archive-ca.com » CA » P » PRIVATEWEALTHMAGAZINE.CA

Total: 201

Choose link from "Titles, links and description words view":

Or switch to "Titles and links view".
  • Private Wealth Canada News
    While fundraising throughout 2013 has seen notable growth and there has been an increase in the number and value of exits deal volume has stayed relatively flat for three consecutive years The aggregate value of buyout investments globally totalled 264 4 billion in 2011 263 8 billion in 2012 and 265 8 billion provoking concerns about the ability of private equity firms to deploy all the capital they have raised from investors Current total private equity dry powder stood at 1 074 billion as of December 17 compared to a previous high of 1 067 billion witnessed at the end of 2008 Aggregate global private equity dry powder has seen a 14 per cent increase over the past year alone Over nine per cent of current dry powder is attributed to funds with vintages prior to 2008 Based on an industry average five year investment period this capital should theoretically have already been invested and may expire unless investors grant these funds investment period extensions Small Business In Glum Mood Small businesses in Canada ended 2013 in a glum mood says the Canadian Federation of Independent Business Business Barometer Index The index that tracks small business confidence recorded the biggest one month decline in almost 2 years likely due to retailers worrying about holiday sales and firms fretting about higher taxes and other costs It fell 3 6 points in December to 62 3 the lowest level since June The magnitude of decline was the largest since a 6 6 point drop between July and August 2011 Sentiment was particularly sour in the retail sector where the index dropped almost seven points to 60 Generally businesses are concerned about higher taxes and other costs Some 64 per cent of small business owners cited taxes and costs of complying with government regulation as a major constraint The figure has crept up as businesses fear provincial governments will attempt to balance their books by hiking taxes instead of cutting spending December 23 2013 Most Companies To Keep Bonuses The Same Financial executives don t anticipate bonus levels will differ much this year compared to 2012 says a survey by Robert Half Further at companies where bonuses will change they are more likely to fall than rise Only eight per cent of chief financial officers CFOs at firms that offer bonuses said their bonus levels in 2013 will increase over last year compared to a slightly higher 12 per cent of respondents who expect a decline Sixty two per cent of executives foresee no changes Changes to bonus levels are projected to vary by industry Manufacturing the sector with the largest percentage of CFOs has 33 per cent expecting to pay lower bonuses Whereas workers in wholesale and transportation are likely to receive bigger bonuses with 17 and 14 per cent of CFOs in those sectors respectively anticipating increases this year Twelve Tips For Tax Planning While many Canadians may be aware of the importance of year end tax planning there are some equally important deadlines for implementing tax saving strategies that may only be available in January and February That s why we encourage individuals and business owners to take advantage of some downtime they may have over the holidays to consider some important tax planning strategies says Tony Maiorino vice president and head wealth management services at RBC Wealth Management RBC offers The 12 Tips of Tax Planning as a guide which offers tips for both individuals and businesses For individuals the tips include such things as RRSP and TFSA contributions family income splitting loans labour sponsored investment funds and home buyers plan withdrawals For businesses tips include paying oneself a bonus and the sale of private business shares Read more Canada Can Expect Growth Canadian economic growth is expected to improve in 2014 relative to the lacklustre pace of 2013 says Russell Investments 2014 Global Annual Outlook However the outlook is less optimistic about the impact a strengthening U S economy may have on domestic fundamentals in the coming year While a forecasted U S growth rate of 2 9 per cent would naturally lead to a more positive outlook for the Canadian economy trends such as U S onshoring of higher end manufacturing and greater energy independence will weigh on momentum on this side of the border says Shailesh Kshatriya associate director with the Canadian strategy group at Russell Investments Canada Loyalty Rewards Lack Support While investors corporations fund managers academics and other thought leaders broadly agree that short term investment behaviour does have a negative impact on the way companies make key decisions there is little support for the introduction of loyalty rewards loyalty dividends warrants or additional voting rights says a report from Mercer Stikeman Elliott LLP and the Generation Foundation Building a Long Term Shareholder Base Assessing the Potential of Loyalty Driven Securities identified four main obstacles in utilizing loyalty rewards as a means to overcome the root cause of the short term pressures found in the full investment chain They are discrimination between shareholders due to belief in 1 share 1 vote the risk of unintended consequences administrative complexities and uncertainty that loyalty driven securities would incent a significant change in behaviour and address the root causes of short termism To solve the short termism dilemma the report sets out several solutions It says a longer term perspective and focus on economic value creation is only possible if supported by appropriately aligned performance measurement and reward frameworks As well a more constructive relationship between companies and their long horizon investors is required The report is at Loyalty Rewards Dollar Rise Probable There is a reasonable probability that the Canada dollar can rise somewhat from today s levels says RBC Dominion Securities Inc Its Harbour Group Market Notes show the Canadian dollar had been in a broad range for the past three years trending between US 0 95 and US 1 05 but has recently broken through 0 95 to a three year low Longer term it advocates increasing U S dollar exposure U S economic growth looks poised to pick up and U S monetary policy is shifting toward fewer bond purchases while Canadian policy is likely to remain unchanged at best From a risk management perspective a position in U S dollars has historically acted as an effective hedge to equity market volatility Weak Year Looming For Stocks Despite an improving economic outlook BMO Capital Markets is forecasting a weak year ahead for stocks In its outlook for the coming year it says 2013 saw major equity markets thrive even as the global economy and many other financial markets muddled through another sub par year Those roles may reverse in 2014 It only sees U S and Canadian equity markets recording mid single digit gains with the S P 500 reaching 1 900 by the end of 2014 and the TSX hitting 13 575 It says that the markets reaction to the expected tapering in U S monetary policy is likely the biggest risk to the 2014 call with stocks and bonds struggling in recent days as the inevitably of a less generous Fed sets in December 16 2013 Americans Regain Lost Wealth American households have regained almost all of the wealth they lost during the Great Recession thanks to surging stock prices and recovering home values Total household net worth assets minus liabilities expanded 2 6 per cent or 1 9 trillion in the third quarter from the second quarter says a Federal Reserve report It was the eighth straight quarter of increases and brought the net worth for households and non profit organizations to 77 26 trillion at the end of September The biggest contributor to the latest quarterly gain in wealth was the booming stock market Household assets in the form of corporate equities and mutual funds jumped by 917 billion the Fed says The value of residential real estate owned by households also helped to push up net worth with an increase of about 428 billion The resulting improvements in net worth should give a boost to consumer spending People tend to spend more when they see their home and stock values rising Consumer spending accounts for about 70 per cent of American economic activity but it has been tepid during the recovery largely because of slow job growth and weak wage gains Investments Not Gender Influenced When it comes to investing gender differences may be overstated says a report from the Merrill Lynch Wealth Management Institute Its study of 11 500 investors found that while men and women differ in their approach to investment decision making gender is less a determinant of investing success than other social demographic and circumstantial factors It aims to challenge conclusions drawn from research that has found women tend to be more risk averse are less engaged in investment decision making and trade less often Its research found that men and women who have a similar level of financial knowledge share similar risk behavior The greatest differentiating factor among investors is their perceived financial knowledge and women are more likely than men to say they have lower levels of financial knowledge Our research reinforces the importance of concentrating on the unique personal goals of each investor Doing so can identify a deeper understanding of the individual s concerns and priorities which may better align investments to achieve the outcomes the investor desires says Michael Liersch head of behavioural finance for Merrill Lynch Wealth Management Legislation Caps Executive Compensation Ontario s governing Liberals plan to bring in legislation next spring that would allow them to limit compensation to senior executives across the broader public sector from hospitals and universities to the province s big utilities and Crown corporations If the upcoming legislation goes through the government would have direct control over compensation including salary bonuses and severance packages SEI Terminates Funds SEI Investments Canada Company intends to officially terminate five target date funds the 2015 2020 2025 2030 and 2040 funds Unit holders will continue to have the right to redeem their units in the funds prior to the termination date All units not redeemed prior to the termination date will be automatically redeemed at that time Healthcare Drives Investment Planning Worries over healthcare needs have emerged as the second most important driver behind retirement itself of investment planning for Canadians with more than 100 000 in investable assets says a study by Dundee Goodman Private Wealth Among investors under 50 34 per cent identify healthcare as a priority compared to the average of 46 per cent of all respondents However even among this younger group healthcare needs emerge as a significant rationale for investments Among respondents with more than 1 million in investable assets 41 per cent identify healthcare needs as an important investment objective The findings around healthcare were a surprise says John Cucchiella senior vice president and head of retail at Dundee Goodman We thought that priorities like travel and leaving a legacy for kids or charities would be top of mind I think the wealth management industry in Canada may be a bit out of touch with their clients This was definitely an eye opening experience for us Global Growth Expected Rising equity prices are signaling better times ahead for investors but firmer global growth will depend on central banks keeping interest rates steady in 2014 says a report from CIBC World Markets Inc Equity markets are sensing it and this time they re right Global growth should finally surprise on the high side in 2014 says Avery Shenfeld chief economist at CIBC A year of four per cent global growth is hardly spectacular but will be a point faster than 2013 and a half point above the last IMF forecast Typically upside surprises in growth bring higher bond yields But the causation also goes the other way at a still fragile point in the cycle easy monetary policy is a necessary condition for growth to accelerate Central bankers in North America Europe and Japan are each in their own way going to ask markets to give low rates a chance Chinese Hotel Receives Top Award The Peninsula Shanghai has been recognized as the world s top business hotel for the second consecutive year by Travel Leisure magazine The hotel received a score of 97 27 out of 100 The accolade acknowledges the prominent role of the Peninsula Shanghai in promoting hospitality excellence in China which is predicted by the Global Business Travel Association to become the world s largest business travel market by 2016 The hotel s rooms come with VoIP phones portable master control panels and spa tubs with music and light settings Airline Merger Complete The merger of American and US Airways is completed The companies are combining to form a stronger airline with an extensive network greater schedule options and a modern and fuel efficient fleet Despite the merger the two airlines will continue to function separately for quite some time and very few changes will happen immediately Beginning in early January the airlines will announce new benefits such as the ability to earn and redeem miles on both carriers and reciprocal lounge access There is no impact to any existing reservations people may have with American Airlines or US Airways and any earned mileage balance or elite status in either frequent flyer program will remain Small Business Owners Risk Too Much Tax Small business owners risk paying too much in income tax by making the wrong decision on whether to withdraw funds from their corporations as salary bonus or as dividends says Jamie Golombek a tax and estate planning expert at CIBC Each year small business owners who run their businesses through corporations can choose to receive compensation from their corporations as either salary or dividends This year changes such as increases in the highest personal marginal tax rates in several provinces and modifications to taxation of dividends will significantly impact the compensation decision he says Paying dividends is generally the best option for SBD Income which is income up to the small business deduction limit of 500 000 in most provinces due to the tax rate advantage in most provinces which ranges from 0 56 per cent to 4 54 per cent in 2013 For ABI which is active business income above the small business deduction limit paying salary is generally a better option due to the 2013 tax rate disadvantage in most provinces ranging from 0 47 per cent to 5 88 per cent For small business owners who don t need to withdraw funds in 2013 it can pay to defer dividends to a future year says Golombek However while paying dividends may be advantageous in many cases distributing corporate income as salary rather than dividends creates earned income that allows small business owners to contribute to an RRSP Taxation rules for businesses are quite complex and can change regularly says Golombek Business owners should consult with a tax professional and a financial advisor for a complete analysis of all factors in the compensation decision December 9 2013 Private Equity Rates Well Canadian business owners are often unaware of private equity until they stumble across it while searching for new investment for their firms says The Private Equity Experience of Canadian Business a Conference Board of Canada report Although there are some pitfalls private equity rated well with company owners once they succeeded in tapping into this source of capital The report also indicated that owners and senior managers of portfolios gave high scores in terms of the overall experience they had with private equity and that private equity made two main contributions strategic focus and finance It can also be a good fit as a source of investment capital for family owned firms Private equity is a specialized form of investment and currently amounts to just a fraction of the overall Canadian equity market These investments are distinguished by their relatively high risk and long term typically seven to 10 years investment horizon Index Measures Advisor Confidence Advocis The Financial Advisors Association of Canada and Western University have developed an industry benchmark to measure advisor confidence across Canada Based on the views and sentiments of financial advisors the Advocis Financial Advisors Index FAI will measure advisor confidence which is defined as the degree of optimism about the state of the economy expressed by advisors and their clients through their savings investing and risk protection activities Over time the goal is to identify the attributes of advisor confidence that provide a lead indicator for economic capital market asset management and risk management activity Business Airfare Costs Declining As a result of budget airlines expanding their U S Canada transborder networks significant declines in transborder fares are anticipated next year for both the U S and Canada says the global Business Travel Forecast by American Express The forecast indicates that low cost carriers are expected to introduce premium economy offerings that will likely provide more travelers with an alternative to business class travel and together with the increase in international capacity is expected to contribute to lowering prices Conversely travel costs in the ground transportation and hotel sectors are expected to rise Prices are anticipated to climb in the ground transportation sector due to rising fleet costs and consolidation Hotel sector costs are also expected to increase With the potential for travel costs to reach into the hundreds of millions of dollars for many companies next year it s more important than ever for companies to adequately plan and manage their travel investments says Colin Temple vice president and general manager of global business travel at American Express Canada Formulating an efficient and effective program that aligns with senior leadership can help achieve business priorities to not only help facilitate discussion but help shift thinking from travel as an expense line item to travel as an investment S Class Wins Prestige Car Award The 2014 Mercedes Benz S Class has been named the Best

    Original URL path: http://privatewealthmagazine.ca/private_wealth_news.php?date=2014-01-07 (2016-04-26)
    Open archived version from archive

