The COVID-19 pandemic has been one of the most disruptive events of our lifetimes, unleashing economic effects that have been sharp, expansive and unprecedented.
The stomach-churning stock-market declines of March appear to be behind us, but the worries about a second wave of the pandemic along with the deep scars of job losses, increasing debt loads and continued economic uncertainty remain top of mind for most Canadians.
The pandemic has changed our lives completely, and we have to assess its true impact on the household finances of many Canadians as we begin the transition toward recovery.
For small-business owners, their employees and others who have borne the heavy brunt of this crisis, economically, retirement planning will become even more important to ensure they’re able to make up for this difficult time.
For some investors, this crisis has tested their appetite for risk and has encouraged others to seek a greater level of financial advice and knowledge.
For financial advisors, COVID-19 has provided an opportunity to build greater relationships with clients that focus on holistic wealth management principles, including behavioural coaching and estate planning.
Although economic recovery is already underway, getting business activity back to prior levels could take some time given the health risks and the continued adjustment to a “new normal” in our society.
Profound economic shocks have historically accelerated certain trends that were already underway, leading to changes in society and consumer behaviour. Amid so much change today, there are three things that need to happen to help us emerge stronger and give middle-class investors the best chance for long-term success.
1. Improve transparency on investment fees
This crisis is forcing many Canadians to evaluate their expenses to ensure they’re getting value for them. We need to continue on this track by improving investment fee transparency in order to truly help investors understand what they’re paying for when receiving financial advice and products – particularly middle-class investors who will need the help of financial professionals to reach their retirement and savings goals.
A recent CFA Institute study out of the U.S. found that full disclosure of fees and other costs is a key factor among 83 per cent of retail investors surveyed in creating trusted relationships with an advisor.
We’ve seen signs of progress on this matter, with the Canadian Securities Administrators moving to limit or ban the use of deferred sales charges on the sale of mutual funds. That’s a strong signal and a move in the right direction.
But more can be done to help make investment fees and the cost of financial advice more transparent and aligned with other professional services, in which clients are fully aware of what and how much they’re paying for the services provided.
As an industry, we must provide our clients with simple and meaningful disclosure of investment costs in a way that’s easily understandable. Our credibility and the trust of investors depends on it.
2. Support innovation in the delivery of financial advice
The financial services industry gone through – and will continue to undergo – significant changes as a result of COVID-19. New technologies and evolving needs have raised the expectation for advisors to make interactions with clients more digital and mobile-friendly. That trend is poised to accelerate further in the months and years ahead.
Smart use of technology can create tremendous value and opportunity for all financial services firms to deliver better capabilities at a better price point for investors. Making financial services more accessible to a broader category of investors can have a significant long-term economic benefit.
A supportive regulatory framework is needed to help accelerate innovative approaches in the delivery of digital financial advice and solutions that are investor-focused.
3. Strengthen Canadians’ financial literacy
The Ontario provincial government’s recent announcement to introduce enhanced financial literacy courses in the updated school curriculum that will take effect in September is an encouraging sign.
The recent bout of extreme market volatility and the fear that gripped many investors during the past few months shines a light on the importance of having strong financial advice and acumen in sticking to your long-term plan.
For investors, changing your strategy as an emotional response to market downturns can be a huge mistake, as many learned when they moved money to the sidelines in March only to miss out on the recovery that followed.
Strengthening financial literacy is a key component of helping Canadians save more and invest effectively. Policy-makers and regulators need to adapt and become more proactive and collaborative in helping Canadians improve their financial literacy and overcome a potential retirement savings gap in a future low-growth economy.
Kathy Bock is managing director and head of Vanguard Investments Canada Inc. in Toronto.
COVID-19 forces one of the biggest surges in technology investment in history, finds world's largest technology leadership survey – Canada NewsWire
The largest technology leadership survey in the world of over 4,200 IT leaders, analyzing responses from organizations with a combined technology spend of over US$250bn, also found that despite this huge surge of spending, and security & privacy being the top investment during COVID-19, 4 in 10 IT leaders report that their company has experienced more cyber attacks.
