Elliott & Page Ltd. says that it is bringing a rigorous asset allocation methodology to retail investors through the new E&P Manulife Multi-Advisor Portfolios.

The traditional approach to portfolio building uses optimization to determine the best asset class mix. Managers are then assigned to each asset class, after the fact. According to Elliot & Page, this model leaves the true management style and performance outside the optimization and may inaccurately reflect the underlying holdings and true management style.

The approach taken by Elliott & Page incorporates the selection of the managers inside the optimization process. It finds the most efficient manager mix by taking the style, asset class, and out-performance of each manager into account simultaneously. The process also uses style-adjusted benchmarks for a more accurate measure of expected manager performance.

“Portfolio performance is driven by three key contributions: asset class returns, manager style and security selection skill. All of these elements — in aggregate — contribute to the portfolio’s total return and total risk,” says Adrian Hussey, vice president capital markets, Elliott & Page. “Our methodology brings greater precision to the asset allocation process because it takes all of these factors directly into account.”

The new Multi-Advisor Portfolios are: the E&P Manulife Balanced Asset Allocation Portfolio, which is designed to provide long-term capital growth with capital safety; the E&P Manulife Maximum Growth Asset Allocation Portfolio, designed to achieve long-term capital growth and optimal foreign content exposure while remaining 100% RSP-eligible; and the E&P Manulife Tax-Managed Growth Portfolio, which promises long-term, tax-managed growth within non-registered accounts.

All three portfolios also follow Manulife’s disciplined external sub-advisor selection process. All prospective fund managers are assessed for their ability to provide consistent performance at appropriate risk levels, and for their long-term stability and investment integrity. An ongoing monitoring program ensures that the selected managers adhere to those standards.

Sanford C. Bernstein & Company was selected to manage the U.S. large-cap equity portion of the balanced portfolio and the U.S. and international equity portions of the tax-managed product.

Franklin Templeton Investments Corp. will manage the large-cap international equity portion of the balanced portfolio.

Howson Tattersall Investment Counsel Limited will run the Canadian small-cap equity portions of the balanced and growth portfolios.

TAL Global Asset Management Inc. was selected to manage the Canadian fixed-income portion of the balanced and growth funds.

Knight, Bain, Seath & Holbrook Capital Management Inc. will handle the U.S. and Canadian large-cap equity portions of the tax-managed portfolio.

AMI Partners Inc. gets the Canadian large-cap equity component of the tax-managed portfolio.

Altamira Fund Management was selected to run the Canadian large-cap growth equity portions of the balanced and growth portfolio.

Manulife International Fund Management Ltd. will run the global equity portion of the growth fund.