  • Private Wealth Canada News
    is set up to produce around 50 000 vehicles per year Mark to market Impact Negligible The impact of using a mark to market accounting method for valuing pension liabilities will have a negligible effect on companies says an SEI research paper Considering a Switch to Mark to Market Accounting An Understanding of Potential Stakeholder Reactions examines the impact the accounting method had on 23 major U S companies that implemented mark to market accounting for their defined benefit plans over the past two years It found returns on share price in the period surrounding the earnings announcement show no statistically significant abnormal return values financial analysts reports and quarterly earnings calls show very few questions and no direct criticisms of the mark to market implementations by companies and internal management receives the benefit of removing drags on earnings which ultimately gains more favourable earnings per share without the penalty of past poor performance It also shows that ratings agencies such as S P Moody s and Fitch already use mark to market accounting as part of their longstanding practices CLHIA Proposes Ultra long Bonds Federal policymakers should consider issuing ultra long government bonds bonds with maturities of 40 years or longer says the Canadian Life and Health Insurance Association CLHIA Commenting to the Bank of Canada and the department of finance debt management strategy consultations it says the move would be good from both the government s point of view and for long term investors From the government s perspective issuing ultra long bonds would be good asset liability management given the long term nature of the government s assets it says It would also allow the government to ensure low cost funding for its financial needs As well it would attract a broad investor base of domestic institutional investors that are actively seeking longer term investments Long term institutional investors would likely be a strong source of that demand particularly insurers which typically have substantial long term liabilities Companies Keep Tight Hold On Costs Canadian companies may be more optimistic about access to credit but they re keeping a tight hold on costs ahead of investing for growth In fact 60 per cent of companies expect cost reduction and process efficiency to be the most important areas of focus when it comes to business improvement over the next two years says Optimizing for Growth Working Capital Credit Availability a Canadian Financial Executives Research Foundation CFERF study Despite positive indicators the economic environment remains uncertain and while Canadian financial executives are optimistic about their economic prospects and access to capital for growth 56 per cent say they failed to meet revenue growth targets over the past year and 55 per cent are focused solely on organic growth in the next 12 months It found that efficiency and cost control followed by risk management continue to be the boardroom focus of many Canadian companies It also showed that although they have been focusing on their core business by optimizing their capital structures there are signs that point to increased transaction activity November 18 2013 Canadian Regulatory System Deemed Superior Canada s regulatory system is thorough progressive and in many cases superior to those of the U S the UK and Australia says a legal analysis of current and contemplated obligations of financial advisors to act in their clients best interests The report by Torys LLP was at the request of the Investment Funds Institute of Canada IFIC and the Investment Industry Association of Canada IIAC to address and clarify statements included in Canadian Securities Administrators Consultation Paper 33 403 The Standard Of Conduct For Advisers And Dealers Exploring The Appropriateness Of Introducing A Statutory Best Interest Duty When Advice Is Provided To Retail Clients The UK and EU already impose a qualified best interest standard on their advisors Laura Paglia a partner at Torys says the terms fiduciary and best interest are over used casually and interchangeably to describe a wide range of possible and unclear obligations When we looked at the content of the obligations of investment advisors in the U S the UK and Australia she says we found that none of these jurisdictions have or are considering more onerous requirements than those already in place in Canada The conclusion after reviewing the content and source of the obligations is that the applicable rules guidances and notices of the IIROC and the MFDA fully inform investment advisors professional standards in manners consistent with if not superior to approaches in these other jurisdictions Read analysis Sun Life Rolls Out Corporate class Funds Sun Life Global Investments the mutual fund arm of Sun Life will roll out corporate class funds aimed toward more affluent clients as its initial foray into offering private client products says Rick Headrick president of Sun Life Global Investment The company will offer corporate class funds with higher minimum investments early next year and will also provide customized reporting to investors Corporate class funds are deemed more tax efficient because they allow investors to move assets from one type of fund to another without triggering a tax event Book Pinpoints Tips For Wealth Management The management of family wealth has always been a challenge even in the best of times It has become even more difficult in a world where consistent income and capital growth are hard to generate where the old rules of investing no longer provide reliable guidelines and where the balance between family and finances is more precarious than ever Family Wealth Management 7 Imperatives for Successful Investing in the New World Order is a book co authored by two global leaders in the management of family wealth Mark Daniell the founder and chair of the Raffles Family Wealth Trust and Tom McCullough chairman and CEO of Northwood Family Office and an adjunct professor at the University of Toronto s Rotman School of Management The book provides a fully integrated and family centric approach to wealth management It addresses the family s philosophy

    Original URL path: http://privatewealthmagazine.ca/private_wealth_news.php?date=2013-12-07 (2016-04-26)
    Open archived version from archive

