Bistre

One more sleep. Finally.

Elections tend to be predictable. At least, the politicians are. The themes never vary. Almost always it’s about ‘change’. People seeking support also divide the country into ‘us vs them’. They invariably ask if you’re better off now than years ago, and hope you forget what things were actually like. And they use fear as a prime motivator. Vote for me or you’ll be foraging for food, lose your job, be unable to afford anything, never own a home or see your retirement savings wiped out as markets collapse. Trump was a master of that. Still is.

Repeatedly we’ve been told the nation is pooched. Canada is ‘not a real country’ says Elon Musk. It’s an ‘artificial nation’ says the Bloc Quebecois leader. ‘You’d be better off as a state,’ says Trump, because ‘it’s not a real country’. Western Canada ‘may decide to separate’ says former Reform leader Preston Manning. And Pierre Poilievre spent the last three years saying, ‘Canada is broken.’

Is it?

“My Tory brother sent me your blog,” writes Ralph Stanton. So he decided to answer that question for himself.  “Here is a little research about how “broken” Canada is compared to neighbour to the south. What’s the difference? Here is a short look at some indicators.”

This what Ralph sent. Read it before voting tomorrow.

Life expectancy:

The mother of all statistics; how long can you expect to live. In the US it is 79.3 years, in Canada 82.6. As a Canadian you can expect to live 3 years and 3 months longer. Canada is 19th in LE after Iceland 17th and Martinique 18th, the US is 48th after Panama 46th and Albania 47th.

Happiness:

The US ranks 24th in happiness Canada ranks 18th. Key factors in the US include a decline in social dining and increased deaths of despair.

Suicide:

US is 31st in the world with 14.5 suicides per 100,000, Canada is 67th with 10.3 suicides per 100,000.

Murder:

The US has a homicide rate of 496 per 100,000 or 16,214 people. Canada’s rate is 1.76 per 100,000 or 651 people (both 2022). As a proportion of the population 2.8 times the number of Americans are murdered.

Incarceration rates:

The US has an incarceration rate of 541 per 100,00 for a total of 1,808,100 people incarcerated (5thin the world) while Canada’s is 90 per 100,000 or 35,485 (163rd in the world). Thus 5.5 Americans are in jail for every Canadian in jail. The privatised prison system in the US needs more prisoners and longer sentences to make a profit. This system consumes an extraordinary 6% of US GDP.

Death by police:

per 10 million, 33 Americans die at the hands of police officers, the figure in Canada is 19 per 10 million of population.

Heath care expenditures and costs:

Health expenditures in the United States average out at $12,914 per person, nearly double the $6,500 spent per person in Canada. The US spends 16% of its GDP on health care and Canada spends 10.4%.Yet Canadians live longer. As individuals we pay far less for health care than our US neighbours and thus we have to pay higher taxes.

Education:

Canada scores well above the OECD average in literacy, numeracy and adaptive problem solving while the US rates at or below the OECD average in the three categories. The per year cost of a Doctorate program in the US ranges from $28,000 to $55,000 while in Canada the figures are $6,000 to $16,000. Different educational levels have widely different cost figures but Canadian education is cheaper in general. Canadians have the highest educational attainment of the G7 countries.

Income inequality:

The US is the 13th most unequal country in terms of income distribution while Canada is the 44th most unequal.

Financial Stability:

In 2008 US households lost 11 trillion dollars in wealth. In both the Great Depression and the 2008 financial meltdown major US banks collapsed. This did not happen in Canada.

Debt:

According to the World Bank gross public sector debt as a share of gross domestic product in 2022 stood at 105% in the US and 46.5% in Canada. US federal government debt to GDP is 123% while Canada’s is 107.5%.

Income, wealth:

GNI is Gross National Income per capita. All dollar amounts are in US dollars. The US is 6th in the world at $80,300, Canada is 18th at $53,930. Average income per adult in the US is higher than Canada’s but because income in the US is so skewed to the very rich the median figure (the mid-point from highest to lowest) for income in Canada is higher than the US. In other words, more Canadians are better off as a proportion of the total population. In terms of wealth per adult, in Canada the median figure is $142,587 and in the US $112,587.

