Investment Philosophy and Approach
Highstreet supports a constant asset mix strategy. This means that we do not try to time the markets. Research has shown that managers who have tried to anticipate the exact timing of market corrections and the subsequent recovery of the markets are unsuccessful in doing so consistently.
For this reason, we suggest that our clients implement two important strategies.
- Stick with a mix of bonds and stocks that best fits your expectations for return and tolerance for risk.
- Remain fully invested in the markets – always.
Investment Products
The Highstreet Balanced Fund is available to both private and institutional investors. Our Balanced Fund’s objective is to outperform the composite benchmark by 1.5% over a rolling 4-year period. The asset mix of the Fund is managed to be within 2% of the target asset mix:
40% Highstreet Canadian Bond Fund
33% Highstreet Canadian Equity Fund
22% Highstreet US Equity Fund
5% Highstreet International Equity A Fund
As well, Highstreet offers balanced portfolio management on a segregated account basis for clients with $75 Million or more.
Risk Budgeting
Highstreet will employ a structured risk budgeting framework to monitor and address periods of extreme market risk as determined by Highstreet's risk management overlay. If Fund volatility exceeds Highstreet's targeted threshold, the asset mix will be adjusted to lower the fund's volatility below the threshold. This may result in the Fund holding units of the Highstreet Money Market Fund, holding cash or increasing its holdings in the eligible bond funds while decreasing exposure to the equity funds. The asset mix will revert back to the original targeted levels as market risk returns to normalized levels.
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