  • Private Wealth Canada News
    is set up to produce around 50 000 vehicles per year Mark to market Impact Negligible The impact of using a mark to market accounting method for valuing pension liabilities will have a negligible effect on companies says an SEI research paper Considering a Switch to Mark to Market Accounting An Understanding of Potential Stakeholder Reactions examines the impact the accounting method had on 23 major U S companies that implemented mark to market accounting for their defined benefit plans over the past two years It found returns on share price in the period surrounding the earnings announcement show no statistically significant abnormal return values financial analysts reports and quarterly earnings calls show very few questions and no direct criticisms of the mark to market implementations by companies and internal management receives the benefit of removing drags on earnings which ultimately gains more favourable earnings per share without the penalty of past poor performance It also shows that ratings agencies such as S P Moody s and Fitch already use mark to market accounting as part of their longstanding practices CLHIA Proposes Ultra long Bonds Federal policymakers should consider issuing ultra long government bonds bonds with maturities of 40 years or longer says the Canadian Life and Health Insurance Association CLHIA Commenting to the Bank of Canada and the department of finance debt management strategy consultations it says the move would be good from both the government s point of view and for long term investors From the government s perspective issuing ultra long bonds would be good asset liability management given the long term nature of the government s assets it says It would also allow the government to ensure low cost funding for its financial needs As well it would attract a broad investor base of domestic institutional investors that are actively seeking longer term investments Long term institutional investors would likely be a strong source of that demand particularly insurers which typically have substantial long term liabilities Companies Keep Tight Hold On Costs Canadian companies may be more optimistic about access to credit but they re keeping a tight hold on costs ahead of investing for growth In fact 60 per cent of companies expect cost reduction and process efficiency to be the most important areas of focus when it comes to business improvement over the next two years says Optimizing for Growth Working Capital Credit Availability a Canadian Financial Executives Research Foundation CFERF study Despite positive indicators the economic environment remains uncertain and while Canadian financial executives are optimistic about their economic prospects and access to capital for growth 56 per cent say they failed to meet revenue growth targets over the past year and 55 per cent are focused solely on organic growth in the next 12 months It found that efficiency and cost control followed by risk management continue to be the boardroom focus of many Canadian companies It also showed that although they have been focusing on their core business by optimizing their capital structures there are signs that point to increased transaction activity November 18 2013 Canadian Regulatory System Deemed Superior Canada s regulatory system is thorough progressive and in many cases superior to those of the U S the UK and Australia says a legal analysis of current and contemplated obligations of financial advisors to act in their clients best interests The report by Torys LLP was at the request of the Investment Funds Institute of Canada IFIC and the Investment Industry Association of Canada IIAC to address and clarify statements included in Canadian Securities Administrators Consultation Paper 33 403 The Standard Of Conduct For Advisers And Dealers Exploring The Appropriateness Of Introducing A Statutory Best Interest Duty When Advice Is Provided To Retail Clients The UK and EU already impose a qualified best interest standard on their advisors Laura Paglia a partner at Torys says the terms fiduciary and best interest are over used casually and interchangeably to describe a wide range of possible and unclear obligations When we looked at the content of the obligations of investment advisors in the U S the UK and Australia she says we found that none of these jurisdictions have or are considering more onerous requirements than those already in place in Canada The conclusion after reviewing the content and source of the obligations is that the applicable rules guidances and notices of the IIROC and the MFDA fully inform investment advisors professional standards in manners consistent with if not superior to approaches in these other jurisdictions Read analysis Sun Life Rolls Out Corporate class Funds Sun Life Global Investments the mutual fund arm of Sun Life will roll out corporate class funds aimed toward more affluent clients as its initial foray into offering private client products says Rick Headrick president of Sun Life Global Investment The company will offer corporate class funds with higher minimum investments early next year and will also provide customized reporting to investors Corporate class funds are deemed more tax efficient because they allow investors to move assets from one type of fund to another without triggering a tax event Book Pinpoints Tips For Wealth Management The management of family wealth has always been a challenge even in the best of times It has become even more difficult in a world where consistent income and capital growth are hard to generate where the old rules of investing no longer provide reliable guidelines and where the balance between family and finances is more precarious than ever Family Wealth Management 7 Imperatives for Successful Investing in the New World Order is a book co authored by two global leaders in the management of family wealth Mark Daniell the founder and chair of the Raffles Family Wealth Trust and Tom McCullough chairman and CEO of Northwood Family Office and an adjunct professor at the University of Toronto s Rotman School of Management The book provides a fully integrated and family centric approach to wealth management It addresses the family s philosophy

    Original URL path: http://privatewealthmagazine.ca/private_wealth_news.php?date=2013-12-08 (2016-04-26)
    Open archived version from archive

  • Private Wealth Canada News
    longer equate retirement with being old and many expect to spend a prolonged period in that phase of their lives says a report by UBS Wealth Management Americas The report found that most wealthy investors do not feel old until they are 80 which marks a significant shift from their parent s generation when old was perceived to be around age 60 It found that only 16 per cent consider retiring as a sign of being old and that the loss of individual independence such as no longer living in your own home 71 per cent and driving your own car 67 per cent are considered more significant signs of being old Tighter Conditions Widen Spreads Credit portfolio managers see credit conditions tightening in North America with credit spreads widening and corporate defaults rising says a survey from the International Association of Credit Portfolio Managers IACPM Its Credit Spread Outlook index for North American investment grade debt which measures the expected direction credit spreads will move over the next three months widened to 23 4 in the new reading from 2 2 at the end of the second quarter A negative number indicates credit conditions are expected to worsen or widen while positive numbers mean that credit conditions are expected to improve or narrow Meanwhile the credit outlook for Europe has stabilized The index for European investment grade debt changed to 11 1 from 7 7 at the end of June Corporate Canada Positioned To Capitalize Corporate Canada has never been in a better position to capitalize on a U S economic recovery says CIBC World Markets Inc s Composite Indicator of Corporate Canada s Strength While it is widely expected that stronger growth in the U S next year will have an upside benefit for Canada what might surprise many is how quickly and significantly corporate Canada will ramp up spending to capitalize on the long awaited rebound in global demand says Benjamin Tal deputy chief economist at CIBC Using the bank s indicator he finds that while softening somewhat recently the index is still hovering around an all time high and is almost a full point above its long term average That s important since the higher the level of our index the more responsive corporate Canada has been to a shift in U S demand On average a one per cent change in U S growth has led to a full three percentage point change in capital expenditures by Canadian corporations However during periods of high index readings like we have currently the same increase in U S demand has translated into a four percentage point acceleration in capital spending by Canadian companies he says CIBC Economics is calling for the U S economy to expand by 3 2 per cent in 2014 more than double the projected pace in 2013 with the global economy growing by four per cent next year Owners Need To Plan Sale Of Business Family business owners need to be passionate about their businesses not in love with them says Tom Deans a business wealth expert and author of several family business books This allows them he told a Standard Life Mississauga Board of Trade session to plan for the day they sell their business Most wait too long he said They believe they will live longer and be healthier Then they suffer a health event and end up having to try to sell when they are not well Or they pass away and the business ends up with their surviving spouse who has never been involved in business and what they took 30 to 40 years to build quickly unravels Family business owners often believe that one of their goals is to pass their business on to their children as a gift He cautioned against this calling it the lazy solution This is wrong he said They can sell the business to a child but only if they make the best offer for it The ideal solution is to have multiple bidders for the asset perhaps a competitor a private equity fund and child all making offers for it Quebec Least Tax friendly Ontario and Quebec Canada s most populous provinces continue to lag behind the others when it comes to business friendly tax systems for small companies says a Canadian Federation of Independent Business CFIB report The second edition of the Small Business Provincial Tax Index puts Ontario Nova Scotia and Québec at the bottom while the top three spots go to Alberta Saskatchewan and New Brunswick The report examines 53 indicators in five major areas of tax policy premiums and payroll taxes sales and excise taxes corporate income taxes personal income taxes and property taxes Alberta and Quebec best and worst by wide margins were also at the top and bottom of the index in the 2009 ranking Top ranked Alberta has no employee or employer payroll taxes no provincial sales tax and a low personal income tax rate with a high personal exemption By comparison Quebec s small businesses pay high payroll taxes and there s a high number of corporate and personal income tax credits to go along with high corporate and personal income tax rates SMBs Lack Succession Readiness With respect to succession readiness who will take over when a CFO leaves That is a question that only one in three small and medium businesses can answer with confidence says CFO Succession Planning a report by the Canadian Financial Executives Research Foundation CFERF on behalf of Robert Half Management Resources This leaves a huge gap in the future of a market that accounts for 45 per cent of the GDP and 60 per cent of all Canadian jobs A number of factors compound the issue for SMBs On the horizon we face a looming shortage of financial leadership in Canada particularly those with the requisite critical thinking skills at a time when global competition is on the rise says David King Canadian president of Robert Half

    Original URL path: http://privatewealthmagazine.ca/private_wealth_news.php?date=2013-11-07 (2016-04-26)
    Open archived version from archive

