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  • Private Wealth Canada News
    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

    Original URL path: http://privatewealthmagazine.ca/private_wealth_news.php?date=2015-12-28 (2016-04-26)
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  • Private Wealth Canada News
    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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  • Private Wealth Canada News
    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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  • Private Wealth Canada News
    household income with 38 per cent reporting that they earn more than their spouses Nearly one in six 17 per cent working women are owners or partners in a business and nine per cent hold an upper management job with a vice president or C level title Ninety one per cent of affluent women name family as the most important aspect of their lives and since 2012 retiring and spending time with family has emerged as the top long term career goal cited by 34 per cent of respondents just above the 32 per cent who identify doing something I am truly passionate about as a top goal More than half 53 per cent of women under the age of 45 say that they want to work where their passions lie Half of women 21 to 44 years old also say that they want flexibility in their jobs a goal identified by 28 per cent of affluent women overall Women are a powerful economic force both in the workplace and at home says Milton Pedraza CEO at the Luxury Institute Leading edge companies and luxury brands need to stop leaning in and jump into the deep end of this trend as it is essential for their long term success Some Five star Hotels Still Affordable For less than 200 a night Canadian travellers could stay in five star hotels in Warsaw Berlin and Mumbai in the first half of 2015 says Hotels com in its latest Hotel Price Index HPI Four star hotels in the Polish capital also offered great value reporting the fourth largest decrease 17 per cent as compared to the first half of 2014 in the average price paid of 97 Los Angeles Montreal Tokyo Honolulu and Miami were on the other end of the spectrum In these cities Canadian travellers spent the most on high end accommodation with prices paid reported at upwards of 600 a night Wealth Related To Financial Plan Mutual funds continue to be the savings vehicle of choice for Canadian investors says research for the Investment Funds Institute of Canada IFIC For the 10th year in a row Canadian Investors Perceptions of Mutual Funds and the Mutual Fund Industry shows 87 per cent of investors say funds will help them meet their financial goals Fewer investors express confidence in stocks 62 per cent GICs 61 per cent and bonds 55 per cent For the past decade Canadian mutual fund investors have consistently expressed strong confidence in the ability of mutual funds to meet their goals more than any other financial product says Joanne De Laurentiis IFIC president and CEO This reflects our industry s success in meeting investors needs in an ever changing marketplace Leadership Style Can Drive Profits A company s profits are linked to its chief financial officer s leadership style says a global survey by Epicor Software Corporation CFOs were asked to identify their leadership style and the study found that those who were characterized as revolutionaries were tied to companies that had the greatest profit growth Those characterized as traditionalists were tied to companies that had the least profit growth Revolutionaries are happy to make changes to corporate culture and structures if needed and like to set tough and challenging goals They also take risks when necessary Alternatively traditionalists are strict CFOs who prefer to work within existing systems and prefer not to be influenced by reputation and personalities when making decisions Epicor says these findings make the case that a business needs the ability to adapt and change CFOs need to take on new perspectives and be open to novel ways of doing things This will allow them and their businesses to find optimal and creative solutions to problems which will in turn foster innovation Active Equity Managers Have Lagged Generally there are no consistent or useful trends to be found in annual active versus index figures says S P Dow Jones Indices mid year 2015 results for the Canada S P Indices Versus Active Funds SPIVA Scorecard It shows the only consistent data point over a five year horizon is that a majority of active equity managers in most categories have lagged comparable benchmark indices It also shows that during the first half of 2015 the headline Canadian equity indices returned to positive territory However the gains were not enough to offset the losses that were experienced during the second half of 2014 Fluctuating conditions in the equity market proved to be difficult for active managers to overcome as the majority of Canadian active managers saw their returns lag the benchmark with just 39 62 per cent of Canadian equity funds