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Frequently Asked Questions

Do you have a description of the asset classes on globefund.com?

globefund.com adheres to the Canadian Investment Funds Standards Committee (CIFSC) standards for mutual fund classification in Canada. The criteria for allocation into a specific fund category is as follows. Firstly, a fund's objective and style, as presented in the prospectus, is looked at to determine the appropriate asset category. Then the fund's actual portfolio holdings over a period of time are examined to determine its placement within a specific category.

There are 34 fund categories in all, and they are listed below.

Fixed Income Funds

Canadian Short Term Fixed Income

Funds in the Canadian Short Term Fixed Income category must invest at least 90% of their fixed income holdings in fixed-income securities denominated in Canadian dollars with an average duration of less than 3.5 years. In addition, these funds must invest primarily in investmentgrade fixed-income securities, such that the average credit quality of the portfolio as a whole is investment grade (BBB or equivalent rating or higher) and not more than 25% of the portfolio’s holdings are invested in high yield fixed income securities. For purposes of the category definition, up to 30% of a Fund’s assets may be held in Foreign Fixed Income products which will be treated as Canadian content provided that the currency exposure on those holdings is hedged into Canadian Dollars.

Canadian Fixed Income

Funds in the Canadian Fixed Income category must invest at least 90% of their fixed income holdings in Canadian dollars with an average duration greater than 3.5 years and less than 9.0 years. In addition, these funds must invest primarily in investment-grade fixed-income securities, such that the average credit quality of the portfolio as a whole is investment grade (BBB or equivalent rating or higher) and not more than 25% of the portfolio’s holdings are invested in high yield fixed income securities. For purposes of the category definition, up to 30% of a Fund’s assets may be held in Foreign Fixed Income products which will be treated as Canadian content provided that the currency exposure on those holdings is hedged into Canadian Dollars.

Canadian Long Term Fixed Income

Funds in the Canadian Long Term Fixed Income category must invest at least 90% of their fixed income holdings in fixed-income securities denominated in Canadian dollars with an average duration greater than 9.0 years. In addition, these funds must invest primarily in investmentgrade fixed-income securities, such that the average credit quality of the portfolio as a whole is investment grade (BBB or equivalent rating or higher) and not more than 25% of the portfolio’s holdings are invested in high yield fixed income securities. For purposes of the category definition, up to 30% of a Fund’s assets may be held in Foreign Fixed Income products which will be treated as Canadian content provided that the currency exposure on those holdings is hedged into Canadian Dollars.

Canadian Inflation Protected Fixed Income

Funds in the Canadian Inflation Protected Fixed Income category must invest at least 90% of their fixed income holdings in inflation protected fixed-income securities denominated in Canadian dollars. In addition, these funds must invest primarily in investment-grade fixed-income securities, such that the average credit quality of the portfolio as a whole is investment grade (BBB or equivalent rating or higher) and not more than 25% of the portfolio’s holdings are invested in high yield fixed income securities. For purposes of the category definition, up to 30% of a Fund’s assets may be held in Foreign Fixed Income products which will be treated as Canadian content provided that the currency exposure on those holdings is hedged into Canadian Dollars.

Global Fixed Income

Funds in the Global Fixed Income category must invest less than 90% of their fixed income holdings in Canadian dollar issues. In addition, these funds must invest primarily in investmentgrade fixed income securities (BBB or equivalent rating or higher) and not more than 25% of the portfolio’s holdings are invested in non-investment grade securities.

High Yield Fixed Income

Funds in the High Yield Fixed Income category must invest primarily in fixed-income securities with a non-investment-grade credit rating, such that their average credit quality is below investment grade (Lower than BBB or equivalent) or in excess of 25% of the portfolio’s holdings are invested in high yield fixed income securities.

Balanced Funds

Canadian Equity Balanced

Funds in the Canadian Equity Balanced category must invest at least 70% of total assets in a combination of equity securities domiciled in Canada and Canadian dollar-denominated fixed income securities. In addition, they must invest greater than 60% but less than 90% of their total assets in equity securities.

Canadian Neutral Balanced

Funds in the Canadian Neutral Balanced category must invest at least 70% of total assets in a combination of equity securities domiciled in Canada and Canadian dollar-denominated fixed income securities. In addition, they must invest greater than or equal to 40% but less than or equal to 60% of their total assets in equity securities.

