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The global perspective

Article Abstract:

Canadian investment managers should diversify their investments not only by holding different asset classes but also by invest more assets in international markets. Canada, the US, Japan and Europe account for 2.2%, 36.6%, 28% and 27.4%, respectively, of the global equity market. The annual compunded rate of return on Canadian stocks over the 15 years to 1995 is 8.1%, compared with 19.4% for Hong Kong stocks, 18.1% for Japanese stocks and 14.4% for US stocks. Volatility in international markets may be counteracted by making the portfolio as internationally diversified as possible.

Management, Corporations, Securities, Investment advisers, Corporations, Canadian

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The right mix

Article Abstract:

Studies on investment management indicate that asset allocation decision is the most important determinant of an investment manager's performance. Only 20% of total returns are derived from a manager's securities selection. The asset classes to choose from include money market instruments, equity investments, fixed-income securities, real estate and other assets. The asset mix is more important than individual securities selection. The key issues to consider in asset allocation are the economic environment and the clients' objectives and expectations.

Planning, Investments

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To set the house in order

Article Abstract:

The financial planning industry in Canada is set to be standardized in terms of specialized designations. Many financial planners in the country are offering their services but do not actually qualify as such. The Financial Planners Standards Council of Canada(FPSCC) is implementing requirements for these planners for specific designations. Clients may now look for a variety of services with only one financial planner.

Standards, Financial planning, Financial planners

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