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  • Private Wealth Canada News
    market cycle regardless of market conditions by investing primarily in fixed income securities of issuers anywhere in the world and in derivative instruments a floating rate income ETF seeking to generate current income by investing primarily in floating rate debt instruments and or high yield debt securities of issuers located anywhere in the world and a core plus Canadian fixed income ETF to provide a steady flow of income by investing primarily in investment grade Canadian government and corporate fixed income instruments and asset backed securities with maturities of more than one year Sphere Launches Canadian ETFs Exchange Traded Fund ETF provider Sphere Investments has entered the Canadian market with an initial suite of four FTSE sustainable yield ETF products the first in a series of more than 30 ETFs the firm plans to bring to market as part of its integrated wealth management platform The current suite of ETFs consists of an Asian sustainable yield index a Canadian sustainable yield index a European sustainable yield index and a U S sustainable yield index April 18 2016 Executives Perform Better When Under Pressure Seventy per cent of advertising and marketing executives say their job is somewhat or very stressful but nearly one third 32 per cent say the more stress they experience the better their performance Another 60 per cent report they thrive under some pressure says research by the Creative Group Although feeling challenged at work can inspire action and propel decision making among professionals employees at every level and employers need to be wary of relying on pressure as a primary motivator says Deborah Bottineau senior regional manager of the Creative Group Taking the time to recharge allows teams the opportunity to refocus their priorities without unnecessary stress and strategize new ideas to further business growth She adds Executives with years of experience handling stress shouldn t take their own abilities to manage for granted They must remain mindful of recognizing and supporting employees who may be struggling to handle work pressures Checking in regularly to offer extra resources and guidance help ensure that employees remain productive committed and refreshed Investors Between Panic And Euphoria Uncertainty around the central banks and the health of the global economy has driven investors between the extremes of panic and euphoria says Algonquin Capital In the past eight months the S P has experienced four swings of over 10 per cent including starting the New Year with a dramatic fall only to climb back and finish the quarter pretty much unchanged With no significant changes in the underlying global risks or economic fundamentals making sense of these moves is like trying to understand the gibberish at the Mad Hatter s tea party it says As Alice put it you might do something better with the time than wasting it in asking riddles that have no answers Its conclusion is that common sense doesn t really work here Millennials Shaking Up Industry Millennials are set to shake up Canada s investment industry as they demand investments that incorporate environmental social and governance ESG criteria says Millennials Women and the Future of Responsible Investing It found that Millennial investors those between 18 and 34 years old are more than twice as likely as Baby Boomers to be interested in investments dedicated to solving social or environmental problems The data highlight a strategic opportunity for advisors to add even more value by educating themselves and their clients about responsible investing says Fred Pinto senior vice president and head of wealth and asset management with Qtrade Financial Group and CEO of OceanRock Investments Advisors who are knowledgeable about responsible investment products and ESG issues are better positioned to attract millennials assets today and in the future as this generation accumulates and inherits more wealth in the years to come The study was commissioned by OceanRock Investments a sustaining member of the Responsible Investment Association Hedge Funds Have Best Return The Preqin All Strategies Hedge Fund benchmark posted a return of 2 82 per cent in March the best monthly return for the asset class since January 2012 s 3 06 per cent and only the third positive monthly return since May 2015 All leading hedge fund strategies posted gains with equity strategies seeing the highest returns of 3 79 per cent However after posting negative returns in the previous two months performance for equity strategies funds so far in 2016 stands at 1 10 per cent the worst of any leading strategy Overall hedge funds are still showing negative performance for the year with losses of 0 28 per cent in 2016 The opening months of 2016 seemed to pose the same challenges to the hedge fund industry as those that had characterized the second half of 2015 global volatility losses in public equities and a continued slump in commodities prices However the widespread gains seen in March are an improvement for the industry which has not seen such a strong monthly return since January 2012 says Amy Bensted head of hedge fund products at Preqin ETFs Show Positive Growth After a challenging start to 2016 due to adverse market conditions Canadian listed ETFs assets experienced positive growth at the end of the first quarter to end March at a new high watermark of 95 2 billion says the CETFA The recovery in market valuations played a part in the growth of Canadian listed ETFs but the majority of the growth can be attributed to strong sales The 5 6 billion in net creations was the highest quarterly total on record breaking the previous record of 5 1 billion set in the fourth quarter of 2015 Sales were widespread during the quarter with only two sponsors experiencing net redemptions during the quarter Equity REITs Outperform Stock exchange listed equity REITs significantly outperformed the rest of the equity market in March and the first quarter of 2016 says the National Association of Real Estate Investment Trusts NAREIT The total return of the FTSE NAREIT All REITs Index

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  • Contact Private Wealth Canada magazine
    out how to submit an article and for any questions about the articles contact Publisher Executive Editor Staff Writer TEL 416 494 1066 ext 14 Website Manager For online advertising opportunites or technical issues Circulation Manager Letters to the Editor Comments or concerns about articles are welcome Please eMail them to Or Fax them to 416 494 2536 Or mail to Letters to the Editor Private Wealth Canada 245 Fairview

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  • Private Wealth Canada News
    will contribute as well The resulting investment implications are primarily fueled by the premise of a widening global economic recovery and the effects of continued low oil prices They include an overweighting to equity relative to fixed income and to attractive investing opportunities within emerging markets especially India and commodity importing countries The upside surprise scenario to which it assigns a 20 per cent chance of playing out envisions a situation where policymakers around the globe get nearly everything right both in the short and intermediate term The resulting investment implications of this scenario are best captured by a full risk on asset class exposure focusing on cyclical sector equities and non U S companies with high domestically generated revenues particularly among commodity producers Fiduciary Rule May Force Innovation The introduction of the U S Department of Labor s DOL fiduciary rule will likely force a period of product and platform innovation in the United States says a report from Cerulli Associates It says this will prompt some financial firms to technology such as robo advice to serve smaller clients The primary concern of the DOL s proposal is to expand the definition of fiduciary to cover more instances of providing advice This expansion in turn is designed to protect consumers from sales practices that may be tainted by a conflict of interest says Bing Waldert managing director at Cerulli As a result there will be unexpected changes to the retirement and wealth management industries ETFs Satisfy Investors ETFs make up an increasing proportion of portfolio holdings across asset classes and satisfaction has remained at high levels especially for traditional asset classes says the EDHEC European ETF Survey 2015 It shows a significant increase in satisfaction with equity ETFs which now enjoy a satisfaction rate of 98 per cent compared to 91 per cent in 2014 The satisfaction rates for ETFs based on the most liquid asset classes are far more consistent compared to those based on illiquid asset classes It also shows investors have increased their use of ETFs to invest in smart beta with the proportion reaching 68 per cent of respondents in 2015 compared to 49 per cent in 2014 March 14 2016 2015 Economic Challenges Continue The challenges