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Investment Management Solutions
Investment Management Solutions
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• All recommendations follow our
“Total Return Equation”
• We use multi-manager, multi-asset class for
maximum risk-adjusted returns
• Matching clients needs with leading solutions
The Steele Group’s Investment Solutions
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Our “Total Return Equation”
Total return = Asset mix + Alpha + Market beta + Currency - Tax
Optimize
Maximize Manage
Manage/reduce Minimize
Return over the
benchmark / index
Market correlation
Systematic
Unsystematic
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• Asset Mix
• Alpha Generators (stock and sector selection)
Multi-Level Expertise
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• Risk Management
• Taxation Management
Multi-Level Expertise
Beta management, sector
monitoring and rebalancing Currency management
On-going monitoring
and due diligence
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Your own
fund-of-funds
Our target
Portfolios
Asset mix +/- ? +0.50
Alpha +0.60 +1.50
Beta management, sector
monitoring & rebalancing +0.00 +0.50
Currency management +0.00 +0.50
Corporate class / T-class +0.00 +1.00
Overall +0.60 +4.00
Our Value Proposition
Figures are shown in percentages 0.50 is 0.50%
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Managed solutions:
Guided portfolios:
Individual strategies from:
Maximum Risk-adjusted Returns
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Why a managed solution
Managed
• Continuous fund changes
• Changes happen
automatically
• Automatic rebalancing
• Able to change easily
over time
• Risk tolerance is set by
the institution
Not Managed
• Usually kept static
• Fund changes must be
approved
• Can easily become un-
balanced
• Built for one instant in
time
• Risk tolerance has to be
determined by the advisor
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• Each portfolio is designed to maximize
performance for a given risk using sophisticated
optimization methods
• Portfolio construction skills are combined with
the asset mix expertise of research firms
• Institutional portfolio management
Managed Portfolio Solution
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Portfolio Design Process
Asset Allocation Selection
Portfolio Strategy
Manager Selection
Implementation
Capital Markets Research
Review and Control
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Independent Fund Managers
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• Altrinsic Global Advisors LLC
– Connecticut
– Global Equity
– Value based investment philosophy / restructuring opportunities
• Black Creek Investment Management
– Toronto
– Global & International Equity
– Proprietary investment techniques
• Cambridge Advisors
– Boston
– US Equity
– Economic valuation philosophy / Bottom-Up approach
Independent Fund Managers
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• EPOCH Investment Partners, Inc.
– New York
– US Equity
– Accounting Measurements / Value based investment philosophy
• Harbour Advisors
– Toronto
– Canadian & Global Equity Focus
– Growth and Value based
• Picton Mahoney Asset Management
– Toronto
– Canadian, US & Global Equity
– Quantitative analysis / risk adjusted return
Independent Fund Managers
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• Signature Global Advisors
– Toronto
– Global Equity and Fixed Income Asset Allocation
– Analytical research and broad mandate
• Tetrem Capital Management
– Winnipeg
– Canadian & US Equity
– Disciplined value based
• Trident Investment Management LLC
– New York
– Alternative Investments
– Top-Down and Bottom-Up
Independent Fund Managers
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• QV Investors Inc.
