Bonds serve a crucial role in helping investors reach their investment goals. They generate income, provide a measure of principal protection and can mitigate volatility.
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Invesco Global Bond Fund crossed its three-anniversary with strong returns, finishing in the top quartile of its peer group.1 The management team navigated choppy waters with a changing mix of assets to capture upside in good times while providing protection in more challenging periods. The use of corporate credit, mortgage back securities and emerging markets helped to generate returns in calm markets, while a significant allocation to global government bonds helped to provide ballast during times of volatility.
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Every year, investors are treated to a comparison between the performance of actively managed funds and the S&P 500 Index. The SPIVA® U.S. Scorecard[i], issued by S&P Dow Jones Indices, usually paints a pretty grim picture of active managers in the U.S. equity space.
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As the year-end approaches, many investors with taxable accounts may be seeking to dispose of securities that have lost money. The strategy of tax-loss selling allows the investor to claim a capital loss, which offsets capital gains for the current year. Any unused net capital losses can then be applied against taxable capital gains in any of the three preceding years, or carried forward indefinitely to future years. To realize capital gains and losses in 2018, trades must be executed by Thursday, December 27 to ensure settlement by Monday, December 31, the last business day of 2018.
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What comes to mind when you hear the term “smart city”? It might be a clean and safe space where people and places are connected by digital technology. Or a place where self-driving cars take us around and pollution is a thing of the past. We all have a vision of what a smart city should be – but for most of us what we imagine is far removed from the cities we actually inhabit, with clogged roads, smoggy days, and outdated infrastructure.
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Investors seeking exposure to U.S. large cap stocks have many options, but often may not be aware of the concentration risk they may be taking on through an S&P 500-indexed ETF.
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Our stance on embedded compensation has been well documented over the years. At Invesco, we’ve championed investor choice in the debate over mutual fund and dealer fee structures. We believe this is important because not all investors are the same – not all investors need, want or benefit from the same fee structures.
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After years of debate, the Canadian Securities Administrators (CSA) have announced new policies on advisor compensation and have proposed important changes on how registered firms and individuals deal with their clients. A proposed rule amendment on advisor compensation will be published for comment in September. I’d like to address each of these.
February’s increased volatility impacted both equities and fixed income, reminding all investors of the havoc that shifting interest rates can have on their portfolios. The correction occurred as U.S. bond yields headed higher, signaling a sell-off in the debt markets while also making equities less appealing.
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As you know, Invesco has been a vocal advocate of preserving choice in the market, allowing advisors and their clients to choose the business model that best suits their needs. I was recently asked to speak at the 2017 Advocis Symposium in Toronto. The title of the event was “Inflection Point” and I believe the industry is at just such a moment. I sat down with Greg Pollock, President and CEO, Advocis to discuss the future of embedded compensation.
For income investors, the recent uptick in short-term interest rates served as a reminder that their bond portfolios remain vulnerable to risk. Rising interest rates tend to erode the value of a bond portfolio, leaving investors vulnerable to declines in portion of their portfolio which is supposed to be relatively safe.
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I recently read an opinion piece in the Vancouver Sun, penned by Wanda Morris, Vice President, Advocacy, at CARP. In this piece, she laid out her organization’s position on embedded compensation for financial advisors.
On July 18, 2017, the Department of Finance Canada released a consultation paper and draft legislation on the use of various tax-planning strategies through private corporations (otherwise referred to as Canadian small businesses). During the consultation period, which ended on October 2, 2017, the public was given the opportunity to comment on the proposed changes. The Government received an astounding 21,000 submissions during this period. Further changes to the proposals were announced in October 2017 (see below) through to the Fall Economic Statement released on October 24, 2017. Below is an updated summary of the proposals.
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Bonds serve a crucial role in helping investors reach their investment goals. They generate income, provide a measure of principal protection and can mitigate volatility.
We recently submitted another comment paper to the Canadian securities regulators regarding the ongoing consultation over the future of embedded compensation.
In today’s low-yield environment, fixed-income returns are uninspiring. Many advisors are looking to diversify beyond traditional fixed-income asset classes, and senior loans are an attractive floating-rate option for some investors.
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Recently, one of Invesco’s funds – Trimark International Companies Fund – was singled out for praise as an example that true active management can outperform. While the kudos were well-deserved for the team, it appeared as part of a commentary that was otherwise unsympathetic to active management.
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Modern behavioural science is revolutionizing fields as diverse as medicine, government policy and sports management. Nowhere does it have more potential to add value than in the field of finance, in my opinion. Case in point: smart beta factor-based ETFs.
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The S&P 500 Index has gained over 11%, since the U.S. presidential election, but recently we’ve seen the first +1% daily decline in the S&P 500 Index in over three months.1
Across Canada, market participants – advisors and investors alike – access market data for securities through sophisticated market tools, such as Bloomberg and Thomson ONE. This data includes last price, bid/ask and volume, all of which play a crucial role in making trading decisions.
