Capital preservation coupled with a stable income stream will appeal to investors of the Foundation Conservative Fund. Moderate growth is also expected to be a hallmark of this fund, whose objective is to outperform it's benchmark with higher return and lower asset value fluctuations. In this instance, the benchmark to beat is a simple balance of 40% TSX composite and 60% DEX Bond universe. Performance comparisons below illustrate that this well balanced selection of ETFs have outperformed the benchmark over the last five years.

Fueled by a basket of ETFs heavily weighted towards fixed income ETFs, and tempered by exposure to both Canadian and Global equities, the Conservative Fund is expected to produce steady income with a modest amount of equity growth.

In order to achieve this goal, the manager will implement a quantitative risk and return methodology to determine tactical asset allocation, ensuring that the portfolio always holds the most attractive mix of yield producing vehicles that are aligned with a low to medium risk profile.

Moderate allocations to industry or sector specific themes will compliment the overall strategy and provide the flexibility to ensure optimal performance and drive risk-adjusted returns. Themes could be represented by topical ETFs or even individual stocks if they present extraordinarily compelling characteristics, combining what Foundation Funds believes is the best of both worlds: asset allocation and opportunistic sector exposure.

As its name implies, the fund is expected to experience lower to moderate value fluctuations, making it suitable for clients seeking modest capital appreciation combined with a higher amount of income.