Employing the three Pluses – careful ETF selection, asset allocation and themed investments – the Foundation Tactical Balanced Fund might appeal to investors seeking moderate growth coupled with sustainable moderate income.

With a combination of equity and fixed income, the Tactical Balanced Fund is expected to achieve higher returns and lower asset fluctuations than its benchmark, a portfolio of 60% TSX composite and 40% DEX Bond universe. The performance comparisons below show the strong historical outperformance of our basket of chosen ETFs compared to both our benchmark and the TSX.

In order to ensure the portfolio is always holding the most attractive mix of asset classes and individual securities, the manager will implement a quantitative risk and return methodology to determine tactical asset allocation. Moderate levels of higher yielding and fixed income vehicles will be balanced by investments in both Canadian and global equities.  Staggered maturities across the various income producing instruments will help mitigate interest rate risk in our income producing investments in this portfolio. 

At Foundation Funds, we have a keen eye for value-driving ideas. Using topical ETFs and even individual stocks if they meet our exacting requirements, we take advantage of certain thematic market opportunities that relate to specific industries, sectors and sub-sectors to compliment the performance of the overall portfolio. It’s this combination of asset allocation and opportunistic sector exposure that we believe will drive risk-adjusted returns.

Investors with a medium to longer-term time horizon who are seeking  a balance of capital growth and income should find the Foundation Tactical Balanced Fund a very attractive solution.