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Technical Reference: Recommendations for Regulating Investment Funds in Canada
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The core challenge is to what extent the industry is prepared to take hold of the matters
that require regulation and to operate a self-regulatory system that will deal effectively and
efficiently with the issues raised in this report and that will result in fair and equitable
treatment of investors.
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Posted by root on Thursday, August 12 @ 00:00:00 EDT (0 reads)
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Technical Reference: Advisor Questionnaire
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Communication is important, especially at the outset of the relationship. The best thing people can do to protect themselves is make sure your objectives are clear in your own mind and clearly communicated to your advisor or broker. This will help avoid problems and complaints downstream.
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Posted by root on Sunday, June 06 @ 00:00:00 EDT (0 reads)
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Technical Reference: Know Your Advisor
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When you open an account with an investment dealer you have to provide personal details like your income, net worth, risk tolerance etc. This information, periodically updated, supports Know Your Client (KYC) rules that securities regulators have put in place. The theory holds that the more an adviser knows about a client ,the better he can serve them. The recommendations he makes must be “suitable” based on the KYC.
There is however no equivalent form for an investor to Know Your Advisor-KYA . Not knowing your advisor can lead to unsuitable investments, higher costs, loss of capital and even “misappropriation of assets” as regulators refer to theft. So, here`s a form you can use to keep track of your advisor
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Posted by root on Sunday, June 06 @ 00:00:00 EDT (0 reads)
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Technical Reference: Investment Funds in Canada and Consumer Protection
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INVESTMENT FUNDS IN CANADA AND CONSUMER PROTECTION
STRATEGIES FOR THE MILLENNIUM
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Posted by root on Saturday, September 08 @ 00:00:00 EDT (0 reads)
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Technical Reference: Linking Risk and Return - The Sharpe Ratio
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One of the big issues among
mutual fund investors is that they tend to only look at returns,
particularly short-term returns, when approached by their adviser. Risk
considerations are way in the background until the losses pour in some
time later. During the tech boom some investors held 80-90 % of their
portfolio in “exciting” telecom, Internet and advanced science and
technology funds. In 2001-2002 they plummeted and have not recovered to
this day. A number of funds were shut down or merged out of existence.
BUT the losses didn’t disappear for the hapless investors who were
persuaded to buy them.
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Posted by root on Wednesday, April 04 @ 00:00:00 EDT (4708 reads)
(Read More... | 16182 bytes more | Score: 4.55)
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Technical Reference: Closed End Funds
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Fed up with dealing with the
salesperson who can only sell you mutual funds? Want to get away from
high MER’s? Concerned about the mutual fund trading abuse scandals?
Want more flexibility on when you can buy or sell units? Do you like
the idea of limit orders and stop loss orders? Feel comfortable with
making investments on your own? Looking for a different asset class?
Exchange traded closed- end funds (CEF’s) may have a role to play in
your portfolio.
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Posted by root on Sunday, November 06 @ 23:00:00 EST (7585 reads)
(Read More... | 31640 bytes more | Score: 4.27)
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Technical Reference: "Dividend" funds and your portfolio
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The basic idea of a dividend fund
is to invest in blue-chip companies’ common or preferred shares that
pay a steady flow of increasing tax -advantaged dividends. Holdings
typically include the common stock of banks, pipelines, power utilities
and insurance companies. According to the 2001 TSE yearend report only
57 Canadian stocks paid dividends non-stop for the past 25 years versus
100 companies 25 years ago.
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Posted by root on Tuesday, April 26 @ 00:00:00 EDT (0 reads)
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Technical Reference: ETF's -- Another kind of mutual fund
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Exchange traded funds have been
called the next generation of mutual funds. They are attractive to
individuals and institutional investors because they provide liquid,
cost efficient exposure to a broad range of asset classes.
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Posted by root on Monday, February 07 @ 23:00:00 EST (0 reads)
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Technical Reference: Professional fund management vs. 'The Index'
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We often hear from the mutual
fund industry about the benefits of “professional portfolio
management”. These smart, well-educated dedicated mavens use
sophisticated analysis tools, exceptionable databases, and
meetings/conference calls with companies.
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Posted by root on Thursday, January 20 @ 23:00:00 EST (0 reads)
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Technical Reference: Canadian Money Market Funds
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Securities rules (National
Instrument NI81-102) require that a money market mutual fund have all
its assets invested in cash (or cash equivalents) and debt instruments
that have a remaining term to maturity of not more than 365 days and
that have an average term to maturity of not more than 90 days.
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Posted by root on Sunday, January 02 @ 23:00:00 EST (9314 reads)
(Read More... | 24536 bytes more | Score: 5)
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Technical Reference: Mutual Fund Returns
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No one it seems actually obtains the wonderful mutual fund pre-tax returns
so prominently displayed in newspaper ads during RSP season. Why is this so?
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Posted by root on Tuesday, November 02 @ 23:00:00 EST (0 reads)
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Technical Reference: Mutual Funds and The Magic of Compounding
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Compounding is the process by
which income is earned on income that has previously been earned. The
end value of the investment includes both the original amount invested
and the reinvested income.
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Posted by root on Wednesday, October 22 @ 00:00:00 EDT (0 reads)
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Technical Reference: Portfolio Turnover
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Turnover is an important measure
in many fields of business. In manufacturing, inventory turns is the
ratio of production cost of sales divided by average inventory for the
period, typically one year. In the human resource field, employee
turnover is calculated by taking the number of positions filled to
replace departed employees and dividing by the average number of
employees for the period, again typically one year. In the first case,
the turns ratio provides a pretty good idea of how assets are utilized
and production cycle time. In the case of personnel management, a low
turnover rate indicates a stable workforce and a high turnover rate
might indicate some internal issues. In either case, the metrics are
useful and indeed are often considered key indicators of organizational
performance. Regrettably, portfolio turnover as defined in National
Instrument NI 81 – 101”Mutual Fund Prospectus Disclosure”, is a lot
harder to interpret and use.
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Posted by root on Thursday, September 18 @ 00:00:00 EDT (0 reads)
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Technical Reference: Beta, Risk and Mutual Funds
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From time to time we hear the
term "Beta" on ROBtv, CNBC, in fund literature and in the press. What
exactly is it and how can it be helpful in decision-making?
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Posted by root on Thursday, September 12 @ 00:00:00 EDT (0 reads)
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