Frequently Asked Questions
What is Triasima Portfolio Management?
Can I invest with Triasima through my Investment Adviser?
Do I have my own stocks and bonds or am I invested in a pool of assets?
Does Triasima invest in Fixed Income securities?
Does Triasima invest outside of Canada?
Does Triasima manage portfolios for individuals or institutions?
Given the volatility of currency exchange rates does Triasima hedge currency exposure?
How can a boutique investment firm with a small team of portfolio managers offer several investment products?
How do I invest with Triasima?
How do I track the performance of my investments?
How is Triasima’s investment performance presented?
How long has Triasima been in business?
Is there a minimum account size required to have an investment relationship with Triasima?
Is Triasima a registered investment manager?
What are the advantages of using a portfolio management firm rather than buying mutual funds?
What does it cost to have my investments managed by Triasima?
What is the difference between investing with Triasima versus a retail stockbroker?
Where are my securities held?
Where does the name Triasima come from?
Who owns Triasima?
What is Triasima Portfolio Management?
Triasima is and Montreal, Canada based, growing investment management firm owned by its employees with current assets under management of over CA $650 million and more than 130 client relationships. Triasima serves institutional, mass retail and private wealth markets across Canada, the United States and Europe. Triasima is regulated by the Autorité des marchés financiers (AMF), a governmental body of the Province of Québec, Canada.
The firm now counts among its clients a diverse group of institutions that includes among others, a global bank, a mutual fund company, a Swiss private bank. It also manages segregated portfolios for a number of government organizations, endowments, corporations and unions. Most investment mandates for institutional or mass retail clients are one asset class, the majority of which are Canadian equity.
Triasima’s private client business is also growing with new relationships established on a regular basis. For this clientele, the majority of mandates are of a balanced nature and include Canadian bonds and Canadian, American and European, Australasian and Far Eastern equities.
Can I invest with Triasima through my Investment Adviser?
Yes, Triasima has relationships with Investment advisers at many of Canada’s leading brokerage firms including RBC, CIBC Wood Gundy, National Bank, Mackie Research, HSBC Securities and others.
Do I have my own stocks and bonds or am I invested in a pool of assets?
Both options exist.
Under a segregated account structure our clients have their own stocks and bonds in their separately managed accounts.
Alternatively, through Triasima pooled funds, clients own a slice of the entire fund with the attendant advantages of greater diversification across a larger number of stocks and all-inclusive fees.
It is also possible to combine both options. Many Triasima clients with individually managed accounts have also chosen to invest in Triasima pooled funds through their segregated accounts to gain exposure to specialized strategies such as our Canadian small capitalization or Canadian Long/Short equities.
Does Triasima invest in Fixed Income securities?
Yes, Triasima’s Portfolio managers invest in fixed income securities such as money market instruments, bonds, preferred shares and income trusts as part of Balanced and Enhanced Income mandates.
Does Triasima invest outside of Canada?
Yes, due to the vast amount of financial information available through global brokerages and the internet, Triasima is able to apply the “Three Pillar Methodology” to investments in the United States, Latin America, Europe and the Far East.
Does Triasima manage portfolios for individuals or institutions?
Triasima manages portfolios for both clienteles. Roughly 70% of Triasima’s assets under management are from institutions however due to their smaller average size, 75% of Triasima’s clients are individuals.
Given the volatility of currency exchange rates does Triasima hedge currency exposure?
Not unless specifically requested by the client.
Triasima believes that recent large currency moves are unusual and that the longer term diversification benefit of multiple currencies outweighs the cost of currency insurance. In addition, the expected return from individual stock selections by Tiasima is much larger than the expected currency move, thereby offsetting any value added from currency hedging.
Furthermore, given the multiple currency exposure of the global companies we invest in, there is inherent currency hedging in the investments themselves.
How can a boutique investment firm with a small team of portfolio managers offer several investment products?
The explanation lies with the Three Pillar methodology invented by the founder of Triasima. This method addresses traditional bottom up fundamental analysis in a different manner from most others, while making use of a top down analytical approach that seeks to focus on factors common to a broad group of securities, thereby enhancing the ability to selct businesses from different industries and geogrphical locations.
Other, related, reasons to consider are:
- Experience, with an average of more than 20 years of investment management, Triasima’s team of portfolio managers have been following major industry sectors and companies for a very long time.
- Our Portfolio Managers purposely avoid the in-depth analysis of individual companies that can affect their objectivity, preferring instead to achieve a common sense understanding of a company’s business that is free of behavioral and cognitive biases. To help in the selection process of securities, they also apply sophisticated quantitative and trend recognition techniques to supplement the analytical process.
- The methodology is fully transportable to different types of securities, industries and markets; this efficiently differentiates investment candidates and allows the portfolio managers to focus on a much smaller number of securities.
- The securities themselves; after being selected, individual securities may be used in more than one mandate. For example, if recommended by the methodology, the equity of the Royal Bank of Canada may be selected for inclusion in four types of accounts: Canadian Large Capitalization equity, Canadian All Capitaization equity, Canadian Long/Short equity and High Income mandates.
