The JMRD Basket Program

The only difference between the JMRD Advisor Managed Account and the JMRD Basket Program is that the Basket program allows an investor to entrust SOME of their investment assets on a discretionary basis while the Managed Account is all of their investment assets. An investor would gain access to this discretionary management by purchasing one of our JMRD Baskets. They are the Exchange Traded Fund (ETF) Basket and the Diversified Income and Growth (DIG) Basket.

The JMRD Exchange Traded Fund (ETF) Basket

INVESTMENT OBJECTIVE

The objective of the JMRD Exchange Traded Fund (ETF) Basket is to provide a diversified portfolio of securities that produces capital appreciation and moderate income, including securities of Canadian, U.S. and International-based companies by way of investing in Exchange Traded Funds (ETF).

MANAGEMENT STYLE

In terms of ETF Selection, the Portfolio Manager will utilize a top-down management approach. The main focus of the ETF Basket is to create a portfolio that will be the core position of an account. The core position will be well diversified by investment style, sector selection and geographic considerations.

Top-down management starts by looking at and evaluating the current economic backdrop around the world. From this starting point, favourable geographic areas are selected for inclusion in the Basket and unfavourable areas are excluded. This analysis is on-going but this process is the basis for the Basket Asset Allocation and geographical breakdown at any given time.

The second step is to identify sectors within those geographic regions that are expected to outperform the main index. When favourable sectors are identified the ETF Basket will overweight that sector. For example, if we like Canada and within Canada we like the gold companies, we will overweight that sector by way of the Gold ETF.

The third step is to consider what types of companies we want in the portfolio based on timeliness of investment style. Our two main options here are growth and value. So, depending on current market conditions the ETF Basket will lean one way or the other.

Changes to the portfolio will occur only for re-balancing or if our overall view of the economy changes.

The JMRD Diversified Income & Growth (DIG)

INVESTMENT OBJECTIVE

The objective of the Diversified Income and Growth Basket (DIG) is to provide a diversified portfolio of Canadian-listed securities that are intended to provide the long term/core equity positions for a portfolio. The Basket assets will be invested in the following:

  • Canadian and U.S. Dividend paying stocks
  • Income Trusts
  • Preferred Shares
  • ETNs (An ETN is a type of unsecured, unsubordinated debt security. This type of debt security differs from other types of bonds and notes because ETN returns are based upon the performance of a market index minus applicable fees, no period coupon payments are distributed and no principal protections exists)
  • Convertible Debentures
  • Canadian Corporate and Government Bonds
  • ETFs (An exchange-traded fund, or ETF, is an investment product representing a basket of securities that tracks an index such as the Standard & Poor’s 500 Index)

MANAGEMENT STYLE

The JMRD Diversified Income and Growth Basket (DIG) recognizes that to attain a reasonable income from income-producing vehicles, more than just the traditional options must be considered. DIG uses a diversified approach by investing in multiple income-producing asset classes.

On their own, any one of the asset classes indicated could be perceived as risky. However, by combining multiple security types in the Basket, the result is lower volatility and enhanced yields. The management style for each component is slightly different to account for the uniqueness of each asset class. There will be no more than 15 positions in total for DIG.

 

All Cap Basket

INVESTMENT OBJECTIVE

The objective of the JMRD All Cap Basket (ACB) was created to complement the DIG Basket. The investment objective is to invest in smaller capitalized companies than those in the DIG Basket with more of a focus on growth versus income. Although most companies within the ACB Basket pay a dividend, it is not a requirement.

MANAGEMENT STYLE

  • To provide a diversified portfolio of income producing securities that produces a steady income stream. The goal is to provide superior yield for investors with a focus on after tax income.
  • The goal of this basket is to buy stocks that show up favourably from a relative strength perspective when compared to other asset classes (i.e. Cash, Bonds, Commodities, other Equities).
  • Stocks will be predominantly Canadian that are part of the TSX Composite Index. This ensures quality companies at time of screening but more importantly omits smaller companies from inclusion and even consideration.
  • This portfolio is intended to be equal weighted
  • This portfolio will have a lower market capitalization standard than DIG basket

US Growth Basket

INVESTMENT OBJECTIVE

The objective of the JMRD US Core Portfolio is to provide a diversified portfolio of U.S. listed securities that are intended to provide growth and relative strength to US equity markets.

MANAGEMENT STYLE

  • To provide a diversified portfolio of growth-oriented, US or ADR equity securities.  The goal of this basket is to buy stocks/sectors/ETFs that show up favourably from a relative strength perspective when compared to other asset classes (i.e. Cash, Bonds, Commodities, other Equities.
  • US Securities screened from the S&P 100 and Credit Suisse Top Analyst recommendations
  • Minimum $1B market capitalization
  • No more than 2 securities per sector
  • This portfolio is intended to be as close to equal weighted as possible
  • The securities may, but do not have to pay a dividend.
  • Stocks will trade on the US Markets.

The JMRD Managed Account »