Mackenzie fund mergers 2021

This only affects those who own Mackenzie Investments Capital Class funds, in particular those held in non-registered accounts. Affected clients will have just received an explanatory letter from Mackenzie but I wanted to provide some additional comments. First, here is a timeline to provide context. Mutual funds in Canada are offered in two legal structures: […]

Dave’s fall 2020 update

First I want to give you an update about my business meeting processes. After 27 years and three office locations I was already thinking about shifting to a flexible office model when the pandemic came along and forced my hand. As of now and until the pandemic is over I will be doing meetings by […]

Diversification – audio podcast

A discussion of the definition, meaning and application of the principle of diversification to the process of creating an investment portfolio.

Financial advisor value propositions

A discussion of how a financial advisor may add great value or perhaps none at all, depending on the subject in question.

Audio podcast – How You Pay Me Through A Service Fee

As I work towards creating a podcast to supplement client communications, below is a a short audio file that explains how you, my valued clients, pay me through an embedded service fee mechanism.  Please have a listen and of course just ask if you have any questions.

Federal Budget 2016 changes tax rule about corporate class mutual funds

2016 Budget measure: Corporate Class Mutual Funds Canadian mutual funds can be in the legal form of a trust or a corporation. While most funds are structured as mutual fund trusts, many are also structured as mutual fund corporations (otherwise known as corporate class mutual funds). Corporate class funds offer investors different types of asset […]

A few of the changes made in the 2016 Federal Budget

Budget measure: Corporate Class Mutual Funds This topic is covered extensively in a separate post. Budget measure: Increasing Tax Rates The Federal and Ontario governments have both been raising tax rates at certain levels by adding new, higher tax brackets while sometimes slightly lowering other brackets. This adds to the complexity of tax planning and generally […]

Update – Trimark Global Endeavor

Erin Greenfield, co-manager of the Trimark Global Endeavor Fund spoke to financial advisors in Ottawa in November 2015. The investment philosophy of the whole Trimark team has several primary characteristics: Recognize you are buying a business, not just a stock; Focus on quality of the company and its management; Use a strict discipline when assessing the […]

Ontario Estate Administration Tax (EAT) 2015 changes

The beginning of 2015 saw a dramatic change in how estates in Ontario are administered. The stated goal of the legislative change is to “enhance compliance” – which really means an attempt at collecting more tax. The process of court certification of a will that gives the executor (officially known as an “estate trustee) the […]

They think… I know

In my experience, my business philosophy is different from many financial advisors.  Imagine you are meeting an advisor for an initial interview. The discussion likely centers on what you think you want. You might do a questionnaire that is supposed to assess your willingness to deal with “risk”.  Eventually, the advisor tells you he can […]

Ivy: a brief history

Reprinted with permission from the Mackenzie Ivy Quarterly Report, Q3 2015. Ivy was established at Mackenzie back in 1992 and it is a reflection of Jerry Javasky, co-founder of Ivy and his very cautious and diligent investment style. There have been a number of people over the years (some who have come and gone) that have made […]

Ivy: success explained

Reprinted with permission from the Mackenzie Ivy Quarterly Report, Q3 2015. Ivy has had a long-term track record of success not only in terms of mutual fund returns but also with respect to client outcomes. We believe this success has been achieved primarily because of our belief system, which has been built upon by the […]

Cundill Value Fund update

I recently had the opportunity to privately talk with Lawrence Chin, co-manager of the Mackenzie Cundill Value Fund. Lawrence noted that the fund has under performed the group average recently due to its exposure to some energy and materials companies and lack of exposure to large high tech companies, combined with the fact the market […]

Why does pessimism sound so smart?

I came across this terrific article that talks about several reasons why the press, politicians and most everyone else tends to treat optimists like reckless cheerleaders and pessimists as intellectually captivating.  In Matt Ridley’s book “The Rational Optimist” he wrote: If you say the world has been getting better you may get away with being called […]

What’s new for your 2015 and 2016 tax returns

With every new government it seems must come a bunch of tinkering with the incredibly complex income tax system, as each government rewards some groups and takes more from others.  IN 2016 Canada elected a new Federal Government and they have already announced a batch of changes, with final details to come shortly in a […]

What do you think is happening?

For an audio version of this posting, please just click below to play it. . After four years without a market correction of any consequence, many people have become acclimatized to a stable and rising series of account statements.  As a side note, I believe the regulatory requirement for such frequent statements is in part […]

RRIF rule changes from 2015 Federal Budget

When a RRSP holder reaches age 71, the plan must either be collapsed entirely or converted to income.  The plan of choice for most is a Registered Retirement Income Fund (RRIF) – an account type that has almost all the same characteristics and rules as a RRSP, except that it requires the planholder to withdraw […]

Changes to the Universal Child Care Benefit (UCCB)

The following material is from the Canada Revenue Agency website that explains the UCCB. Summary: Under proposed legislation, the Government is increasing and expanding the UCCB starting in 2015. The UCCB is being enhanced by providing up to $1,920 per year for each child under the age of 6, and introducing a new benefit of […]

Investment value moves around the world

I recently met again with Lawrence Chin, co-manager of the Cundill Value Fund.  One of the things that frequently strikes me about the Cundill team’s work is how they search the world for deep value investment opportunities and how the best ones are so often found before the rest of the world gets excited about […]

You might have a really long investment time horizon

Many clients will know of my interest in life expectancy and its implications for retirement income planning.  For many years I have taught an adult education class titled “What If I Live To Be 100” and this helps keep me up to date on changes in this area. The November 2013 edition of The Atlantic […]

Disregard all short term forecasts and predictions

When they feel uncertain, investors often look to the investment media for insights into how to position their portfolios. While reading the work of these forecasters and prognosticators may seem to provide compelling evidence you should “do something”, they usually add no real value and are more likely to detract value. As an example of this, one study tracked the […]

Certified Executor Advisor – added qualification for Dave

A Certified Executor Advisor (CEA) is an accredited specialist advising Canadian executors using a team-oriented networking approach. CEAs will likely have expertise in one or more of the disciplines required by executors and, by taking the CEA program, gain a practical level of knowledge in all remaining areas.  Their relationships with experts in these other […]

By and large, having few ideas is better

Nobel laureate Daniel Kahneman is a world leader in studying investor behaviour and the psychology of investing.  At a recent conference he was asked to condense his career, built upon studying how people think, into the most essential piece of advice for financial advisers. His advice: “Don’t churn accounts and trade too much.” Kahneman is credited with […]

Warren Buffett on the importance of discipline

“I will not abandon a previous approach whose logic I understand even though it may mean forgoing large, and apparently easy, profits to embrace an approach I don’t fully understand, have not practiced successfully and which, possibly, could lead to substantial permanent loss of capital.”   —Warren E. Buffett, America’s most admired, least imitated investor

Chasing performance

In the early years of this century one Canadian fund company, Sprott Asset Management, had incredibly strong performance for several years in a row in its flagship fund and then topped the short and long-term mutual fund performance charts.  The company then was able to advertise this amazing performance, attracted many new investors, grew its assets […]

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