Connect with us

Investment

Sun Life Financial buying majority stake in U.S. investment manager Crescent Capital – Preeceville Progress

Published

 on


TORONTO — Sun Life Financial Inc. has signed a deal to acquire a majority stake in Crescent Capital Group LP in an agreement worth up to $450 million.

Under the deal, Sun Life will acquire a 51 per cent stake in the alternative credit investment manager for an upfront payment of $370 million and up to an additional $80 million, based on the achievement of certain milestones.

article continues below

Sun Life also says it has committed to co-invest up to approximately $1 billion in Crescent’s investment strategies.

Crescent is focused on mezzanine debt, middle market direct lending in the U.S. and Europe, high-yield bonds and broadly syndicated loans.

The firm, which is based in Los Angeles, had approximately $38 billion in assets under management as of June 30.

It is expected to continue operating independently under its current leadership.

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

Companies in this story: (TSX:SLF)

Let’s block ads! (Why?)



Source link

Continue Reading

Investment

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

Published

 on


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/

Let’s block ads! (Why?)



Source link

Continue Reading

Investment

Bitcoin rally ends – Investment Executive

Published

 on


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

Let’s block ads! (Why?)



Source link

Continue Reading

Investment

Gold Is a Dull Investment – Morningstar.ca

Published

 on


I’ve never been a big fan of gold. It’s not a productive asset, so it doesn’t generate any cash flows, and it’s only worth what someone else is willing to pay for it. Yet there’s evidence that gold can serve as a hedge against a market meltdown and inflation, so it may serve a purpose as a small position in a diversi­fied portfolio. The opportunity cost of holding gold is currently low, as real interest rates are negative.

Yet insurance doesn’t boost expected returns. Rather, it tends to reduce them. There is no compelling economic reason to expect gold to provide strong real (inflation-adjusted) returns over the long term. Gold is far from a perfect hedge against inflation and market tail risk. But then again, nothing is.

Investors willing to accept the cost of this imperfect insurance might consider a low-cost physical gold exchange-traded fund like SPDR Gold MiniShares (GLDM). It owns gold bars in a vault in London, so it should closely hew to gold spot prices.

An Imperfect Hedge
Gold is a strange metal. It is a commodity that behaves as a safe-haven asset, largely because of its universal role as a store of value for thousands of years. Sam Lee, a former editor of this newsletter, articulated it well when he said, “The best way to think of gold is as a nonyielding currency with a special trait: The only way to ‘print’ it is to pull it out of the earth at great cost.” Like any foreign currency, the price of gold tends to move in the opposite direc­tion of the strength of the U.S. dollar.

Predicting the movement of any currency or commodity is very difficult, and gold is no different. The best reason to own it is as a hedge against a market meltdown and inflation, rather than as a spec­ulative bet that gold prices will be higher in the future. Over short periods, gold has been uncorrelated with stocks, but over longer holding periods the two assets have been negatively correlated, as Exhibit 1 shows. In other words, gold has tended to do well in stretches when stocks have fared poorly, and vice versa. For example, during the global financial crisis from Oct. 9, 2007, through March 9, 2009, gold cumu­latively gained 25.9%, while the S&P 500 lost 54.9%.

There is no law that this relationship must always hold, and there are no economic drivers to enforce it. It exists because investors perceive gold as a safe-haven asset and use it accordingly. While there isn’t a compelling reason to expect that perception to change, the hedge is only as strong as that perception.

In this way, gold is similar to fiat currencies like the U.S. dollar. Its value depends on others’ faith in it, as there are limited practical applications for it aside from jewelry. The difference is the supply of gold is fairly stable, while central banks can change their money supply at will. This underpins the second reason for owning gold: to hedge against inflation.

Like most commodities, gold prices have been positively correlated with inflation, as Exhibit 1 shows. But they don’t move in lockstep with inflation. Gold can and has lost purchasing power over decade-long spans, as it did between August 1993 and December 2005. Investors who bought gold at its record high real price in January 1980 are still waiting to be made whole on an inflation-adjusted basis. Gold is clearly not a perfect inflation hedge, though it can help boost returns in inflationary periods.

Exhibit 1 - Gold correlation with stocks and inflation

Cryptocurrency has emerged as a competing asset with gold for investors who don’t trust government-issued currency. While this could reduce investment demand for gold, it still has a couple of things in its favor: | It has proven staying power and is more likely to be around 50 years from now than any cryptocurrency; and | gold still behaves like a safe-haven asset, while most cryptocurrencies are highly speculative.

Opportunity Cost
Gold doesn’t yield anything, so there’s an opportunity cost to own it. The lower interest rates are, the lower that opportunity cost is. Consequently, there has been a strong inverse relationship between real (inflation-adjusted) interest rates and the real price of gold, like most bonds. Because current prices and future returns move in opposite directions, the expected returns on gold are positively correlated with real interest rates, even though gold yields nothing. Exhibit 2 shows this relationship. Low interest rates inflate gold prices but depress future returns.

Exhibit 2: Relationship between real 10-year interest rate and subsequent 1-year real gold return

Rising interest rates hurt gold prices by increasing the opportunity cost of holding it. So a bet on gold is also a bet that real interest rates will remain low.

Because real interest rates are near record lows, it’s not surprising that real gold prices in U.S. dollars are near record highs, as shown in Exhibit 3. Viewed in this light, gold is far from a screaming buy. Although its long-term real returns will likely be lower going forward, gold may still be worth considering. It’s not perfect, but it can still serve as a hedge against tail risk and inflation.

Exhibit 3: Gold-Consumer Price Index

Let’s block ads! (Why?)



Source link

Continue Reading

Trending