Most Common Wealth members are given the option to select either a managed portfolio or to build their own. For managed portfolios, Common Wealth offers access to BlackRock's Target Date Funds. For self-directed portfolios, members can use the Build My Own Portfolio Function.
Target date funds
The platform recommends an investment fund based on your age and desired retirement date. As you approach your retirement date, the fund automatically becomes more conservative, adjusting the asset mix to reduce risk.
BlackRock, the world's largest asset manager, offers a default target date fund designed to balance investment returns and risk. However, you have the option to choose a different fund if you prefer.
BlackRock's target date funds are designed to help investors plan for retirement or other long-term financial goals by automatically adjusting their asset allocation over time. Here are some of the key advantages:
- Automatic Rebalancing: Target date funds automatically adjust the mix of investments as the target date approaches. This means the fund gradually shifts from higher-risk investments, like stocks, to lower-risk investments, like bonds, as the target date nears. This helps manage risk and align the investment strategy with your time horizon.
- Simplicity and Convenience: Investors don’t need to constantly monitor and rebalance their portfolio. The fund’s automatic adjustments reduce the need for hands-on management and simplify the investment process.
- Diversification: BlackRock’s target date funds typically offer a diversified portfolio that includes a mix of asset classes, such as equities, bonds, and sometimes alternative investments. This diversification helps spread risk and can enhance returns over time.
- Professional Management: The funds are managed by investment professionals who handle the allocation and rebalancing decisions. This professional oversight can be particularly valuable for those who lack the time or expertise to manage their investments effectively.
- Customized Risk Tolerance: Each fund is designed with a specific retirement date in mind, so the risk profile of the fund adjusts as the target date approaches. This means investors’ portfolios become more conservative over time, reducing the risk of significant losses as they get closer to their retirement date.
- Cost Efficiency: Target date funds often have relatively low fees compared to hiring a financial advisor to manage a similar strategy.
- Long-Term Focus: These funds are structured to keep investors focused on their long-term goals rather than short-term market fluctuations. This can encourage better investment discipline and reduce the temptation to make emotional investment decisions.
Overall, BlackRock’s target date funds aim to provide a comprehensive, hands-off investment solution that adjusts to meet investors’ evolving needs as they approach their financial goals.
Learn more about target date funds.
Build My Own Portfolio
If enabled by your employer in your group plan, Build My Own Portfolio gives members an easy way to personalize their portfolio and define their own investment risk level. Member's are given a choice of funds and to build a portfolio, members simply add the percent they wish to allocate to each fund. Investments can be made across a variety of asset classes. As you allocate your investment, our platform will indicate your risk level.
All funds in Build My Own Portfolio are managed by RBC Global Asset Management, Canada’s largest asset manager. Every quarter, funds are automatically rebalanced to ensure the asset mix matches the target allocation.
The funds available to our members are as follows:
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PH&N Balanced Pension Trust: This fund provides a diversified mix of equities and fixed income designed to offer a balance between growth and stability, making it suitable for pension plans seeking a steady return with moderate risk.
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PH&N Canadian Equity Value Fund: This fund focuses on investing in undervalued Canadian companies with strong fundamentals. It aims to achieve long-term capital appreciation by selecting stocks that are believed to be trading below their intrinsic value.
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PH&N Canadian Money Market Fund: This fund invests in short-term, low-risk instruments such as commercial paper. It aims to provide a safe place for cash with minimal risk and modest returns, focusing on preserving capital and maintaining liquidity.
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PH&N Short Term Bond & Mortgage Fund: This fund invests in short-term bonds and mortgage-backed securities, offering a lower-risk investment option that seeks to provide steady income with less interest rate sensitivity compared to longer-term bonds.
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PH&N Total Return Bond Fund: This fund aims to provide total return through a mix of interest income and capital appreciation by investing in a diverse range of fixed income securities, including government and corporate bonds.
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RBC QUBE Global Equity Fund: This fund invests in a broad range of global equities, aiming to provide capital growth by diversifying across various international markets and sectors.
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RBC QUBE US Equity Fund: This fund focuses on U.S. equities, seeking to provide capital growth by investing in a range of companies within the United States, with a strategy designed to identify attractive investment opportunities in the U.S. market.