Hedge Investment Strategy
Canadian Segregated Funds (technically referred to as ‘Deferred Variable Annuity Contracts’) are composed of a significant fixed income component as well as highly rated equity investments that are managed daily. Below is a typical portfolio mix that our Fund’s hedge would include.
The Fund’s approach is to maintain a balanced hedge portfolio by monitoring the risk-return spectrum based on our investment advisors’ proprietary software as well as strategic investment analysis based on geo-economic scenarios. Our strategic action plan links specific investment structures to best match the Fund’s needs and objectives. We seek to ‘optimize’ the Fund’s hedge portfolio by following a disciplined process based on the proven value of diversification. The hedge portfolio, in actuality, is many funds within the Segregated Fund (Diversification). The Fund is also able to obtain a preferred MER (Management Expense Ratio) that increases the rates of return illustrated below by a full 1% rate of return (Average Annualized Return of 6.33% is actually 7.33%).