of 2015 are expected to continue in 2016 as energy companies retrench and business investment drops with oil prices likely to remain lower than previously expected says the RBC Economics Outlook Still Canada s real GDP is projected to grow by 1 7 per cent this year a stronger showing than 2015 s 1 2 per cent rise The report expects another year of solid consumer activity and firmer exports to underpin growth next year Further the federal government is expected to announce fiscal stimulus measures in the upcoming budget that will also provide a lift to the economy While another year of retrenchment by energy companies will dampen 2016 s rise manufacturing sales jumped in November and December and exports are showing signs of strength says Craig Wright senior vice president and chief economist RBC The shift in the drivers of growth that began in 2015 from commodities based companies to other sectors is an essential part of the economy s ongoing transition The continuation of the transition in the drivers of growth will likely result in real GDP expanding at a slightly faster pace in 2016 relative to 2015 Director Compensation Levels Continue To Increase Compensation levels for Canadian chairs and board directors of publicly traded companies increased from an average of 128 851 in 2012 to 136 506 in 2014 says the Conference Board of Canada The Canadian Directors Compensation Practices says despite the recent economic downturn director compensation should continue to increase at a pace faster than the economy or worker wage growth However the increase in compensation comes with greater demands and workload Also director compensation varies broadly across the size of organizations Large companies pay their directors the highest average annual total compensation at 156 374 Interestingly small companies pay their directors more than medium sized organizations on average 126 893 and 118 796 respectively The average annual compensation for board chairs is 257 848 Overall Canadian organizations paid an average of 1 7 million in fees to their board of directors in 2014 Super rich Still Spending On Luxury Items The population of super rich individuals may be shrinking but it seems the world s wealthiest are still finding the cash to splash out on luxuries like classic cars and jewelry The number of ultra high net worth individuals those with assets of more than 30 million excluding their main property has fallen by three per cent says research by New World Wealth for the Knight Frank Wealth Report It s the first fall in seven years and means there are now 187 500 super rich individuals globally down from 193 100 in 2014 Despite the downward shift blamed on slower economic growth and a more volatile financial climate spending on luxury items is on the rise In fact the value of the overall Knight Frank Luxury Investment Index KFLII rose by seven per cent during 2015 Classic cars with a rise of 17 per cent were the top performer in the index which tracks the price growth of 10 luxury investments sectors Wine and luxury watches both increased by five per cent while jewelry saw a rise of four per cent Affluent Investor Confidence On Rise Lower volatility helped drive the Spectrem Investor Confidence indices higher in February says a report by Spectrem Group The Millionaire Investor Confidence Index SMICI rose five points to two and the Affluent Investor Confidence Index SAICI edged upward one point to minus 3 For the first time this year the indices have registered a decline in the number of affluent investors indicating they intend to remain on the investment sidelines Reversion To Mean Coming While Africa ex South Africa has underperformed emerging markets since 2014 Greg Barker director of investment research at Sustainable Capital says investors can expect a reversion to the mean because the fundamentals are improving and risk is declining As well there are strong earnings prospects Currently the ratio between Africa ex South Africa and emerging markets is nearly two standard deviation points below average On a demographics basis the 10 countries they focus on including Nigeria Egypt Kenya and Morocco are where the U S was in 1960 so they have younger populations and a rising middle class Companies they examine all have strong local markets which he says will grow as the population becomes more affluent Sustainable is an African investment specialist in listed equities March 7 2016 Investors Need Chill Pill Global investors need to take a chill pill as economic prospects are not as bleak as many fear says a report from Avery Shenfeld chief economist at CIBC Even though he s been steadily downgrading his Canadian and global growth outlook since the second half of 2014 market chatter has left him feeling like a rosy glassed optimist Prospects aren t as bleak as some now fear and rates aren t going negative everywhere Investors need to be scanning for signs that the news ahead might be better rather than worse and there are indeed some forces that might pave the way for at least less bad news He notes that while emerging market recessions or in China s case growth disappointments have been front and centre in the global economic slowdown of the past year there are some positive signs He does add that the market s assessment of Canada is rightly one of concern for near term growth prospects Just as fiscal policy differentiated the Eurozone s post recession fate from that of the U S it will hold the cards for getting the Canadian economy back in gear Outside Of Plan Worth Monitoring Outside of plan executive compensation awards are a compensation practice worthy of monitoring says a joint study by the Ontario Teachers Pension Plan and the Canada Pension Plan Investment Board Outside of plan compensation is not part of the company s pre established compensation scheme Examples of such awards include payments granted for the purposes of retention severance sign on and the successful completion of a transaction However by their nature outside of plan awards represent extra compensation paid to executives and total outside of plan awards in 2015 amounted to 4 1 billion which when compared to the amount of total direct compensation paid to executives in 2015 had the effect of increasing compensation by 12 6 per cent It says while many of these awards may be appropriate forms of compensation the onus is on boards of directors to provide a clear rationale for granting outside of plan awards as well as how the structure and quantum were determined to give shareholders clarity on why any awards granted are acceptable Toronto Leads Market The Greater Toronto Area GTA ON will lead the 1 million plus residential real estate market into spring with continued sales gains and further price escalation says Sotheby s International Realty Canada Notable growth is also expected for the Vancouver BC top tier residential real estate market with strong increases anticipated in the 4 million plus luxury market segment both in Vancouver and the GTA Key market and macro economic indicators foreshadow continued stability in the Montreal QC luxury real estate market while price declines are expected to sustain a buyers market in Calgary ON into the spring Sotheby s says the performance of major Canadian real estate markets diverged in 2015 While sales of real estate over 1 million condominiums attached homes and detached single family homes increased 48 per cent 46 per cent and 15 per cent year over year in the GTA Vancouver and Montreal respectively sales volume decreased 41 per cent in Calgary During this time luxury real estate sales over 4 million soared in Canada s two largest real estate markets with sales volume increasing 67 per cent in Vancouver and 71 per cent in the GTA year over year The firm says limited inventory resilient consumer confidence strong domestic and supplemental international demand below national average unemployment and low interest rates are expected to propel positive growth in the GTA and Vancouver Stability in the Montreal market will lead to consistent sales while continued economic uncertainty in Calgary will increase available inventory and contribute to declining home prices across the conventional and top tier markets Vancouver Children Overestimate Inheritance While the vast majority of parents expect to leave an inheritance behind many metro Vancouver BC children have unrealistic expectations about the amount they will receive says a report by Vancity credit union The report Great Expectations wealth transfer between generations in British Columbia found more than 39 per cent of metro Vancouver children expect to receive an inheritance of more than 300 000 while only 12 per cent of parents anticipate leaving a legacy over that amount A contributing factor may be that less than half of metro Vancouver parents have spoken with their kids about what to expect in terms of inheritances or wealth transfer Meanwhile 60 per cent of British Columbia parents surveyed said they have already provided a portion of their wealth to their children helping with down payments