Cutting Through the Noise
July 26, 2010
The latest acronym in the investment world smells a little funny. The STINC countries (Singapore, Thailand, Turkey, Indonesia and Chile) are meant to represent export-oriented nations that have shown good fiscal restraint and infrastructure investment...
Read MoreJuly 24, 2010
In my quarterly letter to clients I used the word “discouraged” to describe investor sentiment. In the few days since we published it, however, I’m starting to think a better word is “despair.” Too regularly I’m being asked whether it’s time to get out of the...
Read MoreJuly 20, 2010
In this week’s rerun, we revisit the asset backed commercial paper (ABCP) debacle as a reminder of a key lesson in investing – if you don’t understand what you’re getting into, don’t buy it. Purdy, what were you thinking? Didn't you know how complex and...
Read MoreJuly 15, 2010
The second quarter of 2010 was a challenging period for equity markets, as investors focused on the European debt problems and the sustainability of the global economic recovery. In this podcast, we review these issues and highlight some of the key messages from our Quarterly Report. You can subscribe to our podcasts via iTunes...
Read MoreJuly 13, 2010
In this week’s rerun, we travel back to May 2008 for a brief look at the negative sentiment and opportunities in the corporate bond market at the time. As it turns out, the soil was fertile indeed. The managers of our funds report to us formally...
Read MoreJuly 10, 2010
I’ve had a bias to owning higher quality companies since 2007. In a challenging economy with unpredictable credit markets, it seemed reasonable to pay a premium for stable profits, excess cash flow and strong balance sheets. I knew the companies...
Read MoreJuly 9, 2010
Below are some observations and musings on the week that was – a recent feature that we’ve aptly coined The Back Hand. The Next Wall Street? – I’m desperately trying to come up with an investing analogy for the LeBron James signing with the Miami Heat
Read MoreJuly 8, 2010
In our discussions with investors, we’ve found there are a few misconceptions surrounding the deductibility of investment management fees. The most common misunderstanding is that mutual fund investors are at a disadvantage (from a tax...
Read MoreJuly 6, 2010
Who doesn’t love summer? Sunshine, BBQs, lounging, water sports...it’s all good. And then of course, there’s the other summer ritual – reruns. We thought we’d build on the tradition by re-publishing a blog each week from the Steadyhand archives. For our...
Read MoreJune 27, 2010
There has never been more investment information available to investors, so it’s frustrating to see the release of the Morningstar Stewardship Grades, the most useful piece of research to come out in decades, slide by with little or no coverage from...
Read MoreJune 25, 2010
Below are some observations and musings on the week that was – a new feature that we’ve aptly coined The Back Hand. The world’s eyes are on Toronto this week as the G20 Summit nears. While the thought of a weekend of politics and bureaucracy...
Read MoreJune 24, 2010
In his latest interview with Independent Investor (a U.K. publication), Sandy Nairn, the CEO of Edinburgh Partners (the manager of our Global Equity Fund), provided his views on the global economy and capital markets. After being cautious in late 2007...
Read MoreJune 23, 2010
Last week I published our deliberations on whether to launch a client referral program. We had good response via the blog’s comments, email, and in person. In part this was because we asked for feedback, and in part it was because our clients were...
Read MoreJune 22, 2010
Financial Post journalist Jonathan Chevreau wrote an interesting piece yesterday on Morningstar Canada’s new Stewardship Grades. The article highlights an attempt by the Investment Funds Institute of Canada (IFIC) to discourage Morningstar from...
Read MoreJune 17, 2010
Morningstar Canada, a mutual fund research firm, recently introduced Stewardship Grades for over 25 fund companies. In their words, the Stewardship Grade “goes beyond the usual analysis of strategy, risk and return. It is intended to assess...
Read MoreJune 16, 2010
The Globe and Mail recently reported on an issue that all investors who own a Tax-Free Savings Account (TFSA) should be aware of – over-contribution penalties. Canada Revenue Agency (CRA) has informed 70,000 investors that they may have to...
Read MoreJune 14, 2010
Everyone in the investment industry knows that summer is a slow time for opening new accounts. It's a given that we should accept that investors go on holiday and the last thing they want to think about is retirement planning, let alone the perceived headache...
Read MoreJune 14, 2010
Small funds produce better returns. This is the conclusion of a recent study, titled Pension Fund Performance and Costs: Small is Beautiful, which looked at the performance of U.S. pension funds from 1990-2006. Published by a trio of...
Read MoreJune 12, 2010
We’re starting to see stories about a softening real estate market in Canada. Listings are up, sales are down, and even the always bullish industry executives are predicting lower prices in the coming year. It reminded me of a quote I saw recently: “Real is...
Read MoreJune 2, 2010
Preet Banerjee is an industry insider who runs a blog titled Where Does All My Money Go? (his blog was ranked Canada’s #1 investing blog by the Globe and Mail last month). Preet recently developed a resource for investors called the Know Your...
Read MoreJune 1, 2010
I was having dinner with my dad the other night and we got on the topic of credit cards. We both have cards that reward us with air miles (in one form or another) for all our purchases. And importantly, we both pay our cards off each month. Somewhat proudly...
Read MoreMay 31, 2010
It was announced last week that BMO is adding 8 new ETFs to its lineup. It now offers 30 ETFs, up from zero a year ago. With every new offering, BMO is getting narrower in its focus. The current batch gives the investor specific exposure to junior oil stocks, junior...
Read MoreMay 29, 2010
I’m just back from a few days in Scotland. Sightseeing, golf and a meeting with one of our equity managers was the order of the day. For the golf, I stuck to convention and kept track of my pars, bogies and, unfortunately, the “others.” For my meeting with...
Read MoreMay 27, 2010
Tom met with Edinburgh Partners Limited (EPL) on their home turf last week for an annual update on their firm and global equity portfolio. It was also an opportune time to discuss some of the issues currently impacting Europe and get the CEO’s (Sandy Nairn) thoughts on the debt crisis that is overhanging Greece...
Read MoreMay 27, 2010
Last week I met with Edinburgh Partners Ltd (EPL), the manager of our Global Equity Fund, on their home turf. Here are the highlights. EPL has been in existence for almost 7 years and has been very successful. They manage C$11.4 billion for corporate...
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