Risk And Return

Risk Return Compass Portfolios are diversified.

Compass Portfolio Series create the potential for greater returns for the same amount of risk by investing beyond traditional asset classes. Each Compass Portfolio contains varying percentages of equity and bond investments, plus some combination of alternative investments, like real estate investment trusts, commercial real estate and private equity. It’s the balance of equities and fixed income in your portfolio that determines the level of risk.

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Investing in Bonds


Bonds traditionally provide greater stability and predictability compared to investing in equities. The trade off is the lower potential return of bonds versus stocks. But not all bonds are created equal. Higher quality bonds carry less risk, while higher risk bonds can have a greater chance of losing money, but greater chance to make more money. Bonds can be complex, but Compass Portfolio Series Sub-Advisors perform the necessary in-depth credit analysis to find the opportunities for longer term success, while mitigating the risks of losing money.


Bonds Are Safer  
 

Equities offer greater potential growth


Equities represent an ownership interest in a company. Compass Portfolio Series invest in public and private companies in Canada, the United States and around the world. Equities are higher risk and provide higher potential returns because your investment’s performance is tied to the success of the business. If you have a significant amount of time before you will need to live off of your investments, you can afford to better weather the ups and downs of an equity portfolio and will benefit from the higher rate of return. As you age and get closer to retirement, it makes sense to start adding bonds to reduce the volatility of your portfolio.


 Equities Offer Potential Growth
 

How does Compass Portfolio Series balance risk versus return?

Compass Portfolio’s risk profile and expected return is determined by the percentages of equity and bond investments held in each Compass Portfolio.


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