To round out our Independence family of portfolios with an international offering, we developed the Independence International Asset Allocation Account.
What is it designed to do?
- Produce annual returns before fees of 8-10% over a full cycle of North American monetary ease and tightness (on average about six years).
- Provide appropriate diversification away from North American equities during periods of monetary tightening.
What is the portfolio comprised of?
|
Asset Class |
Minimum |
Maximum |
|
US Stocks* |
30% |
55% |
|
EAFE Index** |
5% |
35% |
|
Corporate Bonds |
5% |
5% |
|
US 30-day T-Bill |
5% |
30% |
|
Commodity Proxy |
0% |
30% |
|
* Proxy for the S&P 500
** Stands for Europe, Australasia and Far East Index,
approximately replicated through 17 country index funds. |
How is it managed?
- The Portfolio Manager, Nick Majendie, will vary the asset mix between the five different asset classes according to where we are in the US monetary cycle. Research on a 25-year period from 1973-1998 has shown that appropriate rebalancing of the above five asset categories according to whether the Federal Reserve Board is tightening or easing would meaningfully enhance returns for the portfolio over the most efficient Buy-and-Hold strategy for those categories.
If you are seeking solid returns and have the requisite minimum investment of US$65,000 for a stand-alone portfolio or US $25,000 if another Independence Portfolio is held or opened (to allow, for example, for 30% foreign content in an RRSP account with a total Independence Account), please contact your Canaccord investment adviser for further details.