Dynamic Diversified Allocation Fund

Investment Objective

Capital Growth and Income

Fund Characteristics

The Fund seeks to capitalize on global opportunities through active management across asset classes, geographies, currencies, and risk themes.

Investment Approach

  • The Fund employs a top-down dynamic asset allocation strategy that focuses on general price movements in various asset classes and currencies combined with bottom-up security selection strategies actively managed by William Blair
  • The top-down approach seeks to identify and exploit periodic discrepancies between fundamental values and market prices
  • The Fund currently invests in the following bottom-up William Blair strategies:
    - All Cap Growth
    - Emerging Markets Growth
    - International Leaders
    - SMID Core
    - SMID Value

Why Consider This Fund?

  • Actively manages macro risks: Historically, over 90% of portfolio return variation has been attributable to top-down (macro) allocation decisions1
  • Seeks to take advantage of global opportunities and risks: Global interconnectedness has increased the relevance and pace at which macro political and economic factors affect investment results
  • Seeks to capitalize on fundamental value/price dislocations in global markets and currencies through dynamic risk capital allocations
  • Leverages divergent sources of alpha by combining the team’s macro-oriented process with several of William Blair’s bottom-up oriented strategies
  • The Fund is actively managed and is not constrained by a benchmark

Risks

  • The value of shares and any income from them can increase or decrease and an investor may not get back the amount originally invested
  • Where investments are made in currencies other than an investor's base currency, the value of those investments will be affected (favourably or unfavourably) by movements in exchange rates
  • Derivatives include the risk that the instrument is not correlated with the underlying investment to which it relates, liquidity risk, counterparty risk, and the risk that the transaction could expose the Fund to the effects of leverage, which could increase exposure to the market and magnify potential losses
  • The value of an investment may decline due to factors affecting securities markets generally or particular industries represented in the securities markets
1 Source: Determinants of Portfolio Performance II: An Update Brinson, Gary P.; Singer, Brian D.; Beebower, Gilbert L. Financial Analysts Journal; May/Jun 1991; 47, 3; ABI/INFORM Global pg. 40.