The Select 50 Balanced Fund will invest predominantly in funds listed on the Select 50 preferred-fund list. In practice, this means the fund will have at least 80% of its assets invested in Select 50 constituents.
To give the manager of the fund the flexibility to try to deliver its objectives, up to 20% of the assets may be in other investments in which the manager has a similar level of conviction.
The Select 50 Balanced Fund will not hold all of the funds on the Select 50 list. The manager will select from the list in order to try to deliver the fund’s long-term growth objectives. The portfolio of funds will be actively managed; it is not designed to simply mirror the performance of all the funds on the Select 50.
We expect the Select 50 Balanced Fund will hold around 30 funds.