The Portfolio may be suitable for:
- investors looking for portfolio diversification within a single mutual fund
- those primarily seeking a high level of regular income with a secondary focus on modest capital growth
- investors seeking to invest in and maintain exposure to U.S. dollars
- those investing for the short to medium term
What are the risks of investing in the Fund?
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 primary 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 capital depreciation risk, class risk, commodity risk, concentration risk, currency risk, derivative risk, emerging markets risk, equity risk, foreign market risk, general market risk, trusts and partnerships risk, index risk, legal and regulatory risk, liquidity risk, risk of specializing, large investor risk, smaller companies risk and sovereign debt risk.
Refer to the Simplified Prospectus for more details.
Distribution policy:
The Portfolio intends to distribute net income quarterly and net realized capital gains annually in December, for Class A units. Distributions are automatically reinvested in additional Class A units of the Portfolio unless you request otherwise.
For Class T4 and Class T6 units, the Portfolio expects to distribute net income monthly. At the end of each month, the Portfolio will distribute an amount equal to approximately one-twelfth of 4% on Class T4 units and approximately one-twelfth of 6% on Class T6 units 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 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 Class T4 and Class T6 units, it is likely that a greater proportion of the amount distributed will constitute a return of capital, when compared to Class A 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 unrealised 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 taxable capital gain 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. See Income Tax Considerations for Investors. 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.
