Managed Money Reporter Newsletter — Issue 123, April 1997

Editors: Carl Spiess & Allan McGlade

The Long Term Perspective

By Carl Spiess

Fund Investors Hang Tough

During the past few weeks, we have seen markets become the most volatile in recent memory. Luckily for John and I, the majority of our clients have now been sufficiently prepared for short term fluctuations and now disregard the latest bull or bear market predictions as little more than noise. No one knows which way the next 500 point move will be, but the next 5,000 point move will most surely be up.

Over the years, our job as financial planners has turned away from active daily stock picking to the more interesting role of making sure that client's changing lifestyles and income requirements will be met by their investments. To do this we rely on the latest findings of investment management research from a wide variety of sources. It has become quite clear that only the largest fund managers get the information and opportunity to actively trade the markets to any significant advantage. Our conviction is stronger than ever that most clients are best served in stock based mutual funds rather than through owning a limited number of individual shares.

Our client's accounts are therefore quite well diversified. Several equity funds with varying risk mandates, strong international exposure, and some guaranteed bonds all help to minimize the effect of any one single piece of news having an adverse result on the overall portfolio value.

While some clients really love the idea of owning individual stocks, even there, quality is key. Only three of our several thousand clients owned individual Bre-X shares prior to its now infamous saga. That morning we were relieved to see that even each of the three had 200 shares or less of Bre-X.

The same week, we were featured in an article in the Financial Post, which named John and I as the most successful group RSP and individual client investment advisors at ScotiaMcLeod. ScotiaMcLeod is also the fastest growing group plan provider. It is terrific to be part of a winning team!

As our investment business grows, you may find that it takes a little longer for John and I to personally return your calls. We have always had a team approach to make sure that you get the service that you deserve. Sharon, Nicole, Jane-Ann, Fred, Barb and now Allan for estate planning are all licensed members of our team and are here to help you. (By the way, Fiona is on maternity leave - congratulations.) Each of our Investment Associates is fully versed in our recommended investments, and all trades and recommendations are monitored by us.

This is not unlike many other quality institutions. While Harry Rosen may not fit you personally for a suit every time you enter one of his stores, he is ultimately responsible for the quality of your suit. Likewise for John and I - the buck stops with us. And unlike your suit, we continue to monitor your investments for as long as you own them, and will notify you if we think that a change is required. Our names are on the top of your statements and by law, we are personally responsible for monitoring any trades in your accounts. We hope that you find this month's registered plan and annuity information on the back page helpful.

As new insights and strategies for increasing your wealth become available, you can be sure to read about them on the pages of the Mutual Fund Reporter. Now well into our 10th year, we remain, committed as ever to your financial growth.

Below, please find a summary of your options for registered plans at retirement. We have had increasing requests for retirement income, which is guaranteed for life and is simple and easy to understand. The solution here is called an annuity, and the older you are, the more attractive it becomes. As independent investment advisors, we shop the street looking for the best rates for you. Here is a recent example of a client who was 65, had $100,000 in a registered plan and wanted the same regular monthly income for as long as he and his spouse were alive. (Source Cannex: April 18, RSP, joint, non-reducing)

Here were the top ten rates:

RankIssuerMonthly Income
2Sun Life$679.79
3Standard Life$679.05
4Canada Life$677.35
5Maritime Life$676.96
6Equitable Life$675.75
7London Life$675.40
8NN Financial$675.05
9Transamerica Life$674.28
10Imperial Life$673.83

For more information on these investments please call Allan McGlade at (416) 862-3066.


Contact Us

T.  416.863.RRSP (7777)
F.  416.863.7479

ScotiaMcLeod is a division of Scotia Capital Inc., member of CIPF.

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® Registered trademark of The Bank of Nova Scotia, used under licence. ™ Trademark of The Bank of Nova Scotia, used under licence. Scotia Wealth Management™ consists of a range of financial services provided by The Bank of Nova Scotia (Scotiabank®); The Bank of Nova Scotia Trust Company (Scotiatrust®); Private Investment Counsel, a service of 1832 Asset Management L.P.; 1832 Asset Management U.S. Inc.; Scotia Wealth Insurance Services Inc.; and ScotiaMcLeod®, a division of Scotia Capital Inc. ("SCI"). Wealth advisory and brokerage services are provided by ScotiaMcLeod, a division of SCI. Insurance services are provided by Scotia Wealth Insurance Services Inc., the insurance subsidiary of SCI. When discussing life insurance products, ScotiaMcLeod advisors are acting as Life Underwriters (Financial Security Advisors in Québec) representing Scotia Wealth Insurance Services Inc. SCI is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

The Spiess McGlade Team is a personal trade name of Carl Spiess and Allan McGlade.