Meritage Portfolios®
Independent. Diligent. Proactive.
About
Launched in 2006, these Portfolios offer an objectively managed portfolio solution featuring mutual funds and exchange-traded funds (ETFs). The Meritage family now includes more than 30 portfolios designed to cater to any investor profile.
The success of Meritage depends on partnerships with renowned firms. These firms complement each other and are selected for their expertise and performance history.
Learn more about Meritage Tactical ETF Porfolios
Markets are constantly evolving and investors may want to take advantage of certain market conditions or protect themselves against certain risks. In such cases, it is useful to tactically deviate from the initially targeted asset allocation.
Value added
An optimal blend of some of the best low-cost ETFs on the market and tactically managed asset allocation based on market conditions.
Tactical asset allocation
Meritage ETF Portfolios undergo a review process during which the asset allocation and choice of underlying ETFs are subject to frequent change in order to reflect market conditions. The allocation of Meritage Portfolios is determined after consultation with the Asset Allocation Committee, which is made up of renowned economists and portfolio strategists within the National Bank group.
Currency management
NBI manages the currency exposure strategy.
Construction of Meritage Tactical Portfolios
The tactical biases we want to leverage are determined quaterly.
To adapt to the evolution of financial markets, certain deviations can be implemented by overweighting or underweighting the ETFs currently found in the Portfolios. These deviations seek to create added value for the Portfolios while helping mitigate short-term volatility.
Performance attribution is carried out each month to ensure optimal risk management.
Meritage Tactical ETF Portfolios
Fixed Income | Moderate | Balanced | Growth | Equity
Meritage Strategic Portfolios
Learn more about the Meritage Strategic Portfolios
Value added
An optimal blend of actively managed funds.
Automatic rebalancing
Meritage Portfolios are automatically rebalanced to respect their target allocation and prevent overexposure in any specific asset class. If the market value of a fund deviates more than 2.5% from its target allocation or an asset class varies by more than 5%, we will rebalance the Portfolio.
Currency management
The currency exposure strategy is managed by portfolio managers.
Construction of Meritage Strategic Portfolios
First, the objective of the Portfolio and the optimization factors are determined. Subsequently, NBI establishes potential range of returns, volatility and correlation for the main asset classes through consultation with economists and other experts.
With the investment objectives and quantitative parameters well established, we carry out optimization to maximize the risk/return ratio.
Once the optimal asset allocation is determined, we verify the results obtained in comparison to the expected returns and risk parameters of the underlying funds selected for the Portfolio.
Optimization is completed again each year to ensure the Portfolio's asset allocation remains optimal.
Meritage Global Portfolios
Conservative | Moderate | Balanced | Growth* | Growth Plus*
Meritage Income Portfolios
Diversified Fixed Income | Conservative | Moderate | Balanced | Growth | Growth Plus
Meritage Investment Portfolios
Conservative | Moderate | Balanced | Growth* | Growth Plus*
Meritage Equity Portfolios
Independent + Agile
Our open architecture structure allows us to work with some of the best portfolio managers from around the world.
Diligent
A three-stage selection process and in-depth analysis identifies the best mutual funds and ETFs on the market for each asset class.
Proactive
Continuous monitoring allows us to be prepared for any eventuality, such as a portfolio manager change.
Selection process
We have selected between 30 and 50 of the best mutual funds and ETFs on the market using our unique fund selection process. This multi-stage, quantitative selection process was developed by a financial engineering team of investment specialists. Updates and follow-ups are carried out periodically to ensure that the funds continuously meet the selection criteria and that the Portfolios remain optimal.
Screening process
Focus on proven funds
5,000 funds and 2,000 ETFs
- Minimum performance history
- Solid, well-established fund managers
Quantitative analysis
Seek added value with optimal volatility
200 to 400 funds and ETFs
- Returns by unit of risk analysis
- Downside risk analysis
- Value added by portfolio manager performance analysis
- Style consistency
- Correlation
Final selection
Make informed choices
20 to 30 funds and 10 to 20 ETFs working together to create the perfect combination
- Investment firm: quality of research, security selection process
- Manager: experience, philosophy, compensation, succession plan
- Management style: consistency and complementary-focused (value, blend, growth)
A range of portfolios
Meritage Portfolios provide a wide range of solutions, based on various criteria and suited for all types of investors. Regardless of your objectives, investment horizon and risk tolerance, there is a Meritage Portfolio that is suited for you.
Our Portfolios offer optimal exposure and diversification by asset class, geographic region and sector, market capitalization and management style, all within an integrated range of model portfolios.
