When I think of best in class balanced funds this one is usually at the top of my list. Managed by the Signature team at CI, it has consistently been one of the strongest performers in the category, yet at the same time has tended to be one of the least volatile. For the three years ending June 30, it gained an annualized 9.3%, handily outpacing its benchmark and peer group. The portfolio is a mix of high yielding equities and high yield bonds.
Historically, it could invest up to 49% outside of Canada, but that was recently changed to 70%, allowing the managers even greater flexibility. This may come in handy once we see interest rates start to trend higher, giving the managers the ability to find more opportunities abroad. It should also help to reduce the interest rate sensitivity of the equity portfolio which is now highly concentrated in REITs and energy income plays.
Looking at the management team, the investment process and their track record at both growing and protecting capital, it’s not hard to see why this is one of the best balanced funds available.