Prepare for tomorrow. Recover with confidence.

Humans are incredibly resilient.

Last year, how many of us knew what it meant to “flatten the curve?” Now we’re all experts on the nuances of “quarantine” vs “self-isolation.” We wear masks in public. We stand two meters apart at the grocery store. And because we’ve committed to the principles of social distancing, Canadian cities and business are cautiously reopening.

As our focus starts to extend beyond our immediate needs, it’s time for investors to return to their long-term plans. The three R approach – Refocus, Review & Rebuild – will help you and your advisor prepare for tomorrow by focusing on what you can control today.


Performance of the S&P 500 Index

February 19,2020 – March 20, 2020

Performance of the S&P 500 Index Source: S&P 500, as of March 20, 2020

What just happened?

This winter, the S&P 500 suffered its fastest 30% decline since 1931. In just 31 days, one of the longest bull runs in history…was history. By mid-June, the markets had quietly recovered, but if anything’s certain right now it’s that more uncertainty is on the way

Take an honest look at your circumstances, goals and appetite for risk. Has anything changed?

A scarcity mindest is one of the side-effects of life under lockdown. The same instinct that compels people to horde hand sanitizer can compel investors to avoid risk.

Have an open conversation with your advisor about what’s changed in your situation and in the markets – and what those changes mean for your long-term plans.


Whether you rode out the downturn or waited on the tarmac, your portfolio may look different today than it did in January. Talk to your advisor about consolidating, substituting and complementing your holdings to help prepare for what’s next.

Together, these considerations will help you identify gaps in your portfolio, which can point the way to solutions that will help you rebuild.


A crisis often accelerates trends that were already just beneath the surface. Talk to your advisor about bolstering your portfolio with solutions that are well-positioned to benefit from the following prevailing themes:

Focus on the fundamentals of research and risk management to give your portfolio a strong core of fixed income – with the flexibility to take advantage of new opportunities.

A solid core

Build a core fixed income strategy around high-quality government and corporate bonds.

Currency-Managed Global Exposure

Invest abroad for enhanced returns from yields and currencies while reducing exchange rate exposure.


Take a multi-sector approach to capture the best yield opportunities, while reducing volatility.

More Yield, Without More Risk

Increase income without adding significant risk.

Is your portfolio positioned to weather more storms? Talk to your advisor about how a strong core of fixed income can help reduce volatility and provide stable return on your investment.

Amidst the uncertainty, investors may be drawn to the resilience of high-quality and well-managed companies with solid balance sheets.

High-quality companies tend to regularly pay and grow dividends, increasing their return potential.

Average Annualized Return by Dividend Policy

30-Year Period Ending March 31, 2020
Average Annualized Return by Dividend Policy

It can be a challenge to increase quality while maintaining growth. An experienced manager with a dividend-focused approach can help.

Source of chart: Ned Davis Research Group, Inc., March 31, 2020. Indexes This chart represents the dividend-paying and non-dividend-paying stocks of the S&P 500 Index. The average annual total returns are calculated using monthly equal-weighed geometric averages of the total returns of all dividend-paying stocks and non-dividend-paying stocks. Returns do not reflect the deduction of fees or sales charges.

91% of investors want investments that can outperform the markets and 90% believe risk management is important.2 If you share these views, consider adding actively-managed investments to your portfolio.

Active managers can pick a mix of stocks that don’t mirror the benchmark. That matters because benchmarks tend to be top-heavy with the most popular stocks, like the tech giants shown below.

Historical Weights as a % of the MSCI World Index

As of March 31, 2020
Historical Weights as a % of the MSCI World Index

Take your portfolio beyond the benchmarks. Work with your advisor to make sure your investments can ride out volatility while still benefiting from areas of growth.

*Franklin Templeton Global Investor Sentiment Survey 2018

Learn more. Talk to your advisor or call us at 1 (800) 387-0830.