Canadian Fixed Income Balanced

Funds in the Canadian Fixed Income Balanced category must invest at least 70% of total assets in a combination of equity securities domiciled in Canada and Canadian dollar-denominated fixed income securities. In addition, they must invest greater than 5% but less than 40% of their total assets in equity securities.

Global Equity Balanced

Funds in the Global Equity Balanced category must invest less than 70% of total assets in a combination of equity securities domiciled in Canada and Canadian dollar-denominated fixed income securities. In addition, they must invest greater than 60% but less than 90% of their total assets in equity securities.

Global Neutral Balanced

Funds in the Global Neutral Balanced category must invest less than 70% of total assets in a combination of equity securities domiciled in Canada and Canadian dollar-denominated fixed income securities. In addition, they must invest greater than or equal to 40% but less than or equal to 60% of their total assets in equity securities.

Global Fixed Income Balanced

Funds in the Global Fixed Income Balanced category must invest less than 70% of total assets in a combination of equity securities domiciled in Canada and Canadian dollar-denominated fixed income securities. In addition, they must invest greater than 5% but less than 40% of their total assets in equity securities.

Tactical Balanced

Balanced Funds with a specific mandate to employ tactical asset allocation strategies and funds that the CIFSC deems to employ tactical asset allocation strategies will be assigned to the Tactical Balanced fund category.

Target Date Funds

2010 Target Date Portfolio

These are target-date funds that mature in 2010 or earlier.

2015 Target Date Portfolio

These are target-date funds that mature in mature in 2015 or earlier and after 2010.

2020 Target Date Portfolio

These are target-date funds that mature in 2020 or earlier and after 2015.

2020+ Target Date Portfolio

These are target-date funds that mature after 2020.

Equity Funds

Canadian Dividend & Income Equity

Funds in the Canadian Dividend & Income Equity category must have a stated mandate to invest primarily in income-generating securities and must invest at least 90% of their equity holdings in securities domiciled in Canada. In addition, these funds must invest at least 50% of their non-cash assets in income-generating securities such that the 3-year weighted average yield on the equity component of the fund’s portfolio is at least 1.5 times the average yield of the Canadian Equity Fund benchmark, defined as the S&P/TSX Equity Index. The fund’s average capitalization must exceed the Canadian small/mid cap threshold.

Canadian Equity

Funds in the Canadian Equity category must invest at least 90% of their equity holdings in securities domiciled in Canada, and their average market capitalization must be greater than the Canadian small/mid cap threshold.

Canadian Small/Mid Cap Equity

Funds in the Canadian Small/Mid Cap Equity category must invest at least 90% of their equity holdings in securities domiciled in Canada, and their average market capitalization must be lower than the Canadian small/mid cap threshold.

Canadian Focused Equity

Funds in the Canadian Focused Equity category must invest at least 50% and less than 90% of their equity holdings in securities domiciled in Canada, and their average market capitalization must be greater than the Canadian small/mid cap threshold.

Canadian Focused Small/Mid Cap Equity

Funds in the Canadian Focused Small/Mid Cap Equity category must invest at least 50% and less than 90% of their equity holdings in securities domiciled in Canada, and their average market capitalization must be lower than the Canadian small/mid cap threshold.

Canadian Income Trust Equity

Funds in the Canadian Income Trust Equity category must invest at least 90% of their equity holdings in income trust securities domiciled in Canada.

U.S. Equity

Funds in the U.S. Equity category must invest at least 90% of their equity holdings in securities domiciled in the United States, and their average market capitalization must be greater than the U.S. small/mid cap threshold.

U.S. Small/Mid Cap Equity

Funds in the U.S. Small/Mid Cap category must invest at least 90% of their equity holdings in securities domiciled in the United States such that their average market capitalization is within the U.S. small/mid cap threshold.

North American Equity

Funds in the North American Equity Category must invest at least 90% of their equity holdings in securities domiciled in Canada and/or the United States but less than 50% of their equity holdings in securities domiciled in Canada. This category excludes any fund that meets the requirements of the U.S. Equity and U.S. Small/Mid Cap Equity categories.

Asia Pacific Equity

Funds in the Asia Pacific Equity category must invest at least 90% of their equity holdings in securities domiciled in 2 or more countries in the Asia/Pacific region. This category excludes any funds that meet the requirements of the Asia Pacific ex-Japan or Japanese Equity categories.

