Seamark Asset Management

Investment Approach

SEAMARK takes a prudent, long-term approach to managing client assets. We seek first to protect, then to grow the value of client assets. We do so through a team-based process that consistently applies clearly articulated investment principles focused on the fundamental merits of individual securities and overall portfolio risk management. We purchase equities in financially strong, well-managed companies and fixed income securities that emphasize safety of principal and reliability of income. Our experienced and client oriented investment professionals construct portfolios from these securities to meet each client’s investment objectives.

Investment Principles

The principles underlying SEAMARK’s investment approach are applied to a wide range of mandates, each of which is then customized as required to meet the needs of each client.

Preserve then Enhance: Investment decisions are made with a focus on first preserving, then enhancing capital.
Long-term Focus: SEAMARK seeks to add value by looking beyond short-term market “noise”, selecting quality investments that can be bought and held for the long-term, limiting transaction costs and the risks associated with market timing.
Team-based: SEAMARK’s investment professionals work as a team to select and monitor investments, limiting personal biases and ensuring our best ideas are consistently applied for the benefit of all clients.
Safety of Principal: Fixed income securities provide a foundation for investors and are selected with an emphasis on ensuring safety of principal.

Reliability of Income: SEAMARK focuses on high credit quality fixed income securities where, upon independent review, the fixed income team is satisfied the possibility for default by the issuer is effectively zero over the time horizon of the investment.

External Research

Leading Canadian and global brokerage research is continually reviewed to evaluate potential investments based on SEAMARK’s three quality criteria: management, financials, and competitive position. Independent credit agency research and economic research publications are also used to evaluate equity and fixed income securities and identify emerging investment opportunities.

Quality: SEAMARK seeks to invest solely in companies that meet our quality criteria in the following areas:

Liquidity: Securities are carefully reviewed prior to purchase with a view to whether they will be sufficiently liquid to allow the subsequent sale at a reasonable price, should this prove necessary.
Yield Opportunities: SEAMARK continually monitors the fixed income market to assess potential rewards and risks, structuring fixed income portfolios to take advantage of what we view to be the most attractive opportunities at any given time.

Bottom-up: Equity securities are selected with a view to “buying the company”, focusing on the underlying fundamental value of the business.

Management: SEAMARK seeks companies that may be held for the long-term, so management should be able to formulate and execute a shareholder-friendly long-term business strategy
Financials: the company should have the financial strength to weather difficult times and the financial flexibility to take advantage of opportunities that may arise

Internal Research

A Master List is maintained of approved equity and fixed income securities that meet SEAMARK’s quality criteria. An independent assessment of the appropriate valuation for each such security is developed internally and continuously updated based on company financial releases, management interviews, and other research activities.

Competitive position: finally, the company should have some advantage that helps ensure the sustainability of current earnings and provides the opportunity to deliver above-average returns over the long-term

Globally Competitive: SEAMARK takes a global view, recognizing that most successful companies are proven leaders in providing their products or services in an increasingly interdependent and competitive global marketplace.

Durable Growth: Preference is given to companies in the global marketplace that are growing at a rate above the average growth rate of the economy.

Value Creation: Regardless of the quality, it is important not to overpay for an investment opportunity. After identifying a company with attractive long-term growth and investment return characteristics, SEAMARK waits for opportunities to buy the company at a reasonable price.

Diversification: The equities of leading companies in a variety of attractive industries are held to provide diversification.

Portfolio Management & Trading Systems

Assist the investment team in ensuring SEAMARK’s ideas are implemented appropriately in client accounts in a way that tailors each portfolio to specific client objectives.

Solutions Oriented Approach

SEAMARK’s first step is to work with clients to understand their unique needs and objectives. These are encapsulated in an Investment Policy Statement which also sets forth any constraints and risk tolerances placed on the portfolio. Our team has expertise in the management of Canadian and global equity, and fixed income investments. With a thorough understanding of each client’s situation, we are able to help navigate through the often volatile markets, building and adjusting the portfolio as necessary to help maintain a safe financial course.

We are engaged to offer you calm seas and a safe harbour while achieving your financial needs.

Culture of Good Governance

Achieving the long-term goals of each client is at the centre of everything SEAMARK does. This client oriented culture is reflected in SEAMARK’s approach to corporate governance.

Code of Ethics: SEAMARK’s Code of Ethics and Business Conduct is signed annually by all employees. The Code is continually reviewed and updated as necessary to reflect the highest standards of integrity and business conduct. SEAMARK Asset Management claims compliance with the CFA Institute Asset Manager Code of Professional Conduct. This claim has not been verified by CFA Institute.

Compliance: Appropriate compliance controls are in place to confirm that all activities are conducted in a manner consistent with regulatory requirements and SEAMARK’s fiduciary duty to clients.

Proxy voting: Proxy voting is integrated into our investment management process to support the long-term interests of SEAMARK’s clients.

Source: Seamark Asset Management