Human Resources

Balanced Income Portfolio

The Western Retirement Plan offers a variety of investment options across the three primary asset classes: Cash/Money Market, Fixed Income/Bonds, and Equity/Stocks. Asset Allocation refers to the overall way you divide your investment across the different asset classes. Each asset class has different properties with respect to risk of loss, chance for growth, and how investment return is generated. For example, bonds generally provide most of their investment return through the stream of income received from interest payment. Equities generally provide most of their investment return when the underlying value of the stock increases and can be sold for more than its purchase price.

There are often a number of different investment options that can achieve a given asset allocation. Below you will find a proposed asset allocation as well as a recommended diversified portfolio considering the investment options under the Western Retirement Plans.

Based on your responses to the questionnaire, you should consider the following portfolio for your Western Registered Retirement Plan assets.

Balanced Income Portfolio (IPQ Score 01 - 16)

This portfolio is suitable for an investor who wants to preserve accumulated assets, who may be starting to learn about investments, who generally has a short investment horizon (typically less than five years) and who is concerned with market volatility.

Asset Allocation: 30% Equities, 70% Fixed Income

Western investment funds for a Balanced Income portfolio

100% Balanced Income Fund

The Balanced Income Fund invests 70% of your assets in the Diversified Bond Fund. Bonds can provide a steady stream of interest income and generally have less volatility than equities. The Balanced Income Fund invests the remaining 30% of your assets in the Diversified Equity Fund. Investments in equities can provide significant growth over the long term, although over shorter periods of time these investments may experience some volatility.

Detailed Asset Allocation:

The Balanced Income portfolio is diversified geographically and by asset classes. Here is a breakdown of the different types of assets that the portfolio invests in.

Detailed Asset Allocation Chart

Small cap equities refer to companies with a total value of less than $2 billion. Mid cap equities refer to companies with a total value between $2 billion and $10 billion. Large cap equities refer to companies with a total value greater than $10 billion.

Investment Manager Information:

The various components of the Balanced Income portfolio are managed by 10 different investment managers, each with its own style. The table below lists the investment managers, the proportion of the portfolio that they manage and the investment style used.

Note that Investment Managers are selected by the Joint Pension Board. You have limited ability to change the relative weights of any manager within the portfolio. If you are interested in additional information on the Investment Managers, please visit the "Most Recent Reports from External Investment Managers" section of the HR website.

Investment Manager % of the Fund Asset Class Manager Style
Greystone Managed Investment 3.00% Canadian Equities Active-Growth
Connor, Clark & Lunn Investment Management 3.00% Canadian Equities Active-Core
Beutel, Goodman & Company Ltd. 3.00% Canadian Equities Active-Value
State Street Global Advisors 5.25% U.S. Large Cap Equities – Hedged Passive
State Street Global Advisors 0.75% U.S. Mid Cap Equities Passive
PanAgora Asset Management 0.75% U.S. Small Cap Equities Active-Core
MFS McLean Budden 4.50% International Equities Active-Growth
AllianceBernstein Capital Management 4.50% International Equities Active-Value
Harris Associates Investment Management 2.62% Global Equities Active-Value
T. Rowe Price International 2.62% Global Equities Active-Growth
AllianceBernstein Capital Management 42.00% Canadian and Foreign Fixed Income Active
State Street Global Advisors 17.50% Canadian Fixed Income Passive
Romspen Investment Corporation 10.50% Canadian Commercial Mortgages Active

To compare this portfolio to your current allocation or to make an investment mix change, go to the Human Resources website and login to your Pension Account. You will find your current investment allocations summarized under the “Balances” menu.

Click here for instructions on how to complete an investment mix change online.

Feel free to submit your comments regarding this portfolio overview to Cara Bourdeau - HR Pension Consultant.

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Disclaimer:

This tool should not be construed as financial advice by Western University to you. The investment portfolio generated by this tool is intended to assist you in building an appropriately diversified portfolio with a level of investment risk that you indicate you can tolerate based on your risk profile. It is not meant to predict which fund is going to be the best performing one over the short term. The recommended portfolio does not take into account any other assets or savings that you may have outside the Western Retirement Plans. You may wish to allocate your investments differently, based on any additional assets, savings, budgeting needs, financial objectives, or for other reasons. The decision is entirely your own. It is recommended that you revisit your investment allocation decisions at least annually or when there is a significant change to your financial situation. The tool has been created using assumptions about historical investment performance, but past performance cannot be relied upon to predict future results. By using the tool and any suggested investment portfolio, you are not guaranteed to achieve investment returns that will provide you with financial security in retirement. Consult a financial advisor for advice specific to your personal situation, or if you need guidance regarding your asset allocation.