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Never leave your investment portfolio on ‘auto pilot’ – Fairview Post

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Christine Ibbotson

Dear Money Lady:

I invest on my own but am thinking of talking to a financial planner from my bank to expand my portfolio. Do you think that is a good idea or should I just keep doing it on my own? Should I take on more risk to get a better return?

John

Dear John:

Good question – but make sure your new advisor understands your risk tolerance and your future goals.

Most Canadians are invested in the market in some way or another with or without an advisor through mutual funds, market linked GICs, guided stock portfolios or exchange traded funds.

Experienced investors understand the risk-return trade-off of the market and are more comfortable with market volatility, constantly looking for opportunities to profit over long time horizons.

While it is true that one must accept a higher degree of risk to earn a higher return, not all investors can afford future losses. Our ability to bear risk has a tendency to decrease as we age, and often those investors who believe they have a high tolerance for market risk, suddenly change their minds when the market turns against them.

If you are not a knowledgeable investor John, and plan on relying solely on the decisions of your new advisor, you should make sure you have communicated your risk tolerance and are invested correctly. Often clients fill out risk questionnaires with their advisors the way they would like to behave when faced with risk, while how they really behave, may be completely different.

To give you an example, if you are moderately risk averse, you would not want to be invested in a precious metals fund since they potentially have high volatility.

Your investment portfolio should never be left static or on “auto-pilot” with your advisor (no matter how much you like them).

Assumptions should not be made when it comes to your money and you should be speaking to your advisor regularly with a routine six-month financial review. As people age, their objectives, financial and personal circumstances and overall risk tolerance change.

Proper tax planning should be a part of every investor’s overall financial strategy, but not at the expense of more risk adverse investments. Tax minimization should never be the sole objective, nor can it be allowed to overwhelm the other elements of a proper financial plan.

Remember that it is the “after-tax income return” that is important. Choosing an investment based solely on a low tax status does not make sense if it results in a lower after-tax rate of return.

The best risk and tax advantages are usually gained by planning early and planning often. Financial plans should be simple, easy to implement, and easy to maintain. Make sure you understand each investment product you have chosen and are aware of the potential risks as well as the potential future rewards.

Good Luck and Best Wishes,

Money Lady

Written by Christine Ibbotson, author of the best-selling book, How to Retire Debt Free & Wealthy, and a new book Don’t Panic – How to Manage your Finances and Financial Anxieties During and After the Coronavirus. Both are available at all bookstores across Canada. If you have a money question, please email on website: www.askthemoneylady.ca

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Dyson unveils £2.75bn investment plan in battery technology, robotics and machine learning – Proactive Investors USA & Canada

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Dyson said it plans to invest £2.75bn in battery technology, robotics, intelligent products, machine learning, connectivity and material science.

The private company, which is owned by Britain’s richest person, James Dyson, will focus investment on sites in Singapore, the UK and the Philippines, hiring engineers and scientists after it cut 900 jobs in July as part of a cost-cutting exercise.

Dyson said one of its main areas of focus is bringing its proprietary solid-state battery technology to market, which it claims will offer “safer, cleaner, longer-lasting and more efficient energy storage”.

“Now is the time to invest in new technologies such as energy storage, robotics and software which will drive performance and sustainability in our products for the benefit of Dyson’s customers,” said chief executive Roland Krueger.

“We will expand our existing product categories, as well as enter entirely new fields for Dyson over the next five years. This will start a new chapter in Dyson’s development.”

In the UK, the company said it was concentrating more investment on robotics research and artificial intelligence (AI) at its restored World War Two Hullavington airfield site ‘campus’.

New investments at Hullavington and Malmesbury, which employ over 4,000 people, will fund research in fields such as products for sustainable healthy indoor environments and wellbeing.

Dyson opened over 100 retail shops in 2019 and a further 30 in 2020 and the plan is to continue expanding its retail footprint.

Founder James Dyson topped the Sunday Times Rich List for the first time earlier this year, with his wealth increasing to an estimated £16.2bn.

