Although there are plenty of financial matters on which financial advisors need to advise their clients these days, investment strategies are still a top priority.
After a year like 2020 – during which stock markets reached new highs in February, fell off a cliff in March before eventually recovering their losses and establishing yet new highs before year-end – there’s no doubt of the importance of keeping clients invested during good times and bad.
Furthermore, proper investment acumen and foresight are key to producing solid returns and income in the years ahead.
Here are 10 investment-related strategies and themes that advisors were focused on this year:
Volatile stock markets and reduced consumer spending during the COVID-19 pandemic have resulted in many Canadians sitting on extra cash, wondering how and when to put it to work. Advisors recommend a prudent approach when investing cash in these unsettled times, not only in light of the threat of a second wave of the pandemic in the weeks ahead, but the uncertainty around the U.S. presidential election in November.
Although COVID-19 has been a vicious headwind for many stocks, it has emerged as a strong tailwind for others. That includes some Canadian companies flying under the radar that may benefit from changing consumer and corporate behaviour or could have a possible treatment for patients suffering from the coronavirus. Three portfolio managers shared their top small-cap picks.
Recession clouds are lurking, but there can be a silver lining. Global stock markets have been roiled by coronavirus fears and plunging oil prices. Still, certain dividend-paying stocks can help ease the pain. When the S&P/TSX Composite Index dropped by 35 per cent in 2008, some of these equities outperformed the market or eked out gains. Others outpaced the market in the ensuing years. At the very least, investors can get paid while waiting for a recovery. We asked three fund managers for their top recession-resistant stock picks.
Emerging markets may have enjoyed a strong start to the year, but they were sent tumbling in mid-March along with all world markets. The swoon sent the MSCI Emerging Markets Index, the broadest measure of emerging economies, down 32 per cent. Since then, emerging markets have rebounded nicely and look to be in a good position as recovery takes hold. The engine has been Chinese stocks, which make up 41 per cent of the index.
Faced with interest rates that will be low for several years, yield-hungry investors may want to seek opportunities among Canadian dividend stocks. Although higher-yielding dividend stocks are not without risk, there are firms with stable cash flows that will allow them to maintain and raise payouts – and their stocks still trade below pre-pandemic highs. We asked Stephen Groff of Cambridge Global Asset Management, Steve DiGregorio of Canoe Financial LP and Michael Simpson of NCM Asset Management Ltd. for their top picks.
Yield-seeking investors may want to hunt for bargains among real estate investments hit hard during the recent stock market collapse. Given falling interest rates, the robust dividend yields that some real estate investment trusts and stocks offer have become more attractive. Further, some of these firms have strong fundamentals to weather the current storm. Three fund managers share their top real estate picks.
Cybersecurity has become top of mind for many organizations as much of our interactions shift online because of COVID-19. The renewed focus on online safety is also a potential investment opportunity for financial advisors and investors looking for sectors that could withstand the current market volatility. Early during the pandemic, some cybersecurity investments saw either modest gains or single-digit losses compared to double-digit declines for broader indexes such as the S&P/TSX Composite Index or the S&P 500.
Dividends are rarely top of mind when investing in technology stocks. After all, companies in the high-growth tech sector often just reinvest their earnings back into their businesses. Still, there are some mature companies that offer decent dividend yields or others that can grow their payouts over time. They can also help investors ride out bumps in these typically volatile sectors. Three portfolio managers shared their top picks among tech stocks with payouts.
While the traditional portfolio asset mix of 60 per cent in stocks and 40 per cent in lower-risk bonds has served advisors and investors well for many years, some in the investment industry are now questioning its future. Alternative investments can potentially make up for shortfalls in this balanced portfolio for some investors, but others may want to consider other options.
It may be time for long-term investors to start nibbling at beaten-up cyclical, dividend-paying stocks to bet on an economic recovery – even though its timing is uncertain. Stock markets have rallied recently amid signs that the outbreak is stabilizing in the hardest-hit countries, but they could retest the March lows. Three dividend fund managers shared their top cyclical stock picks.
At Davos, Canadian investment leaders set timelines for climate-friendly economy – The Tri-City News
TORONTO — Two Canadian investment leaders endorsed a transition to clean energy at a virtual Davos World Economic Forum on Wednesday as more investors worldwide push for concrete sustainability commitments.
Former Bank of Canada governor Mark Carney said that politicians can help markets finance the transition to zero-emission economies by setting credible forward commitments.