Language:

Canada is an officially bilingual country while the US insists on unilingualism. The traditional language rights of Francophones, which secured the unity of Canada, would be extinguished by a merger of the two countries. In part this explains the past and present resistance of Quebec to any merger with the USA.

Reproductive rights:

Canada supports a woman’s right to choose if or when to have children, allows ready, and sometimes free access to birth control as well as therapeutic abortions. 41 US states have abortion bans.

War:

The USA is the most warlike country on earth. Since its founding in 1776 it has been at war for all but 17 years of its existence. It spends about 40% of the world’s military budget to “defend” 6% of the earth’s land and 4% of the world’s population. If Canada were part of the US our youth would be used as cannon fodder in America’s wars.

Democracy:

At the federal level Canadians have a choice of five political parties, who represent Canada’s 40 million people. American have a choice between two political parties which represent 340 million Americans. Former US President Jimmy Carter called the US an “oligarchy with unlimited political bribery” after the 2010 Citizen’s United Supreme Court decision removed all limits on corporate donations to political campaigns.

About the picture: “Long ago reader, when you were business editor of a Toronto Daily Newspaper (in the mid 80’s as I recall) and long ago watcher when you were  on  most evenings of a Toronto television channel providing the daily business updates,” writes Ward.  “Then one evening you mentioned you were leaving… And I lost contact until about a year ago when one of my kids forwarded me your blog and I have read ever since. I valued your opinions then (starting about 40 years ago) as much as I do again today.  This is a picture of Winchester (adopted) and Remington (spoiled), this winter on the rolling hills of south Uxbridge/ apparently the trail capital of Canada.”

To be in touch or send a picture of your beast, email to ‘garth@garth.ca’.

Les amateurs de films d’horreur font preuve d'une plus grande résilience face à la pandémie.

Avez-vous déjà pensé financer la retraite de vos clients avec le régime enregistré d’épargne-études (REEE) au lieu du traditionnel régime enregistré d’épargne-retraite (REER)?

« Rien n’est plus important et donc plus précieux que de savoir prendre des décisions ». – Napoléon Bonaparte

Nombreux sont les épargnants qui ne connaissent pas tous les bienfaits du REEE pour leur patrimoine familial. J’ai rencontré peu de parents qui avaient pleinement tiré profit de tous ses avantages. Vos clients qui ont des enfants devraient lire ce qui suit attentivement.

Lorsque votre client désire préparer sa retraite et détient des liquidités, plusieurs choix s’offrent à lui. Et tout le monde y met son grain de sel.

• Dépenser immédiatement l’argent pour faire ce fameux voyage en Tanzanie;
• Laisser l’argent au compte et penser que le Bon Dieu fera le travail;
• Rembourser ses prêts;
• Investir dans un REER, un compte d’épargne libre d’impôt (CELI) ou dans le REEE de ses enfants.

LES FAUSSES CROYANCES

Son ami lui dit : « Rembourse tes dettes en premier et tu seras riche… »

Son garagiste lui conseille : « Mon homme, investis dans tes REER et prend ton remboursement d’impôt pour payer tes dettes. »

Sa belle-mère lui assure : « Jeune homme, n’investis jamais dans les REER parce que tu vas finir par payer de l’impôt à ta retraite de toute façon. »

« Non, non et non! » répond son conseiller. Chaque situation doit être analysée au cas par cas. Vous devez vous assurer de mettre en place la stratégie qui  donnera le plus d’argent à votre client pour chaque dollar investi. Point final.

REER c. REEE : ÉTUDE DE CAS

C’est en analysant les situations particulières qu’on se rend compte que la solution parfois proposée d’emblée pour épargner n’est pas la plus avantageuse.

