Solutions & Services

Strategies

     

Objective

North American Management constructs investment portfolios based on our clients’ specific needs and investment objectives. Portfolios are structured utilizing a broad array of internally and externally managed investment strategies, complemented by low cost index solutions such as Exchange Traded Funds (ETFs). In general, we take a long term view on equities, seeking preservation of capital and growth opportunities for our clients in what we consider the most attractive industry sectors, companies and regions.

Process

The stock selection process is based on fundamental top-down and bottom-up research.  Broad themes are identified by the investment committee, followed by a determination of the primary geographical regions and industry sectors that will directly benefit from these themes.  The bottom-up component is then to conduct thorough analysis and research to identify what we believe to be the best companies within our specified parameters that may then be considered for inclusion in the strategies.

 

Monitoring/Review

Securities within the strategies are monitored daily by our portfolio managers and weekly by the investment committee. There is a daily update on news, corporate events, calendar and investment ratings that is monitored by our Chief Investment Officer, portfolio managers and analysts for each of these securities. We also actively engage the management of our portfolio companies through conference calls, meetings and conferences.

Asset allocation

Portfolio allocations may be tactically adjusted based on our macroeconomic outlook, market conditions, liquidity and considering client objectives. Asset classes in these portfolios include equities, fixed income, real estate (Real Estate Investment Trusts (REITs)), real assets (commodities), mutual funds, Exchange Traded Funds (ETFs), Master Limited Partnerships (MLPs) and cash.

 

Investment Solutions Include:

Global Equity Strategy

 

  • Our internally managed global equity strategy seeks to find growth opportunities in high quality companies in industries, sectors and regions that we believe will be able to benefit our clients
  • It is comprised primarily of large capitalization global companies, complemented by actively managed mutual funds, long only managers, together with select sector and country exchange traded funds
  • In order to reduce portfolio volatility, the portfolio will have approximately 30-45 positions. These are determined by our diligent research process, risk analysis and underlying market conditions
  • As part of our risk management process, position sizes in any individual company equity security are limited to a maximum of 10% of the portfolio, and exposure to any specific sector is limited to 25%

Taxable Balanced Strategy

  • Our internally managed taxable balanced strategy seeks to lower volatility, preserve capital and maximize income after taxes. The strategy may include a number of global equity strategy names, multiple asset classes, such as REITs and MLPS, and high yielding blue chip equities
  • In order to reduce portfolio volatility, the portfolio will have approximately 30-45 positions. These are determined by our diligent research process, risk analysis and underlying market conditions
  • As part of our risk management process, position sizes in any individual company equity security are limited to a maximum of 10% of the portfolio, and exposure to any specific sector is limited to 25%

NAM Select Opportunities Strategies

  • Our internally managed NAM Select Opportunities strategies are designed for clients with smaller accounts, where it is not always beneficial to purchase individual securities
  • The core of the portfolio comprises a market index proxy, such as the S&P 500, while the balance (or satellite) is invested in specific sectors, regions or asset classes. The goal is to enhance performance beyond that of the core and to generate attractive risk adjusted returns
  • Depending on the size of the account, the portfolio will hold up to 15 positions
  • As part of our risk management process, exposure to any specific sector is limited to 25%

Outside Manager Platform

  • For our accredited clients, North American Management offers alternative investment services to complement their equity holdings. Customized portfolios are created consistent with the client’s desired risk/return profile, liquidity, tax bracket, time horizon, legal issues and other considerations
  • North American Management has access to a deep platform of long only and long/short managers who meet our criteria for investment and business experience
  • Investments are selected with an emphasis on up market and down market capture, together with risk/return attributes
  • North American Management identifies managers across all asset classes with the goal of producing absolute returns under most market conditions
  • Prior to investments being made, each manager is subjected to our due diligence process that includes a thorough review of policy and procedures, financial and operational audits, background checks, professional references and onsite visits
  • The portfolio and the underlying managers are monitored on an ongoing basis through proprietary reporting, manager communications and visits