Managed Money Reporter Newsletter — Issue 287, September/October 2015

Editors: Carl Spiess & Allan McGlade

Featured Articles

Market Volatility Update

Carl Spiess

By Carl Spiess, CFP, CIM, FMA, FCSI, MBA

August and September 2015 saw a return to market volatility after a few years of relatively slow and steady increases in equity markets. Canadian markets have been especially challenged by falling resource prices over the last year. The TSX Composite chart, below, illustrates the last 5 years neatly.

The September performance tables are still a few days from being updated, however we know that many 1, 3, 5 and 10 year returns remain largely positive — and year-to-date numbers are also holding up for balanced portfolios as the declining Canadian dollar has benefitted the foreign holdings in those portfolios. As a result, we are not recommending any significant changes to client portfolios based on this volatility.

For a quick update on the markets from our analysts, please see the attached Market Watch:

And for a more thorough review of the last quarter, our Insights Newsletter has even more detail with comments from Scotiabank's chief economist:

  • ScotiaMcLeod Insights, October 2015

It is interesting to look back now to 15 years ago. In the fall of 2000, we had all made it safely through Y2K and the dot com bubble was just beginning to burst. Our colleague Christopher Kelly put together this longer term performance snapshot of some of our past and presently recommended Canadian funds and indexes. It is interesting to look at those 15 year longer term numbers we can access through Morningstar research.

And we see a similar pattern in the global investments:

Please note these are partial lists and performance numbers to the end of August 2015. Also note returns are published net of (after) the Management Expense Ratio — i.e. those are the actual returns after fees. For complete details and full past performance disclaimers please visit our fund performance page:

Our online performance tables only go back 10 years though. Here are the performance numbers on our recommended list page:

If you have questions about your own portfolio, please contact us.


2015 RRIF Payments

The Spiess McGlade team is proud to note that we will be paying our clients over $7.5 million in RRIF payments this year. Our RRIF specialist, Debbie Ann Espiritu, is making sure that we have instructions for all our clients on what to sell and how to pay those amounts out well in advance of the Dec 31st deadline.

Please note that with the reduction to the required RRIF minimums this year in the Federal Budget, we have the option of lowering your 2015 RRIF payments. In many cases, it makes more sense to take the larger RRIF amount in 2015, resulting in a lower Dec 31st 2015 value for 2016 calculations, and then recontributing the excess back in Jan/Feb 2016 for an offsetting tax deduction in 2016. Please contact us if you have questions about what would be best in your particular situation.

If you are getting closer to the age when you will need to begin making RRIF withdrawals (December of the year you turn 71), please know that we are experts in setting up stable and tax efficient retirement income streams. We look forward to helping.


Online Access — The benefits of Scotia Online

Very many of our clients use Scotia Online access, a convenient and secure way to view your ScotiaMcLeod statements online.

Here are some of the benefits on having online access:

  • Account Summaries and Annual Trading Summary
  • Transaction History for 30 months
  • Up-to-date quotes and Scotia's top ranked equity research
  • Mutual and exchange traded fund detailed information
  • Online tools
  • Online banking for Scotiabank customers showing a summary of all accounts
  • Ability to transfer money online to/from your brokerage/chequing accounts
  • Your monthly statements are available earlier than physical mail
  • Statements are retained for 7 years

If you don't currently have Online Access

Simply call our office to sign up for Online Access — after a few quick security questions we can get you set up. If you prefer to send in the required information, please complete the form at:

You will then receive a Scotiacard (which is your access #) in the mail within 1-2 weeks and an email with instructions on how to log in for the first time. Please make sure you complete the "Terms of Access". After this is completed, you will be able to see your accounts online and have an option to select "Paperless" statements.

Please call Brenda Cordeiro or Christina Calvert at 416-863-7777 with any questions or to get set up.

For clients who already have Online Access — We recommend switching to paperless

Simply call our office to request having your statement delivery option changed to paperless. You can also go online under document preferences and request paperless under account options. Please note — do ensure you have accepted the "Terms of Access" the first time you log on.


Recommended Reading

Here are two interesting items to add to your reading list.

Retirement 20/20, Fidelity Investments

Fidelity recently completed their 10th annual survey of Canadians' retirement attitudes and expectations. Over 75% of Canadians surveyed have a positive outlook on retirement. The report also explores key issues involved in achieving retirement fulfillment. Open the link to learn more about defining a retirement lifestyle, making choices about debt and the 5 key risks to retirement income.

Monetary Policy Report, Bank of Canada

A publication Allan reads regularly is the Bank of Canada's quarterly Monetary Policy Report. It isn't stimulating, but it is important with regards to the Bank's decisions to raise or lower interest rates. There is an easy to understand summary also available which has key statistics about the Canadian economy. We'll be looking at the October edition to be published soon.


Team News — Allan McGlade 3x BBQ wing Champion for Charity

We are hoping everyone had a great summer now that the first colder days are upon us. It is great to announce that Allan McGlade's summer was a success. For the 3rd consecutive year, he won the hotly contested top BBQ wings competition at his cottage lake.

Allan's secret recipe wings beat out all other competitors, including wings wrapped in bacon, jerk wings and wings glazed in maple syrup and coated with crushed Miss Vickie's potato chips. After some convincing we managed to pry the secret recipe out of Allan, please enjoy. We are proud that the fun event also raised $2,000 for the Nurse Practitioner station that is being opened in Dorset to serve the local community. Way to go Allan!

Recipe: Allan's 2015 Wing King Sweet Spicy Korean BBQ Wings




Recommended Link of the Month

It is interesting through periods of market volatility to see how the markets move globally and in tandem in the hours that Asia, Europe and America overlap. The Financial Times Website has a great overview of Equity indices and if you click on the Global tab, you can see the last 24 hours of trading. Here was a particularly volatile day in August:



Contact Us

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F.  416.863.7479

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