Jacques et Marie sont dans la trentaine et ont deux jeunes enfants. Malgré les importantes obligations financières qui viennent avec, ils prévoient investir près de 10 000 $ dans leur REER cette année.

Par un beau mardi ennuagé d’octobre, ils décident d’appeler un planificateur financier qu’on leur a référé il y a plusieurs mois. Jacques trouve que le planificateur financier pose beaucoup de questions. Pourtant, toutes ces questions lui permettent d’établir un plan de match et de proposer la meilleure stratégie au vu de leur situation.

Après plusieurs minutes de discussion et une rencontre en personne, le planificateur financier leur conseille d’opter pour la stratégie REEE. Le couple est stupéfait : le rendement supplémentaire est de 95,5 %*.

Actuellement, avec leur investissement de 10 000 $ dans leur REER, la valeur de leur patrimoine serait de 18 705 $ après 15 ans, net d’impôt.

Si ce même montant de 10 000 $ est investi dans le REEE au lieu du REER, la valeur de leur patrimoine serait de 27 026 $ après 15 ans, net d’impôt. Une fois les études des enfants payées, il reste donc davantage de fonds pour financer la retraite.

Le bénéfice s’élève à 8 321 $, soit 95,5 % de plus (rendement de 8 705 $ sur le 10 000 $ initial c. 17 026 $ avec la stratégie REEE).

Maintenant, amusons-nous et projetons cette différence sur 25 ans : Jacques et Marie auraient un montant supplémentaire de 28 177 $ pour leur retraite. Enfin, ils pourraient faire leur voyage en Tanzanie!

Morale de l’histoire : le REEE individuel ou familial ne sert pas seulement à accumuler des sommes pour les études des enfants, il sert aussi à optimiser le patrimoine familial, épargner pour la retraite et bénéficier des incitatifs gouvernementaux de 20 % au fédéral et 10 % au provincial, au minimum. C’est ça, la planification financière.

* Hypothèses : Rendement de 5 %, taux marginal d’imposition de 40 %, subventions liées au REEE de 30 % et 0 % d’impôt sur les paiements d’aide aux études (PAE).

La rédaction vous recommande : 

• Les changements aux REEE collectifs d’Universitas entérinés
• Quand l’argent tombe du ciel 
• L’éducation financière au goût du jour 

In the Canadian equity category, the poor results of commodity-based stocks translated into weakness in other sectors, such as financials. Still, one person’s problem is often another’s opportunity: Lower oil prices and lower interest rates leave more spending money in consumer’s pockets, while the low Canadian dollar encourages exports. As a result, portfolio managers who concentrate on the consumer, technology or industrial (non-oil related) sectors have fared better and will continue to do so, at least for a good part of this year.

Such is the case with Fidelity Canadian Large Cap, a consistent top performer that regularly appears in my fund selections. The actively managed fund has responded to weakness in the energy and materials sectors by emphasizing investments in technology and industrials.

Likewise, Steadyhand Equity has gained from light exposure to resources and from a healthy allocation to U.S. equities, which continue to benefit from the U.S. dollar appreciation. The fund is fairly diversified and operates with a low cost structure and moderate portfolio turnover.

Canadian Equity Funds

Benchmark index: S&P/TSX Composite Index TR, Five-year return: 3.77%

In the U.S. equity category, do not be fooled by the very strong results achieved by some funds over the past year. The results can be attributed to the U.S. dollar appreciation, as the S&P 500 ended 2015 almost flat on a currency-neutral basis. This proves a point I made last year: that diversifying into U.S. equities is important for Canadian investors. For a number of years now, heavy equity market losses have been accompanied by depreciation of the Canadian dollar. I expect the Canadian dollar will remain weak until we see concrete signs of recovery in commodity prices.
As the name suggests, TD U.S. Quantitative Equity uses a data-driven methodology for fund selection, although its behaviour suggests a high degree of similarity with the S&P 500. Still, the combination of low cost and low turnover has helped the fund deliver superior returns for three consecutive years. There is also evidence of some added value from active management.

