ATB Compass Portfolios: Finding resilience in a changing market

In an investment landscape that often prioritizes short-term "noise" over long-term discipline, finding a clear path forward can feel increasingly difficult. When markets become highly concentrated and volatile, it is natural to question the path. For over two decades, Compass Portfolios have served as a steady anchor for investors, proving their structural resilience in an evolving market and across multiple market cycles.

As we look toward the future, we want to reaffirm the value of the Compass program and share how our portfolio management team is actively enhancing the suite to meet the needs of tomorrow’s investors, and protect and grow long-term wealth.

The core philosophy: Clarity investors can count on

ATB Investment Management (ATBIM) has followed a consistent and disciplined investment approach and philosophy built on effective asset mixes and an unwavering commitment to managing risk through diversification.

Our goal has never been to simply "beat the market" during frantic bull runs. Instead, we focus on achieving the potential for highest possible risk-adjusted returns over the long term. This means building portfolios structured deliberately for resilience—designed to cushion capital during market turmoil so investors have the confidence to stay the course.

The Compass way: Strategies for long-term resilience

Smoother growth: By cushioning the impact of a falling market, the portfolios are structurally positioned with the potential for a smoother recovery and steadier growth path when market conditions become more favourable.

Figure 1: Compass Balanced Portfolio (Series F1) has demonstrated performance resiliency over the long term with greater growth periods following every drawdown period (5% decline or more), measured from November 1, 2011 (since inception) to June 30, 2026.

Predictability: While a risk-managed strategy may not capture the full extent of a rapid, speculative bull market "upside," it aims to provide a more predictable, less volatile experience for investors over full market cycles.

Figure 2: Compass Portfolios (Series F1) have closely aligned with, and at times, outperformed their Morningstar peer-category averages over the long term in terms of trailing total and risk-adjusted returns.

Figure 3: Compass Balanced Portfolio (Series F1) has demonstrated consistent total return outperformance relative to its Morningstar peer-category average, measured from November 1, 2011 (since inception) to June 30, 2026.

Downside Protection: We focus heavily on managing risk and our ability to reduce losses during market downturns, preserving capital when it matters most.

Figure 4: The table compares the up-market and down-market capture ratios of the Compass Portfolios (Series F1) with their respective Morningstar peer-category averages over the 10-year and since-inception periods shown. Results varied by portfolio. Most portfolios achieved lower down-market capture. Several portfolios achieved both higher up-market capture and lower down-market capture.

This risk-aware culture ensures that when markets experience inevitable volatility or periods of exuberance, your portfolio remains grounded in thoughtful strategy, rather than emotion.

Evolving to serve: A richer toolkit 

While our core philosophy remains unchanged, the Compass program is continuously evolving to enhance client outcomes. We have moved beyond traditional asset classes to include a broader range of investment exposures, such as commodities, which further enhance diversification and manage risk.

Our "open-architecture" model is a key competitive advantage. It combines our deep local insight and specialized in-house expertise with the diverse perspectives of respected external managers across the globe. We recently expanded our scope to include new specialized sub-advisors and  mandates focused on improving geographic coverage and factor diversification:

• International equity: New partnerships with Goldman Sachs Asset Management, providing a defensive, lower-volatility international equity income solution, and Victory Capital Management, focusing on finding high-quality international companies that can sustain growth over the long term.
• US equity: Increased diversification through Fiera Capital, applying a rigorous fundamental process to identify top-tier US companies.
• Emerging Markets: Through a disciplined, active lens, Driehaus Capital Management provides high-conviction exposure to the world’s fastest-growing economies.
• ETF integration: Strategic utilization of high-quality exchange-traded funds to optimize cost-efficiency and liquidity.

Our unique partnership with these external managers, who demonstrate consistent long-term performance, ensures that we do not react impulsively to short-term market volatility or the "flavour of the month." We understand that even exceptional managers may experience periods of underperformance when market conditions do not favour their specific investment style. By remaining disciplined and staying the course, we maintain our focus on long-term objectives, ensuring our partnerships are built on conviction rather than temporary market trends.