Bev White, CEO of Harvey Nash Group said: “This unexpected and unplanned surge in technology investment has also been accompanied by massive changes in how organizations operate – with more organizational change in the last six months than we have seen in the last ten years. Success will largely be about how organizations deal with their culture and engage with their people.”
Steve Bates, Principal, KPMG in the US and global leader of KPMG International’s CIO Center of Excellence, said: “IT in the New Reality will be shaped by economic recovery patterns unique to each sector, location, and company. While every CIO is responding to these forces differently, one thing remains consistent; the urgency to act swiftly and decisively. Technology has never been more important to organizations’ ability to survive and thrive.“
+44 (0) 7899 798197
+44 (20) 7333 2677
+1 416 777 8749
 See notes to editors.
 See notes to editors.
SOURCE Harvey Nash Group
Invest Well. Live Well: The value of advice – Kamloops This Week
The best athletes in the world use coaches to help them keep on track, maintain focus, monitor progress and achieve their goals. Despite being incredibly talented, athletes realize the value a coach brings to them personally and/or their team.
We like to say we are like your personal chief financial officer reviewing aspects of your wealth, providing personalized advice specific to helping you achieve what truly matters to you. There have been several compelling studies showing that working with a trusted financial advisor can help build wealth faster.
A January 2018 report from the Investment Funds Institute of Canada showed investors receiving advice accumulate 290 per cent, or 3.9 times, more wealth after 15 years than non-advised investors. Put another way, it could take 34 years to amass the same amount of wealth by going at it alone.
Another study by Vanguard Investments in 2019 showed that advisors may add approximately three per cent of value in portfolio returns over time. These returns were net of both fees and taxes. The Vanguard study mentions the range of around three per cent because not all advisors offer all of these services.
A breakout of where we believe advisors can help improve results:
1. Portfolio construction: Includes suitable asset allocation of a mix of stocks, bonds and alternatives. For example, we employ seven layers of diversification (asset class, geography, currency, style, size, sectors and alternatives). This should also entail using cost-effective solutions and placing each investment in the most tax efficient account (RSP, TFSA, etc.).
2. Wealth management: Includes regular portfolio rebalancing (trimming at highs and adding near lows). Creating a draw down or cash flow strategy. To help keep clients on track, advisors should be revisiting client’s objectives before major life events such as: having a child, marriage, divorce, retirement, disability, illness or death.
3. Behavioural coaching: 2020 has been a roller coaster ride that has tested investors. Advisors should help through challenging times by acting like an emotional circuit breaker to avoid hindering your wealth.
The study concluded the most important skill an advisor can bring is behavioural coaching. This coincides with several studies that have shown that the average investor underperforms due to emotional behavior working against them. A 2019 report from J.P Morgan showed that over a 20-year period, a portfolio of 60 per cent stocks and 40 per cent bonds in the U.S. returned an average of 5.6 per cent, whereas the average investor only earned 2.5 per cent.
On top of potential increased return, according to FP Canada, investors working with advisors feel twice as prepared for retirement as those without. These investors also reported higher levels of emotional, financial and overall contentment.
Financial concepts are complex and continually changing along with stock markets and demographics needs. Some key areas not covered in any of the research were the benefits of pension selection, charitable giving, income splitting and estate planning strategies. Savings in these areas could magnify the results but are likely harder to quantify.
The studies concluded that provided the advisor charged a reasonable fee, the benefits from the guidance of a full-service professional wealth manager should outweigh the costs and add 2.5 per cent a year.
Until next time, Invest Well. Live Well.
Written by Keith Davis. This document was prepared by Eric Davis, vice-president, portfolio manager and investment advisor, and Keith Davis, investment advisor, for informational purposes only and is subject to change. The contents of this document are not endorsed by TD Wealth Private Investment Advice, a division of TD Waterhouse Canada Inc.-Member of the Canadian Investor Protection Fund. All insurance products and services are offered by life licensed advisors of TD Waterhouse Insurance Services Inc., a member of TD Bank Group. For more information, call 250-314-5124 or email Keith.email@example.com.
