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TTAC included in RBC Wealth’s Canadian Active Allocation Model


ETF provider TrimTabs Asset Management (TTAM), has announced its flagship fund, the TrimTabs All Cap US Free-Cash-Flow ETF (TTAC), has been added into the RBC Wealth Management’s PAG+ Canadian Active Allocation Model.

RBC Wealth Management is a provider of services for high net worth individuals, as well as corporate and institutional clients, and manages more than USD702 billion worldwide. 
“This is an important milestone for TTAC,” says Ted Theodore, Vice Chairman and Chief Investment Officer at TrimTabs. “It’s a major recognition that our actively-managed strategy, focused on free cash flow, can deliver superior performance for investors by providing exposure to high-quality companies with healthy balance sheets. As many Wirehouses have been trimming the number of funds available on their platforms, we see it as significant that we’re receiving this recognition.”
Since launching in its own trust in September 2016, TTAC has seen performance for the quarter ending March 29th, 2018, of 1.95 per cent (NAV) and 2.29 per cent (Mkt) vs. a loss of -0.64 per cent for the Russell 3000 TR Index, outperforming its benchmark by 259 basis points, or 2.59 per cent.
For the 12 months ending March 31st, 2018, TTAC gained 20.85 per cent (NAV) and 21.17 (Mkt) vs. 13.81 per cent for the benchmark Russell 3000, a difference of 704 basis points, or 7.04 per cent. As of March 29th, 2018, TTAC gained 23.97 per cent (NAV) and 24.30 (Mkt), vs. 16.54 per cent for the benchmark Russell 3000 since inception on September 27th, 2016.
TTAC’s performance has been ranked by Morningstar in the Top 1 per cent for 12-Month returns for all 5,768 Funds in their Large Cap Blend Category, as of March 31st, 2018.
“We’ve seen very strong growth in assets under management this year, up 62 per cent in the first quarter,” says Janet Flanders Johnston (pictured), CFA, Portfolio Manager at TrimTabs Asset Management. “With an allocation in RBC’s PAG+ Allocation Model, it’s clear that our smart alpha approach can play an important role as a core equity holding in investor portfolios.”
Utilising a proprietary algorithm, TTAC is an actively-managed fund that seeks to deliver alpha by investing in approximately 100 companies in the Russell 3000 that are both generating free cash flow and maintaining high quality balance sheets, while reducing their outstanding share count.
“Our inclusion in the RBC model speaks to a larger performance story surrounding TTAC,” Ted Theodore says. “We believe free cash flow is one of the most reliable indicators of a company’s financial health and the strength of their underlying business, and TTAC’s performance numbers are clearly demonstrative of this.”
“At the end of the day, as an investor, you want to invest in high quality companies that are generating free cash flow and growing their cash reserves. Managements have enormous discretion in how they report company financials, but free cash flow is much less subject to financial gimmickry.”

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