Four types of new habits and perspectives are expected to define the post-coronavirus era and could impact investment portfolios, according to new analysis by Thinking Ahead, the thought leadership lab at the Canada Pension Plan Investment Board.
The research, co-authored by Caitlin Walsh, senior portfolio manager, and Ruby Grewal, portfolio manager, analyzed the breadth of change expected following the global pandemic.
It found four areas with the potential to impact investments:
- Permanent changes to consumer behaviour, such as greater e-commerce adoption among older consumers;
- Impact on cities and infrastructure, resulting from a potential shift of populations away from the largest urban centres and changing mobility trends; and
- Shifts in global supply chains, benefitting providers of supply chain software and automation.
“As COVID-19 impacts consumers, businesses and governments we continue to monitor and assess the changing landscape as part of our ongoing risk management efforts and to identify new investment opportunities,” said Leon Pedersen, managing director and head of thematic investing at the CPPIB, in a press release.
Each focus area of the analysis is backed by quantitative and qualitative data, including proprietary research such as interviews with portfolio companies and partners, as well as the CPPIB’s custom surveys of consumers and supply chain managers.
When to Sell an Investment – Morningstar.ca
“You’ve got to know when to hold and when to fold,” according to the famous country and western song, The Gambler.
Kenny Rogers was talking about poker, of course, but knowing when to sell is one of the crucial facets of investing that marks out the amateurs from the pros in investing. It’s also one of the hardest decisions an investor has to make, not least because it often means you’re admitting you’ve made a mistake.
We look at five reasons why you might sell an investment – and hopefully make the process easier if you to decide to hit the button.
1) Something Fundamental Has Changed
In the internet age, there’s a lot of “noise” about companies hitting investors every day: a chief executive quits, a scandal emerges, or there’s a profit warning, a rights issue, a dividend cut – the list goes on. It’s often hard to ascertain whether an announcement is a one-off or symptomatic of deeper problems.
Some recent corporate failures (for example, Toys R Us or Carillion) have involved multiple profit warnings over a number of years, which could signal potential exit points for an investor.
Often companies are so associated with certain individuals (Elon Musk at Tesla (TSLA), Steve Jobs at Apple (AAPL)) that any change at the top can spark fear in investors. When Steve Jobs stepped down from Apple in 2011 due to ill-health, for example, some analysts thought the company would struggle to match its previous success – the share price is now 10 times higher.
This is also pertinent for fund investors. If you’ve followed a star manager for years and he or she quits, whether to a rival or to set up shop on their own, you may choose to follow the manager to their new home. Of course, some companies and fund houses have better succession plans than others, so this “follow the leader” approach may be less effective over the long-term, and some star managers have found life rather harder outside of big institutions.
Should I Sell?
A fundamental change is a time to take stock and reassess an investment but it’s not an automatic sell signal.
2) Your Own Strategy Has Changed
Investor goals change over time according to where they are in their life cycle, their attitude to risk and financial circumstances. Racy growth funds and stocks bought in your twenties may no longer be appropriate in your sixties, a time when people traditionally start moving down the risk scale.
Portfolios can change drastically over time as you add more to them and some stocks and funds perform better than others. You might have started off with a 10% exposure to tech, for example, but that has ballooned to 50%.
Sometimes investors take too little risk for their age and financial circumstances; and as you get more experienced at investing, you may want to ditch that vanilla tracker fund in the pursuit of higher returns. Or a financial adviser may, after looking at your retirement plans, argue that you need more equity exposure to meet your goals. A windfall, inheritance or promotion could put you in a better position to handle volatility than when your first started investing.
Should I Sell
It’s always good to step back and take stock of your financial situation and revisit the investment goals you had when you started out. You could think of the process more as “rebalancing” rather than “selling”.
2) It Keeps Underperforming
At Morningstar we encourage investors to take a long-term approach. One year’s poor performance figures isn’t always a sell signal. But after a long period of sub-par performance, your patience may run out.
For an active fund investor, the failure of a fund to beat the index over three years could be a reliable indicator to bail out. Or the fund could consistently come at the bottom in its category, meaning that rival funds have outpaced it. It could be that the investing style is out of favour, or it could be that something is intrinsically wrong with the process.
Poor fund performance often sends investors heading for the exits, something Morningstar monitors every month. Indeed, several high-profile managers have lost their jobs in recent years and fund outflows proved a reliable early indicator of investors losing faith. Fees are also a factor here – perhaps you were happy to pay above average fees when the fund was on a hot streak, but now they are starting to look uncompetitive when it’s putting in a sub-par performance.
Should I Sell?
An investment can’t be a top-performer over every time period but a sustained period of underperformance should be a signal that it’s time to look at why the stock or fund is consistently lagging its peer group and whether an alternative could serve you better.
4) Or, it’s Been Outperforming
You may have been fortunate or wise enough to spot a future star such as Tesla and Shopify (SHOP) in the early stages and have seen the value of your holding grow hugely as a result. If you’d bought Tesla shares a year ago, you’d be up more than 800%.