for a house or car or paying off student loans or other debts The report also found that the median asset value of British Columbia households 65 years and older is about 594 400 The average inheritance in the province in 2012 was 137 800 while the median was a mere 50 200 suggesting that the vast majority of inheritances were less than 100 000 Slight Increase In Investment Income In 2014 Both the number of taxfilers reporting investment income and the amount of reported investment income increased in 2014 but at a slower pace than in the previous year says Statistics Canada Investment income refers to the sum of dividend income from taxable Canadian corporations and interest income from investments in non tax sheltered vehicles Nationally over 7 6 million taxfilers reported income from investments in 2014 up 0 4 per cent from 2013 This compares with a one per cent increase from 2012 to 2013 The amount of investment income was up 0 4 per cent in 2014 to 68 3 billion in constant dollars following an increase of 8 5 per cent from 2012 to 2013 While the number of taxfilers reporting investment income rose in 2014 that number as a proportion of all taxfilers edged down from 30 per cent in 2013 to 29 6 per cent in 2014 In addition nationally median investment income increased from 610 in 2013 to 620 in 2014 in constant dollars Affluent Investor Confidence On Rise Lower volatility helped drive the Spectrem Investor Confidence indices higher in February says a report by Spectrem Group The Spectrem Millionaire Investor Confidence Index SMICI rose five points to two and the Spectrem Affluent Investor Confidence Index SAICI edged upward one point to 3 For the first time this year the indices have registered a decline in the number of affluent investors indicating they intend to remain on the investment sidelines finds the report While lower market volatility has begun to translate into increased confidence among affluent investors wealthy investors still have significant concerns about the stability and direction of the U S economy says George H Walper Jr president of Spectrem The good news is that fewer investors say they intend to stay on the investing sidelines a bullish indicator Superrich Demographic Shrinking Temporarily The ranks of the global superrich shrank last year for the first time since 2008 a fresh signal that slower economic growth stock market shocks and weak commodity prices have taken their toll The number of individuals with 30 million or more in assets fell three per cent in 2015 to about 187 000 says a report from real estate broker Knight Frank The report says stock market losses were a big driver of depreciating wealth A collapse in oil prices hit the super wealthy in the Mideast and Africa while currency fluctuations also played a role Brazil saw a 12 per cent drop in ultra high net worth individuals while in Saudi Arabia However the report says the retreat is expected to be temporary The number of superrich will rise 41 per cent by 2025 although the pace will be significantly slower than the previous 10 years Millionaire Households In U S Grow The number of U S households with a net worth of 1 million or more not including primary residence NIPR reached a record 10 4 million in 2015 says Spectrem Group s Market Insights Report 2016 The total is an increase of approximately 300 000 households up from 10 1 million in 2014 In 2015 there were 29 8 million mass affluent households with a net worth between 100 000 and 1 million NIPR The number of millionaires with a net worth between 1 million and 5 million reached 9 1 million The ultra high net worth market those households whose net worth is between 5 million and 25 million NIPR grew to 1 2 million an increase of 42 000 Noise Obscures Opportunities The New Year hasn t brought much relief for long suffering emerging market investors For example the MSCI Emerging Markets Index was down more than six per cent for the first month of 2016 and is now in negative territory over the past decade However Craig Bodenstab of Orbis Investments says in the article No Lack Of Long Term Value In Emerging Markets at the Private Wealth Canada website that there are attractive opportunities to be found for investors who are able to look past the short term macro noise Global Equities Face Sharp Volatility Global equities experienced sharp volatility at the beginning of 2016 on the back of tumbling oil prices and worries about the health of the Chinese economy and its potential implications for the world economy And says Bill Maldonado chief investment officer Asia Pacific and global chief investment officer equities at HSBC Global Asset Management Canada Ltd the global economic environment is likely to remain in a fragile equilibrium one where global growth and inflation both remain relatively low with potential periodic scares triggering bouts of stock market volatility In the report Making Sense of China he says China s economic growth is expected to slow to 6 5 per cent for 2016 and six to 6 5 per cent in 2017 and 2018 from 6 9 per cent in 2015 This means the underlying weakness may persist for longer and further policy support is needed Going forward Chinese equities should be more driven by the macro earnings and policy outlook as well as progress on implementing the reform agenda The impact of RMB depreciation should be manageable barring sectors which have high foreign currency debt exposure such as airlines and paper companies Venture Capital Has Strong Growth The venture capital industry in Canada saw strong growth in 2015 and deal flow is expected to continue this year says a report from the Canadian Venture Capital Private Equity Association CVCA Venture deal volume grew 24 per cent over 2014 with 536 deals Deal value rose 12 per cent to 2 3 billion Exit values hit a record high of 4 3 billion up from 1 5 billion in 2014 powered by a trio of large initial public offerings Shopify ProNAi and Davids Tea By sector information technology led the way accounting for almost two thirds of the volume and transaction value REITs Deliver Double digit Returns The stock exchange listed U S REIT industry delivered double digit increases in operating performance measured by Funds From Operations FFO and Net Operating Income NOI as well as dividends paid to shareholders in calendar 2015 and the year s fourth quarter compared to the same periods in 2014 says the National Association of Real Estate Investment Trusts NAREIT

    Original URL path: http://www.privatewealthcanada.ca/private_wealth_news.php?date=2016-03-28 (2016-04-27)
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  • Private Wealth Canada News
    and four condominium apartments changed hands last year representing more than 500 million in total dollar volume 2015 was a banner year for real estate activity across the board Nowhere was that fact more evident than in the upper end says Cohen who participated in 13 of the 77 sales over 5 million Tight market conditions prevailed throughout much of the year with fewer ultra high end listings coming to market overall particularly in prestigious enclaves south of Highway 401 Pent up demand is expected to carry over into 2016 with affluent purchasers waiting patiently in the wings for the right product Listings were greatest in the Bridle Path and Sunnybrook Selection was scarce in upscale neighbourhoods in close proximity to the downtown core including Rosedale Moore Park and Forest Hill Dramatic Decline In Affluent Investor Confidence There was a dramatic decline in confidence among affluent investors in January driven by the stock market slide since the beginning of the year says a survey by Spectrem Group The Spectrem Millionaire Investor Confidence Index SMICI was down 14 points to minus three a 38 month low The Affluent Investor Confidence Index SAICI dropped eight points to minus four a 27 month low This is the first time since December 2012 when concern about the U S going over the fiscal cliff was at its peak that each index has posted a negative reading Global markets are continuing to experience high volatility tied to poor macro economic conditions and rising geopolitical uncertainty says George H Walper Jr president of Spectrem Group Soft Skills Important For Financial Teams Chief financial officers not only want their teams to be well versed in accounting principles but increasingly value soft skills like interpersonal communications and collaboration says a report by Adaptive Insights a provider of cloud corporate performance management CPM The CFO Indicator Q4 2015 report found the vast majority 70 per cent of the 533 global CFOs surveyed cited collaboration with other parts of the organization as a key initiative in 2016 as finance increasingly sits at the hub of big data A significant amount of time is dedicated to collaboration with 82 per cent of finance teams spending at least five hours meeting with other parts of the organization to problem solve and 51 per cent spending more than nine hours Change Almost Constant The key to investing is to focus on positive fundamental change in