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Investment in Alberta's Heartland could soar to $70 billion by 2030 – St. Albert Today

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If activity seen in the last year keeps up, Alberta’s Industrial Heartland could almost double the value of investments seen so far, with $30 billion in new capital investments by 2030.

Mark Plamondon, executive director with Alberta’s Industrial Heartland Association (AIHA), presented an update at the Alberta Industrial Heartland 2020 annual stakeholder conference on Jan. 30 at the Edmonton Convention Centre.

“We believe by 2030, an additional $30 million of investments is a very reasonable and achievable goal,” he said. “Of course, it can not be done without those companies having confidence in the region.”

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The conference was sold out with 1,100 attendees this year, including major industry stakeholders and municipal partners from across Alberta, Canada and around the world. Speakers included petroleum transportation company Inter Pipeline, oil and gas operator Keyera, chemical manufacturing company Dow Canada and pipeline transport company Pembina.

Alanna Hnatiw, AIHA chair and mayor of Sturgeon County, celebrated the notable increase in the crowd’s size since the conference first started 21 years ago. At that time, it was held in Fort Saskatchewan and attracted around 70 people, she said.

“This is a testament to the fact that energy decision-makers see value in the future of Alberta’s Industrial Heartland, a value that is built on low-cost and abundant feedstocks, as well as a well-educated energy workforce, and world class infrastructure,” Hnatiw said.

READ MORE: Alberta Industrial Heartland Association looks at advocacy 

Over the past several decades, Alberta’s Industrial Heartland has grown into Canada’s largest hydrocarbon processing region, spanning 582 square kilometres northeast of Edmonton. More than 40 companies are operating within the region, several being world-scale producers of fuels, fertilizers, power, petrochemicals and more.

There is currently $40 billion worth of investment in the area, and companies that are operating there have generated over 6,000 direct jobs and more than 25,000 indirect jobs, Plamondon said.

A petrochemical investment window is open for North America, and Alberta and Canada can be the location of choice for billions of dollars of investment in the near future, according to the AIHA.

“This is an exciting time for the Industrial Park,” Hnatiw said.

Canada Kuwait Petrochemical Corporation (CKPC) announced in early 2019 a $4 billion positive financial investment decision with Pembina for its integrated propane dehydrogenation and polypropylene production facility in Sturgeon County, which would convert liquid propane into solid polypropylene pellets.

Wolf Midstreams is continuing the construction of its $500 million Alberta Carbon Trunk Line, which would transport carbon dioxide from the Industrial Heartland to central Alberta for oil recovery projects. Initial flow rates were originally expected to start late 2019.

Inter Pipeline’s $3.5 billion Heartland Petrochemical Complex is expected to wrap up construction by late 2021 in Strathcona County. It will be designed to convert propane into 525,000 tonnes of polypropylene per year, a high value plastic used to make a variety of different products including cling-film and sandwich bags.

The ramp-up of the Sturgeon Refinery’s next two phases is ongoing, with full start-up of operations expected in early 2020. Project construction is complete, and diesel began flowing in December 2017.

READ MORE: Sturgeon refinery project stalled

Patrick Tighe, Sturgeon County councillor, said taking advantage of opportunities for the municipality and industrial players to collaborate together opens up significant potential for future development.

“Sturgeon County has a large, vested undeveloped area in it, and we have a couple of great new prominent players,” Tighe said, noting the Sturgeon Refinery expansion and the CKPC/Pembina joint-venture.

The event featured former prime minister Stephen Harper as a keynote speaker, but media were not allowed to be in the room during his presentation.

See a full wrap-up of the AIHA 2020 stakeholder conference in our Feb. 5 edition.

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Better Buy: AGNC Investment or Annaly Capital?

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Welcome news regarding elevated inflation is prompting signals that there may be a slowdown in the Federal Reserve’s pace on interest rate hikes. With longer-term interest rates beginning to fall, mortgage real estate investment trusts (REITs) are once again getting attention from the investment community. Mortgage REITs struggled over the past year as rising rates caused the value of their investment portfolios to decline, which translated into big declines in book value per share.

Surprisingly, these REITs still managed to maintain their dividends, and the yields have become quite attractive (provided they can be maintained). The biggest names in the mortgage REIT space are Annaly Capital (NLY -0.41%) and AGNC Investment (AGNC -0.60%).

