Low Volatility in a High Risk World – 3 Reasons for Gateway Low Volatility U.S. Equity Fund

As the aging bull market lumbers into its ninth year, many investors are growing concerned about the increasing chance of pullbacks in stocks – and even about the next bear market. Equity valuations are stretched, interest rates for bonds are still low and set to rise, and volatility could reappear any time. Gateway Investment Advisers…

Is a Tax-Efficient Investment Worth Paying For?

ROBERT HANDELMAN, CPA, CA, CFP, CIM, BBA Vice President, Tax & Wealth Natixis Investment Managers There are not many topics in the investment world that bring unity amongst investors like the pursuit of keeping more. Whether the goal of keeping more is centred around relatives, lifestyle or philanthropy, this single goal drives us to invest and…

Understanding the Value of Active Share

How much value does your fund manager add to your equity investments? Active Share is one tool that can help answer the question by accurately measuring how similar the securities in a fund are to its benchmark. Active Share calculates the percentage of a fund’s holdings that deviates from benchmark holdings and/or benchmark weights. In…

2017 Pulse Survey of Canadian Investors: Helping Clients Understand How Taxes Can Affect Portfolios

Investor Insight: The Drag of Taxes In Canada, where top rate taxpayers can lose more than half of their investment income to taxes, we find that investors are acutely aware of the need to more effectively manage tax drag on their portfolio. This should be an important consideration for financial professionals, as 20% of investors…

World Faces Aging Population and Retirement Funding Burdens

Retirement security is being challenged worldwide by aging populations, low interest rates, shrinking government revenues, and growing pension deficits. At the same time, three in four investors worldwide say they now feel the responsibility to fund retirement is increasingly on their shoulders.1 To delve into global economic trends effecting retirement, along with factors investors may…

Looking Back at “Whatever It Takes”: Europe’s Economic Renaissance

By: Josh Pritchard July 26, 2017 marked the fifth anniversary of European Central Bank (ECB) President Mario Draghi’s fateful statement to a panel discussion in London that had gathered to discuss the future of the Eurozone. At the time, there were concerns that Europe’s currency union could collapse as the result of massive debt burdens held…

Preferred Shares Enjoy Another Good Month in July, Prompted by Rising Bond Yields and Interest Rates

The preferred share market enjoyed another good month in July. Rising bond yields and interest rates prompted higher prices for rate reset and floating rate issues, but lower prices for perpetual issues. Fixed rate reset issues gained 2.2% in the month, while perpetual issues declined 1.8%. On balance, the S&P/TSX Preferred Share index returned 1.11%…

The Advisor’s Role as “Chief Financial Officer” in Client Retirement

DAVID GOODSELL Executive Director of the Durable Portfolio Construction Research Center Natixis Investment Managers – U.S. Distribution Retirement income planning should be a simple word problem that can be solved with basic math. Start with estimated annual expenses in retirement. Multiply that figure by the estimated number of years in retirement, then divide by the…

Strong Performance by Rate Reset Issues Propelled Preferred Shares to a Robust Return in June

Strong performance by rate reset issues propelled the S&P/TSX Preferred Share index to a robust 2.84% return in June. Rising bond yields led to increased buying interest in rate reset shares, but growth in preferred share Exchange Traded Funds (ETFs) were also a factor. Approximately $260 million of new deposits flowed into the largest ETFs,…

Understanding Subdued Market Volatility

By: D. David Jilek, RMA, CAIA® On June 2, the Chicago Board Options Exchange Volatility Index® or VIX1 reached a year-to-date closing low of 9.75, just above its all-time low of 9.31 in December 1993. While some have expressed a view that widespread volatility selling2 has driven volatility to “artificially” low levels, we do not share this view. We…

Insight into the Economic Factors at Play for Retirees Around the World

In the latter half of the 20th Century, millions of retirees were able to construct a stable base for income from the three pillars of personal savings, employer pensions and government benefits. But now, early in the 21st Century, the balance has shifted. In 2017, more than three-quarters of individuals worldwide now say they believe the responsibility…

Midyear Outlook: Interpreting Today’s Markets and What May Lie Ahead

DAVID LAFFERTY, CFA® Senior Vice President and Chief Market Strategist Natixis Investment Managers — U.S. Distribution As we move into the second half of 2017, there may be a sneaking suspicion among investors that something is askew. While the market news flow is heavy, the markets themselves are eerily quiet. Realized and implied volatilities across…

The World is Getting Older − Policy Needs to be Wiser

Retirement security is challenged on many fronts across the globe. Slow growth, low interest rates, and the looming threat of inflation stretch the economics of retirement funding. Debates about the viability of entitlement programs, the prioritization of short-term goals for lower taxes, and deficit reductions over ensuring long-term sustainability of retirement benefits make the politics…

Time to Prepare Portfolios for Volatility’s Return?

All has been relatively quiet across global markets for some time now. Except for a few short-lived volatility flare-ups, stocks have been climbing higher in many markets. In fact, the U.S. stock market, as measured by the S&P 500®,1 was up more than 15%* for the one-year period ending June 1, 2017, while the STOXX Europe…

Goals-based Investing: A Different Approach to Managing Risk

Most clients view risk as losing assets, market volatility or underperforming the benchmark, but isn’t the more relevant risk whether or not they will reach their goals? Isn’t that what really counts? Perhaps their financial plans should be structured around those goals – and so should client discussions.

Following Strong Gains Earlier in the Year, Investors Pull Back from Preferred Share Market in May

In last month’s commentary, we noted the potential for the preferred share market to consolidate during May, and that is what transpired, as the S&P/TSX Preferred Share index returned -1.67%. Following strong gains earlier in the year, investors appeared to pull back from the market leading to declines in prices of most issues. The weakness…

New Technologies Creating an Era of Disruption

By: Janet Sung Frequently disruptive, creative change will always be a key factor to reckon with in the telemedia industry, as long as telemedia remains as vital as it is today. It’s part of the combined cable, telecom and media sectors’ dynamism – its DNA.

Retirement, Death, and Taxes. Are Investors Prepared for the Inevitable?

It’s been said that the only certainties in life are death and taxes. But now, as individuals are accountable for a greater share of post-work income, retirement is a third certainty that must be factored into long-term financial success. Despite this, many respondents in our 2017 Global Survey of Individual Investors are not taking all…

Interesting Times: What the Shift from Monetary to Fiscal Policy May Mean for Stocks

By: Dan Hughes The U.S. economy has added jobs for over 77 months in a row. Unemployment is at the lowest levels seen post-World War II. In many parts of the country, there is a shortage of skilled labor. In sum, the economy is doing well. With the S&P 500® up 15.75% for the one-year period…

Understanding the U.K. Snap Election Results

By: Lynda Coye – Josh Pritchard British Prime Minister Theresa May called for a “snap election” on June 8 – but the results were, to say the least, not what she and fellow members of her Conservative Party expected. The basics Under the United Kingdom’s parliamentary system of government, voters do not elect the prime minister…