Decision by Committee (June 25, 2025)

  • The AMC¹ trimmed the Canadian Equity target weight, which had passively increased due to relative performance, in favour of adding to growth-oriented US and Global Equity allocations.
  • The AMC remains comfortable with a bias toward Equity in its asset mix and a tilt in favour of Global Equity strategies (with a skew toward US) focused on quality growth that would benefit from the market growth premium being restored.
  • The expectation of a steepening yield curve and range-bound longer-term interest rates provides little impetus to add duration in Fixed Income allocations. High-quality mid-term corporate credit continues to offer attractive all-in yields, and the AMC believes it provides a more favourable risk/reward profile.

 

Asset Class Returns

Asset Class Representative Index QTD 1 Yr
Canadian Equity S&P/TSX Composite Index 7.23 25.51
Global Equity MSCI World Index (net CAD) 4.33 14.35
Fixed Income FTSE Canada Universe Bond Index -1.16 4.61
Cash FTSE Canada 91 Day T-Bill Index 0.61 3.82

 

Asset Mix Committee Summary Views*

Growth Asset Allocation

Asset Class Strategic Allocation New Tactical Target Change from prior decision
 Equity 70.0%  75.3% –
Canadian Equity 40.0%  39.1% -0.8
Global Equity 30.0% 36.2% +0.8
Fixed Income 25.0% 24.7% –
Cash 5.0% 0.0% –

 

Conservative Asset Allocation

Asset Class Strategic Allocation New Tactical Target Change from prior decision
 Equity 30.0%  30.7% –
Canadian Equity 17.5%  16.3% -0.2
Global Equity 12.5% 14.4% +0.2
Fixed Income 65.0% 66.5% –
Cash 5.0% 0.0% –

 

 

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* These strategic allocations and tactical targets represent the AMC’s tactical views given their assessment of market conditions and performance expectations. Figures may not add up due to rounding.
1 Guardian’s Asset Mix Committee (AMC) consists of investment professionals and asset class specialists, and is charged with overseeing the development and management of multi-asset investment portfolios, specifically addressing asset allocation and areas for advice or communication to such clients as it relates to the makeup of their portfolio.

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Published: July 7, 2025