Balance Investment Strategies

Objective

Our Balance Strategy aims to reduce your portfolio volatility by including short and intermediate-term bonds to your investment mix. The Balance Strategy income yield is typically greater than the S&P 500 dividend yield. Balance income should not be expected to grow as fast as Growth & Income Strategy income. This is mostly because of greater exposure to bonds in Balance. Bonds are typically fixed-interest, fixed-income investments.

Strategy

Brady Moderate and Low-Volatility Balance strategies invest your account in a diversified portfolio of growing companies. Like Growth & Income, our Balance strategies are built with a Core Growth portfolio as the foundation. On top of this, both Moderate and Low-Volatility will have 10-15 additional investments in socially responsible, dividend-paying companies.

 

To dampen your account's volatility, we also invest in bond funds and ETFs. The level of bonds in your account depends on your volatility tolerance. If for example, your volatility appetite is moderate, then we might invest your account 60% in equities and 40% in bonds and cash. We increase your allocation to bonds as your tolerance for market volatility drops. Low-Volatility clients are most typically 40% stocks and 60% bond

 

In our Balance strategies, your equity investments can be in businesses that are small-cap with high-growth potential but will favor those that are large-cap and well established. Your bond investments will favor high-quality, investment-grade securities. We strive to be tax-efficient by keeping turnover low.

Appropriate for

Balance is appropriate for investors who do not sleep well when the stock market is dropping but hope to increase the real purchasing power of their portfolio.