Encasa Funds, Explained


Our investment philosophy at Encasa has always been to encourage investors to take a portfolio approach when developing their investment strategy. A portfolio approach means bringing diversification to your portfolio. Diversification is the ultimate risk management strategy. What does it mean in practice? It means thinking about your portfolios as a puzzle. While the Encasa Funds perform on their own, they are meant to work best as parts of a portfolio. Like pieces of a puzzle, each Fund has its own attributes and when combined, the whole is greater than the sum of the parts. When pooled, the Funds work together to help investors achieve their financial goals within acceptable levels of risk. The Encasa Funds are also operated by experienced advisory teams who share our vision of looking beyond the short-term. Here are some basics on our three funds:

The Encasa Canadian Short-Term Bond Fund and the Encasa Canadian Bond Fund, both sub-advised by Addenda Capital, are suitable for short-to-medium time horizons. The Canadian Short-Term Bond Fund invests in bonds with a maturity of less than five years and returns higher levels of interest income compared to Money Market funds. If you are investing funds for the medium-term, the Canadian Bond Fund may be a good fit for you. This Fund invests in bonds of Canadian governments and corporations. Both Funds are suitable for investors with lower tolerances for risk. For investors looking for exposure to quality, primarily non-Canadian, growth companies, the Encasa Equity Fund may be a suitable fit for you. The Equity Fund, sub-advised by Genus Capital Management, is best suited for investors with a longer time horizon.

And as the world evolves, changes designed to optimize the Funds are made along the way. Consider our Equity Fund. In 2020, we expanded the investment mandate for the Fund to diversify away from the Canadian market, which has become increasingly undiversified. By expanding the mandate to include more companies from outside Canada, we have created a more diversified equity fund for investors.

Ready to optimize your investment portfolio? The first step is to develop a plan. Your Investment Funds Advisor will assess your financial position, and develop a portfolio using the Encasa Funds based on your organizations’ unique factors, including time horizon, risk tolerance and long-term financial objectives. Contact your Investment Funds Advisor today or email information@encasa.ca.