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Does your investment advisor understand your social values? – The Globe and Mail

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Investors and advisors are having more direct conversations about ESG and responsible investing.Rawpixel Ltd.

Everyone has personal and family goals, and investors have priorities too. Canadians are increasingly aligning their investment decisions with preferred societal objectives, such as combating climate change, advancing human rights, alleviating poverty, protecting workers, or achieving sustainable operations.

These issues fall under the banner of ESG – environmental, social and governance. The rise in responsible investing (RI) is driving discussions between clients and their advisors around values and whether portfolio strategies are in sync with those expectations.

“Financial professionals should have a structured discovery conversation with every client, which includes questions on ESG investing,” says Krystian Urbanski, senior vice-president and associate portfolio manager with Forstrong Global Asset Management Inc., in Toronto.

That’s spelled out in guidance for Canadian financial advisors who are registered with the Investment Industry Regulatory Organization of Canada (IIROC). Their latest know-your-client guidance, which took effect Dec. 31, 2021, says investors should have the opportunity to express their needs and objectives “in terms that are meaningful to them,” which includes “investing in accordance with environmental, social and governance criteria or other personal preferences.”

The Responsible Investment Association (RIA) had been advocating for that for years, and it notes there has been a disconnect between investors and advisors around this topic.

An RIA survey found that 77 per cent of Canadian retail investors want their financial services provider to inform them about responsible investments that are aligned with their values, yet only 27 per cent had ever been asked about it. In a separate survey of Canadian financial advisors, only 37 per cent said they routinely initiated conversations about ESG and RI with their clients, although 85 per cent said they’re comfortable doing so. “The new guidelines will hopefully help kickstart these conversations,” said the RIA.

Those conversations can take many forms. Some Canadians are already quite knowledgeable about RI, some are simply curious, and others have never heard of the investment approach but might be interested if they knew more.

Mr. Urbanski says questions about financial goals will reveal what people are hoping to achieve in broad strokes. Open-ended questions about what matters to them should naturally lead to a discussion about their societal and personal values, he adds.

Brianne Gardner, a wealth manager and investment advisor with Velocity Investment Partners at Raymond James Ltd., in Vancouver, says advisors should start the conversation with one simple question: “What are your thoughts on investing more sustainably?”

The answer will either reveal an opportunity for education or, she says, “it will give you both a chance to dive deeper into the subject” and establish specific RI goals.

Finding the right investing approach

To set those investment objectives, advisors must probe which ESG criteria are most important to clients, Mr. Urbanski says. Some may want to use an exclusionary approach to investing, which would steer clear of certain holdings such as fossil fuels. Others might prefer an inclusionary approach, which would only make investments in areas such as renewable energy.

Prem MaIik, a financial advisor with Queensbury Securities Inc., in Toronto, says clients who are more experienced in RI might ask more targeted questions about how ESG performance is measured, or how to know if a company is transparent about its ESG practices.

Making sure clients are on the same page with each other is critical too. Mr. MaIik mentions a recent meeting with a couple where one spouse was adamant that their investments exclude oil, gas and tobacco, and the other had no concerns about factoring in ESG. It’s an opportunity to determine how to align family values.

One of the more important questions to discuss is whether investing with ESG practices will affect a portfolio’s performance. Does taking an RI approach mean accepting lower returns and growth? In the current environment of higher oil prices, a portfolio that excludes oil companies might be giving up potential profits. However, one report that examined the findings of 36 empirical studies on RI concluded socially responsible investing overall does not hurt returns.

People also want to know how they can participate in ESG investing. Once an investor’s goals and values are clear, advisors can review an individual company’s policies in detail, or they can recommend ETFs or mutual funds that offer access to a broad range of ESG-compliant companies.

“Although you don’t have an opportunity to choose each company, buying shares of an ESG ETF, for instance, can help clients invest according to their values more efficiently,” Mr. Urbanski says.

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Three strategies to help you take the emotion out of investing – Financial Post

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Martin Pelletier: Never let emotion drive the investment decision-making process

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Investors sometimes need a friendly reminder to play the long game, especially during these uncertain times when many are wondering if the recent market rally is just another head fake or the beginning of a sustainable recovery.

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We can’t blame them for their trepidation, because pundits keep telling us to place our bets on red or black and whether central banks such as the United States Federal Reserve are going to pivot or not with their ongoing tightening.

