Connect with us

Investment

Alberta Investment Management Corp. and CEO part ways – Global News

Published

 on


The head of Alberta’s $119-billion government-owned investment fund manager is leaving his post a few months earlier than planned after his track record came under fire earlier this year.

CEO Kevin Uebelein is parting ways with the Alberta Investment Management Corp. (AIMCo). After more than six years with the investment manager. Uebelin will leave on June 30, 2021.

“This decision is Kevin’s,” AIMCo communications director Dénes Németh told Global News in an email.

“His natural term-ending date is in the not-too-distant future, and accordingly he believes that the board should begin the search for his successor now.”

AIMCo invests for 31 clients, including Alberta’s public pensions and endowment and government funds in Alberta — such as the Alberta heritage fund, a rainy-day account financed by oil and gas royalties.

Story continues below advertisement

It is intended to be run at arms-length from the government.

Read more:
AIMCo announces former CEO of CPP Investment Board to chair its board of directors

Németh said Uebelein has the “full support of the board and management” as he continues to lead AIMCo until June.

The new CEO has not yet been named.

The board created a recruitment committee and the search for a new CEO is starting immediately, Németh said, with a goal of having one in place no later than June 30.

Read more:
Alberta public pension manager loses big in oilpatch investments: analysis

“AIMCo’s assets under management grew from $84 billion when Kevin started at AIMCo in 2015 to $119 billion at the end of 2019,” Németh said.

Story continues below advertisement

Earlier this spring, AIMCo faced scrutiny following an analysis of investments in smaller energy companies at a time when the sector is struggling.

The left-wing think tank Progress Alberta found that AIMCo invested $1.1 billion from public service pensions in junior and intermediate oil and gas firms since 2016.

Read more:
Carbon risk for Alberta’s public pension manager AIMCo questioned

Most of those companies lost value well before the COVID-19 crisis, and the oil supply war that has driven the commodity’s price to record lows. At least one company has gone bankrupt despite the injection of tens of millions of pension dollars.

“The vast majority of them were in really rough shape before the crisis,” said Duncan Kinney, one of the authors of the report.

— With files from

© 2020 Global News, a division of Corus Entertainment Inc.

Let’s block ads! (Why?)



Source link

Continue Reading

Investment

Federal Realty Investment Trust Stock Can Still Grow By 40% – Forbes

Published

 on


We believe that Federal Realty Investment Trust stock (NYSE: FRT) has an upside potential of 40% in 1-1.5 years, once the consumer demand improves and the retail sales recovers to the pre-Covid level. FRT trades at $90 currently and it has lost 30% in value year-to-date. It traded at a pre-Covid high of $126 in February and is 28% below that level now. Also, FRT stock has gained 35% from the lows of $67 seen in March 2020, after the multi-billion dollar stimulus package announced by the U.S. government which has helped the stock market recover to a large extent. The stock is lagging the broader markets (S&P 500 is up about 65% since the March bottom), as investors are concerned about a drop in the rent collections rate of Federal Realty Investment Trust.

The company owns a portfolio of commercial properties near densely populated areas with affluent communities – where retail demand exceeds supply. Due to the Covid-19 pandemic and lockdown restrictions, retail businesses have suffered significant losses, leading to a drop in FRT’s rent collection rate. The same was evident from FRT’s cumulative revenues for the first three quarters – down 12% y-o-y. That said, its carefully selected properties at highly desirable locations are likely to ensure higher demand for its retail assets. Further, most of them are open-air facilities, which are considered comparatively safer than malls. Despite some growth in FRT stock since late March, we believe that the stock has room for growth in the near future provided there is no sudden uptick in the Covid-19 cases leading to further lockdown restrictions. Our conclusion is based on our detailed analysis of Federal Realty Investment Trust’s stock performance during the current crisis with that during the 2008 recession in an interactive dashboard analysis.

2020 Coronavirus Crisis

  • 12/12/2019: Coronavirus cases first reported in China
  • 1/31/2020: WHO declares a global health emergency.
  • 2/19/2020: Signs of effective containment in China and hopes of monetary easing by major central banks helps S&P 500 reach a record high
  • 3/23/2020: S&P 500 drops 34% from the peak level seen on Feb 19, as Covid-19 cases accelerate outside China. Doesn’t help that oil prices crash in mid-March amid Saudi-led price war
  • From 3/24/2020: S&P 500 recovers 64% from the lows seen on Mar 23, as the Fed’s multi-billion dollar stimulus package suppresses near-term survival anxiety and infuses liquidity into the system.

In contrast, here’s how FRT and the broader market performed during the 2007/2008 crisis.

Timeline of 2007-08 Crisis

  • 10/1/2007: Approximate pre-crisis peak in the S&P 500 index
  • 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08)
  • 3/1/2009: Approximate bottoming out of the S&P 500 index
  • 1/1/2010: Initial recovery to levels before the accelerated decline (around 9/1/2008)

Federal Realty Investment Trust vs S&P 500 Performance Over 2007-08 Financial Crisis

FRT stock declined from levels of around $91 in October 2007 (the pre-crisis peak) to roughly $41 in March 2009 (as the markets bottomed out), implying that the stock lost as much as 55% of its value from its approximate pre-crisis peak. This marked a slightly sharper drop than the broader S&P, which fell by about 51%.

However, FRT recovered strongly post the 2008 crisis to about $68 in early 2010 – rising by 65% between March 2009 and January 2010. In comparison, the S&P bounced back by about 48% over the same period.

