separately managed accounts

welcome to the world of the "sma"

Separately Managed Accounts (SMAs) have seven key advantages over mutual funds and other similar investment products:

Fees

Fees for SMAs vary depending on household, account or asset size. That said, NOW believes in bringing SMAs to every Canadian. Fees will never be above 2.0% and in most cases will range between 1.00-1.90%. This Management Fee is generally tax-deductible in non-registered accounts. In contrast, mutual funds are typically well above 2.0% and only a portion is tax-deductible.

Tax Efficiency

SMAs provide the ability to control the timing of transactions that have tax implications. SMAs provide a cost base that is unique to each Investor, with realized capital gains or losses reflecting the actual gains and losses for the investor.

Performance

SMAs typically remain fully invested, providing the opportunity to earn investment returns on equity and fixed income positions as opposed to holding cash balances. Any additions to and withdrawals from the accounts occur only as directed by the investor.

Customization

SMAs invest only in assets that are consistent with the client's Investment Policy Statement. An Investment Policy Statement is unique to each investor, reflecting their financial position, time horizon, short- and long-term investment needs, risk tolerance, and other special circumstances.

Transparency

SMAs allow the investor to be fully aware of the securities in which they are invested. Investors receive immediate transaction confirmations and quarterly holdings statements from the Custodian. The frequency can be as high as monthly if there is trading activity within the investment account(s).  Investors also receive quarterly statements and performance reporting from the Portfolio Manager, which is a regulatory requirement. Investors also have the ability to access their account information, holdings, and transactions online through the respective Custodian’s online platform.

Management Focus

SMAs reflect the investment style of the Portfolio Manager and the constraints of the Investment Policy Statement. This allows the Portfolio Manager to focus research on a manageable number of companies within their area of expertise, allowing for a better understanding of both the companies and the industries in which they operate.

Service

SMAs allow the investor to receive a superior level of service from the Portfolio Manager. Investors receive a customized investment product, reflecting the parameters of the Investment Policy Statement and the direct relationship with the Portfolio Manager.

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