Given all the news recently, which one is the better buy right now?

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Image source: Getty Images.

Mortgage REITs are a different animal than the typical REIT

REITs traditionally focus on developing real estate properties such as apartment buildings, office buildings, or shopping malls. They then rent out the units to tenants. Their earnings generally come from the spread between the rents they collect and the interest they pay on the debt that financed the buildings.

Mortgage REITs don’t buy properties; they buy real estate debt (i.e. mortgages). They typically use borrowed money to build their portfolios, and their earnings are the difference between the interest they earn on the mortgage-backed securities and the interest they pay on their debt. In many ways, mortgage REITs’ operations are closer to a banking model than the landlord/tenant model that characterizes the typical REIT.

AGNC invests in mortgages guaranteed by the U.S. government

AGNC Investment invests primarily in mortgage-backed securities which are guaranteed by the U.S. government. For the most part, this means AGNC invests in mortgages guaranteed by Fannie Mae and Freddie Mac. Since the principal and interest payments are backed by the U.S. government, AGNC Investment takes very little credit risk, and the interest it earns on these securities tends to be lower. That lower risk also means lower returns. AGNC then uses a lot of borrowed money (think of it like margin on your stock account) to generate a double-digit dividend yield.

Annaly has a more diversified portfolio of assets

Annaly invests in agency mortgage-backed securities, but it also buys loans that are not guaranteed by the government. These loans pay higher rates of return, but they also tend to have a higher potential for downside. Annaly is a big investor in loans that are ineligible for a government guarantee. These loans are often referred to as non-QM and are often made to professional real estate investors and the self-employed borrower.

These non-QM loans are nothing like the bad old subprime loans of yesteryear. They require sizable down payments and proof that the investor will be able to pay the loans with rental income. So the risk is somewhat mitigated.

Ultimately, the decision on Annaly versus AGNC depends on the economic forecast. AGNC Investment will probably outperform Annaly if we head into a recession, since it won’t have to worry about credit losses from the resulting rise in loan defaults. AGNC will also be better protected if housing prices begin to fall. That said, Annaly has a much more diversified portfolio of assets, which helps it outperform in most interest rate environments.

However, Annaly will be more exposed to potential credit losses if the economy enters a recession. If housing prices fall, it will negatively affect the value of its non-QM loans if delinquencies begin to increase. Annaly also holds a large mortgage servicing portfolio, which is a stable source of additional income and acts as a hedge if interest rates rise.

Watch the book value per share

At current levels, AGNC Investment is trading right around book value per share of $10.04 and has a dividend yield of 14.4%. A bet on Annaly is a bet on a drop in interest rate volatility, which will probably happen once the Fed ends its tightening cycle.

Annaly is trading at a premium to its book value per share of $19.94; however, it has a better dividend yield of 16.6%. As a general rule, mortgage REITs trade right around book, so it usually pays to buy them at a discount to book, not a premium.

Despite Annaly’s higher yield, I like AGNC better, as home prices are beginning to decline, which will weigh on Annaly’s credit-sensitive book. I also don’t like buying mortgage REITs above book value. All this means I think AGNC Investment is the better buy at the moment.

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Core Asset Wealth Management Launches Socially Responsible Investment Strategies

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Core Asset Wealth Management is a financial management company. Recently, the company has incorporated SRI and Gene Therapies into its services.

Seoul, South Korea–(Newsfile Corp. – December 3, 2022) – Core Asset Wealth Management approaches socially responsible investing (SRI) in the latest development and seeks to maximize investment returns while avoiding companies that harm the environment or society.

As socially responsible investing has evolved into Environmental, Social, and Governance support, Core Asset Wealth Management is facilitating its clients with sustainable investment strategies. As the name implies, it is an investment process that considers environmental, social, ethical, and governance issues before allocating funds. All investors want to see their portfolios grow, but not at the expense of ethical practices, society, or the environment. Popular sustainable industries have recently included solar, wind, waste management, and water filtration.

Core Asset Wealth Management investment planning is not just about finding ethical and socially responsible companies to invest in but also about taking an activist role by using their voting rights to affect change.

