Separately Managed Accounts

Growth Accounts

Growth accounts are invested with the primary objective of long-term capital appreciation. Accounts are managed based on a model portfolio of undervalued securities with large, medium and/or small market capitalizations, emphasizing our best ideas, often concentrating in specific securities and sectors. Although accounts will be invested primarily in equities, they may hold income securities when we believe the risk-return opportunity compares favourably to equities. These accounts are typically fully invested, but may hold cash if our outlook dictates such allocation.

Growth accounts include four types of portfolios:

• Long/Short
  Long/Short accounts buy, that is go “long”, undervalued securities and opportunistically sell “short” a variable percentage of overvalued equities that we believe will decline in price. Long /Short accounts are net long, with total short positions typically ranging between 0% (when we believe the market is near its lows) and 40% (when we believe the market is unsustainably high) of the portfolio value. Short selling may be used for the purpose of making a profit and/or for hedging purposes in an attempt to reduce a portfolio's exposure to a declining stock market.
• Long-only
  Long-only accounts are invested primarily in equities without any short selling.
• RSP
  These long-only accounts are managed for clients with Canadian registered plans (i.e., RRSPs, RRIFs, RESPs and certain other registered plans).
• IRA
  These long-only accounts are managed for clients with U.S. retirement plans (i.e., IRA and other non-ERISA accounts).

Income Accounts

Income accounts are invested with the objective of a more stable return, with potentially lower volatility than equity investments of a Growth account, and/or to receive regular periodic income. Accounts are managed based on an income model which seeks to provide consistent income, often with potential capital appreciation, through a portfolio of securities that may include government and corporate bonds and debentures, preferred shares, REIT and income trust units and high dividend-paying common shares. These income positions are often higher yielding securities of corporate issuers where we believe the risk/return is favourable, though these holdings are less liquid than government-issued fixed income securities.

Balanced Accounts

Balanced accounts seek to combine a client’s growth and income objectives in a portfolio that draws from both our Growth and Income models, with the percentage allocated to each tailored to a client’s needs and circumstances.