Investors looking for growth through capital gains will want to take a close look at the Foundation Equity Fund. By investing in a variety of carefully selected, well-balanced ETFs comprised of mainly equity investments; this fund expects to provide measurably higher returns than its benchmark: a 50/50 balance of the TSX Composite and S&P 500. The performance comparables below illustrate the historic out performance of the selection of ETFs that make up the portfolio over the past five years.

Tactical asset allocation, determined by a quantitative risk and returns methodology implemented by the manager, will ensure that the portfolio always holds the most attractive geographical mix of equities and fixed income and ultimately result in optimal performance for the fund.

In this case, a hand-selected basket of ETFs with relatively equal exposure to both Canadian and global equities will make up the bulk of the portfolio. A relatively smaller portion of the fund may be directed towards fixed income and yield oriented investments to effectively manage and temper risk.

Combining asset allocation with opportunistic sector exposure is the hallmark of all of the Foundation Funds, including the Equity Fund. With a keen eye for thematic value-generating ideas, the manager will invest in topical ETFs or even individual stocks in specific industries, sectors and sub-sectors to generate even stronger returns and provide investors with additional upside potential.

Equity investors understand greater reward can sometimes go hand in hand with increased volatility and this portfolio is no exception; it is  expected to display fluctuations in asset value that are in-line with equity markets in general. As a result, the Foundation Equity Fund is suitable for investors who are seeking growth through capital appreciation and can tolerate greater volatility.