FOCUS - a newsletter from globeadvisor.com
08 August 2003
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SPOTLIGHT: Stepping Back Into Funds
What Mutual Fund Pundits are Recommending
The market rally that's perking up your clients'
portfolio statements could also make this summer the ideal time to get back
into mutual funds. Intrepid Globe and Mail reporter Carolyn Leitch asks four
fund analysts - optimistic and bearish - for their recommendations. Read the
full Globe and Mail report.
View a Fund Report containing eight analyst recommendations
Mutual Funds Rebound in July
New mutual fund sales totaled about $300-million in July, a dramatic
turnaround from June and only the second positive month of net sales in the
past 15. Read Allan Robinson's Report.
REPORT ON MUTUAL FUNDS: Geoff
Templeton Growth, and Chasing Performance
Manager Profile: Trimark Fund Manager Keeps it Simple
Geoff MacDonald, manager of the
Trimark Canadian Endeavour Fund, normally holds a stock for between five
and 10 years. There are only a handful of important components of a good
stock, he argues: strong management, business potential, price and gut
instinct. Read Investment Reporter Richard Bloom's fund manager profile.
AIM Trimark Merges Funds
Changes made to reorganize low performers, eliminate overlap in
Chasing Performance Costly for Investors
Boston-based Dalbar Inc.'s 2003 study of investor performance has found that
most investors in stock mutual funds aren't very good at timing the market.
They tend to chase performance and because of that, the returns on their
investments haven't even kept up with inflation or market indexes over time.
Read Angela Barnes' full report.
Templeton Graph Fails to Illustrate the Full Picture
Growth Fund has lost 17.5 per cent over one year, 7.8 per cent over three
years and 2.7 per cent over five years. It has paid the price in
redemptions. At the beginning of 2000, the fund had a whopping $11.8-billion
in assets; it now has $6.1-billion. Despite all this, writes columnist Douglas
Goold, "Templeton does offer something of value."
Asset Shift into Stocks Won't Hold Up in the Long Run
Jeffrey Rubin, no slouch as the chief economist and chief strategist at
CIBC World Markets, remarks that the current asset shift from stocks to bonds
will soon meet its demise. "When the U.S. tax stimulus dissipates later
this year, that asset shift won't stand, just as it didn't after the first
stimulus package ran out of gas." Read Jeffrey Rubin's well-reasoned report.
PERSONAL FINANCE: Gold Cards,
Renting Cars Can be Golden if You Charge it
"Surely you've wondered whether the level of coverage your card offers is
comparable to the atrociously expensive but all- encompassing insurance sold
by car rental agencies," writes columnist Rob Carrick. He did, and after
talking to a few experts, his conclusion is that gold card insurance isn't
as good, but it's good enough.
Proper Landscaping Design Could Save You Tax
Canadian tax law restricts the amount of land that qualifies as part of
your principal residence to half a hectare (about 1.25 acres). The good
news? There's an exception to this rule where you can demonstrate that
the land in excess of half a hectare is necessary for the use and enjoyment of
the property as a residence. Read Tim Cestnick's report.
If you must a lender be, be a smart lender
Many parents get into trouble when they lend money to newly married
children to purchase a home without any record of the loan. The house
becomes a shared asset, with both spouses entitled to half if the marriage
dissolves. Here's some advice that will increase your clients' lending IQ.