– Calgary
– Canadian & US Small Cap
– Disciplined risk management techniques
Independent Fund Managers
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Portfolio Options
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• Award-winning fund of funds
• 7 portfolios & 7 managers
• 20 underlying funds
• Indirect currency hedging via underlying
managers
• Indirect tax advantages via underlying corporate
class
• Enhanced reporting
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• 7 portfolios
– Income Fund (70i 30e)
– Conservative Fund (55i 45e)
– Conservative Balanced Fund (45i 55e)
– Balanced Fund (35i 65e)
– Balanced Growth Fund (25i 75e)
– Growth Fund (20i 80e)
– Maximum Growth Fund (10i 90e)
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• Fully managed portfolios or customized allocations
• 9 portfolios & 8 managers
• 18 underlying funds
• Pure geographic allocations
• Direct currency overlay program
• Direct tax advantages via Corporate Class
• T-Class options
• Enhanced reporting
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• 9 portfolios, plus customized allocations
– 100i*
– 80i 20e
– 70i 30e
– 60i 40e
– 50i 50e
– 40i 60e
– 30i 70e
– 20i 80e
– 100e *Select Income Advantage
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• Nine professionally constructed risk-optimized portfolios
• Questionnaire designed to establish objectives and
constraints
• Recommended fund allocations
or
• Fully customizable
• List of recommended substitutes
• Choose from any available fund within asset class
• Personalized Investment Policy Statement
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• World-class investment options
• Tax efficiency
• Competitive, flexible fee structures
• Consolidated, simplified account management
• Principal, income and estate protection
– SunWise Essential Series segregated funds allow
PIM investors to combine their investments with the
income protection and estate planning benefits of an
insurance contract.
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• 9 professionally constructed optimized portfolios
– 100i*
– 80i 20e
– 70i 30e
– 60i 40e
– 50i 50e
– 40i 60e
– 30i 70e
– 20i 80e
– 100e *Select Income Advantage
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Matching Needs With leading Solutions
Accumulator Income Seeker
Multi-team,
multi-manager
•Portfolio Series
•Portfolio Select Series
•PIM Guided Portfolios
•Select Income
Advantage
Managed (“SIA”)
•PS Income
Single team,
multi-manager
•Signature Income &
Growth Fund
•Cambridge Canadian
Asset Allocation Fund
•Signature
Diversified Yield
Fund (“SDY”)
•Cambridge
Income Fund
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Minimum Investment $50 $25,000 $100,000
Number of Target Risk Funds 7 9 + 9 +
Independent Fund Companies 7 8 8
Fund Class A W O
Fee comparison Average Low Lowest
MER range 2.00 – 2.45% 1.70 – 2.20% 1.50 – 2.10%*
Corporate Class Underlying YES YES
Quarterly Report NO YES YES
Fee Deductibility on Open Accounts NO YES YES
Invoicing Available NO YES YES
Portfolio Customization NO YES YES
Decreasing Fee Scale* NO NO YES
Household Statements** NO NO YES
* Decreasing fee scale starts at $250,000 minimum account value
** Household statements available when one account is over $250,000
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• The Steele Group uses SLF Investments for our dealer
principle
• SLF Investments is responsible for regulations,
compliance and compensation
• Built-in to an MER is a management expenses
component for the fund company and a dealer service
fee (DSF)
• The Steele Group receives approximately 60% of the
DSF
• We NEVER use Back-End Load or Deferred Sales
Change (DSC) Investments
How is The Steele Group Compensated?
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Example:
• For a $25,000 investment, the 2.25% MER will
breakdown as follows:
– 1.25 % in management expense paid to the fund company
– 1.00% for the dealer service fee (DSF)
• The Steele Group is compensated 60% of the DSF,
i.e. 1.00% x 60% = 0.60% annually
– $25,000 x 2.25% = $562.50 in total annual MER
• 1.25% = $312.50 < Fund Company
• 0.40% = $100.00 < Dealer / SLF Investments
• 0.60% = $150.00 < The Steele Group
How is The Steele Group Compensated?
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Commissions, trailing commissions, management fees and expenses
all may be associated with mutual fund investments. Please read the
prospectus before investing. Unless otherwise indicated and except for
returns for periods less than one year, the indicated rates of return are
the historical annual compounded total returns including changes in
security value. All performance data assume reinvestment of all
distributions or dividends and do not take into account sales,
redemption, distribution or optional charges or income taxes payable by
any security holder that would have reduced returns. Mutual funds are
not guaranteed, their values change frequently and past performance
may not be repeated.
The Steele Group Financial & Workplace Services Inc.TM
Thank You
