CC&L Enhanced Balanced

Investment Objectives

• Maximize long-term total return while protecting the capital value from major market fluctuations through prudent management of asset allocation and careful selection of investments.
• The return objective for CC&L’s enhanced balanced fund is 25% S&P/TSX Capped Composite Index + 35% MSCI ACWI Index (CAD) (net) + 40% FTSE TMX Canada Universe Bond Index plus 1.5% over rolling four-year periods.

Highlights

• Actively managed, diversified portfolio of stocks, bonds and cash.
• Substantial research effort invested in the asset mix decision process.
• Combination of fundamental and quantitative primarily bottom-up security selection.
• Deep, stable teams with long track records.

Investment Philosophy

• Valuations underpin financial market pricing over longer-term time horizons.
• The asset mix investment decision-making process is fundamental and intuitive in nature.
• Active asset allocation adds value.
• A structured and methodical approach to research will lead to better insights.

Investment Process

• Tactical asset allocation: Active asset allocation is an incremental source of added value to the overall portfolio along with alpha generation from fixed income, Canadian equities, global equities and alternative strategies. 
• Disciplined, conservative process: Views on the cyclical environment create an investment thesis that outlines what is expected from financial markets over the forecast horizon and serve as the basis for the forecasting, risk allocation and portfolio construction.
• Importance of research: Research is undertaken to establish insights for current and future capital market conditions and is the foundation supporting a forecast.
• Risk management: Active risks and their comparisons against risk parameters (i.e. constraints) are incorporated into the asset mix process.

Portfolio Construction & Risk Management

• Portfolio asset mix weights reflect the forecasts and level of conviction for each forecast.
• Transaction costs are incorporated into the investment decision in establishing best return/risk trade-off. 
• Each asset class component is managed by a team of specialists.
• Risk budgeting, the identification and quantification of desired active risks, is assessed at the strategy level and at the total portfolio level.