companies and to identify the growth drivers which haven t been fully appreciated by the market says Mikhail Zverev head of global equities at Standard Life Investments In the article The Growing Networking Opportunity at the Private Wealth Canada website he says the technology sector is one example where change is almost constant It has seen transformative change in how consumers and businesses interact with technology which now permeates everything in daily lives Year Was Historic For ETFs Last year was an historic year for the Canadian ETF industry with more than 16 3 billion in inflows says BMO Global Asset Management s ETF Outlook Report Assets under management AUM reached just under 90 billion double the AUM of the industry five years ago The report notes that in Canada equity ETFs accumulated 9 7 billion in inflows and fixed income ETFs added 6 billion Kevin Gopaul senior vice president and chief investment officer at BMO Global Asset Management says 2015 was a record breaking year for the domestic ETF industry This is particularly impressive given the turbulent markets we experienced It s clear that investors continue to gravitate towards ETFs both as core holdings and to position their portfolios strategically to address these periods of volatility Basel Challenges Hedge Funds Basel III reforms have fundamentally changed how asset managers are connected to the financial system with hedge funds challenged to understand expense usage and access to the financing power grid says a report by the Alternative Investment Management Association AIMA and S3 Partners a financial data analytics and services firm Their survey of fund managers worldwide found that financing costs have risen for 50 per cent of firms with an even split between those who quantify the level of cost increase as being greater than 10 per cent and below 10 per cent As well 75 per cent of firms expect further cost increases over the next two years and the impact is consistent regardless of a fund manager s size investment strategy or location Fund managers are also having to rethink their prime brokerage relationships with 75 per cent asked to change how they do business with their prime brokers while more than 67 per cent have had to cut the amount of cash they keep on their brokers balance sheets AGF Signs PRI AGF Investments Inc AGF has become a signatory to the United Nations supported Principles for Responsible Investment PRI in recognition of the increasing relevance of environmental social and governance ESG issues within the investment process The PRI Initiative is a global network of investors working together to put the six principles for responsible investment into practice Its goal is to understand the implications of sustainability for investors and support signatories to incorporate these issues into both their investment decision making and ownership practices In implementing the principles signatories contribute to the development of a more sustainable global financial system Kevin McCreadie president and chief investment officer of AGF Investments Inc says This reinforces our commitment to responsible investing and offers our clients a more sustainable approach Canadians Bullish On U S Equities Heading into the first quarter of 2016 Canadian advisors are still bullish on U S equities says the Q1 2016 Advisor and Investor Sentiment Surveys by Horizons ETFs Management Canada Inc Advisors were bullish on four classes only the S P 500 NASDAQ 100 the S P TSX 60 Index and the S P TSX Capped Financials Index However the degree of bullishness declined for each of these indices The decline of the Canadian dollar against the greenback has had

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  • Private Wealth Canada News
    the relevant data Innovation is one example GDP numbers do not capture for example the functionality of the iPhone This recovery is also abnormal in other ways he said Nominal government spending declined in the first years of the recovery and this is unprecedented It has never happened before As well debt deleveraging resulted in a contraction in household spending While spending has slowed in other recoveries this too has never happened before And he said while the dramatic decline in oil prices may not be popular in Canada he said there are enormous positive influences throughout the economy Oil producing countries account for just nine per cent of global GDP with oil consuming countries responsible for 91 per cent This will help the global economy and better and more balanced growth will result Policy Creates Lagging Confidence Lagging investor confidence in Alberta s oil and gas sector has more to do with policy uncertainty than a lack of pipelines to get oil to market says a research bulletin from the Fraser Institute Pipelines or Policies What s Behind the Fall in Investor Confidence in Alberta examines whether investor perceptions of Alberta s energy industry are driven more by negative events related to pipeline development or government policies It found there was no evidence that negative events such as the U S decision to delay the Keystone XL pipeline the announcement of twinning the Trans Mountain Pipeline and the BC NDP decision to oppose it and the announcement of the Energy East Pipeline failed to result in a significant change in the market evaluation of any of the companies It appears the market has priced pipeline uncertainty into the firms evaluations so none of the announcements we examined changed perceptions about how Alberta s oil will get to market says Ross McKitrick economics professor at the University of Guelph and co author of the bulletin Investors are prepared to play the long game when it comes to options for moving Alberta oil to market Funds Follow Contrarian Strategies Two thirds of hedge funds follow contrarian strategies However they are also the highest performing says research by the National Bureau of Economic Research s Mark Grinblatt along with Gergana Jostova George Washington University Lubomir Petrasek U S Federal Reserve Board and Alexander Philipov George Mason University It shows contrarian hedge funds or funds that tend to buy stocks that have previously had low returns outperform their benchmarks by 2 4 per cent per year For almost two thirds of managers the research shows that stock purchases tended to be contrarian although their tendency to sell recent winners was less pronounced Their most profitable trades were purchases of stocks sold by mutual funds following momentum strategies Hedge funds that utilized momentum strategies meanwhile did not outperform their benchmarks even when the benchmarks controlled for momentum Canadian ETFs Hit New Highs Canadian listed ETFs continued to challenge the adage what goes up must come down by finishing the year with a new record high of 89 5 billion in net assets says the CETFA Canadian listed ETFs experienced double digit asset growth of 16 7 per cent during the year despite continuing market turbulence during the second half of 2015 The majority of growth in Canadian listed ETFs was supported by record breaking sales full year 2015 net creations totalled 16 5 billion surpassing the previous record of 11 8 billion in net creations set in 2012 Despite comprising just seven per cent of investment fund assets as of November 2015 Canadian listed ETFs accounted for 20 per cent of investment fund inflows This was the highest share of investment fund net flows for which ETFs have accounted since 2012 In addition 2015 investment fund inflows were also at record highs TD Rebrands Wealth Business The Toronto Dominion Bank is changing its wealth business to TD Wealth Private Wealth Management The entity will be home to TD Private Investment Advice PIA the bank s full service investment brokerage TD Private Investment Counsel TD Private Banking and TD Private Trust The new brand will focus on high net worth Canadians with assets of at least 750 000 For investors this means no longer having to navigate a network of services that can leave many feeling frustrated says Dave Kelly president of TD PIA Rather a single relationship manager will be able to co ordinate all of an investor s needs and set them up directly with the specialist they require He says advisors need to be having more of a goal based conversation as opposed to just a pure investment conversation It is no longer just about a four per cent or six per cent return The move is being implemented ahead of regulatory changes known as the second phase of the client relationship model that will highlight how much a client is paying for financial advice as well as the cost of their investments January 18 2016 Organizational Leadership Still Needs Improvement Improving organizational leadership and building leadership capacity have become strategic priorities among Canadian organizations However they still find themselves struggling to bridge the leadership gap says Conference Board of Canada research Leadership Outlook Leadership Driving Organizational Performance reveals that 37 per cent of survey respondents rated