Both Mawer U.S. Equity and Brandes U.S. Equity operate with the same favourable combination of low cost and low turnover. However, the funds exhibit a high degree of similarity with the S&P 500, thus limiting their ability to beat the index.

U.S. Equity Funds

Benchmark index: S&P 500 TR Index (C$), Five-year return: 20.57%

The global equity category is always a mixed bag. American equities typically constitute about half of a fund’s portfolio, so U.S. influence is inevitable. Meanwhile, European equities remain undervalued by historical standards and pay high dividends. That the euro is now cheap adds to the category’s attraction. As for emerging markets, further turbulence is expected, but a careful fund manager should identify bright spots within countries and sectors that benefit from cheap commodity prices. For those reasons, I think global equities currently represent a viable option for adding diversification to your portfolio.

Mawer Global Equity continues to post superior returns with relentless consistency. That the fund experiences less volatility than its peers or the index reflects value added from active management. It also has a low cost structure and low portfolio turnover: The average holding period of a security can be as long as seven years.

Manulife Global Equity Class Advisor Series has posted superior results in each of the past four years. The portfolio’s recent focus has been on financials, technology and health-care stocks. Although the portfolio is similar to the index, there is evidence of value added from active management. The fund’s very low portfolio turnover represents a structural advantage.

Global Equity Funds

Benchmark index: Dow Jones Global TR Index (C$), Five-year return: 14.11%

In the balanced category, the Manulife Monthly High Income tops the list for the second year in a row with consistent above-average returns. The fund maintains a well-diversified portfolio which contributes to an acceptable down market performance. However, as I mentioned last year, do not misinterpret the generous cash distributions as investment income, given that a large part of that is made of capital gains or return of capital. Actual net income distributions (from interest and/or dividends) remain in the vicinity of 2%.

Another consistent performer from last year’s Honour Roll is Fidelity Monthly Income. Its superior recent results have come on the back of a strong showing by the bond component of its portfolio and exposure to dividend-paying equities. Net investment income distributions have recently averaged 2.5%.

Incidentally, I have personal reservations about balanced funds. On average, most balanced funds retain at least 30% to 40% (and sometimes more) of their portfolio in bonds. I feel that you are paying unnecessarily high fees on this component of your portfolio, and could achieve better results by sticking to a diversified portfolio of stocks and bonds. That said, finding an optimal allocation can be a daunting task for many investors who prefer to outsource the chore to their fund manager. If you do invest in a balanced fund, ensure that it that charges low fees and delivers at least some added value from active management. Fortunately, the Honour Roll’s methodology shortlists funds with those very characteristics.

Canadian Balanced Funds

Benchmark index: Fundata Canadian Balanced Index, Five-year return: 4.33%

The Canadian small cap category, characterized by heavy concentration on energy and natural resources, has been among the worst affected over the past year. Only a small group of funds have been able to avoid the carnage with limited losses, and they were the funds that carried the highest exposure to sectors like technology and telecommunications. Such is the case with Pender Small Cap Opportunities, which against all odds managed to end the year with significant gains (unfortunately, the fund is closed to new investments).

Likewise, National Bank Quebec Growth also managed to end the year in positive territory. Bear in mind: By mandate, this fund concentrates on firms that conduct a large portion of their business in Quebec. Given that the province has limited dependence on natural resources, the fund’s exposure to the sector is less than 20% of the portfolio. This is one of several funds in the category (like Mawer, HSBC, BMO Enterprise and Trimark Canadian Endeavour) that periodically feature on the Honour Roll,  another tribute to their superior long-term performance record.

