Balanced funds may be used in a model portfolio when the total investment amount is less than $5,000. For example an Ethical Funds Growth RAM consists of a Canadian Equity fund and a Canadian Balanced Fund for investments below $5,000.
If an allocation is made to Balanced funds, then the allocation in the four quadrants of the portfolio structure is modified to include the calculated portions of the balanced allocation that are considered Canadian Income, Canadian Equity, Foreign Income, and Foreign Equity. This calculation is intended to give a better idea of the true composition of the portfolio. The resulting allocation is represented on the "Select Securities" screen like this.
The allocation calculation is based on the asset mix contained within an "average" balanced fund as follows:
(Source: Ibbotson Style Analysis on GlobeHySales, as at October 29, 2004)
|
|
Average Canadian Balanced Composition |
Average Global |
|
Canadian Income |
53.03% |
32.53% |
|
Canadian Equity |
34.23% |
39.40% |
|
Foreign Income |
7.76% |
11.06% |
|
Foreign Equity |
7.32% |
17.01% |
|
TOTAL |
100.00% |
100.00% |
Learn More
What is the Basic Portfolio Structure