outperforming the S P TSX Composite The majority of active managers in the international equity category saw their returns lag the benchmark Bonuses Funded Below Target In the face of mixed economic results many Canadian organizations are reporting that they will be funding their bonus pools below target levels this year says Towers Watson Meanwhile despite economic pressures talent challenges persist and many companies are still failing to link employee payouts to individual performance To reverse the trend employers need to differentiate talent and reward programs for key employee segments It says funding at target should not be a blue moon event Organizations should calibrate plan funding and targets to increase the likelihood that bonus pools will be fully funded even if that means considering cutting back on eligibility or target payouts It also is essential to ensure greater upside for top performers and downside consequences Organizations must offer top performers and employees with critical skills differentiated training and development along with a well defined road map of advancement opportunities Canadian ETFs Contract Canadian listed ETF assets for the third quarter ended at 83 6 billion contracting just over 1 2 per cent during the third quarter due to negative market effect says the Canadian ETF Association Assets reached a high water mark of 85 7 billion in July before decreasing in consecutive months Despite

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  • Private Wealth Canada News
    household income with 38 per cent reporting that they earn more than their spouses Nearly one in six 17 per cent working women are owners or partners in a business and nine per cent hold an upper management job with a vice president or C level title Ninety one per cent of affluent women name family as the most important aspect of their lives and since 2012 retiring and spending time with family has emerged as the top long term career goal cited by 34 per cent of respondents just above the 32 per cent who identify doing something I am truly passionate about as a top goal More than half 53 per cent of women under the age of 45 say that they want to work where their passions lie Half of women 21 to 44 years old also say that they want flexibility in their jobs a goal identified by 28 per cent of affluent women overall Women are a powerful economic force both in the workplace and at home says Milton Pedraza CEO at the Luxury Institute Leading edge companies and luxury brands need to stop leaning in and jump into the deep end of this trend as it is essential for their long term success Some Five star Hotels Still Affordable For less than 200 a night Canadian travellers could stay in five star hotels in Warsaw Berlin and Mumbai in the first half of 2015 says Hotels com in its latest Hotel Price Index HPI Four star hotels in the Polish capital also offered great value reporting the fourth largest decrease 17 per cent as compared to the first half of 2014 in the average price paid of 97 Los Angeles Montreal Tokyo Honolulu and Miami were on the other end of the spectrum In these cities Canadian travellers spent the most on high end accommodation with prices paid reported at upwards of 600 a night Wealth Related To Financial Plan Mutual funds continue to be the savings vehicle of choice for Canadian investors says research for the Investment Funds Institute of Canada IFIC For the 10th year in a row Canadian Investors Perceptions of Mutual Funds and the Mutual Fund Industry shows 87 per cent of investors say funds will help them meet their financial goals Fewer investors express confidence in stocks 62 per cent GICs 61 per cent and bonds 55 per cent For the past decade Canadian mutual fund investors have consistently expressed strong confidence in the ability of mutual funds to meet their goals more than any other financial product says Joanne De Laurentiis IFIC president and CEO This reflects our industry s success in meeting investors needs in an ever changing marketplace Leadership Style Can Drive Profits A company s profits are linked to its chief financial officer s leadership style says a global survey by Epicor Software Corporation CFOs were asked to identify their leadership style and the study found that those who were characterized as revolutionaries were tied to companies that had the greatest profit growth Those characterized as traditionalists were tied to companies that had the least profit growth Revolutionaries are happy to make changes to corporate culture and structures if needed and like to set tough and challenging goals They also take risks when necessary Alternatively traditionalists are strict CFOs who prefer to work within existing systems and prefer not to be influenced by reputation and personalities when making decisions Epicor says these findings make the case that a business needs the ability to adapt and change CFOs need to take on new perspectives and be open to novel ways of doing things This will allow them and their businesses to find optimal and creative solutions to problems