The "Select Core and Specialty Sectors" screen allows you to specify the core and specialty sectors within each asset quadrant to be used in the portfolio plan.
The screen displays:
The recommended maximum number of core and specialty sectors
The amount of cash held.
The investment allocation for each quadrant in $ and % amounts.
All available IFSC (Investment Funds Standards Council) sectors:
If an allocation was made to the balanced quadrant in the previous screen, the sectors in the balanced quadrant will also be displayed.
If no allocation was made to a quadrant, the check boxes beside the sectors in that quadrant will be grayed out and will not be available for selection.
Each of the four asset quadrants is divided into 2 sub-quadrants
or asset classes, Core and Specialty, resulting in 8 sub-quadrants. Each
of the sub-quadrants consists of one or more IFSC sectors with different
characteristics to meet the investor's needs:
In addition there are two sub-quadrants for Balanced funds - Canadian Balanced and Global Balanced.
Note: Each IFSC sector has been mapped to the most appropriate sub-quadrant. because each sector is mapped to only one sub-quadrant, there may be funds in some sectors that should be categorized into a different sub-quadrant. This only occurs in Canadian Specialty Equity and Foreign Specialty Equity sub-quadrants.
The following is a list of funds that have been identified as exceptions that are most likely to be used in a portfolio:
|
Sector |
Fund |
|
Science and Technology |
(Canadian Specialty Equity) |
|
Natural Resources |
(Foreign Specialty Equity) |
|
Precious Metals |
(Foreign Specialty Equity) |
|
Real Estate |
(Canadian Specialty Equity) |
|
Health Care |
(Canadian Specialty Equity) |
Depending on the your Credential rep tier, you may not be able to sell these funds (refer to the Credential Approved Products Reference Guide). If you are able to do so, you should still follow the sector allocation guidelines to minimize the impact of including these specialty funds in a portfolio. Here are some recommended options:
- avoid using these funds if substitutions
are appropriate.
- include a explanatory note in the client report about the exception.
Select core and specialty sectors as desired by clicking in the checkbox next to the sector Classification of funds by sectors as specified by IFSC categories. name
Select at least one sector in each quadrant for which an allocation has been made
Use the link to the guidelines to help determine total number of sectors to select and which sectors to select.
When sector selection is completed, click the "Next" button to continue to the "Allocate to Core and Specialty Sectors" screen
If an allocation to the Balanced quadrant in the previous screen, then you will automatically be presented with Balanced selection box on this screen. If no allocation has been made to this quadrant, then the Balanced quadrant will not be displayed on this screen.
Here is an example where 100% has been allocated to the balanced quadrant.
Select Core and Specialty Sectors Guidelines
Canadian Specialty Income Sectors
Canadian Specialty Equity Sectors