Managed Money Reporter Newsletter — Issue 192, February 2003


Editors: Carl Spiess & Allan McGlade


Featured Articles



Ten RRSP Myths and Facts

We've prepared a listing of the top ten RRSP myths and facts.  These include handy tips about carryforwards, what you can contribute when you are 69, and how to make a contribution, even if you don't have cash on hand.

RRSP Reminder

Please remember that March 3rd is the last day for RRSP contributions.  However, you don't need to make an investment decision right now.  You can always make your contribution and park it in a T-bill or other guaranteed investment until you've had a chance to review our recommendations for your account. 

Please note that contributions received on March 3rd will not appear on your February month end statement.  However all RRSP tax receipts will be in the mail by the second week of March.

Recommended Reading

If you are wondering what our economists are predicting for the global economy please see Scotiabank Economist Warren Jestin's Global Forecast.  Like most of the fund manager commentaries we have seen, Canada is predicted to have the best growth of the G7, however the risks of the potential war in Iraq are a real threat to the global economy.  At present, exactly half the market players think that markets will go down from here, and half think that markets will rise.  (The market always settles at prices where half are buying, and half are selling.)  A balanced portfolio is recommended, as this will help to provide stability, and still offer the opportunity to regain any losses incurred in the recent downturn.

Fund Profile - Synergy Canadian Style Management

This fund was introduced into our recommended list four years ago, when it became apparent to us that the growing divergence between value and growth management styles was adding undue risk to clients who focused on only one management style.  The chart below shows the tremendous divergence of these styles since 1998, and thus the importance of style diversification.Click to enlarge

We originally suggested the Synergy Canadian Style Management fund as a lower risk way to own the whole index.  See our commentary on Index Funds and market risk. While the fund has a higher management fee than index funds, the active management, lead by Dave Picton has lead to above average returns (even after fees), with lower risk.  This higher return, lower risk profile is essentially the kind of investment fund that everyone desires.  Their individual style funds are a good complement to any portfolio that is heavily weighted in either value or growth stocks.

Morningstar recently reviewed the 5 year performance of Synergy's core lineup of 5 Canadian funds (see Morninstar article link), all of which have outperformed the TSE over the same period.  (Granted, GICs beat the TSE over the last 5 years too, but at today's rates they won't have the long term growth potential that this fund offers.)

View more fund information here, or contact us for more information on how this terrific equity fund could fit into your portfolio.

Staff Profile - Allan McGlade Click for more information on your investment teamCLU, CFP

Now in his sixth year with our team, many of you will know that Allan McGlade is our specialist on financial planning.  From retirement projections and estate planning to insurance reviews, Allan is extremely knowledgeable about matters of wealth creation and preservation.

Allan holds a Chartered Life Underwriter (CLU) designation and has completed the Financial Planning Standards Council (CFP) qualification exam.

Allan has 20 years of experience in the financial services industry.  You can always contact Allan directly at (416) 862-3066 or via e-mail at  allan.mcglade@scotiawealth.com with questions about your individual situation.

For more information about the rest of your investment team, please visit the About Us section of the website.

Fund News - Scotia Funds saving trees and mailing costs

Scotia Securities has received regulatory approval to send annual financial reports only to customers that request them.  This should save the funds and their unitholders more than one million dollars this year.  

Scotia Securities is the first mutual fund manager in Canada to obtain this relief from most Canadian securities regulators. 

You may have already received your mailing if you hold Scotia Mutual Funds.  It is anticipated that many clients will choose not to receive the report, decreasing the costs of producing, printing and distributing the reports - costs that are charged to the Funds and ultimately their unitholders.  We applaud this cost saving initiative.

With so much information available online, we are hoping that more fund companies will follow this example.  If for no other reason than it will mean that if you move in the future, it won't take 6 months until your mailing address is updated at each fund company with which you hold investments.

Please contact us if you have any questions about these funds or changes.

Mutual Fund Reporter Recommended Website of the Month 

Canada Newswire is the source for Canadian press releases.  You can search for information on a particular company or topic.  A unique feature is their email feature, where you can request that you receive an email whenever there is news on a company in which you are interested.  If you work for a publicly traded company, we'd recommend being put on the list for news about your employer, so you will be the first to know important news!

 



Contact Us

T.  416.863.RRSP (7777)
     1.800.387.9273
F.  416.863.7479
E. carl.spiess@scotiawealth.com
    allan.mcglade@scotiawealth.com

ScotiaMcLeod is a division of Scotia Capital Inc., member of CIPF.

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The Spiess McGlade Team is a personal trade name of Carl Spiess and Allan McGlade.