Federal Realty Investment Trust’s Fundamentals in Recent Years Looked Strong

Federal Realty Investment Trust revenues grew 26% from $744 million in 2015 to $935.8 million in 2019. Similarly, the company’s adjusted net income increased from $209.7 million to $345.8 million over the same period. The company’s Q3 2020 revenues were 11% below the year-ago period due to lower rental income. On the same note, its EPS figure decreased from $0.84 to -$0.41 mainly driven by an impairment charge of $57 million.

Does Federal Realty Investment Trust Have A Sufficient Cash Cushion To Meet Its Obligations Through The Coronavirus Crisis?

Federal Realty Investment Trust’s total debt increased from $2.7 billion in 2016 to $4.5 billion at the end of Q3 2020, while its total cash increased from $23.4 million to around $863.3 million over the same period. The company generated around $268.4 million in cash from its operations in the first nine months of 2020, and if its cash situation further worsens, it might be difficult for the company to weather the crisis.

CONCLUSION

Phases of Covid-19 crisis:

  • Early- to mid-March 2020: Fear of the coronavirus outbreak spreading rapidly translates into reality, with the number of cases accelerating globally
  • Late-March 2020 onward: Social distancing measures + lockdowns
  • April 2020: Fed stimulus suppresses near-term survival anxiety
  • May-June 2020: Recovery of demand, with the gradual lifting of lockdowns – no panic anymore despite a steady increase in the number of cases
  • July-October 2020: Weak Q2 and Q3 results, but continued improvement in demand and progress with vaccine development buoy market sentiment.

Keeping in mind the trajectory over 2009-10, this suggests a potential recovery to around $126 (40% upside) once economic conditions begin to show signs of improving, provided its debt condition doesn’t deteriorate any further. This marks a full recovery to the $126 level Federal Realty Investment Trust’s stock was at before the coronavirus outbreak gained global momentum.

What if you’re looking for a more balanced portfolio instead? Here’s ahigh quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.

See all Trefis Price Estimates and Download Trefis Data here

What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance TeamsProduct, R&D, and Marketing Teams

Let’s block ads! (Why?)



Source link

Continue Reading

Investment

AIMA releases alternative investment guide – Wealth Professional

Published

 on


Aside from due diligence question highlights, the guide includes media such as five-minute educational videos, an investor infographic, downside protection charts, and continuing education advisor presentations.

Readers can get better acquainted with key regulatory differences between fund structures. Advisors can also get practical guidance with questions to ask their head office when weighing allocations to hedge funds, private credit funds, alternative mutual funds, and alternative ETFs. The guide also features a directory of AIMA members organized by strategy and fund structure.

Beyond that, readers can also learn about asset-allocation trends, including alternative investment leadership and engagement by notable institutional investors in Canada.

Performance through the pandemic has proven that alternatives are resilient and essential to safeguard against the volatility in the market and the low-rate environment,” said Belle Kaura, VP Legal & CCO at Third Eye Capital, who is also chair of AIMA Canada’s board of directors and a member of the Executive Committee, 2018-2022.

“The proportion of alternatives will increase as advisors gain more access to these and there is greater familiarity with strategies and how to assess products to meet risk tolerance, liquidity needs and return targets,” Kaura said. “Strategies across a continuum of risk return profiles should dispel the notion that all alternatives are high risk, allowing advisors to allocate to better protect and create investor wealth.

Let’s block ads! (Why?)



Source link

Continue Reading

Investment

Canadian Penny Stocks – Tips For Canadian and USA Penny Stock Investors

Published

 on

penny stocks

Canada is a civilized country with a booming economy, just like the USA. It is one of the hottest tourist destinations around the world. Additionally, Canada opens doors for investments not only in the real estate sector. Both small companies and individuals from Canada and USA can buy Canadian penny stocks. Small-scale businesses benefit because they get a rare opportunity to prove their abilities to create shareholder value. It is a type of share that trades for five dollars and below. The country’s good investment climate is not only attracting the locals but also USA investors. How does a Canadian investor begin buying penny stocks?

 

Canadian locals do not have a hard time investing in their country. The stocks are bought through the Toronto Stock Exchange and TSX Venture Exchange. The first thing a trader should do is to approach a stockbroker. He or she should make sure that the stockbroker could buy the Canadian penny stocks. Another thing one must be cautious about is the investment company. The ideal company creates competitive products, increases its sales and has a forward trend. It becomes very easy for investors to trust such a company to manage their shares. How does a USA investor begin buying penny stocks?

 

USA investors wishing to buy penny stocks offered in Canadian dollars have three main choices. First of all, an investor can buy the pink sheets. With this option, investors find listings of companies available to trade stocks daily. It is a very good idea to be informed about how to use pink sheets. This is a secondary market without regulations. Reading newsletters and other information, mainly on the Internet, is very important. The second choice a USA investor has is opening an account with a Canadian broker. The brokers are available, and they can be a source of extra information. The final choice is for a USA investor to open an account with a broker from his or her country. Make sure that the selected broker has access to Canadian stocks.

 

As everyone notices, the procedure of buying penny stocks in Canada is not difficult. It is either a procedure that a person can perform personally or choose to work with a broker. Those who are planning to try this investment soon will benefit from visiting the TSX website often. The portal shows how the various stocks trade in the country’s thriving economy. Making an investment decision is not very simple. It is even harder for a layman investor searching for a way to invest his or her extra money. This explains why working with a reputable broker is important. Generally, real expert investors use quantitative approaches to gather numerical data on economic indicators, interest rates and other industry valuations. It is usually a mathematical procedure used to derive a target price for stocks. A penny stock investor hopes that the prices of stocks will reach the target price. Data for quantitative analysis is often based on the experiences of previous penny stock companies enjoying a higher level today. The process of selecting the best Canadian penny stocks companies is based on fundamental and technical analysis too.

Continue Reading

Trending