The proof of the ability of the managers to advise different types of investment products is ultimately in the track record of the products themselves.
How do I invest with Triasima?
Simply by contacting:
Ron Cheshire
514-906-0667 ext.230
rcheshire@triasima.com
How do I track the performance of my investments?
In addition to the transaction statements and monthly reporting provided by the independent custodians holding our clients’ securities, Triasima provides a customized monthly and quarterly report showing the holdings and performance of the client’s investments. In the future we are hoping to provide secure online access to our client portfolios.
How is Triasima’s investment performance presented?
All performance data presented by Triasima are before fees and transaction costs and are prepared in accordance with standards developed by the CFA Institute.
Triasima’s auditor is PricewaterhouseCoopers LLC.
How long has Triasima been in business?
The investment team at Triasima has been together for more than a decade. After starting out as the external investment managers of a small mutual fund company, the three original portfolio managers led by André Chabot struck out on their own and formed Triasima in August of 2000 and have worked together ever since.
Is there a minimum account size required to have an investment relationship with Triasima?
For segregated accounts Triasima does not have a formal minimum account size but, rather, has a minimum fee of $5,000 per annum. This fee is deductible for income tax purposes for non tax advantaged accounts (such as RRSPs). Assuming an average fee of 2.2%, the cost breakeven point versus investing in a mutual fund (mutual fund fees are not tax deductible) is about $225,000. From a cost and investment diversification point of view, a segregated account makes the most financial sense above $500,000.
Triasima also offers pooled fund products such as Canadian Small Capitalization, All Capitalization and Long/Short equity. These products have a minimum investment of $150,000 for non-accredited investors.
Is Triasima a registered investment manager?
Yes, Triasima is licensed to act as investment counsel and portfolio manager by the Authorité des marchés financiers ("the Financial Markets Authority"), the regulatory body for the province of Quebec, Canada where Triasima is incorporated and domiciled.
In Canada Triasima is a Registered Portfolio Management Company in the provinces of Quebec, Ontario, Nova Scotia, New Brunswick, Saskatchewan, Alberta and British Columbia.
What are the advantages of using a portfolio management firm rather than buying mutual funds?
The primary advantages relate to the personalized attention accorded to each client relationship. Each mandate has its own specific investment policy and constraints, with dedicated experienced investment professionals advising the portfolio and responsible for servicing the relationship.
Moreover, due to the larger average size of portfolios and the absence of intermediaries, fees are much lower than those of mutual funds that routinely charge management fees of 2% or more. Triasima’s portfolio management fees start at 1% or less depending on the size and type of portfolio involved. Unlike mutual funds, Triasima’s management fees are tax deductible.
The only other cost of having assets advised by Triasima is the small fee charged by the custodian of the assets.
What does it cost to have my investments managed by Triasima?
For segregated portfolios, Triasima charges portfolio management fees according to graduated schedules applying to the size of the assets under management and that vary by type of investment strategies. Small accounts may begin as high as 1% per annum for some investment strategies but this fee may fall rapidly for mid and large accounts or according to the investment strategy.
Unlike many mutual funds that charge 2% or more of the assets under management plus transaction fees, Triasima thus offers personalized segregated account management for 1% or less, with a minimum fee of $5,000 per year. In taxable accounts fees and transaction costs are tax deductible (unlike mutual funds).
Triasima pooled funds have all-inclusive charges of 1.10% in the case of the Canadian All Cap Equity fund, 1.25% for the Canadian Small Cap Equity fund, and 1.5% plus performance bonus for the Canadian Long/Short Equity fund.
What is the difference between investing with Triasima versus a retail stockbroker?
Investment counseling firm and portfolio managers such as Triasima that offer discretionary portfolio management have high educational standards, are heavily regulated and are relatively few in numbers. This is different from retail stockbrokers and mutual funds salespersons.
Retail stockbrokers are commonly compensated by trading commissions. Triasima’s income is based on percentage of client assets rather than on transactions, our success thus depends on growing the wealth of our clients.
For separately managed accounts, Triasima acts as agent with an authorization to trade on your behalf, your cash and securities are always held by a third party financial institution who provide separate financial statements. For example, many of our clients have their securities with RBC Dexia, one of the largest custodians in the world.
Pooled fund assets are held by NBCN, a division of the National Bank of Canada and any decisions or actions taken by Triasima are governed by a trust agreement administered by an independent trust company.
Where does the name Triasima come from?
Triasima refers to our investment methodology which has provided superior returns since 1998.
Tri is a prefix of Greek and Latin origins which means “three”, and this refers to the three analytical approaches in our “Three Pillar” methodology:
Fundamental, Quantitative and Trend Analysis
Sima is derived from “simulation” and refers to the fact that we never undertake new investment mandates without first having modeled or simulated them so we can deliver optimal returns.
Triasima is privately owned by its employees and directors. Triasima has no affiliation or ownership relationship of any kind with any organization or non related individual.
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