MANAGED FUND FOCUS

Although SCP offers access to a full-suite of equities, fixed income securities we have a particular specialization in managing money with mutual funds. Mutual funds provide several distinct benefits to investors including:

  • Professional ManagementSeasoned investment teams with quantifiable track records
  • Focused Expertise: Specialists in a particular niche or investment strategy
  • Broad Investment Selection: Breadth and depth of selections across distinct asset classes, types and investing styles (market capitalization, balanced, equity, bond, money market, target-date, convertibles, international, global, balanced, country-specific, sector-specific funds, specialty funds, etc.)
  • Greater Transparency: Holdings and pricing are publicly available
  • Regulated: Audited performance and strong regulatory reporting requirements
  • Economies of scale
  • Low minimum investment size requirements
  • Reduction of transaction costs
  • World-class research capabilities and resources
  • Access: Ability to participate in asset classes and geographies otherwise extremely difficult/impossible to access (i.e. emerging markets fixed income)
  • Ease of administration
  • Straightforward Transactions: Simple processes for purchasing (investing), liquidating (redeeming) or exchanging (swapping within the same family of funds)
  • Diversification
  • Liquidity: Daily liquidity at NAV 
  • General insurance

SCP generally invests across a variety of mutual fund companies, managers and strategies within an asset allocation model that is selected specifically for the client pursuant to the clientís investment policy statement and risk tolerance level. We select and monitor professional fund managers who are specialists in a particular niche or investment strategy. Fund managers are often required to stay within a certain investment style which assists us in providing more diversification within an asset allocation model for our clients.

By combining the experience of multiple fund managers, we create client portfolios with many investment styles, sector exposures and investments across non-correlated asset classes which can help reduce risk and potentially may provide more consistent returns. We believe that using a multi-manager strategy offers many benefits over using a single-style approach including:

  • Access to the universe of asset categories
  • Broader diversification
  • Rapid restructuring through the addition or removal of fund managers

Our independence affords us conflict-free access to a diverse, wide variety of fund managers across various companies and virtually all asset classes. When choosing fund managers we analyze investment philosophies, research capabilities, investment approaches, consistency of objectives, relative and absolute investment returns, variability of returns, manager tenures, education and overall investment acumen. Our team regularly liaises with various fund companies, fund managers and regularly conducts evaluations. In-depth research, lunches, visits to fund company facilities, attending due diligence meetings and conferences, conference calls and ongoing conversations with managers and/or fund company representatives are all critical parts of the manager evaluation process.

Our continuous investment management process and active management style allows us to constantly review and update you on the progress of your portfolio. Your portfolio is reviewed and managed by tracking important changes in the global economy, capital markets or changes in the fund company or management. Investing in mutual funds allows us to easily monitor your portfolio and quickly adjust the portfolio as market conditions change.

SCPís portfolio review services include:

  • Continuous monitoring of all mutual fund investments, changes in financial markets or strategies for various investment objectives
  • Review of your overall portfolio for adherence to your investment objectives and tolerance for risk
  • Monthly reports on your portfolio
  • Daily access to your accounts which includes daily pricing of your portfolio and its component mutual funds (at NAV)

Strategies such as asset allocation and diversification will never assure profits or guarantee against losses.

 

Investors should carefully consider the investment objectives, risks, charges and expenses of mutual funds. This and other important information is contained in the prospectuses, which can be obtained by contacting your financial professional and should be read carefully before investing.

Investing in any of the mutual funds mentioned here involves risks, including the potential loss of principal invested.  Each of the mutual funds mentioned here offers unique risks and characteristics. Risks vary depending upon the strategy used by the fund as well as the sectors in which the fund invests.  When redeemed, shares may be worth more or less than the original amount invested. Note: Differing classes of shares have varying expenses, loads, fees and breakpoints. These differing classes also have time line holding periods which are appropriate depending on the investor objectives and goals.  

In swapping mutual funds, there is a possibility of additional costs and expenses. There may be tax consequences related to your sale, redemption or exchange of mutual fund shares.

Net Asset Value (NAV) - A mutual fundís price per share value. The per share dollar amount of the fund is calculated by dividing the total value of all the securities in its portfolio, less any liabilities, by the number if the fund shares outstanding.