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Beautifully Balanced - Finding the Right Asset Mix for Your Retirement Portfolio

Looking for More Growth and Higher Income… Why Not Try the Emerging Markets?

The reality of today’s investor is that bond yields in traditional markets, such as the U.S. and Canada, are hovering around all-time lows. Growth is also hard to come by, leaving investors searching for meaningful capital appreciation opportunities as well. It’s undoubtedly a challenging time for Canadian investors, who have seen the performance in their retirement portfolios flatline over the past few years.

Enter the emerging markets.

Developing nations such as India and China are among the fastest-growing in the world, and their contribution to global economic expansion is projected to increase over the coming decades. A quick glance at the GDP figures for India (7.6 percent) or China (6.7 percent), compared to Canada (1.3 percent), and it immediately becomes clear that the scope for higher corporate earnings and generating excess returns is significantly greater in the emerging markets.1

On the fixed-income side, the yield that investors can earn in Brazil, Indonesia or Russia are, on average, around 500 basis points higher compared to Canadian Treasuries. Even as global markets brace for reflation and higher rates in the U.S., investors can still turn to the emerging markets, for more growth and yield.2

While most Canadians might not be familiar with this segment of the market, investing in an actively managed mutual fund is an ideal option for tapping into the emerging markets. An active manager is able to survey the entire global financial landscape and find stocks and bonds that will generate alpha for investors.

It is important to note that over the past 45 years, the top-performing equity market has been outside of Canada; and also, 98 percent of global GDP is generated outside of Canada.3 This indicates that there are many opportunities that exist in foreign markets and that there is value in having a more global perspective when it comes to investing.

Having the Right Balance is Everything

Investors are faced with a lot of options when it comes to building out the optimal retirement portfolio.

Should I invest in individual stocks? Or bonds? Is indexing the way to go? Or should I purchase mutual funds? It can all be a bit overwhelming.

The Excel EM Blue Chip Balanced Fund is a readymade, asset allocation solution that provides direct exposure to some of the fastest-growing countries in the world. The fund has an approximate 70/30 split between the Excel High Income Fund and the Excel Emerging Markets Fund, both of which are top-rated by Morningstar.4 With broad geographic access to emerging market stocks and fixed-income securities, the fund offers great diversification benefits and is designed to perform well in a variety of market environments.

A balanced approach that invests in both stocks and bonds also makes for a smoother ride in your retirement portfolio. And what investor doesn’t want that?

The equity component of the fund offers capital appreciation potential, while the fixed-income allocation can help to dampen volatility and provide downside protection. Additionally, diligent oversight from a portfolio manager allows for rebalancing, should the asset mix not suit the current market environment, and this is the real beauty of investing in balanced strategies such as the Excel EM Blue Chip Balanced Fund.


To learn more about the Excel EM Blue Chip Balanced Fund click here.


1 IMF World Economic Outlook, October 2016.
2 Bloomberg data, accessed on November 18, 2016. Based on 10-year local sovereign bond yields.
3 Bloomberg, MSCI Index data, total annualized return 1970 – 2015.
4 Excel Investment Counsel Inc.


About Morningstar™ Ratings: © 2015 Morningstar Research Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. A copy of the current simplified prospectus for the fund(s) may be obtained, at no cost, by calling 1-888-813-9813 or by visiting or – the internet site of SEDAR (the System for Electronic Document Analysis and Retrieval).

Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated and may not be a reliable indicator of future performance. The value of an investment in the fund may fluctuate according to market conditions and cause the value of an investment to go up or down. As a result, you may lose, as the case may be, the amount originally invested.

Statements in this document, other than statements of historical fact, and including statements regarding the future economic effects of events, are “forward-looking statements”. These forward-looking statements reflect the current beliefs of the respective fund’s portfolio manager and are based on information available to the respective fund as of the date of this document. Actual results may differ materially as they are subject to a number of significant risks and uncertainties. Excel Funds Management Inc., Excel Investment Counsel Inc. and the fund do not have an obligation to update or revise the forward-looking statements in this document.

This document is for informational and illustrative purposes only and is not intended to provide specific financial, investment, or other advice to you, and should not be acted or relied upon in that regard without seeking the advice of a professional. Particular investment or trading strategies should be evaluated relative to each individual.


Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.