Optimal diversification
Asset classes
- Bonds
- Equities (Canadian and foreign)
- Emerging markets
Management styles
- Value and deep value
- Blend
- Growth and GARP (growth at a reasonable price)
- Bottom-up
- Top-down
- Multiple fixed income strategies
Market capitalizations
- Small
- Mid
- Large
Regions/Sectors
- Optimal geographic and sector coverage
- No restrictions
Auto-rebalancing
Our approach
Meritage Equity, Investment, Income and Global Portfolios are automatically rebalanced when:
An example
Periodic rebalancing of a portfolio brings it back in line with its target asset allocation:
Corporate class
What is a corporate class mutual fund?
Corporate class mutual funds represent a unique structure in which investment funds are pooled to form a single corporation.
Who may corporate class mutual funds be suited for?
These funds may be suited to investors who:
- have reached their RRSP or TFSA contribution limits
- have cash to invest in non-registered plans
How do they work?
Corporate class mutual funds can apply losses on certain funds against gains on other funds in the same corporation. This is made easier when losses are accumulated, which is less and less the case.
These funds can also use unused management fees from one fund to reduce the taxable income on other funds in the same corporation. This feature:
- Allows annual distributions to be reduced
- Is intended to avoid potential double taxation of foreign interest or dividend income
By comparison, mutual fund trusts cannot avoid this double taxation, which is likely to increase investors' tax burden.
Six Corporate Class Meritage Portfolios
Intended for several investor profiles, they provide optimal, diversified exposure across asset classes, geographic regions, sectors and management styles:
Meritage Equity Portfolios
Meritage Investment Portfolios
Meritage Global Portfolios
Tax-efficient distribution
How to benefit from a tax-efficient distribution?
Certain Meritage Portfolios are also offered as income portfolios to provide you with fixed monthly distributions1 made up, in part, of net income and
General information
General
- Meritage & ESG factors: Our approach
- Why Meritage?
- Meritage Portfolios: Advisor presentation
- Brochure
- Summary table
- Meritage Portfolios at a glance
- NBI High Net Worth Plan
- Transition report
Performance
- Monthly performance: Advisor Series | F Series
- Meritage Portfolios: Positive returns on 1-, 3-, 5- and 10-year rolling periods
- Meritage Portfolios: Morningstar 4- and 5-star ratings
- Meritage Investment and Income Portfolios: Quartiles that speak for themselves
Distributions
- Meritage Portfolios: Estimated year-end distributions per unit
- Distributions paid by Meritage Portfolios (by unit)
Meritage Tactical ETF Portfolios
Outlook
Advisor material
General information
- Historical changes: Meritage Tactical ETF Portfolios | Meritage Strategic Portfolios
Investor Profile Questionnaire and Investment Policy Statement (IPS)
Investor Profile Questionnaire and Investment Policy Statement (IPS)
Meritage Portfolios provide a wide range of solutions, based on various criteria and suited for all types of investors. Regardless of your objectives, investment horizon and risk tolerance, there is a Meritage Portfolio that is right for you.
Investor Profile Questionnaire*
* FOR INFORMATION PURPOSES ONLY. This questionnaire is for information purposes only. It is not intended to replace a complete investment suitability analysis or to be considered as investment advice. It is intended solely as a reference document to assist investors in selecting the portfolio that best suits their investment needs. This questionnaire is not intended to replace any questionnaire required at the time of the purchase of securities, and at all times, the latter takes precedence.
Investment Policy Statement (IPS)
Questions?
Contact your NBI Sales Representative via email or by phone at 1-877-463-7627
*Also offered in corporate class
1. The distribution is said to be fixed for each Meritage Income Portfolio as it does not vary from one distribution to the next. However, it is not guaranteed and may vary according to market conditions. Meritage Income Portfolios make monthly distributions at the end of each month. These monthly distributions are composed of net income and/or return of capital. For more information, please consult the simplified prospectus of Meritage Portfolios.
2. A return of capital reduces the value of the original investment and is not the same as the return on the investment. Returns of capital that are not reinvested may reduce the net asset value of the Portfolio and the Portfolio's subsequent ability to generate income.
Meritage Portfolios® (the “Portfolios”) are managed by National Bank Investments Inc., a wholly owned subsidiary of National Bank of Canada. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus of the Portfolios before investing. The Portfolios’ securities are not insured by the Canada Deposit Insurance Corporation or by any other government deposit insurer. The Portfolios are not guaranteed, their values change frequently and past performance may not be repeated.
® MERITAGE PORTFOLIOS and the Meritage Portfolios logo are registered trademarks of National Bank of Canada, used under license by National Bank Investments Inc.