indicatorCompass Portfolios™

Be confident with a portfolio solution

By ATB Investment Management Inc. 10 December 2021 2 min read

Just as your thermostat maintains a comfortable temperature in your home regardless of the elements outside, a portfolio solution keeps your investments on track no matter what the market does. Regardless of your investing experience, a portfolio solution takes the guesswork out of investing and navigating the market. Your biggest decision will be choosing the portfolio solution best suited to your needs.

What is a portfolio solution?

A portfolio solution, also known as a “fund of funds,” is an investment vehicle composed of mutual funds and/or exchange-traded funds (ETFs) designed to achieve a given objective. When you invest in a portfolio solution, you get access to a broad bundle of diversified asset classes (stocks, bonds, cash) meticulously managed to meet your goals.

Source: ATB Investment Management Inc.

Why invest in a portfolio solution?

  • Simplified investing
    You don’t have to worry about making any difficult choices or navigating complex financial markets because the fund manager does that for you. The only choice you’ll have to make is which portfolio is right for you based on your risk tolerance and return objectives.

  • Built for purpose
    Each portfolio is built to achieve its designated goal, whether that’s to preserve the money you invested or to maximize returns while managing the risks.

  • A diversified approach
    Portfolio solutions are generally diversified across a broad range of investments from different sectors and geographies of the global market, giving you access to investment opportunities difficult to obtain for the DIY investor.

  • Professionally managed
    An expert team of investment professionals carefully monitor and adjust the portfolio as needed to stay the course, providing you with peace of mind that your goals will be achieved even as the markets fluctuate.

Stay comfortable with target-risk funds

Target-risk funds are a portfolio solution a lot like the thermostat in your home. As mentioned earlier, no matter the outside conditions, your home will adapt to your preferred settings. Similarly, target-risk funds maintain a specific level of risk through the fund’s asset mix, providing the investor comfort even as market conditions vary over time. This is done through a process of rebalancing—a disciplined approach where the original portfolio asset mix of stocks and bonds is maintained over time by buying and selling assets when the markets fluctuate.

Source: ATB Investment Management Inc. 

Picking a target-risk fund will depend on your risk tolerance—the amount of risk you prefer and are able to take on. Risk tolerances vary with each individual and their personal situation, which will primarily drive how much of the portfolio solution is invested in stocks (higher risk, higher potential return) and bonds (lower risk, lower potential return). Once you determine which target-risk fund is appropriate for your individual risk tolerance, a team of investment professionals will ensure the portfolio takes a disciplined approach to maintaining the target level of risk while maximizing the opportunity for your returns.

The CompassTM Portfolios

The Compass Portfolios, managed by ATB Investment Management Inc. (ATBIM), are six globally-diversified portfolio solutions built for investors with ranging levels of risk tolerance and return expectations. These portfolios are structured as target-risk funds so whether you’re a cautious investor or comfortable taking on risk for greater return potential, the Compass Portfolios offer a solution that meets your needs and provides you with the peace of mind that comes with professionally-managed investments.

Source: ATB Investment Management Inc. 

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