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The company is focusing on Gene Therapy. It delivers an innovative yet controversial area enticing to invest in due to the possibility of curing previously incurable diseases. However, many ethical issues arise from the processes used, such as animal testing and the resulting changes that can occur in our DNA.

Core Asset Wealth Management uses many different socially responsible investment vehicles that can be used with Wealth Management. Stocks and bonds are always readily available, but applying the various SRI filters can be overwhelming and time-consuming. Socially responsible mutual funds and exchange-traded funds are more accessible ways to participate in SRI investment. For accredited investors, more customized SRI investments are available such as hedge funds, venture capital, and private equity funds.

Furthermore, Core Asset Wealth Management focuses on Ethical investing and shunning companies that test their products on animals, provide harmful effects, or regularly engage in fraudulent or deceptive practices.

By avoiding investments in these companies, Core Asset Wealth Management sends a message that they disagree with their unethical operations and support businesses that improve their lives and community. Ethical Investments provide the opportunity to apply their moral beliefs to the company’s Retirement Planning and other accounts. Core Asset Wealth Management Ethical Investments meet environmental, social, and ethical criteria to be included in various socially responsible investment (SRI) vehicles. These investments are divided into multiple categories based on their grade of green qualifications to help potential investors evaluate their options.

With new developments, Core Asset Wealth Management has come up with the following additional services:

Green Investments – Light

Light green investments are the lowest part of the ethical investment scale. This responsible investing filter avoids gambling, military, defense, nuclear energy, “sin” related companies, and weapons manufacturers.

Green Investments – Medium

Medium green investments are in the middle and apply a more rigorous filter that avoids oil and gas companies and alcohol and tobacco.

Green Investments – Dark

Dark green investments apply the strictest filters for investment ethics. They screen out companies that are active polluters, ignore social issues and focus on renewable energies like solar, recycling companies, and water purification investments.

About the Company – Core Asset Wealth Management

Core-Asset Wealth Management provides financial analysis and consulting to a broad range of retail clients and businesses. It also facilitates its client with Account Management, Market and Media Analysis.

Potential clients should visit the official https://acg-wealth.com/ for further updates.

MEDIA DETAILS:
COMPANY NAME: Core Asset Wealth Management
Client Name: Timothy Houston
Contact number: +822 3782 6980
E-mail: info@acg-wealth.com
Website: https://acg-wealth.com/

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/146692

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Turkey’s CHP Vows $100 Billion of Direct Investment If Elected – BNN Bloomberg

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(Bloomberg) — Kemal Kilicdaroglu , the leader of Turkey’s main opposition party, promised to bring $100 billion of direct investment if elected to power in the elections scheduled for June next year.

“There will be at least $100 billion of direct investment in the first three years of our government,” Kilicdaroglu said in Istanbul on Saturday, speaking at an event at which the CHP unveiled some of its economic, political and social policies.

He also said his government would secure an additional $75 billion investment in the first three years, from pension funds and wealth funds abroad, among other resources.

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The event dubbed “The CHP’s Second Century Vision” included speeches from Kilicdaroglu’s top economic aides and prominent economists, including Massachusetts Institute of Technology professor Daron Acemoglu. 

Faik Oztrak, CHP spokesman and deputy chairman responsible for economic policies, said the party would appoint a central bank governor who is “respected by the whole world.” The governor’s aim would be to permanently bring down inflation to single digits, he said. 

Incumbent central bank governor Sahap Kavcioglu is frequently criticized by the opposition over his failure to rein in inflation. Annual consumer prices in October accelerated to over 85%, the highest in almost a quarter century. 

Under pressure from President Recep Tayyip Erdogan, who is fixated on economic growth ahead of elections, the bank has cut its interest rate for four straight meetings, lowering it to 9% last month.

Read more: Turkey Slashes Interest Rate in Line With Erdogan’s Demand

Erdogan is a self-proclaimed enemy of high borrowing costs and he has fired three predecessors of Kavcioglu for clashing with him on monetary policy. Acemoglu said inflation would be lowered only through “normalization” in monetary policy and by fixing policies on interest rates.

“Turkey’s company and bank balance sheets also need to improve. If companies and banks have negative balance sheets they can’t make new investments. And Turkey needs significant new investments,” he said. “This will again be fixed with the right monetary policy, right financial policy and resources.”

©2022 Bloomberg L.P.

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