Managed Money Reporter Newsletter
Editors: Carl Spiess & Allan McGlade
With summer holidays ending, and kids heading off to school, it is time to think about some investment planning for the coming year.
With interest rate increases finally on hold in Canada and the US, new opportunities appear for bond investors. We continue to hear from managers and strategists who think that there are opportunities for Canadians to take some profits on Canadian investments and seek opportunities overseas. In any case, now is a good time to ensure your portfolio is balanced.
If you haven't had a recent account review from us, please contact us to set up a time to review your portfolio, either in person, at 1-800-387-9273 or by email to email@example.com.
We are pleased to provide the link to ScotiaMcLeod's most recent investment portfolio quarterly. This issue looks at the potential end to interest rate increases, potential economic slowdowns, inflation risks, and, could it be true, lower oil prices?
With the GST having dropped from 7% to 6%, the Management Expense Ratio on funds is going down too. While we still think that the Federal Government levying a consumption tax on people's investments is wrong, at least the tax is dropping. Figure on saving around $20 each year on a $100,000 portfolio due to the tax decrease. It is a small amount, but still good news and the Investment Funds Institute of Canada continues to lobby the Government to remove the GST from all investment management. Look for the lower MERs to be reported in next year's annual reports and data.
Exchange Traded Funds have become more popular in the last few years. ETFs trade like stocks, and traditionally have closely followed a specific index through a passive management approach. ETFs have very low management fees making them good for long term investors who don't want to out or underperform the market. The original iShares are a popular family that have been available for many years.
Now a new family of actively weighted (as opposed to index weighted) ETFs are being offered by Claymore investments:
Both these new ETFs and the traditional market weighted ETFs are available in your ScotiaMcLeod account, so please contact us if you want to have a portion of your portfolio invested in this manner.
As you are aware, I hold the CERTIFIED FINANICAL PLANNER ™ (CFP™) credential. My licensing body, Financial Planners Standards Council (FPSC), has a terrific site and they are looking to make it even better with your feedback. Each month, www.cfp-ca.org logs more than 70,000 visits from financial planners and other industry representatives, members of the public and the media, students, educators and others. They have monthly articles, helpful information for consumers, and information about the process and profession of Financial Planning. The public resources include a learning centre with online quizzes where you can test your online IQ. With your help, www.cfp-ca.org will continue to provide valuable services as the most authoritative source on financial planning information in Canada.
And now, they are offering a $500 prize for anyone who completes their 15-minute online survey, and helps us Financial Planners build a better site for the investing public. Do hurry, the survey closes September 1, 2006. Click on the link, below, to complete the survey for your chance to win:
Both FPSC and Allan and I thank you.
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