Investment and Retirement
Portfolio funds with alternative asset classes
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There are many benefits to choosing portfolio type funds, for you and your clients. Our ASTRA Celestia Portfolio Funds could be an interesting option, depending on your client’s investor profile. Here is some information on our ASTRA Celestia Portfolio Funds.
GREATER DIVERSIFICATION
Asset allocation is optimized through diversification by asset class, region, sector, market capitalization, as well as through complementary management styles.
This investment solution also offers a greater diversification thanks to an exposure to alternative asset classes like global real estate, global infrastructure and commodities:
- The allocation mirrors that of big pension funds, which often have a more sophisticated investment approach.
- A greater foreign equities exposure allows the fund to benefit from better diversification, regional as well as sectoral, compared to traditional funds of funds.
- Alternative asset classes have a low correlation with traditional asset classes and help diversify the fixed-income portion of the portfolio (see correlation table below).
A SIMPLE AND REASSURING INVESTMENT SOLUTION
The selected portfolio fund appears on a single line on the investment statement:
- A client who invests in a variety of funds will tend to want to replace funds that have underperformed by those with higher returns. In doing so, your client may be steering away from the principle of diversification.
A portion of the chosen portfolio may benefit from:
- The protection of long-term purchasing power, in real terms (i.e. net of inflation), by using the Real Return Bond Index Fund (BlackRock®)
- Capital protection against future interest rate increases thanks to the Treasury Fund (Optimum Asset Management Inc.)
RENOWNED ASSET MANAGEMENT
ASTRA Celestia Funds offer access to:
- Automatic rebalancing that ensures the investor's portfolio complies with the portfolio allocation and objectives at all times, freeing up time for you to develop your current and future clientele
- Investment advice from managers who are among the best in the industry
- Our experienced internal portfolio monitoring team has the necessary latitude and autonomy to adjust the portfolio composition
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ASTRA Celestia Funds Net Returns as at January 31, 2015 |
1-Year |
2-Year |
3-Year |
5-Year |
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Celestia Conservative |
8.94% |
7.43% |
6.12% |
5.39% |
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Celestia Balanced |
10.45% |
9.83% |
8.25% |
6.71% |
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Celestia Growth |
11.46% |
11.52% |
9.69% |
7.49% |
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Celestia Aggressive |
12.26% |
13.18% |
11.15% |
8.21% |
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Asset Classes 10-Year Correlation as at December 31, 2014* |
Commodities |
Real Estate |
Infrastructure |
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Canadian Equity |
0.71 |
0.71 |
0.67 |
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U.S. Equity |
0.51 |
0.86 |
0.77 |
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International Equity |
0.48 |
0.84 |
0.85 |
* For illustrative purposes. Two different investments with a correlation of 1.0 move in exact lockstep, while investments with a correlation of zero will not move at all in relation to each other. A low or medium correlation with alternative asset classes increases portfolio diversification.
Discover our ASTRA portfolio funds (PDF)
The advantages of a turnkey portfolio (PDF)
Morningstar Direct's returns were used to calculate correlation coefficients.
Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value.
The returns shown do not take into account sales, redemption, distribution or other optional charges that may have reduced returns. Returns are annualized, except for periods of less than one year. Past returns are not a reliable indicator of future performance. This method of calculating returns is in compliance with the industry standards established by the Canadian Life and Health Insurance Association. For more information about this calculation method, please contact SSQ Client Services at 1-800-320-4887.