their organizational leaders as being highly effective compared to 29 per cent of respondents in 2001 Similarly 31 per cent viewed their organization to be highly effective at building leadership capacity up marginally from 26 per cent in 2001 When asked to rate their organization s leadership s ability to implement major change only 14 per cent of respondents said theirs was excellent The board says this is particularly concerning as a high level of organizational preparedness with strong and capable leadership at the helm is required for organizations to anticipate and respond to the changing business and economic environment It has found that high leadership performing organizations are 30 times more likely to excel in areas such as change readiness employee engagement and customer orientation These organizations also demonstrate a strong focus on innovation and an emphasis on identifying and developing high potential employees Providers Need Transparency For HNW Investors High net worth HNW investors most frequently cite transparency as a very important differentiating factor in an advice provider says research from Cerulli Associates The global analytics firm says the first step for providers entering the HNW financial services market is to understand what characteristics these households desire in an advice provider Helping investors understand the full extent of an advisor s potential revenue streams has been a persistent challenge for both advice providers and advisors and has become even more complicated with the ongoing evolution of integrated wealth management conglomerates says Scott Smitt director at Cerulli He says the financial industry was built around the premise that investors understand the fees they pay and sign documents affirming their awareness However the research indicates that investors who truly comprehend the entirety of their costs are more the exception than the rule The overall expenses of pooled investment vehicles including management fees and other embedded fees are essentially non existent to many investors If they do not see a line item deduction from their accounts they do not recognize a transfer of wealth from themselves to their advisor or provider says Smitt While these fees and expenses are well documented within the agreements and disclosures that investors sign few take the time and effort to fully consider the cost of their arrangements Porsche Launches Compact SUV Porsche has launched the 2017 Macan GTS a compact SUV that features more power a reengineered chassis and reinforced brakes In terms of power and torque its 360 hp and 368 foot pounds place it between the Macan S and the Macan Turbo The powertrain is the 3 0 litre twin turbo V6 engine of the Macan S supplemented by the Porsche Doppelkupplung PDK and Porsche Traction Management PTM with flexible power distribution to all four wheels The Macan GTS combines a high level of typical Porsche driving dynamics with everyday utility A sportier tuning of the Porsche Active Suspension Management PASM with lower ride height along with 20 inch wheels in RS Spyder with black satin paint finish with mixed tires are features of the GTS equipment Also in keeping with the style are the standard GTS sport seats with Alcantara centre panels additional Alcantara trim in the interior and a full sounding sports exhaust system At the same time the new PCM connectivity and infotainment system with multi touch monitor extended functions and more operating comfort is celebrating its debut in an SUV The Macan GTS has exterior accents in black in high gloss above the waistline and in a matte finish in the lower areas of the body and by a special version of the Sport Design package also in GTS specific colouring that comes as a standard feature For the first time the Macan GTS is also available with LED headlights as an option It will arrive in Canada in the second quarter of 2016 with pricing starting at 73 100 Mercedes Launches Modified C Class Mercedes AMG has launched the C 63 Coupe which offers technical modifications such as flared front and rear wheel arches an increased track width and larger wheels The AMG 4 0 litre V8 biturbo engine with 469 hp in standard trim or 503 hp in the C 63 S is an in house development from Affalterbach In addition the AMG ride control suspension with electronically controlled shock absorbers the set up of the AMG dynamic select transmission modes the rear axle limited slip differential and the dynamic engine mounts have all been developed by AMG The C Class is Mercedes AMG s best selling model and forms the backbone of the company s success Since its launch in 2011 the C Class Coupe has steadily gained significance culminating with the C 63 AMG Coupe Black series It will be available in Canadian dealerships beginning in the summer Toronto Hotels Awarded Highest Rating The Ritz Carlton Four Seasons Hotel Shangri La Hotel and Trump International Hotel and Tower have been awarded the highest rating possible the CAA AAA Five Diamonds Designation by CAA South Central Ontario The hotels are all located in Toronto ON Silvana Aceto media relations consultant CAA SCO says Five Diamond hotels consistently deliver exceptional experiences to guests seeking the finest amenities in a comfortable and luxurious setting Candidates for the rating undergo multiple unannounced evaluations and a final decision is made by a panel of experts Market Disparity Offers Opportunity A market disparity that exists because of an artificial low in the gold price and an unsustainable high in financial assets has created a unique opportunity says Nick Barisheff president and CEO of Bullion Management Group Inc In the article A Tactical Opportunity Sell High Buy Low at the Private Wealth Canada website he says in the current global economy there are numerous vulnerabilities and several valuation methodologies summarize current market fundamentals and provide an excellent indicator of future trends In his view equity prices are certain to fall Meanwhile investors will again turn to gold driving up the price The opportunity for 2016 is to sell high buy low he says Three U S Tail Risks Possible There are three possible 2016 tail risks in the U S that equity and fixed income markets currently are not pricing in says What investors may expect in 2016 a Thought Leadership piece by Federated Investors Inc It says inflation surprises could result as a result of a tightening labour market Hourly compensation jumped four per cent in the third quarter well above forecasts and a sign that labour costs are rising much faster than currently anticipated This could prompt the Federal Reserve to raise interest rates faster and by more than expected If the dollar s rise accelerates instead of moderates because of additional monetary accommodation overseas at the same time the Fed is tightening and if oil stays below 40 a barrel or falls even further on new Iranian and Canadian supply and a weakened OPEC the risk is that manufacturing shrinks could result Finally spiking inflation rapidly rising interest rates and contracting manufacturing could tip over into a recession It says by including alternative strategies as part of a portfolio long term investors may potentially limit some of the downside risk that can accompany tail risk events U S Equities Overvalued U S equities remain overvalued and in a valuation range that has historically been associated with below average long term subsequent returns says Cambridge Associates Outlook 2016 Do You Know Where Your Risk Tolerance Is And while earnings growth may rebound as headwinds are fading and domestic growth should accelerate they seem likely to disappoint expectations again in 2016 given rising pressure on margins Currency is a wildcard but it seems more likely to be a minor drag than a boon especially if inflation and or Fed tightening surprise to the upside Conversely Eurozone and UK equities look more reasonably priced which should support performance though the latter may be weighed down again by a weak earnings outlook Important wildcards for the United Kingdom are what happens to commodity prices and emerging markets in light of high index exposure to both As neither is easily predictable investors maintaining large UK equity exposures should consider tilts toward more domestically oriented small and mid cap stocks Stable Oil Prices Critical For Economy Stable or higher oil prices will be critical for an improved outlook for the Canadian economy and entirely necessary for any positive performance in domestic equities says Russell Investments 2016 Annual Global Market Outlook However it says the greatest downside risk over the next 12 months for the Canadian economy remains overextended household finances Severe vulnerabilities persist in Canada and as in 2015 we believe the resiliency of the economy will be tested over the first half of 2016 says Shailesh Kshatriya director Canadian strategies at Russell Investments Canada Limited We believe GDP growth will be in the 1 2 per cent to 1 6 per cent range and expect that the economic drivers