Strong employment data has central banks hiking rates by 75 basis points, sending markets lower one day, only to be followed by consumer price index data that has them hiking just 50 basis points, sending markets higher with the magnitude dependent on the level of duration exposure.

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This isn’t surprising given just how addicted we’ve become to loose monetary policy.

That said, there is something that we think can really help keep you centred and on the right path going forward: Instead of getting caught up in all this binary nonsense, remember that both bear and bull markets come and go, at times faster or slower than others, but they all ultimately come to an end at some point.

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The bottom line is that over the longer term, there must be a return on invested capital or else the system breaks, and the winners have always been those betting on capitalism, not against it.

Therefore, you shouldn’t get distracted by the daily ups and downs, but stick to your investment plan and play the long game. This doesn’t mean not being active in the management of your portfolio, especially when it comes to managing risk, far from it.

But, most importantly, never let emotion drive the investment decision-making process. Here are three ways to help prevent this from happening to your investment process.

Goals-based benchmarking

The problem with indexes is figuring out which is the correct one to choose to compare against your portfolio. This can lead to performance chasing even among investment pros who face career risk for not beating the hottest market.

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Since the Fed began quantitative easing back in 2009, the low-rate, longer-duration tech-orientated U.S. equity market has been the top performer, but many forget that during the prior decade, resource-based, commodity-oriented markets such as Canada and emerging markets were the ones in the spotlight.

Avoid all this by charting your own course. Set a target return to meet a certain financial goal specific to you and your family and reflective of the market conditions of the time. Then, position your portfolio to try to meet it by taking as little risk as possible.

Risk management

Understand there is a time to add risk and a time to reduce it, but not in an all-or-nothing fashion, otherwise there is the chance of missing out on market recoveries by capitulating at the bottom or, worse, adding at the top just before a market meltdown for fear of missing out.

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We’re eating our own cooking when it comes to this. Our risk-managed, goals-based approach meant slightly underperforming on last year’s rally, but greatly protecting this year’s downside. As a result, this has given us the ability to add more risk to portfolios over the past few months following this year’s large market drawdown.

This is another reason why my outlook has been more bullish over the past few weeks than others. By minimizing losses, I’ve prevented emotion from clouding my vision.

  1. A construction worker works on a new house being built in a suburb located north of Toronto in Vaughan.

    Martin Pelletier: The end of cheap labour is a good thing for society, despite inflationary fears

  2. Traders work on the floor of the New York Stock Exchange.

    Beware of cherry pickers: Mixed economic data means bulls and bears both have strong cases

  3. The Federal Reserve building in Washington, D.C.

    Normalized interest rates are the cure, not the problem

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Always keep moving

Movement is life, and those who become complacent end up being left behind. It is common among those in my industry to tout buying, holding and forgetting about it. For the most part, the thesis is right, but it shouldn’t be used as an excuse to not actively rebalance.

For example, a few months ago, we were adding to our underweight position in longer-duration growth segments of the market such as the S&P 500 given its large multiple contraction, which more recently is showing its merit. At the same time, we’ve been selectively adding to the energy space on the large selloff in June given our favourable long-term outlook for the sector.

Remember to play your own game, not someone else’s and you will do just fine. This is easier said than done, but we think deploying the aforementioned strategies around an individualized investment plan can greatly increase the probability of achieving your financial goals and objectives.

Martin Pelletier, CFA, is a senior portfolio manager at Wellington-Altus Private Counsel Inc, operating as TriVest Wealth Counsel, a private client and institutional investment firm specializing in discretionary risk-managed portfolios, investment audit/oversight and advanced tax, estate and wealth planning.

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Time to sell? How to manage your investment property as interest rates rise – Financial Post

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There are a few key things that owners should consider to decide if their investment is worthwhile

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Inflation is up more than 8%, the highest yearly change in almost four decades, according to Statistics Canada. And in a scramble to bring that inflation rate down, the Bank of Canada raised its benchmark rate to the highest amount since 1998: 2.5 per cent.

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The hope is that inflation gets back to a normal two per cent by 2024. For borrowers with fixed mortgage rates, they would have locked in a certain interest rate when they purchased their property. For variable-rate mortgages, the interest rate that the borrower pays is tied to the central bank’s inflation rate.

Canadian borrowers are dealing with a five-year fixed rate of around 4.5 to 5.5 per cent. Variable rates are in the 3.8 to 4.5 per cent range. And rates are at least two per cent higher than a year ago.