  • Private Wealth Canada News
    longer equate retirement with being old and many expect to spend a prolonged period in that phase of their lives says a report by UBS Wealth Management Americas The report found that most wealthy investors do not feel old until they are 80 which marks a significant shift from their parent s generation when old was perceived to be around age 60 It found that only 16 per cent consider retiring as a sign of being old and that the loss of individual independence such as no longer living in your own home 71 per cent and driving your own car 67 per cent are considered more significant signs of being old Tighter Conditions Widen Spreads Credit portfolio managers see credit conditions tightening in North America with credit spreads widening and corporate defaults rising says a survey from the International Association of Credit Portfolio Managers IACPM Its Credit Spread Outlook index for North American investment grade debt which measures the expected direction credit spreads will move over the next three months widened to 23 4 in the new reading from 2 2 at the end of the second quarter A negative number indicates credit conditions are expected to worsen or widen while positive numbers mean that credit conditions are expected to improve or narrow Meanwhile the credit outlook for Europe has stabilized The index for European investment grade debt changed to 11 1 from 7 7 at the end of June Corporate Canada Positioned To Capitalize Corporate Canada has never been in a better position to capitalize on a U S economic recovery says CIBC World Markets Inc s Composite Indicator of Corporate Canada s Strength While it is widely expected that stronger growth in the U S next year will have an upside benefit for Canada what might surprise many is how quickly and significantly corporate Canada will ramp up spending to capitalize on the long awaited rebound in global demand says Benjamin Tal deputy chief economist at CIBC Using the bank s indicator he finds that while softening somewhat recently the index is still hovering around an all time high and is almost a full point above its long term average That s important since the higher the level of our index the more responsive corporate Canada has been to a shift in U S demand On average a one per cent change in U S growth has led to a full three percentage point change in capital expenditures by Canadian corporations However during periods of high index readings like we have currently the same increase in U S demand has translated into a four percentage point acceleration in capital spending by Canadian companies he says CIBC Economics is calling for the U S economy to expand by 3 2 per cent in 2014 more than double the projected pace in 2013 with the global economy growing by four per cent next year Owners Need To Plan Sale Of Business Family business owners need to be passionate about their businesses not in love with them says Tom Deans a business wealth expert and author of several family business books This allows them he told a Standard Life Mississauga Board of Trade session to plan for the day they sell their business Most wait too long he said They believe they will live longer and be healthier Then they suffer a health event and end up having to try to sell when they are not well Or they pass away and the business ends up with their surviving spouse who has never been involved in business and what they took 30 to 40 years to build quickly unravels Family business owners often believe that one of their goals is to pass their business on to their children as a gift He cautioned against this calling it the lazy solution This is wrong he said They can sell the business to a child but only if they make the best offer for it The ideal solution is to have multiple bidders for the asset perhaps a competitor a private equity fund and child all making offers for it Quebec Least Tax friendly Ontario and Quebec Canada s most populous provinces continue to lag behind the others when it comes to business friendly tax systems for small companies says a Canadian Federation of Independent Business CFIB report The second edition of the Small Business Provincial Tax Index puts Ontario Nova Scotia and Québec at the bottom while the top three spots go to Alberta Saskatchewan and New Brunswick The report examines 53 indicators in five major areas of tax policy premiums and payroll taxes sales and excise taxes corporate income taxes personal income taxes and property taxes Alberta and Quebec best and worst by wide margins were also at the top and bottom of the index in the 2009 ranking Top ranked Alberta has no employee or employer payroll taxes no provincial sales tax and a low personal income tax rate with a high personal exemption By comparison Quebec s small businesses pay high payroll taxes and there s a high number of corporate and personal income tax credits to go along with high corporate and personal income tax rates SMBs Lack Succession Readiness With respect to succession readiness who will take over when a CFO leaves That is a question that only one in three small and medium businesses can answer with confidence says CFO Succession Planning a report by the Canadian Financial Executives Research Foundation CFERF on behalf of Robert Half Management Resources This leaves a huge gap in the future of a market that accounts for 45 per cent of the GDP and 60 per cent of all Canadian jobs A number of factors compound the issue for SMBs On the horizon we face a looming shortage of financial leadership in Canada particularly those with the requisite critical thinking skills at a time when global competition is on the rise says David King Canadian president of Robert Half

    Original URL path: http://privatewealthmagazine.ca/private_wealth_news.php?date=2013-11-08 (2016-04-26)
    Open archived version from archive

