Category Risk, ETF, Benchmark, Inflation, Estate,etc

Hedging foreign currency exposure

Hedging of foreign currency exposure: To do or not to do? As the Canadian Dollar hits parity with the U.S. dollar, more investors and newspapers are talking about currency hedging. An example of currency hedging is when a Canadian investor who invested in say the U.S. market is concerned that her U.S. dollar returns will […]

Benchmarks

Benchmarks I was discussing last year’s equity returns with a good friend of mine and he mentioned that his advisor did quite well having returned 14%. Unfortunately, the corresponding index returned 18% over the same period. One of the usually overlooked areas by investors is a valid measure of (fund) manager or advisor performance. And […]

ETFs: past, present and future(?) (A somewhat dated view)

ETFs: past, present and future(?) First let’s start with some background material. There are basically two types of funds: (i) Open End Funds (what we usually think of as mutual funds), units of which can be continuously bought/sold directly from the distributor/manager for the NAV (Net Asset Value), and (ii) Closed End Funds (CEF) units […]

Deflation: Impact on retirees

Deflation: Impact on seniors? Is it necessarily bad? In a nutshell For seniors on a (nominal) fixed income or COLA indexed income a downward trending inflation or even a mild case of deflation might actually turn out to be beneficial. Seniors who tend to have relatively more conservatively invested retirement savings and/or are beneficiaries of […]

Senior inflation

Senior Inflation We talked elsewhere about the worries of retirees of outliving their assets due to both growing average longevity and the significant individual longevity variability around that average, leading to the risk of significant longer retirements. The longer retirements in turn lead the requirement for larger asset pool at the start of retirement in […]