which will in turn foster innovation Active Equity Managers Have Lagged Generally there are no consistent or useful trends to be found in annual active versus index figures says S P Dow Jones Indices mid year 2015 results for the Canada S P Indices Versus Active Funds SPIVA Scorecard It shows the only consistent data point over a five year horizon is that a majority of active equity managers in most categories have lagged comparable benchmark indices It also shows that during the first half of 2015 the headline Canadian equity indices returned to positive territory However the gains were not enough to offset the losses that were experienced during the second half of 2014 Fluctuating conditions in the equity market proved to be difficult for active managers to overcome as the majority of Canadian active managers saw their returns lag the benchmark with just 39 62 per cent of Canadian equity funds outperforming the S P TSX Composite The majority of active managers in the international equity category saw their returns lag the benchmark Bonuses Funded Below Target In the face of mixed economic results many Canadian organizations are reporting that they will be funding their bonus pools below target levels this year says Towers Watson Meanwhile despite economic pressures talent challenges persist and many companies are still failing to link employee payouts to individual performance To reverse the trend employers need to differentiate talent and reward programs for key employee segments It says funding at target should not be a blue moon event Organizations should calibrate plan funding and targets to increase the likelihood that bonus pools will be fully funded even if that means considering cutting back on eligibility or target payouts It also is essential to ensure greater upside for top performers and downside consequences Organizations must offer top performers and employees with critical skills differentiated training and development along with a well defined road map of advancement opportunities Canadian ETFs Contract Canadian listed ETF assets for the third quarter ended at 83 6 billion contracting just over 1 2 per cent during the third quarter due to negative market effect says the Canadian ETF Association Assets reached a high water mark of 85 7 billion in July before decreasing in consecutive months Despite

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  • Private Wealth Canada News
    they are seeing more interest from institutional investors As well demand is growing because carbon dependent companies will be penalized and there is a belief markets do not yet price the emission of carbon dioxide However more solutions are available because reporting on carbon has improved greatly in last 10 years There is now a good idea of where emissions come from and which companies are responsible Coupled with this is the fact that more countries are looking at requiring mandatory carbon disclosure With climate risk among the top three risks for policy makers this means investors can both generate potential outperformance while investing responsibly Northleaf Program Passes 1 5 Billion Northleaf Capital Partners infrastructure investment program has surpassed 1 5 billion in capital commitments across its OECD focused fund and its recently expanded custom North American mid market fund which it designed and manages for a Canadian institutional investor As a key component of the firm s 7 billion global private markets investment business the infrastructure program is focused on direct long term investments in OECD countries providing investors with stable consistent cash flows from assets that deliver essential products and services Manager Confidence Drops Amid concerns about China specifically and emerging markets generally fund managers confidence in the global economic outlook has dropped as has their appetite for risk says the BofA Merrill Lynch Fund Manager Survey for September It says the appetite for risk among global investors has declined in the past month Equity overweights are down a net 24 percentage points from the previous survey and investor sentiment towards global emerging markets has soured further with underweights at a record net 34 per cent In the current climate of heightened volatility and uncertainty fund managers are turning to cash with cash balances up to 2008 levels of 5 5 per cent it says Private Equity Ends Quarter Positive Barely Investments in private equity and venture capital funds in both ex U S developed and emerging markets ended the final quarter of 2014 with positive returns though the former just barely as measured in U S dollars says Cambridge Associates LLC A weakened euro tamped down dollar based returns over both the quarter and the year for investments in ex U S developed markets Emerging market investments fared better it says posting strong returns for both the quarter and the year Both alternative asset classes outpaced comparable investments in the public equities markets ETFs Gather New Assets Although August was a roller coaster ride for investors