  • Private Wealth Canada News
    include such costs as registrar transfer agency audit legal and custodial fees Under a fixed rate administration fee model the firm will pay the operating expenses of each Participating Series other than fund costs such as directors fees and expenses and new governmental fees in exchange for the Participating Series payment of a fixed rate administration fee By fixing a large portion of operating expenses at a set percentage the certainty and transparency of MERs will significantly increase The adoption of a fixed rate administration fee also offers investors protection against rising MERs triggered by declining markets periods of net redemptions or increased expenses and costs of services Investors Still Confident In Mutual Funds For the eighth year in a row research on behalf of the Investment Funds Institute of Canada IFIC shows mutual funds lead the way when it comes to investor confidence and that investors are looking for choice when it comes to paying for advice Mutual funds achieved an 81 per cent confidence level compared with 65 per cent for GICs 61 per cent for bonds 57 per cent for stocks and 33 per cent for ETFs Fund investors also continue to express a strong preference for receiving information about potential fund purchases from their advisor whether directly 83 per cent or through their newsletters 63 per cent or their websites 55 per cent Canadian investors also demonstrate high levels of trust in their advisors says Joanne De Laurentiis IFIC president and CEO Ninety four per cent of Canadian mutual fund investors surveyed agreed that they trust their advisors to give them sound advice and 90 per cent agreed that they obtain better returns than they would if investing on their own Investor Confidence Down In September Global investor confidence decreased 3 5 points to 101 4 in September says State Street Global Exchange s Investor Confidence index In a turnaround from August North American investor confidence was the biggest drag on the index declining 7 6 points to 104 5 North American confidence was down 1 5 points in August while confidence figures for investors in Europe and Asia were both down more than seven points for the same month For September European confidence was up 4 7 points to 101 7 while Asian confidence increased 2 1 points to 95 3 There is still a sizable but narrowing gap between North American and Asian investors says Jessica Donohue senior managing director and head of research and advisory services at State Street Global Exchange The fear of the Fed s liquidity withdrawal has had a disproportionally larger impact in Asia where investors are also worrying about slower growth in China With the worst of those fears yet to materialize it will be interesting to see if this sentiment gap diminishes further next month Stocks More Than Recover Losses Stocks are not only recovering the money they lost they are hitting all time highs says J Matthew Beckerleg a partner at Pembroke Management He told its Pembroke Celebrating 45 Years Of Growth Investment Success event this does make sense in the current environment Companies are earning more money than they have before but investors are watching the headlines about the economy and missing their performance However there are concerns Even though investors seem to think that before 2008 it was a perfect world there is concern that the easy money provided by central banks is causing the same distortions as seen in the past As well if the economy does start to slow government indebtedness means it may not have the funds to bail it out again he said SME Optimism Remains Stable Small business optimism was down but remained relatively strong in September says the Canadian Federation of Independent Business CFIB The Business Barometer Index slipped 1 4 points from August but September s 64 5 score still counts as one of the better results for 2013 Ted Mallett chief economist and vice president of the CFIB says the good news is that overall the other indicators are stable Hiring plans are typical for this time of year 40 per cent of small business owners report a generally good state of business and orders and accounts receivables show gradual improvement Price and wage expectations are stable and there are no big shifts being reported in operating constraints or pricing pressures Measured on a scale of zero and 100 an index level above 50 means owners expecting their businesses performance to be stronger in the next year outnumber those expecting weaker performance Index levels normally range between 65 and 70 when the economy is growing at its potential September 23 2013 SEC Issues Pay Ratio Disclosure Proposal The Securities and Exchange Commission SEC has issued a proposal that would require companies to disclose the ratio between the pay of their chief executive and the median of all other employees The rules which implement a provision in the Dodd Frank Wall Street Reform and Consumer Protection Act provide flexibility that will permit use of statistical sampling and a simplified definition of pay to determine the organization s median employee Once the median employee is determined only then will a Summary Compensation Table calculation need to be done for that particular employee This is a significant simplification from what could have been proposed if for example SCT compensation needed to be calculated for all employees within a statistically valid sample or for a company s entire workforce Compliance will not be required for the 2014 proxy season and may not be required for 2015 The rules are generally proposed to apply with respect to compensation for the first fiscal year beginning on or after the date that final rules are effective Forbes Richest Grow Richer While most of the top names and rankings on Forbes annual list of the top 400 richest Americans didn t change from a year ago the majority of its members saw their fortunes grow over the past year helped by strong stock and real estate market Basically the mega rich are mega richer says Kerry Dolan of Forbes The list s minimum net income increased to a pre financial crisis level of 1 3 billion up from 1 1 billion in 2012 with 61 American billionaires not making the cut Microsoft Corp co founder Bill Gates remains America s richest man taking the top spot on the list for the 20th straight year with a net worth of 72 billion up from 66 billion a year ago Investor Warren Buffett the head of Berkshire Hathaway Inc posted another distant second place finish with 58 5 billion but increased his net worth from 46 billion Oracle Corp co founder Larry Ellison stayed third with 41 billion and was the only member of the top 10 whose net worth was unchanged from a year ago Forbes says 273 members of the list are self made billionaires while 71 inherited their wealth and another 56 inherited at least some of it but are still growing it Porsche Facility Opens In Oakville Porsche Centre Oakville the largest and most technologically advanced Porsche facility in Canada has officially opened its doors The state of the art facility located in Oakville ON measures 5 000 square metres and houses a 22 vehicle showroom and an after sales service centre The indoor area includes Porsche Classic Service the Porsche Club Lounge with a full gourmet professional kitchen the Carrera Café Porsche Driver s Selection Boutique and Porsche Kids Play Area In keeping with Porsche s commitment to environmental responsibility the structure includes a number of efficiency features such as fully automated LED lighting heating ventilation air conditioning and audio and video systems and water powered aqua lifts in each service bay Say On Pay Key Proxy Vote Issue The Shareholder Association for Research and Education SHARE 2013 Key Proxy Vote Survey Questionnaire shows one prominent issue on this year s key vote list is advisory votes on executive compensation or say on pay For example at Barrick Gold Corporation an overwhelming 85 per cent of shareholders voted against management recognizing that paying its top five executive officers a total of 56 8 million was particularly excessive given its net loss of 670 million last year Pay votes at Canadian Pacific Railway and Canadian Natural Resources give pension trustees foundations Aboriginal trusts religious investors and other institutional investors an opportunity to encourage their investment managers and proxy service providers to disclose how they voted on 21 of the most important ballot issues in 2013 These may sound like business as usual proxy issues but when you dig into the details I am confident that trustees will want to know how their investment managers and proxy service providers voted on their behalf says Catherine Smith senior proxy analyst at SHARE and author of the annual key proxy vote survey report Proxy ballot issues can help to shed light on the attention and care with which investment managers and proxy voting services are