Equity, fixed income, economic and
market research is obtained from a variety of independent and proprietary
The equity investment focus is to
endeavour to identify superior long-term investments primarily in the large cap
market. Investments are held until long-term value is realized or fundamentals
change. SIM has an informal investment committee, where each member is
responsible for specific areas of research and following specific companies.
Combining internal and external research, including management interviews,
investment committee members discuss new investment ideas.
Each portfolio is reviewed weekly at the
investment committee level. Attention is paid to the long-term prospects of the
company and also to the suitability for the individual portfolio. The merits of
each investment are reviewed with the specific focus on any new developments or
After-tax considerations play a
significant pivotal role in the sale process. Given the considerable holding
period of most of the portfolios' investments, significant capital gains may
have accumulated and, with the long-term investment horizon the managers take,
SIM would have to be motivated by substantial, company-specific risks in order
Fixed income investments are selected to
serve two functions: to hedge against uncertain markets and to provide income.
Though capital gains can be achieved, the trading of fixed income investments
is limited. Investments in the fixed income area will be primarily limited to
government securities such as provincial and federal issues, as well as high
grade corporate bonds.
Trading and Commonality
All trading will be done through
approved investment dealers and every attempt will be made to achieve best
price and execution. SIM will undertake to get the most competitive rates given
the level of service and research from every broker. However, if clients direct
commissions to specific brokers it may affect SIM's ability to achieve
competitive pricing and commission.
Presently, SIM does not participate
in soft dollar arrangements. However, if SIM is directed by clients to enter
into such agreements or if the firm enters on its own volition,, such
arrangements and disclosure will be made in accordance with regulatory
requirements, as well as the CFA Institute's Soft Dollar
Given the tax sensitivity of each client and the level of
customization that specific accounts may have, there is no guarantee that all
accounts will be identical. As well, specific accounts may have constraints or
preferences which may require some variation. However, there will be every
attempt to maintain a high level of commonality among