FOCUS - a newsletter from globeadvisor.com
29 January 2004
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Questions Your Clients Will Ask
To educate investors on the topic of engaging their financial advisors in a
discussion about portfolio building this RRSP season, the Globe's Rob Carrick
suggests 10 questions every client must ask when faced with a fund
recommendation. Sample questions include:
- What makes this fund suitable for my portfolio?
- What's the risk profile?
- How does this fund complement my other holdings?
Read Carrick's article to stay ahead of your clients:
Don't Judge Your Adviser by Your Losses
Hallett: Rate Cut Presents Planning Opportunity
Dan Hallett, CFA, offers some concrete suggestions on managing client's net
worth in light of the the Bank of Canada's recent rate cut and the relatively
high proportion of assets currently held in fixed income vehicles. For taxable
accounts, he emphasizes real return bonds and floating rate preferred shares.
Read his analysis.
Plus: To view a fund report containing
real return bonds, first login to globeadvisor.com, then
INDUSTRY NEWS: Fair
Dealing in Ontario
OSC Proposes ‘Fair-Dealing' Plan
Ontario's securities watchdog Thursday proposed a major overhaul of how the
retail investment industry is governed, proposing a regulatory shift that
focuses on the relationships between investors and firms instead of products
and services offered. Read Terry Weber's report.
CURRENCY: U.S. Index
Funds, Foreign Content, Loonie Call
Some U.S. index funds provide a 'natural hedge'
With the S&P 500, DJIA and Nasdaq 100 indexes soaring, and the U.S. dollar
falling against our Canadian currency, writes Rob Carrick, most U.S. index
products last year returned merely chump change. The poor performance prompted
this remark "Index investing in the U.S. market these days is like walking up
a down escalator." Read Carrick's analysis.
More: To view a fund report containing all RRSP-eligible index
funds, Log in to globeadvisor.com and click the Filters link in the top
navigation. From the General tab of the Fund Filter, select the following
- RRSP Eligibility: Yes
- Fund Type: Open-Ended
- Index Funds: Yes
Then click Run Report.
Dollar's Rise Dents Foreign Content
While worldwide equity markets generated positive returns in 2003, the rising
loonie caused havoc for investors with foreign content in their RSPs. The
biggest dent came for those with U.S. investments. Given such currency
effects, how should investors approach their foreign-content allotments in
2004? Read Michael Ryval's report.
Dollar Determinants: Predicting the Loonie's Rise and Fall
Is the Canadian dollar going to rise further later in 2004 and 2005, as the
rate differential steadily diminishes to zero? Not likely. The future lies in
relative monetary policy and Canada is about to take a pass. Read Mark
Canadian Firms Struggle to Adapt to Higher Dollar
ECONOMIC SURVEY: Annual
Bullish on the U.S., Less so on Canada
In this annual roundtable, three economic pundits -- Fred Sturm, Robert
Spector, Douglas Porter -- revealed their views on economic growth in light of
the rising loonie, the rate of change of the equity markets, and the outlook
for resource stocks. Read the edited transcript.
SIDELINES: Will Cash
Keep Flowing into the Market?
Dan Hallett, CFA, studied the last 10 years of money market fund assets and
net sales — relative to long-term funds — to find meaningful relationships.
His view on the inevitability that cash on the sidelines will create a
significant demand for stocks may surprise you. Read his analysis.