ETFs ETPs listed globally gathered US 20 8 billion in net new assets marking their 19th consecutive month of positive net inflows says ETFGI s preliminary ETF and ETP global insights report for August In the first eight months of 2015 record levels of net new assets have been gathered by ETFs ETPs listed globally with net inflows of US 219 7 billion marking a 16 per cent increase over the prior record set during the first eight months of 2014 Through the end of August ETFs ETPs have seen net inflows of US 219 7 billion for the year Equity ETFs ETPs gathered the largest net inflows with US 139 3 billion followed by fixed income ETFs ETPs with US 52 8 billion and commodity ETFs ETPs with US 3 7 billion September 14 2015 Luxury Home Sales On The Rise Sales of homes priced over 1 million were up year over year in Toronto ON Montreal QC and Vancouver and Victoria BC in the first seven months of the year Calgary AB was the exception sales in the 1 million range decreased 28 per cent over the same period in 2014 says RE MAX Canada In Canada s two largest luxury markets sales of homes 3 million and up saw impressive gains In the Greater Toronto Area sales in this range increased by 119 per cent and in Greater Vancouver by 79 per cent between January 1 and July 31 The increase of sales at the top end of the luxury market can be attributed to two factors One is overall price appreciation in both markets driven by low inventory and high demand for single family homes that has led to more homes meeting the higher dollar threshold A second factor is high demand for luxury homes from foreign buyers in both markets In Calgary a healthy 2 3 to 2 5 months supply of inventory in the 1 million plus range has brought a more balanced market to the city RE MAX reports that foreign buyers have continued to drive demand in the Vancouver and Toronto luxury markets in the first half of 2015 These buyers primarily from China are typically families with children who are relocating to Canada Advisors Need To Get Tech Savvy Financial advisors need to take heed and start to embrace technology more broadly not just in the robo technology category but also in front and back offices to drive necessary efficiencies in a world of compliance security and pricing pressures says a white paper by CLS Investments LLC The Coming Automation of Wealth Management and What it Means for Today s Financial Advisor says financial planning is at the crossroads of a technological shift amongst both financial planners and the clients they serve In the years ahead the impact of developments like robo advisors and other advancements in client facing technologies will continue to push traditional advisors to find new ways to manage wealth leading to a whole new breed of advisor Historically changes in consumer technology have had a slow industry adoption rate due to the highly regulated nature of financial services CLS asked respondents how they communicate with clients and surprisingly the responses were consistent across all age groups with advisors preferring to communicate with clients via phone eMail face to face meetings and printed material Social media and online platforms came in last The difference in preference between the youngest and oldest cohort was negligible However CLS says a nagging

    Original URL path: http://privatewealthmagazine.ca/private_wealth_news.php?date=2015-09-28 (2016-04-26)
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  • Private Wealth Canada News
    they are seeing more interest from institutional investors As well demand is growing because carbon dependent companies will be penalized and there is a belief markets do not yet price the emission of carbon dioxide However more solutions are available because reporting on carbon has improved greatly in last 10 years There is now a good idea of where emissions come from and which companies are responsible Coupled with this is the fact that more countries are looking at requiring mandatory carbon disclosure With climate risk among the top three risks for policy makers this means investors can both generate potential outperformance while investing responsibly Northleaf Program Passes 1 5 Billion Northleaf Capital Partners infrastructure investment program has surpassed 1 5 billion in capital commitments across its OECD focused fund and its recently expanded custom North American mid market fund which it designed and manages for a Canadian institutional investor As a key component of the firm s 7 billion global private markets investment business the infrastructure program is focused on direct long term investments in OECD countries providing investors with stable consistent cash flows from assets that deliver essential products and services Manager Confidence Drops Amid concerns about China specifically and emerging markets generally fund managers confidence in the global economic outlook has dropped as has their appetite for risk says the BofA Merrill Lynch Fund Manager Survey for September It says the appetite for risk among global investors has declined in the past month