Why use asset allocation funds?

Description: Braelynn walks into her kitchen with a bag full of groceries. She sets them down on the counter.

Narrator: What kind of investor are you? Adventurous. Cautious. In between.

Description: She opens her cupboard and places three types of hot sauce on the shelf: hot, mild then medium in between.

Narrator: These are just some ways to express your comfort with investment risk.

Description: Camera zooms in on sauces.

Narrator: All investments have risk, some more than others.

Description: Cut to Braelynn, she stands and thinks.

Narrator: One way to reduce risk is through diversification.

Description: “Diversification” appears onscreen.

Narrator: That means spreading your money around in various investments.

Description: Cut to three pie graphs with investment graphics, each display a meter underneath to indicate a “Lower” or “Higher” amount of risk. Each graph is set to a low or medium level of risk.

Narrator: That way, if the market changes for one investment, you have other investments to keep you balanced.

Description: The investment in the middle becomes smaller and the risk level increases. The other two investments adjust to a lower risk to accommodate.

Narrator: If you think diversifying your investments is complicated, it doesn’t have to be.

Description: Camera pans down to reveal a large question mark, investments fall behind.

Narrator: This is where an asset allocation fund comes in.

Description: A pie graph of an asset allocation fund appears. Investment graphics surround the graph.

Narrator: An asset allocation fund automatically spreads your money amongst several funds, so they help manage risk.

Description: A dollar sign appears in the middle of the asset allocation fund. All investment graphics flip to show dollar signs.

Narrator: You can choose from two different types of asset allocation funds.

Description: Cut to two squares with text in each: “Target date funds” and “Target risk funds”. A cursor enters the frame and clicks on “Target date funds.”

Narrator: Target date funds are based on the year you expect to retire.

Description: A pie graph appears, labelled “Target date funds” with a counter below. The counter rolls to 2050.

Narrator: Target risk funds are based on your comfort with risk.

Description: Five pie graphs appear, labelled “Target risk funds.” A meter appears below to indicate a “Lower” or “Higher” amount of risk.
The graphs are arranged from low to high risk: “Conservative,” “Moderate,” “Balanced,” “Advanced” and “Aggressive.”

Narrator: Not sure how comfortable you are with risk?

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Narrator: Our investment personality questionnaire can help you figure that out.

Description: Cut to view of hands holding a tablet. The investment personality questionnaire is displayed.

Narrator: Now you can have a diversified investment portfolio that fits your needs and helps you reach your savings goals.

Description: Return to Braelynn in her kitchen, using the medium hot sauce to make dinner.

Narrator: Sign into GRS Access at canadalife.com

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Description: The back of a house is shown with a door and steps to the yard. Two open hands move in, framing the house.

Narrator: If you want your savings to grow, you usually need to take on some kind of risk.

Description: Daniel stands in his yard sketching on a clipboard.

Narrator: The trick is to find investments that match your comfort with risk.

Description: Cut to view of clipboard. He finishes his sketch of a new deck at the back of the house.

Narrator: Target risk funds can help you do that.

Description: Words “Target risk funds” appear onscreen.

Narrator: Each fund includes a unique mix of different types of investments.

Description: Five pie graphs appear. The graphs are arranged from low to high risk: “Conservative,” “Moderate,” “Balanced,” “Advanced” and “Aggressive.” A meter appears below to indicate a “Lower” or “Higher” amount of risk.

Narrator: For example, a conservative risk fund might focus on bonds and real estate.

Description: Camera zooms in on the “Conservative” risk fund. Investment graphics appear beside to represent bonds and real estate.

Narrator: That’s because these types of investments tend to provide a return that’s more consistent and less volatile.

Description: Camera pans to a graph of stock market fluctuations over time. The gradual growth of the “Conservative” risk fund is shown. A pile of money below the graph becomes larger as time progresses.

Narrator: On the other end of the scale is an aggressive risk fund, that would focus more on equities (or stocks).

Description: Camera pans back to the “Conservative” risk fund, moves past the “Moderate,” “Balanced” and “Advanced” graphs to the “Aggressive” risk fund. Investment graphics appear beside to represent stocks.

Narrator: Returns on these types of funds go up and down with the markets. You can make a lot or lose a lot in a short time frame.

Description: Camera pans back to the graph of stock market fluctuations. The pile of money below the graph gains or loses money as time progresses.

Narrator: To help manage risk, our investment managers spread each fund’s investments across different industries, countries, and groupings of investments with similar characteristics, laws and regulations.

Description: Investment graphics fill the frame. The investment manager’s hand moves in and five investments are chosen to build a fund.

Narrator: When returns for one type of investment are down, others tend to be up.

Description: Two of the investments become smaller and the others get larger. The hand replaces the smaller investments.

Narrator: The managers rebalance each fund to keep it within its specific target risk level.

Description: The five investments line up and two meters are displayed below, indicating a “Lower” or “Higher” amount of risk and a “Lower” or “Higher” return. The fund’s risk and return are set.

Narrator: Complete our investment personality questionnaire to find out how much risk you’re comfortable with.

Description: Cut to Daniel on his laptop at home.

Narrator: Once you know, it's easy to pick your matching target risk fund.

Description: The investment personality questionnaire is displayed on the laptop. He calculates his points from each section.

Narrator: And remember, as your life changes, your investment personality may change with it.

Description: Cut to Daniel outside in the summer, building the foundation for his deck. A “Conservative” risk fund is displayed.

Narrator: When that happens, you can just switch to a different target risk fund.

Description: Cut back to him in the winter, building the deck railing. A “Balanced” risk fund is displayed.

Narrator: What an easy, hands-off approach to investing.

Description: Daniel and his family are shown, enjoying the finished deck in the summer.

Narrator: Want to learn more about target risk funds?

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Narrator: Sign into GRS Access at canadalife.com

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Narrator: We’ve made it simple to start investing for your retirement.

Description: Jean is sitting on the couch in her living room with family, using her tablet.

Narrator: With our target date funds, all you need to do is decide when you want to retire, then select the fund closest to that year.

Description: Cut to view of tablet. She swipes up to reveal a calendar. The calendar cycles through each year and lands on 2048.

Narrator: Let’s say you want to retire in 2048. You’d choose our 2050 target date fund.

Description: Cut to pie chart of 2050 target date fund.

Narrator: Over the next few decades, the fund will gradually change from higher-risk to lower-risk investments.

Description: The pie chart moves to accommodate changes in risk type.

Narrator: For example, while you're still in your 30s, the fund uses higher-risk investments to help maximize growth.

Description: Cut to two line graphs, one for risk, the other for return. Age is shown from 30 to 65.

Narrator: As you get closer to your retirement, the fund uses more lower-risk investments to help protect your savings if the market falls.

Description: Both graphs start high then lower as age increases.
Narrator: A target date fund is a simple, hands-free approach to retirement savings.

Description: Frame zooms out to view Jean’s tablet and hands. Her hand swipes to reveal GRS Access “Plans” screen with RPP fund.

Narrator: You’ll get a mix of different investments and professional management, in one fund.

Description: She scrolls down to reveal asset mixes.

Narrator: It's practically effortless. Just choose one and relax.

Description: Return to Jean in her living room with family. She looks up from her tablet and smiles.

Narrator: Sign into GRS Access at canadalife.com

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