will be exports primarily but also government spending and household consumption The Bank of Canada is expected to maintain its policy rate at 0 5 per cent for 2016 However if GDP growth is at risk of coming in below our already conservative forecast an additional rate cut would not surprise us says Kshatriya Looking past the oil price shock the report indicates that the Bank of Canada s job will be complicated by housing related risks as total debt service costs remain at multi decade highs Coupled with a debt to disposable income ratio close to 167 per cent and a debt to GDP ratio of around 96 per cent the picture becomes more concerning The wildcard may well be if oil prices rise unexpectedly beyond the base case and improve economic sentiment Unfortunately the transmission mechanism for improved oil price fundamentals translating into hard economic data is not likely to be a swift one So unless oil prices accelerate over the immediate near term only moderate growth is to be expected from the domestic economy in 2016 says Kshatriya Foreign Funds Perform Better The waning strength of the Canadian dollar resulted in strong performance for foreign equity funds held by Canadian investors says Morningstar Research Inc However its 2015 performance numbers showed returns in domestic funds were disappointing The report shows 29 of its 42 Canada fund indices measuring returns of funds across various categories rose during the year including nine that gained more than 10 per cent A European equity index topped the performance The 16 2 per cent decline of the Canadian dollar against the U S dollar meant despite flat performance the U S equity and U S small mid cap categories jumped by a 13 per cent Best performance among Canadian equities fund was in the Canadian focused category which showed a 0 7 per cent decrease January 11 2016 MEI Counters CCPA Wage Gap Findings The gap between the remuneration of the 100 highest paid CEOs in Canada and the average salary in Canada has reached a point that justifies greater wealth redistribution says a report from the Canadian Centre for Policy Alternatives CCPA It says by January 2 these CEOs had pocketed the equivalent of the average annual salary in Canada By increasing income tax rates and limiting deductions the CCPA claims that governments could use these additional revenues to finance public services that would benefit the population However the Montreal Economic Institute MEI says if the total remuneration of these CEOs some 921 million were entirely confiscated this would represent just 0 13 per cent of the overall revenues of governments in Canada Assuming that these CEOs would continue to perform their duties without getting paid their salaries would be entirely spent by governments by 10 37 a m on the first day of the year There is a legitimate debate to be had regarding the remuneration of the CEOs of large corporations But it has to do with corporate governance and the ability of shareholders to have their point of view on the topic properly reflected in the decisions of boards of directors says Michel Kelly Gagnon president and CEO of the MEI In addition to being an ineffective means of increasing government revenues high tax rates hinder wealth creation and wealth creation is something that actually contributes to everyone s standard of living Dangling the prospect of being able to pay for a multitude of social programs just by excessively taxing the salaries of the CEOs of large corporations as some do is simply mistaken says Kelly Gagnon It serves only to stoke people s envy and contributes nothing constructive to serious discussions of public policy Interest Rate Increase Affects Indices The U S Federal Reserve s quarter point increase in interest rates contributed to a significant decline in

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    preferred pricing program and private wealth counsel service and are exclusively for affluent investors with a minimum initial investment of 150 000 The pools offer multi manager core mandates combining strategically allocated active portfolios a risk conscious approach which includes low volatility strategies a preferred management fee structure designed for the affluent investor tax efficiency within the four mandates offered through the corporate class structure and fixed rate monthly payout options across all private wealth pools Sun Life Introduces Private Client Auto enrolment Program Sun Life Global Investments Canada Inc is introducing an auto enrolment feature for investors who qualify for the private client program It will make it easier for advisors to administer accounts to this market segment and provide eligible investors the opportunity to receive the lowest fees and best features available to them within Sun Life Global Investments Starting February 5 clients holding a minimum of 100 000 based on the market value in series A F T5 T8 AT5 AT8 and AH mutual funds purchased via front end sales charge option in an eligible account will automatically be enrolled in the program Once within the program investors will automatically receive management fee reductions based on the market value of their account and may be eligible for additional private client services and features including specialized statements and account linking December 14 2015 Tax Adjustments To Cost Liberal Government The Liberal government is making good on its election vow to cut federal income taxes for middle earners by raising the rate on the richest Canadians However it now acknowledges the tax tweaks introduced in a motion in parliament won t be revenue neutral Bill Morneau the federal finance minister says that an array of new tax adjustments will have an annual net drain on the federal treasury of about 1 2 billion in each of the next five years starting in 2016 17 The headliner of the new measures is the one to lower the income tax rate to 20 5 per cent from 22 per cent on Canadians earning between 45 282 and 90 563 per year To help offset that change the Liberals have added a 33 per cent tax rate on income earned by Canadians in the top one per cent those who make more than 200 000 per year Previously the 29 per cent tax bracket which applies to incomes between 140 388 and 200 000 was the highest tax rate in the country In its election platform the Liberals estimated the tax increase on the top earners would only fall short of covering the full cost of the tax cut by less than 100 million per year But the numbers were adjusted after an evaluation by the finance department found the projected revenues of the Liberal promise were off the mark The net cost of the changes is 1 4 billion in 2016 17 a shortfall that s projected to rise each year until it hits 1 7 billion in 2020 21 About 319 000 Canadians will reach the upper tax echelon American Portfolios Plunge The stock market s sharp decline in August and September took its toll on Americans finances in the third quarter Household net worth fell for the first time in four years The Federal Reserve says Americans stock and mutual fund portfolios plunged 2 3 trillion in the July September quarter That far outweighed a 482 billion increase in home values Overall household net worth fell to 85 2 trillion from 86 4 trillion in the second quarter Americans net worth has grown 2 9 per cent in the past year That rise may have left many Americans feeling wealthier even with last quarter s decline Less household wealth can cause consumers to pull back on spending to rebuild savings That can slow growth since consumer spending drives more than two thirds of economic activity Workers CFOs Differ On Incentives When thinking about workplace perks would employees rather hit the gym or take a day off It depends on whom you ask Chief financial officers CFOs interviewed for a Robert Half survey said health and wellness benefits are what current and potential employees prize most but workers cited additional vacation days as their most coveted perk Despite the discrepancy the research suggests companies are increasingly willing to negotiate non monetary perks versus a year ago Fifty four per cent of CFOs said they are more open to discussing these benefits while none of those surveyed said they are less open This shift is not lost on workers 24 per cent think perks are on the discussion table more often at their company while just 10 per cent think the opposite The research also found that when it comes to being more willing to offer these extra incentives businesses in Manitoba Alberta and British Columbia lead the pack Investors Need To Stay Ahead Of Curve As part of incorporating climate risk into long term investment decision making investors should consider whether and how to stay ahead of the climate risk curve to preserve value in their portfolios says Cambridge Associates Its Risks and Opportunities From the Changing Climate Playbook for the Truly Long Term Investor report also says they need to determine whether and how to position themselves to capitalize on investment opportunities arising from technological advances business model