CC&L Enhanced Balanced

Investment Objectives

• Generate returns equal to the return of the benchmark, 25% S&P/TSX Capped Composite Index + 35% MSCI ACWI Index (CAD) (net) + 40% FTSE Canada Universe Bond Index, plus 1.5% per annum over a market cycle.
• Maximize long-term total return while managing investment risk relative to the benchmark.

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 bottom-up security selection.
• Additional returns through the inclusion of high-yield bonds.
• Additional return through exposure to different market neutral strategies.
• 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.