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.
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.
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.
This document and all of the content has been compiled by ATB Investment Management Inc. (“ATBIM”) which manages the Compass Portfolios and ATBIS Pools. ATBIM, ATB Securities Inc. (“ATBSI”), and ATB Insurance Advisors Inc. are wholly owned subsidiaries of ATB Financial and are licensed users of the registered trademark for ATB Wealth. ATBSI is a member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada.
The mutual fund performance data provided assumes reinvestment of distributions only and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that may reduce returns. Unit values of mutual funds will fluctuate and past performance may not be repeated. Mutual Funds are not insured by the Canada Deposit Insurance Corporation, nor guaranteed by ATB Securities Inc., ATB Investment Management Inc., ATB Financial, the province of Alberta, any other government or any government agency. Commissions, trailing commissions, management fees, and expenses may all be associated with mutual fund investments. Read fund disclosure documents before investing. The Compass Portfolios includes investments in other mutual funds. Information on these mutual funds, including the prospectus, is available on the internet at sedar.com.
Opinions, estimates, and projections contained herein are subject to change without notice, and ATBIM does not undertake to provide updated information should a change occur. The information in this document has been compiled or arrived at from sources believed reliable but no representation or warranty, expressed or implied, is made as to their accuracy or completeness. ATBFinancial, ATBIM and ATBSI do not accept any liability whatsoever for any losses arising from the use of this report or its contents. The material in this document is not, and should not be construed as an offer to sell or a solicitation of an offer to buy any investment. This document may not be reproduced in whole or in part; referred to in any manner whatsoever; nor may the information, opinions, and conclusions contained herein be referred to without the prior written consent of ATBIM.
Compass is a trademark of ATB Financial.