Managed Accounts

Accounts are separately managed on a discretionary basis. We consult with each client to determine an appropriate investment mandate for the client’s specific objectives and circumstances. A portfolio is then constructed based on the relevant “model portfolio(s)” for that mandate.

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, i.e., go “long”, undervalued securities and, from time to time, opportunistically sell “short” overvalued or impaired equities that we believe will decline in price. A short sale is a sale of a security not owned but borrowed from a holder and subsequently returned to that holder when it is repurchased in the market. The short seller profits if the repurchase price of the security is below the initial sale 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% of the portfolio value, when we think the market is unsustainably high. Short selling may be used for the purpose of making a profit and/or for hedging purposes to protect long positions and 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 payments. 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. The income positions are often higher yielding securities of corporate issuers where we believe the risk-return opportunity 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.