innovations and policy evolution For many the first step is not necessarily making immediate portfolio changes but rather asking key questions to establish guideposts today to arrive at better decisions tomorrow Given the interconnected and systemic nature of climate risks investors will find it difficult to predict and precisely manage every potential impact on portfolios There are four approaches investors can take to better understand and manage these risks They are engagement through delegation to managers engagement through advocating for more transparency and reporting on climate risk metrics proactive hedging via low carbon index products derivatives or use of active managers that employ environmental social and governance ESG metrics and policy level exclusion of fossil fuel and other sectors Business Cycle Crucial For Gains The business cycle will be crucial for further gains in risk assets next year now that the global tide of easy money that inflated valuations in recent years has crested says BlackRock Investment Institute s 2016 Investment Outlook Cycles Out of Sync suggests investors pay much more attention in 2016 to the business credit and valuation cycles as the impact of the monetary policy cycle fades With valuations no longer cheap and corporate profit margins under pressure in many markets economic growth is needed to boost revenues Careful navigating will be critical in 2016 because key cycles now appear to be out of sync it says In particular valuations appear to have leapt ahead of the business cycle in many markets especially in the U S We have essentially been borrowing returns from the future it says and the outlook is made even more challenging because long term trends such as aging populations high debt loads and technological change are intersecting with short term cycles meaning that the high growth rates of the past may not return says Ewen Cameron Watt global chief investment strategist with the institute But the good news is that we see a modest pick up in global growth and a renewed investor focus on fundamentals Canadian Equities Offer Some Positives From a global perspective Canadian equities do offer some positives says Jeffrey Morrison an investment officer and portfolio manager at MFS Investment Management Speaking at its 2016 Investment Outlook he said monetary policy is likely to remain loose to provide stimulus to the economy As well the new federal Liberal government has promised to increase government spending and there are emerging signs of an energy supply response However on the negative side he said the commodity super cycle is over and Canada needs to find a way to rebalance Challenges here are the hollowed out manufacturing sector and consumer and government debt In 2015 he said it was a challenging year for Canadian equities as they only outperformed Columbia trailing every other country The reasons for this unattractive valuation metrics and a weak earnings outlook mean this is likely to continue in 2016 Economy Shifts Into High Gear Canada s economy switched into higher gear in the latter half of 2015 and this momentum is expected to continue throughout 2016 says an RBC Economic Outlook It is forecasting real GDP growth of 1 2 per cent in 2015 2 2 per cent in 2016 and 2 7 per cent in 2017 A surge in exports firm consumer spending and housing market activity supported a boost in the Canadian economy halfway through 2015 says Craig Wright senior vice president and chief economist RBC Growth in these sectors more than offset a decline in business investment and ongoing weakness in the energy sector Moving into 2016 we expect to see sustained economic growth A large part of the mid year recovery was due to an improvement in exports with most sectors across Canada posting gains Export volumes increased at a 9 4 per cent annualized pace in the third quarter backed by increases in energy industrial machinery transportation equipment and consumer goods In 2016 RBC expects that the strengthening U S economy coupled with a weaker Canadian dollar will generate export growth of about six per cent ETF Record Levels Continue ETFs ETPs listed in Canada have gathered a record US 11 3 billion in net new assets as of the end of November 2015 10 7 per cent above the record level of US 10 2 billion of net new assets gathered at this point in 2012 says ETFGI s Global ETF and ETP insights report for November 2015 This marks the 12th consecutive month of positive net inflows In the first 11 months of 2015 record levels of net new assets have been gathered by ETFs ETPs listed globally with net inflows of US 319 3 billion marking a 15 per cent increase over the prior record set during the first 11 months of 2014 iA Financial Group Launches Segregated Funds iA Financial Group Industrial Alliance Insurance and Financial Services Inc has launched its Prestige Series for clients whose consolidated assets with the company have a market value of 300 000 or higher These segregated funds offer a management expense ratio reduction varying between 0 10 per cent and 0 55 per cent depending on the fund The two funds series offer investors a range of segregated funds The new series are Classic Series 75 75 Prestige 75 funds and Series 75 100 Prestige 70 funds Qualification for the expense ratio reduction is determined on a weekly basis and is applied automatically without any action required by the advisor or the client When a client qualifies the reduction is applied to assets held in these series The company automatically transfers the fund units to the equivalent Prestige Series funds These series also offer all the benefits of segregated funds including creditor protection and rapid estate settlement in the event of death December 7 2015 Affluent Investors Positive Yet Cautious Affluent investors indicate they are feeling more positive about their personal financial situation says the Spectrem Affluent Investor Confidence Index It gained three points in November moving up to seven During the same period the Spectrem Millionaire Investor Confidence Index gained nine points to 15 Both indices stand at three month highs Despite gains in the November investor confidence indices affluent investors said they remain wary of market conditions and are concerned over recent terror attacks and continued threats Despite rising optimism about their personal financial situation tied to favourable economic reports in November affluent investors remain cautious and uncertain about the market says George H Walper Jr president of Spectrem Group Among their concerns include lingering doubts about the direction of the global economy the ongoing threat of terrorism following the horrific attacks in Paris and the strong likelihood of a December rate hike by the Federal Reserve Four Seasons Tops Hotel Brand Index The top five worldwide hotel brands with which the affluent are most familiar and most likely to have visited in the past year are the Four Seasons the Ritz Carlton JW Marriott the Grand Hyatt and the InterContinental says the Luxury Institute in its 2015 Global Hotels Luxury Brand Status Index On a country specific basis brands with notable spikes in familiarity and usage include Waldorf Astoria Hotels and Resorts in the U S and UK Sofitel Le Meridien and Club Med in France Kempinski Hotels in Germany Club Med in Italy the Peninsula Hotels and Mandarin Oriental in Japan and Shangri La Hotels Resorts and the Peninsula Hotels in China Affluent travelers from all seven countries spend an average of 19 nights per year in hotels with highest usage found among travelers from Germany 26 nights and France 23 nights High income travelers from Italy 13 nights and Japan 15 nights spend comparatively less time in hotels Chinese travelers are most likely 89 per cent to have spent at least one night in a luxury hotel compared to 75 per cent of affluent travelers worldwide On average affluent consumers who stay in luxury hotels spend about 11 nights per year in these hotels with the majority of nights being related to leisure travel Leisure travel with a spouse cited by 63 per cent of travelers is the most common scenario for staying in a luxury hotel while 11 per cent traveled with a business colleague and 15 per cent reported traveling solo Global Outlook Positive While the global outlook remains positive with encouraging forward readings performance will continue to be somewhat uneven says Carl Tannenbaum executive vice president and chief economist for Northern Trust Speaking at the Northern Trust Canada Economic Update on The New Normal Seeking Suitable Economic Performance he said for those used to certain economic performance levels they haven t been seen since the financial crisis Growth in developed markets has been good but not great and lower for longer than anyone would like Economies operating at less than full potential means less people working and not being able to retire debt He called debt the common ingredient It built up at household levels before the crisis due to low interest rates and loose lending practices and since the crisis in the