AGF Management Limited and WaveFront Global Asset Management Partner to Deliver Investment Management Capabilities to Rapidly Growing China and South Korea Markets – GlobeNewswire
TORONTO, Sept. 21, 2020 (GLOBE NEWSWIRE) — AGF Management Limited (AGF) and WaveFront Global Asset Management Corp. (WaveFront) today announced the launch of AGFWave Asset Management Inc. (AGFWave), a new joint venture for providing asset management services and products in China and South Korea.
AGFWave combines AGF’s investment expertise and global brand strength with WaveFront’s existing distribution capabilities in China and South Korea, including partnerships with industry leaders in both regions.
“Combining AGF’s investment capabilities with the robust distribution channels and sales capabilities of WaveFront’s strategic partners Hwabao WP Fund Management, J Royal Asset Management and Vogo Fund Asset Management mean AGFWave is well positioned to capitalize on the rapidly growing asset management industries in China and South Korea,” said Kevin McCreadie, Chief Executive Officer and Chief Investment Officer, AGF.
Initially, members of AGF’s quantitative investment team AGFiQ, will work together with members of WaveFront’s team as AGFWave’s Investment Committee. AGFiQ’s existing investment management resources and capabilities are a strong fit for WaveFront, aligning to a similar quantitative investment philosophy and boasting demonstrated strong track records in key areas of focus for these markets.
“We are very excited about the opportunity to partner with AGF and believe their unparalleled investment management expertise will not only lead to stronger demand for our current products, but enable us to develop and launch new products in key areas our partners and clients are eager to access” said Roland Austrup, Chairman and Managing Principal at WaveFront.
In addition to taking over investment management duties for existing market differentiated investment products on behalf of partners and clients, AGFWave will also be responsible for new product development in these markets, working closely with both Chinese and South Korean partners on exploring future opportunities to bring AGF’s other quantitative and complementary fundamental investment management capabilities to these rapidly growing markets. AGFWave, with its partners in China, is also positioned to offer China A-share products to Institutional investors globally.
About AGF Management Limited
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.
AGF has investment operations and client servicing teams on the ground in North America, Europe and Asia. With $37 billion in total assets under management, AGF serves more than one million investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.
About WaveFront Global Asset Management
Founded in 2003, WaveFront is a privately-owned global asset management company based in Toronto, Canada. Today, WaveFront manages over $1.7 billion for individual and institutional investors in North America, China and South Korea across a diverse range of investment strategies and solutions.
Informed by decades of research and experience through many market cycles, WaveFront’s success is based on applying a data-driven, scientific approach to observing and analyzing market behavior to identify and capture those opportunities that can deliver superior long-term investment performance for their clients.
Director, Corporate Communications
Snowbirds debate winter plans as temperatures drop and COVID-19 cases rise – CTV News
Pegatron plans to invest $1 billion in Vietnam plant: state media – TheChronicleHerald.ca
Kirk has HR, four hits, Jays beat Yankees – TSN
Silver investment demand jumped 12% in 2019
Iran anticipates renewed protests amid social media shutdown
Richmond BBQ spot speaks out about coronavirus rumours Vancouver Is Awesome
- Tech22 hours ago
Sony promises more PS5 pre-order stock for retailers – GamesIndustry.biz
- Tech17 hours ago
Sony apologizes for PlayStation 5 pre-order disaster – Polygon
- Health22 hours ago
Confirmed positive COVID-19 case at Holy Cross elementary school in Kemptville – Ottawa Valley News
- Investment23 hours ago
Victory Capital Announces Investment in Alderwood Partners | 2020-09-21 | Press Releases – Stockhouse
- Health19 hours ago
Sore throat, runny nose among symptoms removed from student health checklist, province confirms – CBC.ca
- Tech9 hours ago
Xbox Series X And Series S Pre-Order Guide: Where To Get Microsoft’s Next-Gen Consoles – Forbes
- Science13 hours ago
A Florida woman was attacked by a 10-foot alligator while trimming trees – WSVN 7News | Miami News, Weather, Sports | Fort Lauderdale
- Science15 hours ago
Artist Mark Johnson to Paint Alligator That Attacked Him in Port St. Lucie, Florida – Newser