Equity overweights are down a net 24 percentage points from the previous survey and investor sentiment towards global emerging markets has soured further with underweights at a record net 34 per cent In the current climate of heightened volatility and uncertainty fund managers are turning to cash with cash balances up to 2008 levels of 5 5 per cent it says Private Equity Ends Quarter Positive Barely Investments in private equity and venture capital funds in both ex U S developed and emerging markets ended the final quarter of 2014 with positive returns though the former just barely as measured in U S dollars says Cambridge Associates LLC A weakened euro tamped down dollar based returns over both the quarter and the year for investments in ex U S developed markets Emerging market investments fared better it says posting strong returns for both the quarter and the year Both alternative asset classes outpaced comparable investments in the public equities markets ETFs Gather New Assets Although August was a roller coaster ride for investors ETFs ETPs listed globally gathered US 20 8 billion in net new assets marking their 19th consecutive month of positive net inflows says ETFGI s preliminary ETF and ETP global insights report for August In the first eight months of 2015 record levels of net new assets have been gathered by ETFs ETPs listed globally with net inflows of US 219 7 billion marking a 16 per cent increase over the prior record set during the first eight months of 2014 Through the end of August ETFs ETPs have seen net inflows of US 219 7 billion for the year Equity ETFs ETPs gathered the largest net inflows with US 139 3 billion followed by fixed income ETFs ETPs with US 52 8 billion and commodity ETFs ETPs with US 3 7 billion September 14 2015 Luxury Home Sales On The Rise Sales of homes priced over 1 million were up year over year in Toronto ON Montreal QC and Vancouver and Victoria BC in the first seven months of the year Calgary AB was the exception sales in the 1 million range decreased 28 per cent over the same period in 2014 says RE MAX Canada In Canada s two largest luxury markets sales of homes 3 million and up saw impressive gains In the Greater Toronto Area sales in this range increased by 119 per cent and in Greater Vancouver by 79 per cent between January 1 and July 31 The increase of sales at the top end of the luxury market can be attributed to two factors One is overall price appreciation in both markets driven by low inventory and high demand for single family homes that has led to more homes meeting the higher dollar threshold A second factor is high demand for luxury homes from foreign buyers in both markets In Calgary a healthy 2 3 to 2 5 months supply of inventory in the 1 million plus range has brought a more balanced market to the city RE MAX reports that foreign buyers have continued to drive demand in the Vancouver and Toronto luxury markets in the first half of 2015 These buyers primarily from China are typically families with children who are relocating to Canada Advisors Need To Get Tech Savvy Financial advisors need to take heed and start to embrace technology more broadly not just in the robo technology category but also in front and back offices to drive necessary efficiencies in a world of compliance security and pricing pressures says a white paper by CLS Investments LLC The Coming Automation of Wealth Management and What it Means for Today s Financial Advisor says financial planning is at the crossroads of a technological shift amongst both financial planners and the clients they serve In the years ahead the impact of developments like robo advisors and other advancements in client facing technologies will continue to push traditional advisors to find new ways to manage wealth leading to a whole new breed of advisor Historically changes in consumer technology have had a slow industry adoption rate due to the highly regulated nature of financial services CLS asked respondents how they communicate with clients and surprisingly the responses were consistent across all age groups with advisors preferring to communicate with clients via phone eMail face to face meetings and printed material Social media and online platforms came in last The difference in preference between the youngest and oldest cohort was negligible However CLS says a nagging

    Original URL path: http://privatewealthmagazine.ca/private_wealth_news.php?date=2015-09-29 (2016-04-26)
    Open archived version from archive

  • Private Wealth Canada News
