Canadian Balanced Fund – Investment Strategy Changes


A number of modifications will be made to the investment strategy of the Canadian Balanced Fund with the goal of increasing the income generated by the portfolio and decreasing the overall volatility of the strategy.

These changes aim to ensure that the Fund can serve as an important building block in the construction of our clients’ portfolios and that it is adequately differentiated from other Pembroke offerings. The main changes are as follows:

  1. The equity component of the Fund will be reduced from 70% to 60% and will now include exposure to larger capitalization companies. The focus will remain on Canadian equities, with some foreign exposure included to provide additional diversification and reduce volatility.
  2. The fixed income component of the Fund will be increased from 30% to 40% and will include exposure to multiple fixed income strategies. This will allow us to control the duration, credit quality and current yield of the fixed income component of the Fund.
  3. The fees associated with the Canadian Balanced Fund will be harmonized with those of the Global Balanced strategy effective May 1, 2023. This means that the fees for most clients who hold this Fund are being reduced.

While the investment strategy is being adjusted, the overall objective of the Canadian Balanced Fund remains unchanged, that is “to provide investors with a reasonable balance between long-term capital growth and income to diversify risk. The Fund invests primarily in equities, bonds and other marketable securities.”

When compared to other Pembroke offerings, the Canadian Balanced Fund is expected to provide a higher yield and lower volatility than the Global Balanced strategy. The Fund should be an attractive solution for many of our clients who are no longer in the accumulation stage of their wealth management journey and who are looking to generate increased income from their investments.

Clients who would prefer to maintain their current exposure can do so by switching into the Pembroke Dividend Growth and the Pembroke Canadian Bond strategies.

Should you have any questions regarding these changes, or how the Canadian Balanced Fund could play a role in your portfolio, please do not hesitate to speak with your Pembroke Representative.


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