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Investment fund assets down 10% in March as COVID-19 worries spread – Financial Post

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TORONTO — The Investment Funds Institute of Canada says fund holdings dropped by about 10 per cent in March from a month earlier, as investors worried about the economic impacts of the COVID-19 pandemic.

The institute says mutual fund assets were down by $159.9 billion compared with February, to $1.45 trillion, while net redemptions totalled $14.1 billion compared with net sales of $8.16 billion a month earlier.

Exchange-traded fund assets totalled $190.3 billion, down by $20 billion, and net sales totalled $3 billion for the month compared with $8.5 billion in February.

Investment assets had also seen some declines in February, including a 3.1 per cent decrease in mutual fund assets and a 0.3 per cent decline in ETF assets.

Total ETF net assets were still higher in March than a year earlier, while mutual fund assets were down from March 2019.

Markets saw significant rebounds in the last week of March and into early April, though were still well off the levels of late February.

This report by The Canadian Press was first published April 22, 2020.

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Volkswagen closes $2.6 billion investment in self-driving startup Argo AI – Yahoo Canada Finance

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Volkswagen closes $2.6 billion investment in self-driving startup Argo AI
Signage at a Volkswagen dealership is seen in London, Britain

(Reuters) – German automaker Volkswagen AG <VOWG_p.DE> has closed its $2.6 billion investment in Argo AI, the Pittsburgh-based self-driving startup disclosed in a blog post on Tuesday.

Argo, founded in 2016 by Bryan Salesky and Peter Rander, is now jointly controlled by VW and Ford Motor Co, which made an initial investment in Argo shortly after it was founded.

Details of the VW investment, which does not include an agreement to purchase $500 million worth of Argo stock from Ford, was announced last July.

VW’s agreement includes the transfer to Argo of its Munich-based Autonomous Intelligent Driving unit, which boosts Argo’s employment to more than 1,000, according to Salesky.

Last week, VW disclosed that its supervisory board had approved several projects in a multibillion-dollar alliance with Ford that also was announced last July.

Ford created Ford Autonomous Vehicles LLC in 2018, pledging to invest $4 billion until 2023 and had sought outside investors to help share the spiraling cost of developing autonomous vehicles.

(Reporting by Paul Lienert in Detroit; Editing by Nick Zieminski)

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Volkswagen closes $2.6 billion investment in self-driving startup Argo AI – TheChronicleHerald.ca

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(Reuters) – German automaker Volkswagen AG has closed its $2.6 billion investment in Argo AI, the Pittsburgh-based self-driving startup disclosed in a blog post on Tuesday.

Argo, founded in 2016 by Bryan Salesky and Peter Rander, is now jointly controlled by VW and Ford Motor Co, which made an initial investment in Argo shortly after it was founded.

Details of the VW investment, which does not include an agreement to purchase $500 million worth of Argo stock from Ford, was announced last July.

VW’s agreement includes the transfer to Argo of its Munich-based Autonomous Intelligent Driving unit, which boosts Argo’s employment to more than 1,000, according to Salesky.

Last week, VW disclosed that its supervisory board had approved several projects in a multibillion-dollar alliance with Ford that also was announced last July.

Ford created Ford Autonomous Vehicles LLC in 2018, pledging to invest $4 billion until 2023 and had sought outside investors to help share the spiraling cost of developing autonomous vehicles.

(Reporting by Paul Lienert in Detroit; Editing by Nick Zieminski)

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Estoppels are critical in a CRE investment purchase – Real Estate News EXchange

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If you’ve purchased a commercial or residential condo, you would have encountered an estoppel certificate.

There are many reasons for obtaining a condominium estoppel (the information I discuss here is applicable only to single- and multi-tenant investments, excluding multifamily rentals):

* they provide insight into the project’s reserve fund;

* illustrate if there are any unpaid contributions or arrears;

* and determine if its bylaws and policies are in good standing.

Estoppels are just one of many due diligence items I encourage buyers to ask for.

Let’s look at the importance of obtaining estoppel certificate(s) during your investigation of an investment property.

A recent example

A landlord and tenant negotiated a tenant improvement allowance which was to be paid to the tenant once they had completed their improvements. The tenant was a national company with a few different departments handling various elements of the lease administration.

The tenant did complete the work but somehow forgot to thereafter ask for the agreed-upon amount of cash. The property was subsequently sold to another investor.

The investor did not obtain an estoppel certificate from the tenant during its due diligence period.

Sometime after the sale, the tenant realized they had failed to request the tenant improvement amount at the appropriate time.

Had the buyer requested an estoppel certificate from the tenant at the time of purchase, they would have insulated themselves from this problem.

How open do you think the previous owner is to paying this significant sum of money after the sale?

The tenant improvement allowance was amortized into the lease, which increased the tenant’s lease payment.

The buyer does not feel obligated to pay it, because they paid more for the property due to the cap rate applied to that increased rent.

Elements of an investment property estoppel certificate

The certificate must be executed by the tenant and may include, but is not limited to, the following declarations:

* the lease constitutes the entire agreement between both parties;

* the amount of security deposit held;

* any additional signage rent;

* there is no litigation outstanding between the two parties;

* there are no existing lease defaults by either party;

*  any improvements required to made by the landlord have been completed;

*  any amount agreed to be paid by the landlord for tenant improvements has been paid.

We use estoppel certificates that can be one or several pages long.  It typically depends on the complexity of the transaction, number of tenants involved and the sophistication of the buyer.

Getting an estoppel in place

A landlord typically does not want to go through the work and disturb the tenants until the buyer has removed all conditions.

A buyer doesn’t typically want to remove conditions until the estoppels have been provided.

A remedy can be to provide the certificates after the buyer has removed conditions, provided there is a process agreed to if something surfaces within the estoppel that requires a resolution prior to completion of the deal.

There are many issues that can surface if estoppels are not included within a commercial real estate investment sale.

If a seller is reluctant to allow this requirement to be written into the purchase agreement, treat this as a red flag.

It could be in your best interests to walk away before investing your time and money.

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