voting proxies on behalf of clients Arrow Purchases BluMont Arrow Capital Management has purchased BluMont Capital from Integrated Asset Management It says by combining BluMont s range of retail prospectus based alternatives with Arrow s line up clients will have access to a wide range of alternative funds in Canada Arrow was founded in 1999 and upon closing will have approximately 1 3 billion in assets under management The sale of BluMont to Arrow will allow Integrated to focus exclusively on its growing institutional business which comprises approximately 85 per cent of its current assets under management BluMont was its retail alternative asset management subsidiary Mercedes Named Best Luxury Brand For the second consecutive year Mercedes Benz has been named the Best Luxury Brand in Canada by Vincentric an automotive data compilation and analysis firm The awards identified each of the following Mercedes Benz vehicles as providing the best value in the outlined segment the E Class as Premium Mid Size Coupe E Class BlueTEC as Premium Large Sedan E Class as Premium Wagon M Class BlueTEC as Premium Mid Size Crossover and the GL Class BlueTEC as Premium Large SUV To determine the awards Vincentric analyzed more than 1 800 vehicle configurations measuring the cost of ownership using eight different factors Using a statistical model the company identified the winners by measuring which vehicles had lower than expected ownership costs given their market segment and price Each vehicle was evaluated in all 10 provinces plus the Northwest Territories using a range of annual kilometre intervals and insurance profiles September 16 2013 Generational Differences In Investment Preferences Eighty five per cent of participating stakeholders have a high level of interest towards meeting and discussing their high net worth wealth management plans with decision makers says a survey that demonstrates how firms are adapting to new trends and challenges The Strategy Institute survey says while the percentage may look high there is a split between those who wish to meet with client facing organizations and those wishing to speak with potential strategic partners The survey identifies the top three challenges in the industry as well as the value proposition and marketing tactics for acquiring the current and next generation of affluent clients The next generation of affluent clients is increasingly turning to web based wealth management firms or chooses do it yourself brokerage accounts For the financial firms that have established a clientele within Generation Y their attitudes can certainly present a challenge since these people are focused on green technologies and doing social good with their investing They are not necessarily focusing first on performance The investment mentality of Generation Y clients includes a lack of desire to buy houses since they don t have the time or desire to take care of them but rather spending money on experiences S Class Offered As Plug In Model Daimler AG s Mercedes Benz is offering a hybrid version of its S Class luxury sedan that can drive emissions free and still provide pampering The Mercedes Benz S 500 Plug In Hybrid is aimed at people who want a hybrid without compromising on the luxury powerful acceleration and image that go with driving a Mercedes Its six cylinder gasoline engine has a 328 horsepower plus a 107 horsepower electric motor and a high voltage lithium ion battery The company says the car will accelerate from 0 to 100 kilometres per hour in 5 5 seconds Top speed is 155 250 kilometres per hour And there are no worries about running out of battery charge as with an all electric car A computer selects the best mix of internal combustion and battery power The system uses navigation data to scan the road ahead and maximize efficiency for instance by using the battery on an uphill stretch in order to recharge it on the following downhill using energy from the brakes Super Rich Population at All time High The world s population of super rich individuals those with assets of at least 30 million reached an all time high of 199 235 individuals with a combined fortune of nearly 28 trillion in 2013 says a report on the ultra wealthy from Swiss bank UBS AG and research firm Wealth X This represents growth of more than six per cent in population size from the previous year The U S was a big contributor to that growth with the ranks of the rich growing by 8 7 per cent year over year Their total fortune was up almost 10 per cent to over 9 trillion However for Canada it was a tougher year for the super rich The population of ultra high net worth individuals UHNW actually declined modestly from 5 015 in 2012 to 4 980 Their estimated fortune remained steady at 595 billion Asia saw a 5 4 per cent year over year increase in the combined wealth of its UHNW population And the report predicts that Asia will see greater growth in its UHNW population and assets than North America and Europe over the next five years Luxury Home Sales To Increase Sales of luxury homes in Canada will likely gain momentum in the fall fuelled by demand from international investors says a report from Sotheby s International Realty Canada It says that sales of high end homes worth at least 1 million were up in major Canadian urban markets in the first half of the year compared with the second half of 2012 Sales were up 65 per cent in Vancouver BC 67 per cent in Calgary AAAB 61 per cent in Toronto ON and 29 per cent in Montreal QC The real estate company says buyers from China Russia the Middle East India and the U S are expected to continue to fuel demand for luxury homes this fall It also notes that the high end condo market in the Greater Toronto Area of Ontario has rebounded after a slower start to the year a trend that is expected to continue into the fall Businesses Operating On Legacy Systems One in four buy side firms worldwide run core business operations on legacy systems says a study by a private research institution sponsored by SimCorp SimCorp StrategyLab s Legacy Systems The inconvenient truth and the cost of doing nothing says given that the top 2 000 firms collectively manage upwards of 80 trillion in assets trillions of dollars are at the mercy of outdated technology The study defines legacy systems as those that have difficulty providing a real time consolidated overview of positions and holdings often run on outdated poorly documented or obscure technologies are infrequently updated and have difficulty in automating or adapting to business processes Private Equity Faces Opportunity Shortage While private equity funds remain flush with cash a shortage of good investment opportunities and structural challenges are hampering the industry s already sluggish recovery from the financial crisis says a study by SEI Updating two previous surveys from 2009 and 2011 Key Course Adjustments for Breaking Through Five Ways Private Equity Managers Can Optimize Their Competitive Advantage says allocations to private equity are on the upswing with 36 per cent of investors surveyed this year saying they are increasing their allocations to the asset class versus 26 per cent in the 2011 survey Additionally new sources of capital are surfacing including institutional investors and sovereign wealth funds in emerging markets An increasingly active secondary market is helping managers to exit investments despite the slowing pace of initial public offerings Sixty one per cent of respondents said they use the secondary market in some way compared to only 30 per cent in 2009 and two thirds said secondary buyouts will be a key driver of deal flow in 2013 At the same time the study depicts a Darwinian climate of intensifying competition in which many funds will struggle to survive even as new ones come forward CPPIB Acquiring Neiman Marcus Ares Management LLC and the Canada Pension Plan Investment Board CPPIB have entered into a definitive agreement to acquire Neiman Marcus Group LTD Inc from a group of investors led by TPG and Warburg Pincus Ares and CPPIB will hold an equal economic interest in the legendary retailer and the company s management will retain a minority stake The transaction is expected to close in the fourth quarter of 2013 Based in Dallas TX Neiman Marcus is one of the largest U S luxury retailers comprised of 79 stores totaling more than 6 5 million gross square feet The company operates 41 Neiman Marcus Stores two Bergdorf Goodman locations and 36 Last Call outlet centres Richardson Acquires Macquarie Richardson GMP Limited has purchased Macquarie Private Wealth Inc Andrew Marsh president and CEO of Richardson GMP says the transaction further establishes Richardson as a firm that can compete with larger institutions while maintaining a boutique culture Completion of the transaction is subject to a number of customary closing conditions including regulatory approval by the Investment Industry Regulatory Organization of Canada September

