Today is the day we celebrate the FGP Balanced Fund’s 30th anniversary. Between January 31, 1994, and December 31, 2023, by following a rigorous and disciplined investment process, this Fund achieved an annualized performance of 8.2% before fees.
According to eVestment, there are only nine funds available in Canadian dollars in the eVestment Global Balanced Benchmark that have been around for at least 30 years. Within this universe, the FGP Balanced Fund has been the second-best performing fund from both a risk (standard deviation) and return perspective.
In this Olympic year, we are not completely satisfied with silver, so we are going for gold. As we plan to manage this Fund for at least the next three decades, we will aim for the best risk-adjusted performance in the 30-year period to December 31, 2053.
Balanced funds invest in a diversified mix of fixed income products (eg. bonds) and equities. These funds will maintain a balance across both asset classes that is determined by FGP’s Investment Committee having regard to shifting macro and micro-economic factors. Some balanced funds may have a larger target weight in equities than fixed income, while others may have a higher allocation to fixed income. Moreover, some balanced funds may focus on global markets, providing an additional source of diversification.
Investment returns are expressed in Canadian dollars unless otherwise noted, gross of investment management fees, net of fund expenses, and include reinvestment of dividends and income. Returns are time weighted and annualized for periods greater than one year. The Fund is not guaranteed, its values change and past investment performance may not be repeated.
Benchmark returns are a blend of the Mercer Passive Index (to December 31, 2007) and the neutral weightings of the respective FGP Balanced Funds from December 31, 2007 onward. The current benchmark of the Fund is of 35% of each of the FTSE Canada Universe Bond Index and S&P / TSX Composite Total Return Index and 15% of each of the S&P 500 (C$) and the MSCI EAFE (C$).
Units of the FGP Balanced Fund are only available for sale to residents of Canada. Please contact your financial advisor for more details. The information herein should not be considered an offer to sell or a solicitation to buy any security to any person.