At such times it can make sense to cash in some chips. The conventional wisdom is to run your winners for as long as possible, but from a portfolio perspective, a share price that has doubled or more can cause its own problems. For example, it could skew the risk profile of your portfolio as the successful holding grows in size.
Morningstar’s Christine Benz has some housekeeping tips here. Known as rebalancing, reducing your holdings in a fund or stock holding that’s done well releases cash that can be put to work elsewhere. You still have a stake in your existing holdings so if they keep outperforming, you continue to benefit.
Should I Sell?
Past performance is no guide to future performance, the investment adage goes, so taking some profits can be a wise strategy after a stellar run. But that doesn’t mean you have to sell your entire holding.
5. You’ve Inherited Some Shares
Your relatives may have left you some shares or funds as a bequest. Perhaps they were talented stockpickers or maybe they left you some duds that you wouldn’t dream of owning yourself. Either way you can revisit point two on our list and ask – does this stock or fund fit with my own investment plans and even ethical beliefs? And do I have confidence in the fund manager or company to outperform in the future?
Point four also comes into play here – if your relative has done exceptionally well out of the investment, perhaps it’s time to cash in? There may even be future capital gains tax implications in hanging on to the shares that you’d rather avoid so seeking professional advice may be useful in this situation.
Should I Sell?
Sometimes the simplicity of cash beats the uncertainty of shares – with an inheritance it’s often helpful to know exactly what you will get so you can plan what to do with it.
How to Sell
So far we’ve looked at why you might sell but not how. So what happens if you do decide to hit the button? Here are some tips:
1) Selling in tranches can reduce the risk of mis-timing the market. Just as you would drip-feed money into the market when buying, you could take the same approach to selling. You need to stick to this plan, especially if market conditions are unfavourable at the time you have scheduled to sell.
2) Emotions can be the enemy of investors, especially when fear dominates as it did earlier this year. A market rout, when shares are posting big daily moves, is probably not the best time to get a decent price for your shares or funds. Often the market moves so quickly that it is easy to be left behind in the stampede to sell. It’s worth remembering that any falls in the value of your holding are only “paper losses” until you actually sell and it could be that your holding recovers and you get a better price by waiting to trade.
3) Practice makes perfect: the first time you ever sell it can feel like an irreversible decision. But experience – and making some mistakes along the way – can make you a better investor. Because most stock markets are reasonably liquid, you can always buy the stock or fund again if you’ve changed your mind, and this is something the professionals frequently do.
Top tips for better pension investment and boosting your retirement income – Yahoo Canada Sports
The state pension age for both men and women will rise to 66 on 6 October.
When the State Pension was introduced in 1948, a 65-year-old could expect to spend 13.5 years in receipt of it – about 23% of their adult life, according to a government analysis. This age-span has been increasing ever since.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Latest projections from the Office for National Statistics show that the number of people over state pension age in the UK is expected to grow by a third between 2017 and 2042, from 12.4 million in 2017 to 16.9 million in 2042.” data-reactid=”25″>Latest projections from the Office for National Statistics show that the number of people over state pension age in the UK is expected to grow by a third between 2017 and 2042, from 12.4 million in 2017 to 16.9 million in 2042.
“More than a decade of rising pension ages has made an enormous difference to people’s working lives. However, so far, it hasn’t made enough difference to their pensions,” said Sarah Coles, personal finance analyst at Hargreaves Lansdown.
“We don’t know how much we’ve saved, or where it’s invested, and two thirds of people aren’t confident they’ll be able to afford retirement. Women are in a particularly worrying position, because almost three quarters aren’t sure they can ever afford to stop work.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="READ MORE: Brits unknowingly funding climate change through their pensions” data-reactid=”28″>READ MORE: Brits unknowingly funding climate change through their pensions
But whatever the circumstances, there are ways you could make a better pension investment and boosting your retirement income. Below is what experts at Hargreaves Lansdown say help you make the most of your pension.
<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Five steps to better pension investment” data-reactid=”30″>Five steps to better pension investment
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Don’t be afraid to admit you don’t know” data-reactid=”31″>Don’t be afraid to admit you don’t know
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Going back to basics about what a pension is and how it works can make things a lot clearer. There is plenty of useful resources online, including the Money Advice Service, a government backed service giving free and impartial money advice, and the Pensions Advisory Service, as well as information from pension providers.” data-reactid=”32″>Going back to basics about what a pension is and how it works can make things a lot clearer. There is plenty of useful resources online, including the Money Advice Service, a government backed service giving free and impartial money advice, and the Pensions Advisory Service, as well as information from pension providers.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="If it’s a workplace pension, speak to your employer” data-reactid=”33″>If it’s a workplace pension, speak to your employer
Your employer will be able to tell you about your company pension and should have information booklets to explain how it works. If you don’t feel like working your way through written information, ask for a meeting where someone can explain it fully for you.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Check what you’re invested in ” data-reactid=”35″>Check what you’re invested in
If you don’t know where you’re invested, the chances are you’ll be in your scheme’s default fund — because this is where you end up if you haven’t made an active investment choice. Ask for a copy of the default fund factsheet, which will show you the charges you’re paying, and how the investments have grown compared to the average of similar funds.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Work out if your investments are right for you” data-reactid=”37″>Work out if your investments are right for you
If you’re in a default fund, it’s likely around two-thirds of your pension will be invested in shares. This gives you the best chance of growing your money. The rest will probably be in bonds and cash which tend to fluctuate in value less.