    of its retail funds Series EF securities are only available through the Sun Life Global Investments Private Client program to investors who have a fee based account with their dealer and whose dealer has signed an agreement with Sun Life Global Investments Instead of paying sales charges investors buying Series EF securities pay fees to their dealer for investment advice and other services Fixed Income Flow Largest ETFs and ETPs listed in Canada gathered US 7 billion in net new assets up to the end of July At that time the Canadian ETF industry had 368 ETFs with 524 listings assets of US 66 billion from 11 providers listed on one exchange says ETFGI s preliminary ETF and ETP global insights report for July 2015 In July ETFs ETPs listed in Canada saw net inflows of US 400 million Fixed income ETFs ETPs gathered the largest net inflows with US 130 million followed by equity ETFs ETPs with US 54 million and commodity ETFs ETPs with US 40 million The S P 500 index ended up two per cent for the month of July and finished the first seven months of 2015 up three per cent Although investors faced uncertainty in China and Greece during July they continued to invest significant net new assets in equity ETFs says Deborah Fuhr managing partner of ETFGI Luxury Vehicles Sales Soar Sales of BMW MINI and Rolls Royce brand vehicles totalled 173 195 in July a new high for the month and an increase of 5 6 per cent compared with the same period last year A record was also achieved for the first seven months of the year with a total of 1 272 953 vehicles delivered to customers an increase of 7 5 per cent In July BMW brand deliveries increased by 5 8 per cent sales for the year to date climbed 5 2 per cent to 1 079 563 units A total of 25 416 MINIs were delivered to customers around the world in July an increase of 4 8 per cent Year to date sales climbed 22 5 per cent to total 191 355 units Sales of the three door MINI grew by 24 per cent in the first seven months of the year 73 226 while the new five door MINI was delivered to 51 666 customers worldwide in the same period In line with its strategy of balanced global sales deliveries of BMW Group vehicles rose in all regions In Asia deliveries of BMW and MINI vehicles in the year to date increased 4 1 per cent Sales in Mainland China for the first seven months of the year are slightly up on last years already extremely high level increasing a further 1 3 per cent Meanwhile deliveries in Japan climbed 11 7 per cent in the year to date with sales in South Korea for the same period also seeing a double digit increase up 22 2 per cent Solid sales growth continues in the Americas where a total of 281 432 BMW and MINI vehicles have been delivered to customers so far this year an increase of 8 4 per cent In the U S sales in the first seven months of 2015 rose 8 1 per cent while sales in Canada over the same period rose 13 4 per cent Returns Negative For Median Manager The median large cap investment manager in Canada returned 1 4 per cent for the second quarter of 2015 outperforming the S P TSX Composite which fell 1 6 per cent for the period In addition nearly two thirds 62 per cent beat the index for the second quarter increasing from 53 per cent in the first quarter says the Russell Investments Canada Active Manager Report No one likes to lose money says Kathleen Wylie head of Canadian equity research at Russell Investments Canada Despite a negative return for the quarter not losing as much as the index does help a manager s long term performance relative to the benchmark Over the past five years the median manager outperformed the benchmark by more than 45 basis points on average per quarter while managers in the top quartile averaged roughly 165 basis points ahead of the benchmark Among the full universe of money managers surveyed an average of 59 per cent beat the benchmark for the five year period PE VC Finish With Positive Returns U S private equity PE and venture capital VC funds finished the final quarter of 2014 with positive returns though in the case of PE just barely due primarily to poorly performing investments in energy companies says Cambridge Associates VC investments did significantly better for the period beating out not only PE funds but public equities as well While neither private asset class matched its annual performance in 2013 both posted double digit returns for 2014 Its US Private Equity Index rose 0 8 per cent and 11 2 per cent for the quarter and year ending December 31 2014 The U S Venture Capital Index increased 9 9 per cent and 21 5 per cent respectively over the same periods For comparison for the quarter and year the S P 500 returned 4 9 per cent and 13 7 per cent The annual returns of both benchmarks were helped by the strong performances of companies in several large sectors especially healthcare in the PE index and software in the VC index Allocations To Global Real Estate Will Expand Cross border and domestic capital will continue to expand its allocation to global real estate as a result of the benign economic environment says LaSalle Investment Management s Mid Year 2015 Investment Strategy Annual ISA With interest rates remaining lower for longer benchmark bond and real estate debt costs remaining low and a steady cyclical recovery underway around the world real estate values continue to prove attractive The secular themes of demographics technology and urbanization also continue to drive demand for space in specific areas

    Original URL path: http://privatewealthmagazine.ca/private_wealth_news.php?date=2015-08-29 (2016-04-26)
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