Canadian Small Cap Funds

Benchmark index: BMO Canadian Small Cap Index, Five-year return: -4.88%

How to use these tables

Overall ratings in each category go from one star (poor) to five stars (excellent). Any Honour Roll fund is a good buy, but some may be better for you than others. For instance, if you’re investing outside an RRSP, pay particular attention to “Tax Efficiency.” This measures how much of the return on a fund has been lost to taxes on distributions. (Funds that don’t distribute cash don’t lose anything and so are rated at 100%.) In general, the higher this number, the better for funds held in taxable accounts. All investors should consider risk as well. “Risk-Adjusted Return” shows how much return each fund has achieved in proportion to its risk—again, the higher, the better. If you want to play it safe, look for funds with a high “Consistency” rating (which shows the percentage of months in which a fund has performed better than its peers) and strong “Bear Market Performance” (the best funds get ‘A’s and so on, down to ‘E’s).

¹ Tax efficiency estimates the percentage of total returns retained by investors, assuming a 46% tax rate for interest income, 25% for capital gains and 23% for dividends. Not applicable for RRSP investors

² Based on five years’ historical return, before sales charges and commissions

³ For details on risk-adjusted return calculation, check moneysense.ca or fundscope.ca

⁴ Based on average monthly
loss during market corrections

⁵ Restricted/may not be sold in all provinces

⁶ Closed for new investors, check availability of other versions

Sources: Fundata Canada Inc. & FundScope Limited  November 2015

The post Best mutual funds 2016: Honour Roll appeared first on MoneySense.

While you are scrambling to finish the last quarter’s tasks that may have gotten lost in the wrapping paper, I want to make sure you do not forget anything that will make 2016 your best year ever. Here is a checklist to make your marketing is as impactful as possible.

For more information about Advisor Perspectives services, click on the advertisement below:

Changes in Ubuntu MATE 15.04 (Vivid Vervet)

• enabled restating X via Ctrl+Alt+Backspace;
• enabled screen reader activation via LightDM indicators and LightDM key bindings;
• enabled touch to click by default for touchpads;
• added menu categories to System > Preferences;
• thanks to a GTK2 bugfix, MATE should have better multi-monitor support;
• merged MATE Compatibility integration into upstream Compiz;
• Ubuntu 15.04 has adopted multilib GObject introspection runtime (gir) which means Caja plugins now work "out of the box";
• more.

Default applications / packages

• MATE Tweak (a MintDesktop fork) - lets you configure which icons to show on the desktop, enable/disable compositing, change the window buttons layout, show/hide icons in menus and buttons and more;
• MATE Menu (a MintMenu fork) - a searchable menu for the MATE panel. This is not the default menu, but you can add it to the panel by right clicking the panel, selecting Add to Panel and then adding "MATE Menu";
• Totem has been replaced by VLC;
• Plank, the elementary OS dock, is now installed by default in Ubuntu MATE (but it's not used by default);
• Tilda, a Quake-like drop-down terminal;
• Folder Color, a Caja (it also supports Nemo and Nautilus) extension which allows changing individual folder colors (useful for organizing your folders, make some important folder stand out, etc.), as well as change all the the folder colors or add emblems;
• guvcview, an app that uses your webcam to take photos and videos;
• LightDM GTK+ Greeter Settings, a tool which allows modifying various login screen settings such as the theme, font, background and much more.

Download Ubuntu MATE 15.04

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Originally published at WebUpd8: Daily Ubuntu / Linux news and application reviews.

Photo : Mike Goldwater/Alamy

La demande de visas de tourisme par des Chinois a augmenté de 51 % en janvier par rapport à la même période l’an dernier.

Les services consulaires, débordés, ont dû ajouter du personnel pour traiter les requêtes.

Le nombre de visiteurs venus de l’Empire du Milieu avait déjà triplé depuis 2009, année où Pékin a accordé au Canada le statut de « destination approuvée ». La baisse du dollar canadien — qui a fait grimper la valeur du yuan chinois de 12 % en six mois — a fait exploser la demande.

Selon les prévisions du Conference Board du Canada, environ 400 000 Chinois devraient débarquer au pays cette année.

Cet article L’effet imprévu de la chute du dollar canadien est apparu en premier sur L'actualité.