Meritage Portfolios^®

Independent. Diligent. Proactive.

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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.

Discover the firms

Meritage Portfolios

Meritage Tactical ETF Portfolios

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 * | Dynamic Growth *

Meritage Income Portfolios

Meritage Investment Portfolios

Conservative | Moderate | Balanced | Growth * | Dynamic Growth *

Meritage Equity Portfolios

Canadian * | Global * | International | American

Benefits

Independent + Agile

Our 100% 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)

Investor profiles and asset allocation

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 (Canadian, real return, high yield)
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

FAQ

Auto-rebalancing

Our approach

Meritage Equity, Investment, Income and Global Portfolios are automatically rebalanced when:

Meritage Equity Portfolios caracteristics

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 return of capital (ROC), which are tax-efficient sources of income compared to others. For instance, ROC distributions² are not taxable for the year in which they are collected, due to tax deferral.

Documents

General information

General

Performance

Distributions

Meritage Tactical ETF Portfolios

Meritage Global Portfolios

Presentation pager

Outlook

Regulatory documents

Advisor material

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General information

Historical changes: Meritage Tactical ETF Portfolios | Meritage Strategic Portfolios
Governance process

Advisor tools

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.

Find out your matching investor profile:

Investor Profile Questionnaire

Sign in to access interactive tools to offer personalized service to your customers.

Questions?

Contact your NBI Sales Representative via email or by phone at 1-877-463-7627

Legal notes

*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.