FOCUS - a newsletter from globeadvisor.com
15 May 2003
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FUND INSIGHT: Manager Mobility
Risks: Rate Changes don't Affect all Bonds Equally
Shifting most or all of your clients'
bonds to shorter-term issues (or to
a fund emphasizing such bonds) in
anticipation of rapid rate hikes may
provide a false sense of security, writes
analyst Dan Hallett.
Such a move will mitigate damage somewhat
but the yield potential createed will be
quite limited - particularly if rate hikes
are concentrated on the short end.
Bond Yield Curve
Red = Current Green = 1 yr
Blue = 2 yrs
Apprehensive Investors Said Hoarding Cash
Risk aversion, says one economist, is
a key reason why some $45-billion dollars
is sitting in Canadians' bank accounts.
SPOTLIGHT ON INCOME TRUSTS
Investors Should Be Aware of Nuances in Trust Sector
Barclays' Deal Latest Offering in Income Funds
New exchange-traded funds have recently
made a splash on the investing scene.
Here's the info you need to evaluate
whether these flashy debutantes are
attractive for your clients, including
MER and holdings details.
The five types of income trusts have
distinct pros and cons. So be on guard
against sweeping pronouncements about
income trusts as a whole.
INVESTING STRATEGY: Portfolio Makeovers
New Brunswick Couple Wants Retirement Plan In Place
This couple in their forties with two
children has conventional needs:
plan for the kids' education, and
their own retirement.
A Halifax-based financial planner
runs the numbers and suggests
Investor has to Accept Risk to Meet Goals
PLUS: Assess Your Clients' Risk
A corporate executive is suffering
from "investor paralysis." A Vancouver-
based advisor examines the investor's
current strategy and determines that his recent
losses have made him too oriented towards
capital preservation. A change in
INDUSTRY NEWS: The Bay Street Scene
Grand Slam Deals Decline But Plenty of Players Still at the Plate
Investors Won't Come Back Without Evidence of Change
What will bring respectability back to
securities markets? A positive sign is
that some CEOs are now criticizing governance
holes, and pushing for change.
Can OSC's Brown Fill Spitzer's Boots in Canada?
David Brown just signed up for another
term as Ontario Securities Commission
chairman, writes Eric Reguly. "He wants
to be the boss of the would-be national
"He needs a big score" and he should look
stateside to Eliot Spitzer's victorious
assault on Wall Street for inspiration.
"The low-hanging fruit has all
been picked", Andrew Willis writes,
and now the big investment banks
are jockeying for crumbs of a very
There's still M&A activity out there
for those who hustle, though, with a
few shops putting up big numbers.