If you’re under 40 you can consider having a larger proportion of your pension invested in shares. Most pensions will give you some alternative options, so ask for details or take advice to get the right investments for you.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Set a date to review your handiwork” data-reactid=”40″>Set a date to review your handiwork
Set a date to look at your progress – it can be helpful to get into the habit of checking up on your pension at least once a year. When you do, check how the funds are doing and if they are still right for your circumstances.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="READ MORE: One in three Brits have ‘no clue’ how their pension works” data-reactid=”42″>READ MORE: One in three Brits have ‘no clue’ how their pension works
“If you’re at an earlier stage in your career, the key is putting aside as much as you can afford as early as you can afford to do so. If you have opted out of your workplace pension, or weren’t automatically put into it because you earn less than £10,000, talk to your employer about getting into the scheme. Once you start paying in, they’ll have to do so too — so your efforts will be magnified,” said Coles.
It is also advisable to reassess your retirement choices. The below tips could be helpful.
<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Five key questions you should ask to get your pension on track” data-reactid=”45″>Five key questions you should ask to get your pension on track
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="What kind of retirement do I want? ” data-reactid=”46″>What kind of retirement do I want?
It’s a good idea to ask yourself when and how you plan to retire, and what kind of lifestyle you want to be able to afford.
This will help you work out how much money you need after you retire — and when you need that income to begin.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="How much of a lump sum do I need in order to generate that income? ” data-reactid=”49″>How much of a lump sum do I need in order to generate that income?
The experts recommend using an online pension calculator to give you a good general guide as to what you need to save.
It’s worth looking up the paperwork for any pensions you have, and checking what’s sitting in the pot.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="How much do I need to contribute — and for how long — in order to build that lump sum?” data-reactid=”57″>How much do I need to contribute — and for how long — in order to build that lump sum?
Again there are lots of pension calculations online that can help you answer this.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="How much do I want my pension investments to grow, and what risk am I prepared to take?” data-reactid=”59″>How much do I want my pension investments to grow, and what risk am I prepared to take?
Figuring this out will help you decide on the kinds of investments that should go into your pension portfolio.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="READ MORE: UK pensioners lose £30m to scammers” data-reactid=”61″>READ MORE: UK pensioners lose £30m to scammers
Meanwhile, a survey has found that only 36% of people are confident they’ll ever be able to afford to retire.
Financial uncertainty is affecting women more than men with just 26% of women confident they’ll ever be able to afford to retire, compared with 46% of men.
Just a third of Brits know how much income they’ll need in retirement and only 37% of people have a clear idea of what their pensions are worth, according to the survey by Hargreaves Lansdown.
It also showed that only 32% know where their pension is invested, with the majority confused about what was happening with their cash.
Lakeview Hotel Investment Corp Announces Second Quarter 2020 Results – Canada NewsWire
WINNIPEG, MB, Sept. 30, 2020 /CNW/ – Lakeview Hotel Investment Corp (“LHIC”) is pleased to report its financial results for the Quarter ended June 30, 2020. The following comments in regard to the financial results should be read in conjunction with the June 30, 2020 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.
The effects of COVID on hotel occupancies for the second quarter were severe. As this pandemic continues, it is not clear how long it will remain and the extent that it will continue to affect the tourism and hospitality sector. LHIC continues to safeguard employees and customer safety, reduce and/or defer expenses and minimize non-essential expenditures. At this time it is very difficult to determine how long it will take for business levels to normalize.
Following is a comparison of the operating results for the three and six months ended June 30, 2020 compared to the results of operations for the comparable period in 2019:
Three months ended
Six months ended
Food & Beverage
Gain on sale of income properties
Net income (Loss)
Basic and diluted income (loss) before income tax per share
Reconciliation to funds from Operations
Amortization of income properties
Amortization of franchise fees
Gain on sale of income properties
Amortization of right-of–use assets
Income from Lakeview Flag Licensing General Partnership
Loss (income) from Lakeview Flag Management General
Unrealized loss (gain) on change in fair value of interest rate swap
Provision for impairment of income properties
Funds from Operations
Basic and diluted funds from Operations per share
Contributions to reserve account
Adjusted funds from Operations
Basic and diluted adjusted funds from Operations per share
Lakeview Hotel Investment Corp is listed on the TSX Venture Exchange under the symbol “LHR”. Lakeview Hotel Investment Corp received income from ownership, management and licensing of hotel properties.
The TSX Venture Exchange nor its Regulation Service Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Lakeview Hotel Investment Corp
For further information: Rudy Beyer, Chief Financial Officer, Tel: (204) 975-0623, Fax: (204) 957-1697, Email [email protected]
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