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Manulife Investment Management Announces Estimated Cash Distributions for Manulife Exchange Traded Funds – Canada NewsWire

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C$ unless otherwise stated 

TSX/NYSE/PSE: MFC     SEHK: 945

TORONTO, Nov. 27, 2020 /CNW/ – Manulife Investment Management today announced the December 2020 cash distribution estimates for Manulife Exchange Traded Funds (ETFs) that distribute semi-annually. Please note that these are estimated amounts only as of October 9, 2020, and reflect forward-looking information which may cause these estimates to change.

Unitholders of record of the Manulife ETFs at the close of business on December 31, 2020 will receive cash distributions payable on January 13, 2021. The ex-dividend date for the cash distributions is December 30, 2020.

Details of the distribution per unit amounts are as follows:

ETF

Ticker

Distribution Amount
(per unit)

Manulife Multifactor Canadian Large Cap Index ETF

MCLC

$ 0.120424

Manulife Multifactor U.S. Large Cap Index ETF – Unhedged

MULC.B

$ 0.205903

Manulife Multifactor U.S. Large Cap Index ETF – Hedged

MULC

$ 0.192679

Manulife Multifactor U.S. Mid Cap Index ETF – Unhedged

MUMC.B

$ 0.068462

Manulife Multifactor U.S. Mid Cap Index ETF – Hedged

MUMC

$ 0.049585

Manulife Multifactor Developed International Index ETF – Unhedged

MINT.B

$ 0.133343

Manulife Multifactor Developed International Index ETF – Hedged

MINT

$ 0.140300

Manulife Multifactor Canadian SMID Cap Index ETF

MCSM

$ 0.017269

Manulife Multifactor U.S. Small Cap Index ETF – Unhedged

MUSC.B

Manulife Multifactor U.S. Small Cap Index ETF – Hedged

MUSC

$ 0.047103

Manulife Multifactor Emerging Markets Index ETF

MEME.B

$ 0.156765

Manulife ETFs are managed by Manulife Investment Management Limited (formerly named Manulife Asset Management Limited). Manulife Investment Management is a trade name of Manulife Investment Management Limited. Commissions, management fees and expenses all may be associated with exchange traded funds (ETFs). Investment objectives, risks, fees, expenses and other important information are contained in the ETF Facts as well as the prospectus, please read before investing. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated.

About Manulife Investment Management

Manulife Investment Management is the global wealth and asset management segment of Manulife Financial Corporation. We draw on more than a century of financial stewardship and the full resources of our parent company to serve individuals, institutions, and retirement plan members worldwide. Headquartered in Toronto, our leading capabilities in public and private markets are strengthened by an investment footprint that spans 17 countries and territories. We complement these capabilities by providing access to a network of unaffiliated asset managers from around the world. We’re committed to investing responsibly across our businesses. We develop innovative global frameworks for sustainable investing, collaboratively engage with companies in our securities portfolios, and maintain a high standard of stewardship where we own and operate assets, and we believe in supporting financial well-being through our workplace retirement plans. Today, plan sponsors around the world rely on our retirement plan administration and investment expertise to help their employees plan for, save for, and live a better retirement. 

As of September 30, 2020, Manulife Investment Management had CAD$923 billion (US$692 billion) in assets under management and administration. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.

SOURCE Manulife Investment Management

For further information: Media Contact: Olivia Jones, Manulife, (438) 340-3416, [email protected]

Related Links

https://www.manulifeim.com/

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Bitcoin rally ends – Investment Executive

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Markets move past election uncertainty

With Biden’s transition underway, investors have shifted their focus to Covid vaccines and economic recovery

Domestic RI assets increase amid rising investor demand: RIA

Canadian assets in responsible investments reached $3.2 trillion at the end of 2019

  • By: Katie Keir
  • November 26, 2020
    November 26, 2020
  • 12:20

Provinces push for delay in planned CPP premium bump

The details were in a letter sent to Finance Minister Chrystia Freeland two days ago

Court rejects class action against RBC fund dealer

Case claimed extra compensation for selling in-house funds harmed investors

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