generation. The portfolio generally includes exposure to Canadian equities, global equities, investment-grade fixed-income securities and high yield bonds. Currently, the strategy’s long-term asset mix policy is 60% bonds and 40% equities, with cash reserves incorporated in these two asset classes. If the asset mix between equities and bonds varies by more than 15% from the long-term mix, the strategy is normally rebalanced.