    Original URL path: http://privatewealthmagazine.ca/private_wealth_news.php?date=2013-10-08 (2016-04-26)
    Open archived version from archive

  • Private Wealth Canada News
    when it comes to paying for advice Mutual funds achieved an 81 per cent confidence level compared with 65 per cent for GICs 61 per cent for bonds 57 per cent for stocks and 33 per cent for ETFs Fund investors also continue to express a strong preference for receiving information about potential fund purchases from their advisor whether directly 83 per cent or through their newsletters 63 per cent or their websites 55 per cent Canadian investors also demonstrate high levels of trust in their advisors says Joanne De Laurentiis IFIC president and CEO Ninety four per cent of Canadian mutual fund investors surveyed agreed that they trust their advisors to give them sound advice and 90 per cent agreed that they obtain better returns than they would if investing on their own Investor Confidence Down In September Global investor confidence decreased 3 5 points to 101 4 in September says State Street Global Exchange s Investor Confidence index In a turnaround from August North American investor confidence was the biggest drag on the index declining 7 6 points to 104 5 North American confidence was down 1 5 points in August while confidence figures for investors in Europe and Asia were both down more than seven points for the same month For September European confidence was up 4 7 points to 101 7 while Asian confidence increased 2 1 points to 95 3 There is still a sizable but narrowing gap between North American and Asian investors says Jessica Donohue senior managing director and head of research and advisory services at State Street Global Exchange The fear of the Fed s liquidity withdrawal has had a disproportionally larger impact in Asia where investors are also worrying about slower growth in China With the worst of those fears yet to materialize it will be interesting to see if this sentiment gap diminishes further next month Stocks More Than Recover Losses Stocks are not only recovering the money they lost they are hitting all time highs says J Matthew Beckerleg a partner at Pembroke Management He told its Pembroke Celebrating 45 Years Of Growth Investment Success event this does make sense in the current environment Companies are earning more money than they have before but investors are watching the headlines about the economy and missing their performance However there are concerns Even though investors seem to think that before 2008 it was a perfect world there is concern that the easy money provided by central banks is causing the same distortions as seen in the past As well if the economy does start to slow government indebtedness means it may not have the funds to bail it out again he said SME Optimism Remains Stable Small business optimism was down but remained relatively strong in September says the Canadian Federation of Independent Business CFIB The Business Barometer Index slipped 1 4 points from August but September s 64 5 score still counts as one of the better results for 2013 Ted Mallett chief economist and vice president of the CFIB says the good news is that overall the other indicators are stable Hiring plans are typical for this time of year 40 per cent of small business owners report a generally good state of business and orders and accounts receivables show gradual improvement Price and wage expectations are stable and there are no big shifts being reported in operating constraints or pricing pressures Measured on a scale of zero and 100 an index level above 50 means owners expecting their businesses performance to be stronger in the next year outnumber those expecting weaker performance Index levels normally range between 65 and 70 when the economy is growing at its potential September 23 2013 SEC Issues Pay Ratio Disclosure Proposal The Securities and Exchange Commission SEC has issued a proposal that would require companies to disclose the ratio between the pay of their chief executive and the median of all other employees The rules which implement a provision in the Dodd Frank Wall Street Reform and Consumer Protection Act provide flexibility that will permit use of statistical sampling and a simplified definition of pay to determine the organization s median employee Once the median employee is determined only then will a Summary Compensation Table calculation need to be done for that particular employee This is a significant simplification from what could have been proposed if for example SCT compensation needed to be calculated for all employees within a statistically valid sample or for a company s entire workforce Compliance will not be required for the 2014 proxy season and may not be required for 2015 The rules are generally proposed to apply with respect to compensation for the first fiscal year beginning on or after the date that final rules are effective Forbes Richest Grow Richer While most of the top names and rankings on Forbes annual list of the top 400 richest Americans didn t change from a year ago the majority of its members saw their fortunes grow over the past year helped by strong stock and real estate market Basically the mega rich are mega richer says Kerry Dolan of Forbes The list s minimum net income increased to a pre financial crisis level of 1 3 billion up from 1 1 billion in 2012 with 61 American billionaires not making the cut Microsoft Corp co founder Bill Gates remains America s richest man taking the top spot on the list for the 20th straight year with a net worth of 72 billion up from 66 billion a year ago Investor Warren Buffett the head of Berkshire Hathaway Inc posted another distant second place finish with 58 5 billion but increased his net worth from 46 billion Oracle Corp co founder Larry Ellison stayed third with 41 billion and was the only member of the top 10 whose net worth was unchanged from a year ago Forbes says 273 members of the list are self made billionaires while