public sector In the U S household austerity limited consumption and debt levels are back down to 2002 levels This means consumers can take vacations and replace old cars In fact auto sales are a bright spot in the U S the best they ve been in 10 years However some market debt levels are rising not falling This includes Australia and Canada At some point they have to level off Part of the problem is the low interest rates means households think they can sustain debt However if interest rates go up and they will these households could be in trouble They should be managing their debt now while rates are low he said Porsche 911 Models Boast More Power Porsche says starting next year its top models of the 911 model series the Turbo and Turbo S will boast more power 20 hp a sharpened design and improved features The models will be available in both coupe and convertible versions The bi turbo six cylinder engine in the 911 Turbo with 3 8 litres of displacement will have a power output of 540 hp This power gain is achieved by modified inlet ports in the cylinder head new injection nozzles and higher fuel pressure The 911 Turbo S will develop 580 hp thanks to new turbochargers with larger compressors The GT sport steering wheel 360 mm in diameter and with a design adopted from the 918 Spyder will come with a mode switch as standard It consists of a rotary ring with stepped positions that can be used to select one of the four modes normal sport sport plus or individual Along with the generation change in models the newly developed infotainment system and PCM with navigation are making their way into the cockpits of the 911 Turbo models as standard equipment This system consists of a multi touch monitor with high quality glass surface and offers numerous new and extended connectivity functions In addition the system can now process handwritten inputs Moreover the company says mobile phones and smartphones can be integrated more quickly easily and comprehensively than before via Wi Fi Bluetooth or cable Select vehicle functions can now be controlled remotely as well As in the previous models the Bose sound system is offered as standard equipment while a Burmester system can be delivered as an option Hillsdale Launches Equity Fund Hillsdale has launched a global small equity fund It says this fund provides investors with the significant potential of global breadth with access to 25 countries 17 000 stocks using 1 500 return drivers in 18 currencies The global small cap fund leverages the firm s 19 year first quartile track record in the active management of Canadian and U S small cap equities The company says the multi strategy stock selection process has been custom designed for each country and region Online Tool Helps Clients Meet Goals Collins Barrow Toronto LLP has launched an online tool to help advisors and their high net worth business owner clients understand their financial position and what s required of them to meet their financial goals What s Your Number is available on the firm s website and allows business owners specifically those with holding companies to plug in information about their corporate holdings personal assets and future financial plans The program s calculator will then use those details to produce an ideal amount of money that the individual needs to afford his or her chosen lifestyle which is immediately available on the screen or through a downloadable report Michael Allen a partner at the firm says By anticipating

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    aged 55 Older travellers are more likely to identify themselves as budgeters The survey found that 32 per cent of 35 to 54 year olds and 36 per cent of Canadians aged 55 to 64 identify themselves as budgeters whereas only 22 per cent of younger adults aged 18 to 34 say the same U S Holds Most Private Wealth The U S topped the list of wealthiest countries in terms of private wealth held by individuals says a report by the New World Wealth The U S has 49 billion in its private hands followed by China with Japan in third spot However their wealth does not necessarily correlate with the amount of private wealth held within them It says the U S economy is now driven by its private entrepreneurs so wealth is naturally get concentrated in the hands of individuals like Bill Gates and giant conglomerates Porsche Lowers Hybrid Price Porsche Canada has lowered the starting price of the Panamera S E Hybrid for the 2016 model year effective immediately The price for the first plug in hybrid vehicle in the luxury segment will now start at 106 600 a reduction of 3 400 compared to the 2015 model year This adjustment effectively brings the price in alignment with that of the Panamera S The Panamera S E Hybrid set standards worldwide as the first plug in vehicle of the premium class it says Hybrid technology was also featured in the 918 Spyder sports car This car serves as an example of technology transfer from motorsport to production cars the most advanced form of hybrid drive technology is currently implemented in the 919 hybrid race car winner of the manufacturer s title in the 2015 World Endurance Championship Investment Industry Lacks Risk Standards The Canadian investment industry lacks objective standards for defining and assessing clients risk tolerance and the questionnaires used by many advisors aren t up to the task says research from the Ontario Securities Commission s OSC s Investor Advisory Panel IAP The research found that many risk concepts do not have a standard definition and there is a lack of understanding of the factors involved in assessing client risk appetite Almost all regulators surveyed are principles based and provide little guidance on how a firm or advisor should arrive at the determination of a risk profile the report says They all recognize and rely on the professional judgment of the advisor and the process created by the advisor or firm to determine a consumer s risk profile No regulator provides clear guidance on how to combine the multiple factors and form a client s risk profile Similarly the review found little academic consensus on the most effective methodology for combining objective and subjective factors to create an appropriate risk profile ETFs ETPs Gather Record Assets ETFs ETPs listed in Canada have gathered a record US 10 1 billion in net new assets as of the end of October which is slightly ahead of the prior record set over the same period in 2012 says ETFGI s Global ETF and ETP insights report This marks the 11th consecutive month of positive net inflows In the first 10 months of 2015 record levels of net new assets have been gathered by ETFs ETPs listed globally with net inflows of US 287 3 billion marking a 22 3 per cent increase over the prior record set at this time last year In the United States net inflows reached US 174 8 billion which is 12 4 per cent higher than the prior record set in 2013 while in Europe year to date net inflows climbed to an all time record of US 68 6 billion representing a 22 7 per cent increase on the record set through the end of October 2014 November 9 2015 Top Taxfilers Income Share Remains Same Canada s top one per cent of taxfilers saw their share of the country s total income remain the same in 2013 while their average total income grew 1 2 per cent the same rate as all taxfilers says Statistics Canada The top one per cent of taxfilers received one tenth of the nation s total income in 2013 the same as in 2012 Their average income increased 5 600 or 1 2 per cent from 2012 to 454 800 This was still below the 2007 peak of 519 500 all dollar figures are in 2013 constant dollars The average income of the top five per cent rose 1 8 per cent while that of the top 10 per cent increased 1 9 per cent Additionally the top one per cent of taxfilers paid on average 151 900 in income taxes to the federal provincial or territorial governments in 2013 up 3 000 or two per cent from a year earlier Meanwhile the average tax paid by all taxfilers increased by 1 8 per cent To be in the top five per cent required income of 115 700 while to be in the top 10 per cent required 89 200 Hyundai Launches Luxury Car Brand Hyundai Motor Co has launched a premium car brand named after its Genesis sedan to boost its share of the fast growing global market for luxury vehicles Until two year ago Hyundai was the only major automaker without a separate luxury brand The company says the Genesis brand begins with two sedans including the namesake upscale car launched two years ago and a large flagship sedan slated for release next month It will also add four more models including a sports coupe and sports utility vehicles by 2020 The company began preparing for the brand in 2004 It had planned to launch it when it released the first Genesis sedan in 2008 but postponed it because the global financial crisis dented sales of luxury cars Even though luxury cars account for just 10 per cent of global auto sales they set technology and design trends for the overall automobile industry and

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