by Tom Bradley

Today we have a rare announcement to make. With the receipt of our 2019 fund prospectus, we’re launching two new funds — Steadyhand Global Small-Cap Equity Fund and Steadyhand Builders Fund.

Global Small-Cap Equity Fund

This fund will be managed by TimesSquare Capital Management, a New York-based firm that has specialized in small-cap investing since it was founded in 2000. TimesSquare’s assignment is to find smaller-sized, high-quality companies from around the globe.

This fund complements our existing ‘Canada-centric’ Small-Cap Fund. It gives our clients exposure to more fast-growing companies, many of which are ignored by large asset managers. Global small-cap stocks are less well followed, which means an experienced research team can unearth unique opportunities. It also means, however, that the fund will be more volatile at times.

The Global Small-Cap Equity Fund plays to Steadyhand’s strengths. We’re a small firm so we have few capacity constraints and our clients have demonstrated over 12 years that they’re good at sticking to their long-term plan. And this asset class has proven to be fertile ground for truly active managers.

In addition to being owned directly by our clients, the Global Small-Cap Equity Fund will be held in the Founders and Builders funds.

For more information, please read the profile of our new fund manager. If you’re wondering how this fund might fit into your portfolio, please contact us at 1-888-888-3147.

Builders Fund

The Builders Fund is a one-stop solution for equity-oriented portfolios. It’s a fund-of-funds similar to the Founders Fund, although it’s more growth oriented and will invest almost exclusively in our 4 equity funds.

My partner, Salman Ahmed, will take the lead on this fund (with me occupying the co-manager seat). In managing the allocation of the underlying funds, he has the scope to move the Builders Fund’s asset mix around based on the fund managers’ views and our work on economic fundamentals, valuation and investor sentiment.

Salman won’t have as much scope, however, to adjust the mix in the all-equity Builders as we do in the Founders, which has more fixed income holdings. Our oversight and rebalancing role, however, is arguably more important because the returns will be more volatile and require a disciplined, steady approach.

Client portfolios

We’re excited about adding TimesSquare to our manager team. And the Builders Fund gives us an additional tool to build client portfolios.

Going forward, our clients will have eight funds to work with, two of which are fund-of-funds (Founders and Builders). We’re increasing the fund count by 33% but remain committed to a tight, simple lineup.

For more information on both funds, I encourage you to look at the website and stay tuned for interviews with the managers. If you have any questions, please call us at 1-888-888-3147.