Now that the days of easy money are a distant memory, real estate investors affected by higher interest rates may have to adjust behaviours in order to maintain a positive cash flow—or at least break even during this difficult time.

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Remember, real estate is a long game

Big real estate investors, such as developers, buy properties to hold for years, through many up and down cycles.

“My views are that if you are going to invest you should be a long-term holder,” says developer Gino Nonni of Nonni Property Group.

“I don’t know how often you can buy something and then turn around and make a substantial profit in a short period of time. At minimum, mom and pop investors pay their mortgage down and typically the value of the asset will go up.”

He believes the shortage of land will always constrain supply and put pressure on prices. The result is a secure, long-term investment.

“That’s the way I view it, and that’s what I tell my friends when they ask. I tell them to always hold.”

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Put your investment in perspective

Millennial broker Jacky Chan, president of BakerWest Real Estate, has been investing in real estate his entire adult life. He prefers real estate to other investments because it’s less volatile, and with the world’s population growing by about 80 million people a year, people are always going to need a place to live. Prices may slow down, but overall they go up.

“The faster an investment moves, the closer you need to monitor it, especially with the recent hype of NFTs and cryptocurrency,” says Chan. “But look at any real estate market in the world with a growing population, and it was definitely cheaper 50 years ago than it is today.”

Two things matter in real estate investment, says Chan: positive cash flow and appreciation. If the investor isn’t over-leveraged by too much debt, they should maintain a long-term outlook and not get spooked by interest rate hikes.

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If you own a $1 million property and have a $500,000 mortgage at five per cent, you are, in simple terms, looking at $25,000 interest per year.

If the property increases by five per cent in a year on the $1 million investment, that’s an increase of $50,000, so the owner has a net positive of $25,000.

“Even though the rate has gone up, the real estate value is still increasing.”

When things are getting tight

Let’s say you purchased a condo to live in, and purchased another as an investment. With interest rates climbing, what happens if you took out a variable rate mortgage and the rent isn’t covering the higher mortgage payment? Mortgage advisor Alex McFadyen, of Thrive Mortgage, saw a lot of people buy second properties in the last couple of years, and they might now find themselves stretched. All experts will tell you that selling off the property should be a last resort, but how do you avoid that when costs are mounting?

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“Ask yourself if the property itself is really underwater, or are there expenses we can remove or eliminate?” says McFadyen. “That’s the first thing we determine.”

He gets his clients to write down all their property expenses, including management and maintenance fees, taxes, utilities, and any upcoming repairs on the home. If it’s a primary property that’s causing them stress, then he asks them to write out a cash flow budget spreadsheet to see what’s coming in and going out. McFadyen finds that the main culprit for expenses is often a car loan or credit card debt, or — more commonly these days — travel debt. Cut those debts and throw that money at your mortgage instead, he advises.

Take control of the situation

If expenses are truly unmanageable, McFadyen advises that clients consider consolidating debts with a loan, such as the possibility of taking out a second mortgage or home equity line of credit(HELOC) to get it under control. He predicts consolidation will be a “massive trend” in the next 12 months.

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“I ask my clients, ‘are you able to sleep at night right now?’ If someone isn’t able to effectively get out of debt, what is the downside of setting yourself up with a second mortgage or HELOC to help things?”

McFayden has a client who owes nearly $75,000, which caused their credit score to go down to the low 500s (a good score should stay above 650). By consolidating their debt, it became a more manageable single payment instead of several payments that were only covering the interest owed. The key thing is to do it before you’re drowning in debt.

Restructure for bumpy times

Long term, everyone agrees that real estate will go up in value, so do what it takes to get through the interim.

McFadyen is helping some of his clients to re-amortize their 20-year mortgages to 30 years, for example. With a longer amortization period, the clients have reduced monthly payments, which helpsto reduce expenses and eliminate payment shock.

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McFayden also advises mortgage holders coming up for renewal to consider a refinance option and lock into a one- or two-year mortgage, until rates settle down. If historical trends are an indicator, we are near the peak, he says. A lot of his clients are taking that approach because there is good value in short-term mortgages, if rates do come back down as expected. That means the borrower isn’t locked in at a higher rate. Additionally, they don’t face a huge penalty, if they do want to take advantage of lower rates.

“We’ve seen folks worried about rising mortgage payments and we’ve helped them lock into short terms, to stem the tide,” says McFadyen.

