Portfolio & Investment Management
North American Management creates tailored investment portfolios based on our clients’ specific needs and goals. In an effort to fulfill our clients’ directed investment objectives, we structure a complete portfolio utilizing a broad array of internally and externally managed investment strategies complemented by low-cost index-solutions such as exchange traded funds (ETFs).
As frequently as each calendar quarter, we will adjust allocations based on the macroeconomic outlook, market conditions, liquidity and related observations. The specific allocations will be largely driven by the risk class and tactical changes will be related to a more near term outlook for these asset classes. Asset classes in these portfolios include equities, fixed income, real estate, real assets (commodities), Master Limited Partnerships (MLP’s) and cash.
Investment Strategies Include:
Global Equity »
We exist in a global economy and we believe it is critical to provide our clients exposure to emerging growth opportunities to satisfy their investment objectives. The overall strategy is to own the highest quality companies, sectors and regions poised to benefit from broad globalization trends and an emerging middle class. Our internally managed global growth strategy is comprised primarily of large capitalization global companies, complemented by select sector and country exchange traded funds. The active component of individual stock selection allows us to own superior companies while the passive exchange traded funds strategy provides distinct exposure to specific sectors or regions.
Taxable & Tax Exempt Fixed Income »
The objective of our tax exempt fixed income approach is to maximize after-tax income with a minimum level of risk. This strategy is typically benchmarked to the Lehman 5-year Municipal Bond Index and invests in high quality municipal bonds and securities. The taxable strategy is equally focused on credit quality and invests in a portfolio of short-to-intermediate taxable securities. Our objective here is maximum income after taxes. The taxable strategy is benchmarked to the Lehman Intermediate / Government Credit Index or the Lehman Aggregate Index.
Dividend Income »
The focus of this strategy is current income with an opportunity to capture long-term capital growth. This conservative growth strategy is thought to provide greater downside protection in a falling market, as the higher dividend yield offers somewhat of a "floor" on the valuation of a stock relative to lower-yielding growth equities. Historically, over half the long-term return from equities has come from dividends, and we believe that given the demographic shift of the "baby boom" generation, these securities will experience significantly greater demand due to their dual income and growth characteristics. This strategy can be structured for taxable and tax-exempt accounts.
Natural Resources »
This strategy is squarely focused on providing investors exposure to the natural resource and materials sectors. These sectors offer a number of very attractive characteristics which include an important hedge against inflation, a falling US dollar (most commodities are priced in US dollars). This sector plays well on the globalization theme, where the world is now seeing many new consumers emerging from these developing countries and exploding middle classes. This strategy will likely be significantly more volatile than US broad equity benchmarks.
Mid Capitalization Growth »
This strategy seeks to identify those companies that are well positioned to experience long term growth, due to the unique characteristics of their industry, participation in long-tailed global growth themes and company specific capabilities. As a general rule the capitalization of these securities will fall between the $4 billion to $40 billion market capitalization levels and with solid capital structures. The goal will be to purchase these companies at a discount to their long-term growth rates.
