The Foundation Tactical Growth Fund’s mix of Canadian and global ETFs is expected to provide investors with the opportunity for capital appreciation and long term growth. Its objective is to provide stronger returns than its benchmark, a portfolio comprised of 75% TSX Composite and 25% DEX Bond Universe. The performance comparisons below illustrate how our basket of chosen ETFs outperformed this benchmark over a five year period, providing a higher historical return with lower overall variability.

Using a quantitative risk and return methodology, the manager will determine tactical asset allocation, ensuring that the portfolio always holds the most attractive mix of Canadian and global equity and fixed income ETFs. This tactic will ensure the fund balances the higher returns associated with equity markets with stable income investments to create an attractive risk/reward profile. Growth from equity investments will be protected through tactical adjustments made to the fixed income and higher yield investments in the portfolio as conditions warrant.

While tactical asset allocation is the engine driving performance, we’re also on the lookout for interesting ideas to potentially rev up returns. By taking advantage of certain market opportunities related to specific industries, sectors and sub-sectors, the manager will enhance the portfolio’s value through the addition of topical ETFs, or even individual stocks. 

As most investors know, the quest for growth usually comes with higher asset value fluctuations.  With a higher weight in growth -oriented equities this fund is suitable for investors with a longer time horizon and lower income requirements. Oh and yes, it’s also suitable for investors who enjoy higher capital appreciation.