But also, know when to sell

That said, when a person is over-leveraged, with negative cash flow and sleepless nights, then it could be time to sell that investment property. You’ve got to think about your mental health, advises McFadyen.

“If you are significantly underwater and it’s not only impacting your quality of life and there are no options to re-amortize or consolidate debt, and you can’t afford to make payments and it’s impacting your quality of life, and if the property also has upcoming expenses, then we would recommend letting it go,” he says. “If they are in so much stress and they have the ability to get out from under it, they should consider it as a last resort.”

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

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FXM VENTURE – Offers News Investment Platform – GlobeNewswire

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Glasgow, Scotland, Aug. 13, 2022 (GLOBE NEWSWIRE) — With the intention of being one of the top investment platforms for investors of all stripes, FXM Venture was established in July of 2020. FXM has been extending its impact to adjacent nations thanks to the vision and leadership of its core members.

BACKGROUND OF FXM VENTURE

Ten significant individuals were involved in the founding and early development of FXM Venture, with the goal of establishing this investment fund’s brand on a global scale. And today, 100 members work in 6 transnational branches and continue their tradition. In addition to being directed and run by professionals with decades of expertise in a variety of sectors, including finance, investing, marketing, and technology, FMX is also run by vital departments like: customer service personnel, technical staff,…

Additionally, in just two years (starting in July 2020), FMX has called for a total investment of 8 million USD.

HOW DOES FXM VENTURE WORK?

For both long- and short-term traders, funding rates are regular payments. Investors are free to select a transaction based on their financial situation and liquidity. Users can, in particular, withdraw money at any moment and get interest.

At FXM Venture, we have experienced traders in both Forex and Cryptocurrencies allowing us to build a stable financial foundation to increase the returns of our investors.

FXM also has AI technology in trading approaches to Real-time forecasts of hundreds of scenarios, execution strategies, and commercial alliances, in addition to our research, market neutral algorithms by monitoring market movements and building trading algorithms. Our primary goal is to establish a win-win relationship between the customer and the firm, in which FXM Venture develops specific investment plans and strategies, while investors can then choose suitable investment packages, together with FXM consider and select specific investment plans.

ORIENTATIONS AND VISIONS

By expanding its operations and financial system in 2022, FXM aims to become one of the best legitimate funds in the world. To that end, 4 additional branches will be opened, and recruiting efforts will be stepped up to reach our target of 200 members.

In terms of financing, FXM VENTURE’s aim is to raise our fund up to $15 million.. Aside from that, FXM equips you with the resources you need to be completely confident in your investment decisions. Furthermore, you may invest with FXM with complete confidence because here are what make FXM different:

  • TRANSPARENT TRANSACTIONS
  • MULTI-ASSET PLATFORM
  • PROFESSIONAL TRADER TEAM
  • AI TECHNOLOGY
  • SECURED DEPOSITS AND WITHDRAWALS
  • 24/7 CUSTOMER SUPPORT SERVICE
  • LIVE TRADING

FXM does not intend to stop at satisfying almost 30,000 customers who have been using services and investing in FXM (with a customer satisfaction rate of 78% and a customer return rate of 85%), FXM is as complete as possible with the goal of increasing the number of clients to 50,000 in the next quarter with a satisfaction level of over 90%.

PACKAGES AND REFERRAL

Visit the website for more information

And also, Remember to refer friends to be rewarded with $25 for every friend who joins and registers at least one package — with no cap on the number of people you can refer, and gain matching income on their profits: F1 (10%), F2 (5%), F3 (3%), F4 (2%).

Media details:

Company Name: FXM Venture

Email:contact@fxmventure.com

City: Glasgow

Country: Scotland

Website: https://fxmventure.com

Telegram group: https://t.me/fxmventure_official_chat

Telegram channel: https://t.me/fxmventure_official_channel

Twitter: https://twitter.com/FxmVenture

There is no offer to sell, no solicitation of an offer to buy, nor a recommendation of any securities or any other products or services. Furthermore, nothing in this PR should be construed as a recommendation to buy, sell or hold any investment or security, or to engage in any investment strategy or transaction. It is your responsibility to determine whether any investment, investment strategy, security or related transaction is suitable for you based on your investment objectives, financial situation and risk tolerance. Please consult your business advisor, attorney or tax advisor regarding your specific business, legal or tax situation.

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