By Mike Keerma
* Stocks rally on Fed’s brighter growth outlook.
* Advisors optimistic but grapple with regulatory load: Vanguard report.
* Franklin Templeton to merge funds.
* Invesco expands currency hedging.
Stocks rallied on the week following comments by U.S. Federal Reserve Chair Janet Yellen that an interest rate hike may be coming in “months,” against a
backdrop of a pick-up in U.S. economic growth and improvement in the jobs market. The S&P 500 Composite Index advanced 2.3% on the week, while
the Nasdaq Composite Index gained 3.4%. Toronto’s benchmark S&P/TSX Composite Index, meanwhile, overcame the drag of
lower commodity prices on Friday to rally 1.3% on the week, wafted upwards on quarterly earnings reports from the big banks.
When I was growing up in the ’80s, my parents bought a house that had solar panels. Not the sleek, cool-looking solar panels of today, but big, ugly solar
panels plastered to the side of the house. At the time, using the sun to help power your home seemed futuristic.
Recently, an advisor wanted to know my thoughts on the Mawer funds. I’ve covered many of the Mawer offerings individually in Fund Library. It’s a great
fund company, and they do a lot of things really well. That shows in the number of monthly FundGrade™ A Grade ratings they achieve and their track record in winning the annual FundGrade A+™ Awards for many of their funds. Here’s a look at the whole menu.
Some investors want to reduce the level of risk in their portfolios as they age, even if that means sacrificing some return. In September 2011, I set up a
model portfolio for this purpose. The objective was to preserve capital while earning a target return of two percentage points more than the yield on a
five-year GIC from the major banks. The recent RBC rate was posted 1.6%, so at present we are aiming for 3.6% per year. Here is a look at the securities we
hold, with some comments on how they performed since my last update last September.