September 2014 To the Sales Force Industrial Alliance Investment Management rebalances its Selection funds
Clément Gignac, IA Group Senior Vice-President and Chief Economist, oversees the Selection funds management committee. Following their recent working session, Mr. Gignac and his team made certain adjustments to the funds: - Solid returns for equities over the past 18 months mean this asset type is now fully valued. As a result, the committee decided to reduce the overweighting in stocks for these funds.
- As protection against a possible return of volatility in the financial markets, the committee opted to reduce exposure to less liquid securities such as high-yield bonds and small-cap securities (Canadian and global). These changes apply to all funds, and more notably to the Selection Prudent and Selection Moderate funds.
- In view of an expected return to normalcy in interest rates in 2015, the committee decided to increase cash levels using money market securities.
These changes are in line with the investor profiles. For more information, refer to document F13-856A , available in the Extranet Document Center. |
