To make the management of his RRSP portfolio easier, louis is considering selling his individual holdings of Canadian stocks and replacing them with an investment in AGF Canada Class mutual fund. His current portfolio offers him a steady dividend stream and some modest growth potential.
The investment objective of the fund is to provide long-term capital growth through shares of Canadian companies with above-average growth in sales, earnings and cash flow. The manager uses a bottom-up growth investment style favouring large-cap growth companies trading at a reasonable price. The manager identifies companies with the ability to generate above-average growth in sales, earnings and cash flow. The fund tends to remain fully invested across all market cycles with low portfolio turnover.
3 year Beta = 0.82, 3 year risk = 9.03 and 10 year av return of 5.75%.
Would such a move be appropriate, given the investment objectives of the fund?
Does this beta reflect the fund's investment objectives?