The Portfolio will primarily focus on generating regular income, with a secondary focus on long-term capital growth, by investing in a diverse mix of Canadian and global fixed income and equity mutual funds and exchange-traded funds.
The Portfolio may be suitable for:
Investors looking for portfolio diversification within a single mutual fund
Those seeking a combination of regular income with a secondary focus long-term on capital growth
Those investing for the medium term
Investors who can tolerate low investment risk
To achieve its investment objectives, the Portfolio will:
Invest up to 100% of the Portfolio’s assets in units of the Underlying Funds
Allocate the Portfolio’s assets among the Underlying Funds according to the target asset mix for the Portfolio, which may change at our discretion, but are generally expected to be:
Monitor and rebalance the Portfolio’s assets to realign the weightings within its target asset mix
Monitor and review the Underlying Funds on a periodic basis.
* Volatility (low to high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.
** Other dealers may have different minimum dollar requirements.
† Please check with your dealer regarding whether a particular class/series (or purchase option) is available for purchase within a registered account.
The Portfolio is based on a strategic asset allocation. In implementing this strategy, the Portfolio will invest in a number of Underlying Funds in order to obtain the desired asset allocation. The performance of the Portfolio will be related to the performance of the Underlying Funds held by the Portfolio.
The risks associated with the Portfolio will reflect the risks of the Underlying Funds in which the Portfolio invests. The amount of risk the Portfolio takes on from each of the Underlying Funds is directly proportional to the amount invested in each of the Underlying Funds.
The Portfolio may be exposed to asset-backed and mortgage-backed securities risk, capital depreciation risk, commodity risk, concentration risk deflation risk, derivatives risk, emerging markets risk, equity risk, exchange-traded fund risk, fixed income risk, floating rate loan risk, foreign currency risk, foreign market risk, general market risk, implied volatility risk, index risk large investor risk, leverage risk, liquidity risk, lower-rate, bond risk, prepayment risk, regulatory risk, sector risk, securities lending, repurchase and reverse repurchase, transactions risk, series risk, short selling risk, smaller companies risk, sovereign debt risk, structured notes risk, target return and volatility risk and taxation risk.
The Portfolio intends to distribute net income quarterly and net realized capital gains annually in December.
For Series T5 units, the Portfolio expects to make monthly distributions. At the end of each month, the Portfolio expects to distribute an amount equal to approximately one-twelfth of 5% of the net asset value per unit on the last day of the previous calendar year (or, if no units were outstanding at the end of the previous calendar year, the date on which the units are first available for purchase in the current calendar year). The monthly distribution will generally consist of net income, net realized capital gains, and/or return of capital. The Portfolio may make an additional distribution in December, but only to the extent required to ensure that the Portfolio will not pay income tax. The annual and monthly distribution rates may be adjusted from time to time at our discretion.
If the monthly amount distributed exceeds the Portfolio’s net income and net realized capital gains, such excess will constitute a return of capital. For Series T5, FT5, and ST5 units, it is likely that a greater proportion of the amount distributed will constitute a return of capital, when compared to series A, F, and S units. Generally, the Portfolio expects that the total amount of any returns of capital made by the Portfolio in any year should not exceed the amount of the net unrealized appreciation in the Portfolio’s assets for the year. A distribution to you by the Portfolio that is a return of capital will not generally be included in your income. Such a distribution, however, will generally reduce the adjusted cost base of your units of the Portfolio and may, therefore, result in you realizing a larger taxable capital gain (or smaller allowable capital loss) on a future disposition of the units. Further, to the extent that the adjusted cost base of your units of the Portfolio would otherwise be a negative amount as a result of you receiving a distribution on units that is a return of capital. The negative amount will be deemed to be a capital gain realized by you from a disposition of the units and your adjusted cost base of the units would be increased by the amount of such deemed gain to zero. Depending on market conditions, a significant portion of the Portfolio’s distribution may be a return of capital for a certain period of time. The amount of the distributions is not guaranteed and may change from time to time without notice to unitholders.
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