I added this high quality Canadian balanced fund to the Recommended List in December 2015. It is managed by the team of Alan Wicks and Jonathan Popper, with an equity approach that is rooted in a value philosophy that looks for businesses that generate high and sustainable profits that are trading at attractive valuations. The fixed income sleeve is managed using a combination top down economic review combined with a bottom up credit analysis. The process looks to generate returns by focusing on sector allocation, credit quality and individual credit selection. They also emphasize risk management by actively managing the yield curve and duration exposure. Performance, over the long term has been excellent, although recently has lagged a bit, gaining 1.08% year-to-date, which is just above the category average. Given the team and process in place, I expect that it will continue to deliver above average returns, with below average volatility.
Unfortunately, Manulife closed the fund to new purchases effective August 28. This move was made in an effort to protect current investors, as the fund was approaching a size that the managers felt may detract from their ability to continue to effectively manage it. Clearly this move was made with the best interests of investors in mind. However, because it is now closed, I am removing it from the Recommended List. I will continue to follow it closely, and should it be re-opened will consider adding it back to the list.
If you hold the fund, and it is in line with your investment objectives, risk tolerance, and time horizon, and it is still appropriate for your port-folio, there is no immediate reason to sell. I believe it will continue to be a solid Canadian balanced fund offering.