By Fund Library News Wire | Friday, October 02, 2015
By Mike Keerma
* Stocks still shaky after weak Q3.
* Mackenzie revises risk ratings for three funds.
* Stocks still shaky after weak Q3. The market volatility that characterized the third quarter continued into the first two trading days of October, as North American markets edged back from steep losses early in the week, to close Friday with broad gains. Toronto’s S&P/TSX Composite Index didn’t quite manage to reclaim losses fully, and posted a hairline weekly loss of 0.3%. The major U.S. indices, however, staged solid rallies that propelled the S&P 500 Composite to a week-over-week advance of 1.0%, while the Nasdaq Composite inched ahead 0.5% on the week. For the third quarter overall, though, the benchmarks were uniformly deep into negative territory, posting losses of about 8% in the July to September period.
Q – I’m a novice investor, and I’ve been looking at the costs of mutual funds, but I’m finding it a bit confusing. For example, I’ve seen a number of costs and expenses listed for mutual funds, including front-end load, management expense ratio, and trading expense ratio. Can you explain what these are and what the difference is? – Peter T., Toronto, Ontario
You might think that giving generous gifts of property or other assets to family members would be fairly cut-and-dried affair. Not so. As I outlined in my previous article, the Canada Revenue Agency stands ready to take a (sizeable) piece of the action if you’re not careful about what you transfer, to whom, and how. It gets even trickier where transfers of real estate are involved. Here’s what you need to know to avoid being socked with a large tax bill as a penalty just for trying to be nice.
The award-winningMawer Balanced Fund has been one of the strongest balanced funds in Canada for many years, consistently outperforming its peer group on both an absolute and risk-adjusted basis. It places consistently on Fundata’s monthly A-Grade list, and has won the Fundata FundGrade® A+ Award™ for the past four years running. The key to its success lies in its fund-of-funds holdings managed in line with the highly-disciplined Mawer style.
Are you supporting your adult children? Do you know someone who is? It's a growing phenomenon, yet in many cases it can result in a potentially negative impact on the financial position of the parents. Are children failing to launch because parents are failing to stop bailing them out? Maybe it’s time to administer some tough love. I’ve developed four key ways to smooth the path to financial independence for both parents and their grown children who find it hard to stop drawing on the "bank of Mom and Dad."