Managed Money Reporter Newsletter — Issue 294, July/August 2016

Editors: Carl Spiess & Allan McGlade

Featured Articles

Summer Loving

Carl Spiess

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

What a summer! We started with the Brexit week long market downturn in late June and then markets got back on track fairly quickly. The heat we've all been enjoying seems to have also motivated equity markets to rise. In the US, for the first time since 1999, the DOW, S&P and Nasdaq all hit record highs together on August 11th. Should we "party like it's 1999"?

A review of your holdings, asset allocation and investment time horizon will determine if we should take some profits. The foreign holdings in your portfolio would have benefitted from the falling Canadian dollar over the last few years. And Canadian resource holdings will have benefitted from the bounce back in oil prices over the last year. That jump in the resource sector drove the TSX index to gain more than most blue chip Canadian equities and funds. Any cash, bond or secure GIC holdings will have held back returns recently.

You can read more in our Summer Edition of Investment Portfolio Quarterly

and more at:

If you would like a detailed performance report on your personal portfolio performance and what has driven (or held back) those returns, please contact us.


The Economist Explains why Everyone Loves Canada?

Our recent Canadian budget and overall economic policy has been winning accolades from around the world. The Economist had a good article in their "the Economist Explains" series.

A few weeks later they listed Toronto, Vancouver and Calgary as 3 of the top 5 livable cities in the world:


Fun with the Olympics

How much is a Gold medal worth? While the memories will be priceless, and the sponsorship deals lucrative, an actual gold medal is only 1.2% gold. Therefore the medal itself is worth under $600 US. Read more:

We thank all of Canada's athletes for representing us in Rio and congratulate those who are coming home with medals.


Back to School

As university students head back to school in the coming weeks, parents of younger children might want to remember that RESPs can help you save for your child's education. And for those with RESPs, we can help explain the rules for how to take money out. We have more information on our RESP page:


Extension to the Corporate Class Capital Gains rule change to Dec 31

Corporate class mutual funds present several benefits to investors:

  • Reduced annual taxable dividends
  • Tax efficient return of capital distributions for cash flow (T-class)
  • Choice of capital gains or dividend income

Some features of corporate class funds (tax free switches) were proposed in the 2016 budget to be eliminated as of October 1st.

We are pleased to note that to make tax reporting easier and fairer, that has been moved to Dec 31. For the details, see:

More on Tax Efficient Funds


Team BBQ

This year's Spiess McGlade team family BBQ featured a delicious dinner (catered by family members of one of the team), climbing wall, live chickens, and an ice cream truck. Most of those were for the kids. It is a wonderful annual event that helps your investment team continue to enjoy working together every day.

Interesting to compare that photo with the team photo from a decade ago — 9 of the 11 of us from then are still working together (and Sharon Calvert who officially retired in 2013 came along as usual to the 2016 team BBQ!)


Recommended Link of the Month

This month's site of the month isn't really investment related. (Although ScotiaMcLeod founder DI McLeod took up painting when he retired and his art was strongly influenced by the Group of 7 and Lawren Harris.)

American comedian, Steve Martin, was so motivated by the wonderful works of art that Lawren Harris painted nearly 100 years ago, that he volunteered to curate a special touring collection of Harris artwork.

I'm happy to endorse this wonderful exhibit. Not just for art lovers, but for all Canadians. If you get a chance to visit the AGO before September 18, I strongly recommend seeing the exhibit that has already been to Boston and LA.



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