make portfolios better

Traditional portfolio diversification has failed Canadians as conventional investment sectors, asset classes and industries have become more closely connected. The historic benefits of funds invested in different jurisdictions have diminished due to the globalization of stock markets and industries.

As you look for more effective ways to manage volatility, consider strategies that a) better fit the new global reality, and b) offer features to help improve your overall portfolio mix.

Real Assets

Real assets such as commodities and infrastructure connect your portfolio to rising global demands as the world's population increases, grows wealthier and urbanizes. With the added benefit of an important natural hedge against inflation, these assets demand a meaningful allocation in your portfolio.

Real Assets: Portfolio benefits

• Natural inflation hedge
• Low correlation with general equities and bonds
• Equity-like growth
• Steady cashflows

The uncertainty and volatility associated with multiple currencies adds significant risk to global assets within your portfolio. Currency fluctuations can take a bite out of global investment returns when the time comes to transfer your savings back to C$. Canadians should consider hedging half of their global assets to reduce currency risk.

50% Currency-Hedged Global Assets: Portfolio benefits

• Reduced portfolio risk
• A smoother investment ride
• Avoid currency timing
• Receive pure return of underlying assets