Analysis

Key stats

About GLOBAL X BALANCED ASSET ALLOCATION UNIT CL A

The fund is a fund-of-funds that aims for long-term capital growth using Horizons Total Return Index ETFs (TRI ETFs). The fund targets a 70% allocation to global equities and 30% allocation to North American government, provincial and corporate fixed income securities. The Canadian securities exposure will be at least 30%. HBAL generally rebalances semi-annually in January and July wherein a portfolio optimization strategy will be employed to select the weightings of TRI ETFs that maximizes risk-adjusted returns. It is worth noting that the fund invests in TRI ETFs that uses derivatives to provide the returns of the index they track (a synthetic exposure) instead of owning the securities directly. Specifically, it uses Total Return Swaps with one or more bank counterparties. HBAL will also use currency forwards at all times to hedge its non-Canadian dollar currency exposure to the Canadian dollar.