A Separately Managed Account (SMA) is an account managed on a discretionary basis. A Trapeze SMA represents a one-on-one relationship between the client and the portfolio manager. A Trapeze portfolio manager consults with each client to determine an appropriate investment mandate that fits with the client’s specific objectives and circumstances. We then construct a portfolio for the client’s mandate based on the relevant model portfolio(s) described below. We offer SMA strategies for taxable accounts and registered plan accounts (e.g. RRSPs, RRIFs, RESPs, IRAs), and for institutional clients.
Growth (Equity) Strategies
Generally for clients whose principal objective is long-term capital appreciation.
Trapeze All Cap Global All Cap Value
The Trapeze All Cap model combines our systematic large cap strategy (i.e., Trapeze Global Insight) with our best North American small and medium cap ideas, often concentrated in individual positions and sectors. The All Cap Model has a notional guideline of a minimum weighting of approximately 60% or more in large cap stocks, typically with market caps over $5 billion at the time of purchase, but may invest in companies with market caps of $2 to $5 billion (allocation in actual client accounts depends on clients’ specific preferences and circumstances). The small/medium cap stocks typically have less liquidity and potentially higher volatility than large cap stocks. Short-selling and option strategies may be implemented for clients who authorize them.
Trapeze Global Insight Global Large Cap Value
The Trapeze Global Insight model utilizes a rigorous and proprietary process to uncover undervalued global equities. The Trapeze Global Insight model invests only in large cap stocks, typically with market caps over $5 billion at the time of purchase, but may include those in the $2-5 billion range. Compared to the small/medium cap securities in the Trapeze All Cap model, the securities selected for the Global Insight model will generally have higher liquidity and lower expected volatility. Short-selling and option strategies may be implemented for clients who authorize them.
Generally for clients whose principal objective is the generation of current income from investments.
Trapeze Income High Yield
Our Income model seeks to provide consistent income, with lower volatility than Growth strategies (i.e., equities), often with the potential for capital appreciation. Trapeze Income portfolios typically hold higher yielding corporate bonds and debentures, and may hold preferred shares, REITs, income trust units, and high dividend-paying stocks. They may hold securities issued by smaller corporations which tend to be less liquid than government-issued bonds or securities issued by larger corporations.
Balanced and Custom Strategies
For clients with both capital appreciation and income objectives, we construct balanced portfolios drawing on our Growth (equity) and Income strategies, with the percentage allocated to each tailored to clients’ particular objectives, risk tolerances and financial circumstances.
For clients with unique goals, needs and/or circumstances, we can also construct custom portfolios; for example, for clients who wish to restrict their account from specific sectors or who desire a socially responsible mandate.
Contact us to learn more about our SMA strategies:
Mike Vinokur, CFA
Vice President and Portfolio Manager