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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.
 

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

Diversified Fixed Income | Conservative | Moderate | Balanced | Growth | Dynamic Growth


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.

 

Meritage investor profile

 


 

Optimal diversification

Meritage 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

Are Meritage Strategic Portfolios automatically rebalanced?

Meritage strategic portfolios are rebalanced on an ongoing basis to fit the initial selection and prevent overexposure in any specific asset category. If a specific fund market value deviates more than 2.5% from its original target or an asset class varies by more than 5%, we will proceed with a rebalancing of the portfolio.

Auto-rebalancing Meritage portfolios

Corporate Class

What is a corporate class portfolio?

Your personal situation and financial needs will change over your lifetime. For this reason, some Meritage Portfolios are also offered in a corporate class. These portfolios are specifically designed to adapt to the various stages of your life and help you reach your investment goals.

The Meritage Corporate Class Portfolios are share classes of the same mutual fund corporation.

Who can benefit from this solution?

This solution is particularly beneficial to:

  • Affluent investors who have maximized their RRSP and TFSA contributions, and who have additional liquidities to invest.
  • Retired investors who wish to maximize their eligibility to government benefits by reducing their level of taxable investment income.

What are the benefits of corporate class portfolios?

Compound growth

Deferred taxation of portfolio conversions combined with tax-efficient distributions over many years allow you to get the most out of your investment.

Tax-efficient distribution

You can transition from the accumulation phase to the payout phase within the corporate class structure without triggering a tax event. In addition, the T Series provides tax-efficient monthly distributions, consisting mainly of return of capital.

Tax-efficient distribution

How to benefit from a tax-efficient distribution?

Certain Meritage Portfolios are also offered as income portfolios to provide you with stable 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 the tax deferral.

Exemple of Meritage Portfolios distributions

Meritage Portfolios Target distribution 2015 Actual Distribution
2015 2016 % Income/Foreign % Dividends % ROC % Capital Gains
Diversified Fixed Income
 3% 3% 39.62% - 27.53% 0.93%
Conservative Income
 4% 4% 7.45% 13.74% 60.22% 2.45%
Moderate Income
 4.5% 4.5% 8.45% 18.31% 64.44% 2.05%
Balanced Income
 5% 5% 0.36% 21.96% 77.68% 5.19%
Growth Income
 5.5% 5.5% - 18.67% 81.33% 4.49%
Equity Income
 6%  6% - 6.05% 93.95% 4.03%

Documents

General information

General

Meritage Tactical ETF Portfolios

Monthly performance

Outlook

 

Regulatory documents

Advisor material

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General information

  • Historical changes: Meritage Tactical ETF Portfolios |  Meritage Strategic Portfolios
  • Meritage Income Portfolios: A steady flow of tax-efficient income
  • Point of sale disclosure (POS3)
  • Governance process
  • NBI High Net Worth Plan
  • Meritage Portfolios' evolution

Meritage Tactical ETF Portfolios

  • Informational pager
  • Presentation

Meritage Global Portfolios

  • Informational pager
  • Presentation

 

Advisor tools

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.

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

Questions?

Call or email an NBI sales representative: 1-877-463-7627

Legal notes

*Also offered in corporate class

1. Distributions are said to be stable as they do not usually change from one to the next. However, the distribution amount per security is not guaranteed and may be adjusted if this is required by market conditions. For more information, please consult the simplified prospectus of the Meritage Portfolios.

2. Return of capital (ROC) distributions gradually reduce the adjusted cost base (ACB) and are considered tax free until the fund units are redeemed. The annual distribution rate of each portfolio is adjusted to avoid a precipitous decline in the ACB. When the ACB drops to zero, subsequent ROC distributions are treated as capital gains in the year they are received.