Bridgehouse launches Morningstar Managed Investments Program

Morningstar Canada 11 July, 2017 | 5:00PM

Bridgehouse Asset Managers announced today it has launched the Morningstar Managed Investments Program, in collaboration with Morningstar Associates Inc. The program features five fund-of-funds portfolios that will invest in mutual funds, pooled funds and exchange-traded funds. No proprietary Bridgehouse product will be held in the portfolios.

The five portfolios cover a range of investor objectives: conservative, moderate, balanced, growth and aggressive growth. The minimum investment is $1,000. They are offered through both commission-based and fee-based advisors, who are supported by an investor-profile questionnaire and an investment-policy statement.

The portfolios employ a valuation-driven asset-allocation methodology that draws on Morningstar's global expertise, Michael Keaveney, head of investment management, Canada, Morningstar Associates, said in a Bridgehouse release. The portfolios will be diversified across multiple asset classes, investment managers and investment styles. Morningstar may dynamically shift the exposure to specific investments based upon their view of the market and the suitability of each investment for the portfolio.

The equity allocations can vary within a stated range, as specified in the prospectus. For example, the stated equity range is 45% to 75% for the Morningstar Balanced Portfolio. (See table below.) In addition, the Morningstar managers may choose to deviate from the investment objective of a portfolio by temporarily investing most or all its assets in cash during market downturns or for other reasons.

The management fees for Series A, not including fund expenses, range from 1.85% for Morningstar Aggressive to 1.35% for Morningstar Conservative. Series A has front-end-load, low-load and deferred-sales-charge purchase options. It pays trailer fees of 1% to advisors for the three more equity-oriented portfolios, 0.85% for Morningstar Moderate and 0.75% for Morningstar Conservative. Management fees for the fee-based Series F, which pay no embedded compensation to advisors, are correspondingly lower.

Portfolio name Category Equities
allocation (%)
Series A
fee (%)
Morningstar Aggressive Global equity 80-100 1.85
Morningstar Growth Global equity balanced 65-95 1.80
Morningstar Balanced Global neutral balanced 45-75 1.75
Morningstar Moderate Global fixed income balanced 25-55 1.55
Morningstar Conservative Global fixed income balanced 5-35 1.35
Source: Bridgehouse Asset Managers

About Author

Morningstar Canada

Morningstar Canada