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WORTH / ALLAYE-CHAN WEALTH MANAGEMENT GROUP*

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Institutions

Defence versus pension

Union Defence Funds are just one type of portfolio where growth is required but the time horizon is shorter (two to five years) than what might be normal for a long term growth mandate. Here, absolute return instead of relative return becomes important. The Worth / Allaye-Chan Wealth Management Group* has been managing such portfolios for over 15 years. Here are some of the important differences.

	Defence fund	Pension fund
Objective	to provide necessary funds for short term cash flow needs	to meet post-retirement obligations of the plans
Investment mandate	to provide liquidity and safety of capital	to maximise long term growth potential
Risk tolerance levels	Low to medium	medium to high
Investment time horizon	short term ( < 6 years)	long term (> 40 years)
Performance benchmark	absolute returns (seek to achieve positive returns regardless of market conditions in any given year)	relative to market index (S&P TSX Composite,Universe Bond Index)

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*Worth / Allaye-Chan Wealth Management Group is part of Macquarie Private Wealth Inc.

No entity within the Macquarie Group of Companies is registered as a bank or an authorized foreign bank in Canada under the Bank Act, S.C. 1991, c. 46 and no entity within the Macquarie Group of Companies is regulated in Canada as a financial institution, bank holding company or an insurance holding company. Macquarie Bank Limited ABN 46 008 583 542 (MBL) is a company incorporated in Australia and authorized under the Banking Act 1959 (Australia) to conduct banking business in Australia. MBL is not authorized to conduct business in Canada. No entity within the Macquarie Group of Companies other than MBL is an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Australia), and their obligations do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of any other Macquarie Group company. Macquarie Private Wealth Inc. is a member of the Canadian Investor Protection Fund and IIROC.