Guardian Group of Funds Ltd. has launched GGOF Resource Fund, a multi-asset class product consisting of 50% resource stocks and 50% resource-based income products.
GGOF say this asset combination provides investors with exposure to growth stocks without the volatility normally associated with investing in the resource sector.
The fund’s equity selections will be drawn from the S&P/TSX Energy (oil and gas) and S&P/TSX Materials (metals, minerals and mining, chemicals, steel and forest products) groups. The income portion will allocate 30% to income trusts and 20% to high yield bonds.
“By marrying resource equities with income products, we’ve designed a product that helps dampen the cyclical nature of energy and material stocks,” said Gavin Graham, vp and director of investments, GGOF, in a release. “A fund diversified in this manner offers effective exposure to performance with moderate volatility relative to other resource funds.”
The equity portion of the fund will be managed by Barrantagh Investment Management’s Wally Kusters, Peter Comber and Bruce Jackson. Barrantagh has $300 million in assets under management.
The income portion will be co-managed by Guardian Capital LP’s John Priestman and Steve Kearns. Priestman also manages or co-manages GGOF Monthly High Income Fund, GGOF Monthly High Income Fund II, GGOF Monthly Dividend Fund and GGOF Canadian Diversified Monthly Income Fund, and Kearns manages or co-manages GGOF Canadian High Yield Bond Fund and GGOF Canadian Diversified Monthly Income Fund.