Investment Solutions

Balanced

Balanced Strategy

Our balanced strategy is enhanced with active asset allocation incorporating fixed income, Canadian and global equities with active asset allocation. Our fundamental value style delivers capital preservation and a compelling track record of strong risk-adjusted returns. Active asset mix management is a large contributor to our value added over market returns and features broad use of client asset mix ranges which are customized to each client.

Fundamental value style, capital preservation
Active asset mix management – broad use of client ranges, customized to client.

  • Fixed Income – 20-40 bonds – Credit barbell + active duration mgmt.
  • Global Equities – 20-40 stocks – Global leaders + Special situations
  • Canadian Equities – 20-40 stocks + all market capitalization
  • OPTIONAL – Small Cap Cdn Equities (Fund) – 20-40 stocks

Default Benchmark: 5% TBIlls/35% FTSE Bond Universe/30% S&P TSX Composite/30% Global (Net)

Capital Preservation

Our ability to measure our defensive approach to investing can be illustrated using a statistic known as Down Market Capture (DMC). DMC results < 100% are desirable indicating portfolios avoid negative events relative to the market itself. This effectively measures capital preservation in falling markets. Consistently applying our quality value investment philosophy delivers less exposure to falling markets across our product offering. Our focus on quality delivers protection in falling markets while capturing 100% of rising markets. Capital preservation is in our investing DNA.

The Importance of Asset Mix

Barrantagh’s roots in the private wealth sector – an area dominated by balanced and multi- asset class mandates – helped shape our investment disciplines which focus on conservatism in our research efforts, focused 20-40 securities per mandate and capital preservation. Paramount to capital preservation and downside protection is active asset mix management versus client benchmarks. Our asset allocation decisions are valuation driven and tend to capture the mid to long term risk-reward opportunity in contrast with frequent short-term moves around the benchmark. Active asset mix has contributed a substantial portion of our value-added versus the benchmark. In fact, over the last 10 years 42% of our value added over the benchmark was attributable to our asset allocation decisions while global equities added 34% and Canadian equities contributed 24% of the total value added over the benchmark.