Portfolio Program Peer Universe
Frontier compares its model portfolios’ costs and returns to those of about 40 similar portfolio programs offered throughout Canada. Each program contains at least three but usually five or more portfolio funds that range from conservative (low stock weight) to aggressive (high stock weight), and so this peer universe contains about 200 individual portfolio funds.
In any program, the underlying stock and bond holdings in each portfolio fund are usually quite similar and vary mainly in proportion to a fund’s overall stock/bond weight. The peer universe funds are mainly actively managed, and at the end of 2024 the programs collectively had about $500 billion of assets under management and were held by an estimated 2.5 million Canadian investors. Because Frontier’s portfolios contain only Series F and equivalent funds, we compare their costs and returns to the peer universe’s Series F funds.
To ensure comparability, Frontier includes in the peer universe only those portfolio funds whose geographic stock weights are split approximately evenly between US, Canadian and overseas stocks, albeit usually with a slightly higher US weight. More leeway is allowed for the most conservative portfolios, whose stock weight differences are small in absolute terms. US-focus, Canada-focus and international-focus programs are excluded, as are funds with a single-industry focus or concentration.
The pdf document here shows the most recent list of portfolio funds in the peer universe. Its last three pages also list several funds that are excluded, along with the reasons for their exclusion. As shown in the document, four of the excluded funds have very high US equity weights, and the other two have excessive Information Technology/Magnificent 7 industry concentration.
In any program, the underlying stock and bond holdings in each portfolio fund are usually quite similar and vary mainly in proportion to a fund’s overall stock/bond weight. The peer universe funds are mainly actively managed, and at the end of 2024 the programs collectively had about $500 billion of assets under management and were held by an estimated 2.5 million Canadian investors. Because Frontier’s portfolios contain only Series F and equivalent funds, we compare their costs and returns to the peer universe’s Series F funds.
To ensure comparability, Frontier includes in the peer universe only those portfolio funds whose geographic stock weights are split approximately evenly between US, Canadian and overseas stocks, albeit usually with a slightly higher US weight. More leeway is allowed for the most conservative portfolios, whose stock weight differences are small in absolute terms. US-focus, Canada-focus and international-focus programs are excluded, as are funds with a single-industry focus or concentration.
The pdf document here shows the most recent list of portfolio funds in the peer universe. Its last three pages also list several funds that are excluded, along with the reasons for their exclusion. As shown in the document, four of the excluded funds have very high US equity weights, and the other two have excessive Information Technology/Magnificent 7 industry concentration.