Asia Pacific ex-Japan Equity

Funds in the Asia Pacific ex-Japan Equity category must invest at least 90% of their equity holdings in securities domiciled in 2 or more countries in the Asia/Pacific Rim region. Funds with more than 5% of equity holdings in Japanese equity securities are excluded from the category.

Japanese Equity

Funds in the Japanese Equity category must invest at least 90% of their equity holdings in securities domiciled in Japan.

European Equity

Funds in the European Equity category must invest at least 90% of their equity holdings in a diversified portfolio of securities domiciled in 2 or more countries in Europe.

Emerging Markets Equity

Funds in the Emerging Markets Equity category must invest at least 90% of their equity holdings in a broadly based portfolio of securities from emerging markets countries. Funds with a consistently narrow focus on a single country, group of countries or single region within the emerging markets will be excluded from the category.

Global Equity

Funds in the Global Equity category must invest in securities domiciled anywhere across the globe such that their average market capitalization is greater than the small/mid cap threshold, and invest more than 5% and less than 90% of their equity holdings in Canada or the U.S. Funds that do not meet any of the requirements of other geographic equity categories and have no formal restrictions that limit where they can invest will be assigned to this category.

Global Small/Mid Cap Equity

Funds in the Global Small/Mid Cap Equity category must invest in securities domiciled anywhere across the globe such that their average market capitalization is within the small/mid cap threshold and must invest more than 5% and less than 90% of their Equities Assets in Canada or the U.S.. Funds that do not meet any of the requirements of other geographic equity categories and have no formal restrictions that limit where they can invest will be assigned to this category.

International Equity

Funds in the International Equity category must invest at least 95% of their equity assets in countries other than Canada and the United States and at least 70% of their equity assets in developed countries. Funds that do not meet any of the requirements of the more focused geographic equity categories and that invest less than 90% of their assets in any single country or region will be assigned to the International Equity category.

Health Care Equity

Funds in the Health Care Equity category must invest at least 90% of their equity holdings in the Health Care sector according to S&P Global Industry Classification Standard (GICS®).

Financial Services Equity

Funds in the Financial Services Equity category must invest at least 90% of their equity holdings in the Financials sector according to S&P Global Industry Classification Standard (GICS®).

Precious Metals Equity

Funds in the Precious Metals Equity category must invest at least 90% of their equity holdings in the securities of companies in the Gold and Precious Metals & Minerals sub-industries according to S&P Global Industry Classification Standard (GICS®).

Natural Resources Equity

Funds in the Natural Resources Equity category must invest at least 90% of their equity holdings in the securities of companies whose primary line of business is in any combination of the following sectors or industries according to S&P Global Industry Classification Standard (GICS®): Energy, Metals & Mining, and Paper & Forest Products. This excludes any funds that meet the definition for the Precious Metals Equity category.

Science & Technology Equity

Funds in the Science & Technology Equity category must invest at least 90% of their equity holdings in the securities of companies in any combination of the following sectors according to S&P Global Industry Classification Standard (GICS®): Health Care, Information Technology, Telecommunications, and any other technology related sub-industries not categorized under these sectors. This excludes any funds that meet the definition for the Health Care category.

Real Estate Equity

Funds in the Real Estate Equity category must invest at least 90% of their equity holdings in the Real Estate industry group according to S&P Global Industry Classification Standards (GICS®).

Specialty Funds

Retail Venture Capital

Funds in the Retail Venture Capital funds include but are not limited to Labour Sponsored Investment Funds (LSIF) and other related Funds that receive special tax benefits for investing in Canadian venture capital as defined by the applicable federal and provincial statutes.

Miscellaneous

Funds in the Miscellaneous category focus on a unique strategy that does not belong to any other category. This includes, but is not limited to those funds that are concentrated in a specific geographic region or sector not identified in the other categories.

Alternative Strategies

Funds in the Alternative Strategies category employ alternative strategies such as short selling or other forms of leverage. Funds may use speculative strategies as well as hedging strategies. A fund is classified as Alternative Strategies if 1) short selling exceeds 2% in any one security or if total short positions exceed 10% of the total fund value; and/or 2) the fund's investment mandate specifically includes use of alternative strategies.

Definitions courtesy of the CIFSC.