    Original URL path: http://privatewealthmagazine.ca/private_wealth_news.php?date=2013-10-09 (2016-04-26)
    Open archived version from archive

  • Private Wealth Canada News
    Canada and Australia trust investment firms to do what is right Retail investors are less trusting of the industry 51 per cent than their institutional counterparts 61 per cent and investors in the U S 44 per cent and UK 39 per cent are less trusting than those in Hong Kong 68 per cent This lack of trust in the investment industry does not translate to the capital markets nearly three in four investors report they are optimistic about their ability to earn a fair return in capital markets Yet intensity of that confidence is low as just 19 per cent of investors strongly agree that they have a fair opportunity Looking to the future investors expect government to help build trust in capital markets Fifty two per cent point to national and global regulators as having the greatest opportunity to effect change and enhance trust moving forward Investors report that trusting an investment manager to act in their best interest is the single most important factor in making a hiring decision Achieving high returns was cited only half as often and fee amounts structure only a fifth as much Knowing Vision Keeps Workers Engaged Workers are more engaged when they know their employers vision and recent research suggests most Canadian companies feel they are keeping their teams informed of their business goals says a Robert Half Management Resources survey Nearly four in five 79 per cent Canadian chief financial officers said their employees are at least somewhat aware of their firm s strategic objectives Communicating business goals is an important step in the right direction toward engaging and motivating employees but just helping people become aware of those goals isn t enough says David King Canadian president of Robert Half Management Resources Managers need to empower workers and show them how their individual contributions support the efforts to reach the organization s objectives Cadillac Flaunts Luxury Coupe Prototype Cadillac is showing off a low lying two door coupe that likely is the prototype for the brand s re entry into the big elegant and expensive luxury car market The four seat Elmiraj concept car is built on the underpinnings of a new full sized Cadillac sedan that is under development The look of the Elmiraj could show up in the new sedan and a coupe is an option as a variation of the new car If the Elmiraj or the sedan go into production they would be GM s first entry into the large luxury performance car category since the DTS went out of production in 2010 Cadillac says it s too early to say when or if the Elmiraj would go on sale or how much it would cost BlackRock Moves Into Mutual Funds BlackRock Asset Management Canada Limited has filed a preliminary prospectus for a series of balanced mutual funds BlackRock Strategic Portfolios Series built with iShares ETFs This initiative will expand its roster of financial products and respond to growing client demand in Canada BlackRock currently manages mutual fund platforms in over 35 countries with more than 420 billion in assets under management Integrated Holds First Close Integrated Asset Management Corporation s private debt group has held a first close for its fourth fund on 307 million The firm is targeting 400 million for the fund which has already raised more than the 275 million The fund IV will be managed by its subsidiary Integrated Private Debt Corporation and will invest in the investment grade debt of Canadian mid market companies and projects as part of management buyouts refinancings or growth financings It will remain open for new commitments until October Equity Funds Had Solid Start Most equity mutual funds had a solid start in the third quarter of 2013 in Canada says Morningstar Canada Of its 22 Canada fund indices that measure the performance of equity categories 17 increased in July Positive performances by U S and most global equity markets were largely driven by the comments of U S policymakers in particular the Federal Reserve Board s assertion about its plan for the foreseeable future The best regional results were for the Morningstar Canada European Equity Fund Index which increased 6 6 per cent and the U S Small Mid Cap Equity Fund Index with an increase of 4 7 per cent In a sharp reversal from June s results funds that focus on precious metals equities posted the biggest increases overall The Precious Metals Equity Fund Index had an aggregate increase of 9 6 per cent August 12 2013 Estate Plans Require Detailed Conversations Canadians understand the importance of talking to family members about their estate plan but when it comes to the details they could still use a little help says a study by the BMO Wealth Institute What are you leaving behind Family conflict or memorable legacy says 54 per cent of Canadians believe that not having early and ongoing estate planning conversations with family members is the leading risk of conflict after a loved one s death As such 82 per cent of Canadians with a child over the age of 40 have had at least one conversation with an adult child about their plans it says Furthermore 64 per cent of adult children with parents over the age of 60 have had a conversation about their parents wishes However while most Canadians have started a discussion on estate plans only one third described those conversations as detailed and accordingly advisors should encourage clients to talk with their family members and give some direction as to what the conversation should cover Topics raised should include how the client s assets will be distributed who has been designated executor and who has been made power of attorney and why Crisis Altered Wealth Management Decisions Forty eight per cent of families with more than 5 million in investable assets penta millionaires make investment and wealth management decisions more democratically following the financial crisis of 2008 says a poll by SEI Private Wealth

    Original URL path: http://privatewealthmagazine.ca/private_wealth_news.php?date=2013-09-08 (2016-04-26)
    Open archived version from archive



  •