Model Portfolios
Structured allocations for every risk profile
A model portfolio provides a structured, evidence-based framework for asset allocation that aligns with your risk tolerance, time horizon, and financial objectives. Rather than picking individual securities, model portfolios define target allocations across broad asset classes to capture market returns while managing downside risk.
At SG Wealth, our model portfolios are built on decades of capital market research and are tailored to the Canadian investor's unique needs, including home bias considerations, currency exposure, and tax-efficient asset location across registered and non-registered accounts.
Sample Model Portfolio Allocations
| Profile | Equities | Fixed Income | Alternatives | Best For |
|---|---|---|---|---|
| Conservative | 30% | 60% | 10% | Retirees, 0-5 year goals |
| Balanced | 50% | 40% | 10% | Mid-career, moderate risk |
| Growth | 70% | 25% | 5% | 10-20 year horizon |
| Aggressive Growth | 85% | 10% | 5% | 20+ year horizon, high tolerance |
| All-Equity | 100% | 0% | 0% | Very long horizon, maximum growth |
Canadian Equity Allocation Considerations
Home Bias Balance
Canadian equities offer dividend tax advantages in non-registered accounts, but over-weighting Canada concentrates risk in a small, resource-heavy market. A 25-30% Canadian equity weighting balances tax efficiency with diversification.
Currency Hedging Decisions
Foreign equity exposure introduces currency risk. For long-term investors, unhedged international equities provide natural diversification. Shorter-term goals may benefit from partial hedging strategies.
Tax-Efficient Asset Location
Place foreign equities in RRSPs (to recover withholding taxes), Canadian equities in non-registered accounts (for dividend tax credits), and fixed income in TFSAs (to shelter fully-taxable interest).
Maintaining Your Model Portfolio
A model portfolio is only effective if maintained through disciplined rebalancing. Market movements cause allocations to drift from targets, and periodic rebalancing enforces a "buy low, sell high" discipline that improves risk-adjusted returns over time.
Your model portfolio should also evolve as your circumstances change. Learn more about how asset allocation strategy adapts across life stages.
Build Your Personalized Portfolio
A well-constructed model portfolio is the foundation of long-term investment success.
Schedule a consultation to design a portfolio aligned with your goals and risk tolerance.