Investors in mutual funds or pooled funds, are unitholders in a fund which is managed according to a governing document such as a prospectus. By comparison, a Separately Managed Account (“SMA”) provides the investor with the benefits of a uniquely managed portfolio, governed by a personally tailored investment policy statement. In a SMA, the investor owns individual security positions, which are held in a secure custodial account.
SMA’s are constructed to align with the investor’s unique risk and return objectives. Through its proprietary Risk Assessment Questionnaire, SEAMARK can help determine the ‘best fit’ asset mix for one’s personal circumstances. In the SMA, the investor’s best fit asset mix can be adjusted annually, or as often as special circumstances dictate.
This form of account is the preferred vehicle for tax conscious investors. Capital gains and losses can be planned for the account to deliver maximum tax efficiency. SMA’s are not subject to security purchases and sales driven by the contributions or redemptions of a mutual fund. They are ideal for Investment Holding Companies.
Also, SMA’s are well suited for investors with Environment, Social, or Governance (ESG) considerations. A SMA can eliminate certain companies, or industries, from a portfolio. Investors may want to avoid companies and industries in which they work, to better diversify their economic risk. On the other hand, the flexibility of an SMA allows the investor to express a preference for certain industries. Investments within a separately managed account often reflect the investor’s view on matters such as energy, or labour practices.
An accredited and experienced SEAMARK portfolio manager is assigned to an investor’s SMA(s) which can include both registered (such as RRSP or TFSA) and unregistered types. All of the investor’s related accounts are commingled for the calculation of investment management fees, making it lower cost than individually calculated structures. Investment management fees are subject to HST, and are tax deductible for taxable accounts.*
SEAMARK offers several investment mandates that can be customized to meet the needs of each client, through an SMA:
- Low Volatility Equities
- Canadian Equities
- S. Equities
- Total Equities (Global)
- Short-term or Money Market
- Canadian Bonds
- Liability Matched or Duration Targeted Bonds
- Dividend and Income
- Socially Responsible Investing Mandates
To discuss whether our investment services could be suitable for your needs, please contact us.
* Separately Managed Accounts are subject to a minimum annual fee of $5000.