Many investors and advisors are reluctant to buy an Exchange Traded Fund (ETF) with a relatively small asset base or low trading volume. This results from the fear of inputting a trade so large that it causes an unfavourable move in the market price (i.e., pushing the price up before a buy order is filled – or down for sell orders); or having trades not filled at all. We executed large trades in an ETF over the past couple of years at little cost and without moving the market price. Before explaining how, let’s start with some ETF liquidity basics. ETF Liquidity Liquidity refers to the ease of ..read more

In the mid-1990s, interest rates offered on guaranteed investment certificates (GICs) ranged from 6% to 8% per year for five-year terms. Those rates – generous by today’s standards – were a far cry from the double-digit rates available just a few years earlier; and far below the robust returns that stock market investments were kicking out at the time. This prompted GIC investors to deploy matured proceeds into mutual funds. Those savers-turned-investors were called “GIC refugees” because it was the first time many invested in anything other than popular term deposits. I heard more than a few ..read more

As the concept of fiduciary is being discussed more in the media and among Canadian securities regulators, we believe it is important to address this concept as it’s all about putting the investor-client interests first! We view a fiduciary as someone acting in a position of trust on behalf of, or for the benefit of, a third party; and as such, they are required to act in their best interest.  This is the view fi360, a US based organization that has developed a set of practice standards for investment fiduciaries. For this reason, an investment ..read more

This family story is the third of a series in which we discuss some of the common investment challenges families face and what ultimately led them to HighView. Here, we explore what can happen when one member of an affluent family assumes responsibility for money and investments, particularly surrounding the concerns that can emerge as that person ages.  How long will they be able to maintain that level of guardianship? What will happen if they pre-decease their spouse? In this story, the father had been managing the family’s wealth of approximately $10 million for more than 20 ..read more

Regardless of how you acquired your wealth, there’s one thing all investors have in common—a desire to make sure their wealth will be sustainable and able to meet their needs over time. But what if your needs change? What if the initial portfolio structure and risk profile changed significantly due to market and economic changes? Are you monitoring your portfolio performance to make sure it continues to meet your financial goals? In this blog, we look closer at the importance of portfolio monitoring. We start by discussing the importance of an Investment Policy Statement (IPS) before turning o ..read more

For families who have built their wealth over a lifetime or have experienced a liquidity event such as the sale of a business after decades of hard work, the prospect of being held hostage to the whims of the market can be frightening. The reality is that markets are inherently volatile, and you need to be able to tolerate short-term volatility in your portfolio. If not, you may react to fluctuations in ways that are detrimental to your long-term returns like, for example, forcing liquidation at inopportune times. But how much volatility are you willing to tolerate? To mitigate volatility over ..read more

It may come as a surprise to many that there are different ways to calculate investment returns and that it is possible to see a negative investment return for your portfolio when the underlying investments have actually generated positive returns. How could this be? It all has to do with calculation methodology that is used and the deposits or withdrawals into or out of the portfolio. The two primary methods for calculating investment returns are: Money-weighted rate of return (MWRR) – also known as dollar-weighted rate of return Time-weighted rate of return (TWRR) In an effort to foster gr ..read more

We are wealth architects whose sole purpose is to provide our clients with peace of mind by making their wealth sustainable. Goals-based investing is at the core of our investment philosophy, but historically this has not been the case for the majority of the investment industry. Instead, the investment industry and traditional asset management have been modelled on asset gathering and driving product sales, alongside measuring expected return versus market indices. This focus has steered away from client goals and risk tolerance, and has emphasized “how can we increase returns or consistently ..read more

Financial planning is the first step in a comprehensive discovery phase at HighView Financial Group. While many investment firms may eventually get the financial planning services once the assets have been secured, or simply don’t offer these services at all, we wonder how anyone can build a true goal-based, tailored portfolio without completing this work up front? If there is a rush to talk about the portfolio structure before completing a financial plan, we suggest slowing the process down and taking a deeper look at what is being offered. Is this a portfolio structure suited for me? Or just ..read more

You’ve worked hard to create your family’s wealth. You want it to be well managed and sustainable for future generations. Unfortunately, as we mentioned in a past post, family wealth is not self-perpetuating. Without proper planning, it often erodes within just two to three generations. You Need Effective Investment Management The investments of affluent families aren’t simply pools of capital. They’re actually asset management businesses. Your assets must be managed effectively to ensure you will be able to continue to fund your lifestyle and your goals – and to ensure that you don’t run out ..read more