Canada’s carbon pricing plan is an example of a forward commitment, Carney said, since it would hike the federal tax to $170 a tonne by 2030 from $30 currently.
“I think we’re reaching the tipping point. The question is execution. How is that political will channelled?” said Carney, who was speaking in his capacity as United Nations Special Envoy for Climate Action and Finance.
He pointed to recent COVID-19 vaccine purchase agreements as an example of the power of putting political will behind contracts.
Carney, who is also vice-chairman at Brookfield Asset Management, said that financial and economic markets will adjust to future goals, such as upcoming bans of internal combustion engines in Europe. Carney pointed to his research with U.S. Treasury Secretary and former Federal Reserve chairwoman Janet Yellen, which suggested that markets will “smooth” out the carbon price hikes.
“That’s what markets do best. And by the time you get to the point where the price is high, the economy has adjusted,” said Carney.
In a separate session, Ontario Teachers’ Pension Plan chief executive Jo Taylor said the pension plan tries to push its portfolio companies toward sustainability, rather than immediately divesting in carbon-intensive companies. The pension plan said last week it would commit to reaching net-zero greenhouse gas emissions by 2050.
“Through that engagement, rather than divestment, I think we can particularly push these companies to do a better job and actually provide some additional help and services in and around the world where they may not be immediately available,” said Taylor.
Carney and Taylor’s comments at Davos came as 61 global business leaders said at the forum they would begin using a standardized set of environmental, social and governance metrics and disclosures.
Global investment firm BlackRock Inc. also said this week it would start giving “heightened scrutiny” to investments that posed a climate-change risk, calling for more company disclosures not only on climate change but also social goals such as equity, diversity and inclusion. In his letter to CEOs, BlackRock chief executive Laurence Fink said that between January and November 2020 there was a 96 per cent year-over-year increase in sustainable asset investments in mutual funds and exchange traded funds.
Carney said that as more governments sign on to net-zero pledges, it is “cascading down” to large pension funds, insurance companies and sovereign wealth funds.
“We don’t often invest on our own, so what we need to do is also persuade other investors,” said Taylor. “Some of the investors we work with have a much more short-term view of what they’re trying to achieve.”
At a separate event at the Canadian Club of Toronto on Wednesday, business leaders made a similar case for businesses to boost diversity within their companies and support clean energy.
“The pain points today are revolving around climate change, and we see what’s happening. It’s real. Sheets of ice are melting, the ocean water levels are rising, investors are paying more attention this,” said CIBC chief executive Victor Dodig.
“If we want to make sure that capital comes to Canada, we need to make sure that companies, the private sector — publicly traded companies and private companies — are focused on that. Because capital won’t come here otherwise.”
Dodig said that Canadian companies have among the strongest technology offerings worldwide for renewable energy, pointing to companies working in uranium and agriculture. But Rola Dagher, global channel chief at Dell Technologies, said business leaders must also do more in general to ease the anxieties that technology will be used the wrong way and cause job losses.
Richard Manley, head of sustainable investing at CPP Investments, said that while the energy industry has been “in a permanent state of innovation for a century,” it has yet to reach its full potential in confronting carbon emissions.
“We clearly are investing in technologies that will shape the greening of energy,” said Manley. “But at the same time, I think we’re very keen to support companies that are identifying the challenges of the transition, and a commitment to decarbonize and transition their businesses, to provide them the capital they require.”
This report by The Canadian Press was first published Jan. 27, 2021.
Anita Balakrishnan, The Canadian Press
Kinross announces additional investment in Wolfden Resources Corporation – GlobeNewswire
TORONTO, Jan. 27, 2021 (GLOBE NEWSWIRE) — Kinross Gold Corporation (TSX:K; NYSE:KGC) (“Kinross”) announced today that it has acquired 3,125,000 common shares of Wolfden Resources Corporation (TSX-V:WLF) (“Wolfden”) in a non-brokered private placement at a price of CA$0.32 per common share for total consideration of CA$1,000,000.
Prior to completion of the transaction, Kinross held 12,500,000 common shares, representing approximately 9.6% of the outstanding common shares. As a result of the acquisition of 3,125,000 common shares (approximately 2.3% of Wolfden’s issued and outstanding common shares), Kinross now owns 15,625,000 common shares, representing approximately 11.4% of Wolfden’s issued and outstanding common shares, on a non-diluted basis.
