Managed Money Reporter Newsletter — Issue 293, May/June 2016


Editors: Carl Spiess & Allan McGlade


Featured Articles



New Mutual Fund "Point Of Sale" (POS3) Process

Carl Spiess

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

Starting May 30th, all Canadians purchasing mutual funds will receive a "fund facts" document prior to purchase. The fund facts is a well-meaning regulatory initiative, designed to draw attention to the fees associated with fund investing. However, as designed by the regulators, it can often be an out-of-date report — sometimes by as much as 11 months. We will of course, be following these new rules and sending the reports as dictated by the regulators. In addition to the fund facts, there are many public sources with even better fund information. Globefund and Morningstar are two good independent sources.

I would like to point out that our website and newsletter has been providing our clients (and large numbers of the public judging by our web hits) with detailed performance, purchase option and fee information on funds for over 20 years. And our performance numbers are regularly updated.

What is interesting about the world of mutual funds is the amount of disclosure that currently exists. The list, on the right, is an example of the regulatory documents that Fidelity provides to investors in their funds.

A more meaningful set of client statements will be coming to you early in 2017. Under Customer Relationship Model (CRM2) rules, investment dealers like Scotia Wealth Management will be providing detailed rate of return and fee summaries for each client account — these reports are currently available upon request.

If you have any questions on any of these documents, fund investments, fees, or your account performance please contact us for a complete review.

More about Mutual Funds POS

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Due diligence investment update: Edgepoint

As part of our ongoing investment due diligence, we meet with representatives of the investment management companies that manage the day to day stock transactions in many of our client portfolios. This ongoing activity is considered part of our "Know Your Product" responsibility.

Recently we met with Edgepoint funds to review our clients holdings in those mandates. We have been very pleased with the performance of those funds since we began adding them to client portfolios in June 2009.

It is interesting to note that in the 7 years since our first purchase, we have invested over $16.7 million in Edgepoint funds. The current market value of those Edgepoint investments for our clients (including many more recent purchases) at April 30, 2016 is over $26.6 million.

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How much to save? - Carl's Video

I recently read a good blog that pondered what the right amount of money is for people to feel rich. Ben Casnocha says: "Money is like gasoline while driving. You never want to run out, but the point of life is not to go on a tour of gas stations...."

I agree. For some of our clients finding happiness with their wealth means helping ensure their philanthropic goals are met by setting up a private foundation. For others, investing in an annuity that guarantees they do not need to worry about the markets in their retirement is the best solution. Still others help set up RESPs for grandchildren and/or tax efficiently gift assets to family.

Of course, the question for younger clients is "how much do I need to save". I've had a great response to the video I created "Do you really need to save $1 million to retire." Here it is in case you missed it in the January issue:

I recently met with clients that started with two small RRSPs with us in 1994. Over the last 22 years their 5 figure portfolio has become a 7 figure portfolio. When asked "what do you thank ScotiaMcLeod for?" the answer was "convincing us to save $2,000 a month in the first few years so we could retire with the lifestyle we wanted". And indeed, they are still our valued clients 22 years later and are enjoying their retirement transition.

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Market update / Recommended Reading

The month of May saw a continuation of the increase in the Canadian market lead by energy and materials shares.

Scotiabank's global views are published here:

and the quarterly forecast for interest rates, GDP, employment, oil prices, currencies etc. is here:

PIMCO, one of the world's largest asset managers, have published their recent global update. PIMCO manages part of everyone's Canada Pension Plan (CPP) and we use their funds for select client portfolios. They have short term comments with 3 and 5 year projections here:

The spring edition of our Investment Portfolio Quarterly is online at:

And if you prefer listening to a podcast, listen to our GPAG Market Update with Himalaya Jain. It is a timely market update which includes an overview of what the Global Portfolio Advisory Group is thinking in terms of current economic conditions, portfolio alignment and positioning for upcoming opportunities:

Please contact us with any questions or for a review of your portfolio.

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Scotia's support for the arts

Scotia Wealth Management is pleased to support the arts in Canada. As part of our Enriched Thinking™ Series, we recently wrapped up Hot Docs, The Scotiabank Photography Award and Contact Toronto Photography Festival.

Suzy Lake (right) won the 2016 Photography Award which was presented by Edward Burtynsky, Canadian photography icon and chair of the 2016 Scotiabank Photography Award Jury Panel (left) and Barb Mason, Group Head and Chief Human Resources Officer, Scotiabank (centre).

Let us know if you attended any of the events or want further information about our arts sponsorship in the future.

While on the topic of Scotia and the arts, you may have seen our commercial:

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Is your will up-to-date?

The intersection of the arts and the importance of wealth management recently struck me when I read the sad news that the artist Prince had died. Adding to the tragedy was the news that he died without a will. A will review is part of our overall financial planning service. We are pleased to work with your legal provider to help make the most of your legacy and ensure it is effectively passed on to your beneficiaries. See the Financial Post Feature, below, for more information. Please contact us if you have questions.

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Team Profile – Nalini Singh

Nalini recently celebrated her 20th Anniversary working for the Spiess McGlade team at Scotia Wealth Management. Clients have come to love Nalini's very friendly Guyanese accented voice smiling over the telephone. Even though their daughter and son are now grown, for Nalini and her husband, virtually every weekend is still busy with a family event!

Nalini specializes in client service, account reviews, financial planning and very importantly many of our marketing initiatives, such as sending out this newsletter and ensuring we have up to date email permissions for our clients. Thank you Nalini for your dedication to our clients over the last 20 years.

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Recommended Link of the Month

The Scotiabank YouTube channel has many videos of interest. Let us know which ones you like!

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Contact Us

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

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