AUTHENTIC Global Equity - Active Allocation
Target return 6% net of fees
Lower volatility than equity market anticipated
The strategy is available to individual and institutional investors on a separately managed account basis. It is suitable for taxable investment accounts and RRSP accounts. It is available to Canadian investors resident in the provinces of Ontario, Quebec, BC, Alberta and New Brunswick.
Portfolio Manager: Authentic Asset Management Inc. / Gestion D’actifs Authentic Inc.
Custodian/Broker-Dealer: Interactive Brokers Canada Inc., a New SRO (formerly IIROC) regulated Dealer Member
Account Type: Investment or RRSP account in the name of the Client
Valuation: Net Asset Value calculated real-time by the Dealer, with online account access available directly to the Client
Subscription Period: Client can credit funds to the account daily
Redemption Period: Client request to debit funds is processed as soon as practicable
Management/Performance Fees: 1%/20%
Inception: Model portfolio (RRSP account) commenced Jan. 25, 2017
Currency: CAD, USD, others upon request
Complete an online application with Interactive Brokers Canada Inc. to open an individual, joint, corporate, investment or retirement account
Sign documents for AUTHENTIC to manage the account
Transfer funds to your account and we get started investing on your behalf
Selective portfolios of typically 10 to 30 international stocks with highly variable equity allocations based on opportunities and risks.
Separately managed accounts for private clients and institutions seeking capital appreciation with medium risk and a longer-term investment horizon. Suitable for retirement savings accounts (RRSPs) and core investment accounts. Minimum account size: $100,000.
Rather uniquely, the objective is the delivery of the longer run 6% rate of return, not to mimic the stock market or the static 60/40 equity/bond return. There are four distinguishing features in how the accounts are managed:
- AUTHENTIC actively makes the all-important equity allocation decision in terms of the proportion invested in stocks at any given time. It is a risk-based approach in seeking to achieve the target return.
- Both top-down and bottom-up perspectives are considered, based on our proprietary global views, investment themes, sector preferences, and company analysis.
- Sector exposures are influenced by ESG considerations.
- Stock selection is biased towards growth at a reasonable price (GARP) as a means of earning an attractive return per unit of risk.
Stock selection tends to favour growth at a reasonable price, which may include both large and smaller capitalization companies. Sector weights usually differ substantially from benchmarks, tending to overweight technology, health care, and telecommunications, with varying exposures to consumer cyclicals, industrials, consumer non-cyclicals, and financials, and limited to no exposure to utilities, basic materials, and energy. Geographically, investments tend to favour the United States and Europe, followed by Asia, with limited exposure to emerging markets.
Cash is a strategic asset, with active allocations when deemed appropriate to mitigate downside risks and await better future opportunities and pricing. Holdings are typically intended to be held for the longer term, so turnover can be quite low. Trades are predicated by a change in market conditions and/or a change in our investment thesis.
An investment is made due to changes in economic perceptions and their anticipated impact on a specific company’s sales and margins, and/or to gain industry exposure in anticipation of an improvement in relative valuation.
We look forward to speaking with you.