Kinross acquired the common shares pursuant to the transaction for investment purposes. Kinross may, from time to time, acquire additional common shares or other securities of Wolfden or dispose of some or all of the common shares or other securities of Wolfden that it owns at such time.
Kinross will file an early warning report under Wolfden’s profile on SEDAR at www.sedar.com in accordance with applicable securities laws. To obtain a copy of the early warning report, please contact Luke Crosby, Vice-President, Assistant General Counsel and Corporate Secretary at 647-788-4478. Kinross is organized under the laws of the Province of Ontario and its head office is located at 25 York Street, 17th Floor, Toronto, Ontario M5J 2V5. Wolfden’s head office is located at Unit 5, 1100 Russell Street, Thunder Bay, Ontario P7B 5N2.
About Kinross Gold Corporation
Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia, Mauritania, Chile and Ghana. Kinross maintains listings on the Toronto Stock Exchange (symbol:K) and the New York Stock Exchange (symbol:KGC).
Vice-President, Corporate Communications
Investor Relations Contact
Senior Vice-President, Investor Relations
Cautionary statement on forward-looking information
All statements, other than statements of historical fact in this news release constitute “forward-looking information” or “forward-looking statements” within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and the provisions for “safe harbor” under the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this news release. The words “may”, “will” and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, with respect to Kinross’ acquisition or disposition of securities of Wolfden in the future. Forward-looking statements are necessarily based upon a number of assumptions that, while considered reasonable by Kinross as of the date of such statements, are inherently subject to significant uncertainties and contingencies. These uncertainties and contingencies can affect, and could cause, Kinross’ actual results to differ materially from those expressed or implied in any forward looking statements made by, or on behalf of, Kinross. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Kinross disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
NBA star Andre Iguodala on Apartment List investment: 'It's a rare thing you see' with startups – Yahoo Canada Finance
The Canadian Press
Rebecca Marino says her game hasn’t changed much physically in the eight years since her last appearance at a tennis Grand Slam. After overcoming numerous challenges in road back to the sport’s biggest stage, however, Marino says she is in a better place mentally. “I still have the big serve and big baseline ground strokes,” Marino said in a video conference Wednesday from Melbourne, Australia, where she is preparing for next month’s Australian Open. “I think the biggest difference would be in terms of competitive spirit. I feel like I’m a lot mentally stronger now.” The 30-year-old from Vancouver qualified for the first Grand Slam of 2021 by winning all three of her matches at a qualifying tournament earlier this month in Dubai without dropping a set. It was a promising start to the tennis season for Marino, once ranked in the top-40 on the WTA Tour, after years of setbacks. Marino last appeared in a Grand Slam tournament at the 2013 Australian Open, losing in the first round to China’s Peng Shuai. She took almost five years off from the sport shortly after that, citing battles with depression. She worked on her physical and mental well-being during her time away, studied English literature, and competed on the varsity rowing team at the University of British Columbia. “I think back to that period of my life and I feel like I was a different person,” Marino said. “What I would tell other people is that that period of your life is not forever. “If you do the right things to get yourself in a better mental state, whether it’s talking or other steps to take care of your mental health, it’s obviously very important. I feel if I hadn’t have done that, I wouldn’t be in this position I am now.” Marino returned to tennis in 2017, but her comeback was hampered by a severe foot injury. She didn’t play a competitive match from June 2019 until the qualifying tournament in Dubai. During that time, Marino’s father, Joe, died of cancer at age 59. “His health battles and challenges were what inspired me,” Marino said. “Considering that 2020 was probably the most challenging year of my life, I’m really proud to make it here with him in mind through a lot of the process.” Now ranked No. 312 in the world, Marino said she would love to win “at least a round” in Melbourne. “I want to make sure I leave it all on the court,” she said. She hopes the fact she’s already played some competitive tennis this year will work to her advantage. “I at least had my qualifying matches to sort of get the rust off, so I feel like I might be a little bit more at an advantage than some players who might be coming in completely fresh in the new year.” Marino is one of seven Canadians in the main singles draws in Melbourne. Bianca Andreescu of Mississauga, Ont., and Leylah Annie Fernandez of Laval, Que., are also in the women’s draw, while Milos Raonic of Thornhill, Ont., Denis Shapovalov of Richmond Hill, Ont., Vancouver’s Vasek Pospisil and Montreal’s Felix Auger-Aliassime are in the men’s draw. This report by The Canadian Press was first published Jan. 27, 2021. The Canadian Press
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