Four Mutual Funds That are Adapted to Markets

Economic uncertainty makes you fearful, but you do not want to settle for guaranteed investment returns anemic?

You might turn to some diversified mutual funds, which are given the ability to quickly change the composition of their portfolios according to market developments. Depending on the context, they may adopt a more conservative or more daring. We present you four.

1 Fidelity Canadian Asset Allocation, Series A

  • Assets under management: $ 1.9 billion
  • Management Fee: 2.38%

This fund is a rare opportunity to benefit from high yield shares by exposure to a relatively low risk, says Bruno Ballarano, vice president of Advantage Financial Services.

The portfolio includes the target 60% equity and 40% bonds. But in the short term, lead manager Bob Swanson can move away from the target.

“Despite the name” Canada “, the fund has the ability to invest 10-15% of the foreign portfolio, said Ballarano. For the bond portion, although it may also invest in bonds of quality in high yield bonds. ”

2 Portfolio Exemplar-based BluMont Canadian market

  • Assets under management: $ 32.1 million
  • Management Fee: 1.65%

The manager of the fund shares, Veronika Hirsch, has carte blanche to invest as it sees fit. “It has no restrictions, that is to say, neither stock index to follow, or asset allocation to meet specific,” says Ballarano

Thus, during the financial crisis, 80% of the portfolio was placed in the money market, while today 84% of the portfolio is in stocks.

“Ms. Hirsch uses the funds to protect the portfolio, said Ballarano. It may also sell short up to 20% of assets or use option strategies to hedge positions.” The manager can also buy shares at abroad or in a very short term perspective. This fund has provided an average annual return of 10.6% over the past two years, compared to – 5.26% for other similar funds.

3 Performance Opportunities Fund Manulife

  • Assets under management: $ 204.3 million
  • Management Fee: 2.29%

This fund is a good way to generate income in a context of low interest rates, says Fabien Major, independent adviser at Major Asset Management. “But we must be able to tolerate some volatility.”

Fund Performance Opportunities Manulife invests in both stocks, in bonds than in income trusts, and without geographical restriction. “This fund has done a good back off by investing in emerging markets,” said Mr Major.

The fund is managed by Terry Carr, who leads a team of 11 specialists in the bond market, and by Alan Wicks, Senior Fund Manulife Monthly High Income.

The portfolio is currently composed of 63% of corporate bonds and 30% of shares. But since there is no weighting provided for each asset class, Mr. Carr could, if pessimistic, place 100% of the portfolio in fixed income government.

Over the last six months, the fund has generated a return of 4.79%.

4 Dynamic Power Balanced Fund

  • Assets under management: $ 1.9 billion
  • Management Fee: 2.11%

Rohit Seghal, the manager of the equity portion of the fund, a growth-oriented approach. “It invests in niches that generate strong earnings growth, as was the case for resources in recent years,” said Patrick Masse, investment representative at Lajoie Finance.

The bond portion, which is managed by Michael McHugh, acts as a counterweight, especially focusing on quality bonds.

“His target weight is 50% stocks and 50% bonds,” said Masse. But managers move away from the target if they want to protect the portfolio or being “aggressive.”

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