The changing face of income trusts, hedge funds, and T-series funds

By Dan Hallett, CFA, CFP

Here are this week’s latest media appearances by HighView Financial Group.

In the March 12, 2010 Globe and Mail, I commented on the changing face of Income Trust mutual funds.

In this Wall Street Journal article, I challenge the notion that Canadian hedge funds have offered higher returns (compared to global …

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Senior Investors & Suitability Panel Discussion

By Dan Hallett, CFA, CFP

This week, I attended the MFDA’s Seniors Summit conference to participate in a panel discussion.  We tackled several questions pertaining to senior investors and suitability.  My esteemed co-panelist Tom Bradley didn’t disappoint and shared many terrific insights.  While the audience was strictly limited to MFDA supervisory staff, I thought both …

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This fund is unlikely to sustain its newly-lowered monthly payout

By Dan Hallett, CFA, CFP

I have been writing articles in the public domain for more than 13 years.  No series of articles has generated more interest or feedback than my many critiques and analyses of monthly income fund and assessing distribution sustainability.  Below is an edited version of the latest note from a reader …

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BMO reins in fund distributions

By Dan Hallett, CFA, CFP

I have been writing about monthly income investment funds for nearly a dozen years, putting their distributions to the test and highlighting such funds’ mythical tax advantages.   Over the past two years, I’ve been particularly critical of the BMO Monthly Income fund.  So I was pleased to discover …

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Leveraging + High Payout Funds = Unhappy Ending

By Dan Hallett, CFA, CFP

The final chapter to the series of articles I’ve written this year on high-payout investments funds features leveraging.  Over the past few years, I have been contacted by several individual investors and financial advisors about strategies they’ve been proposed or have seen in use involving borrowing to invest in funds …

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BMO Monthly Income sets the distribution bar unreachably high

By Dan Hallett, CFA, CFP

This week the Globe and Mail’s John Heinzl took another run at a favourite fund of mine – BMO Monthly Income.  It’s not my favourite fund for investment but rather a favourite to write about.  In his recent article, Heinzl points out that the fund’s hefty monthly cash …

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Fund Facts a good start, but risk rating & suitability get thumbs-down

By Dan Hallett, CFA, CFP

A new regulatory initiative – i.e. Mutual Fund Point of Sale – was launched this year in an attempt to better inform investors about the investment funds in which they invest.  The key feature of this Point of Sale initiative was to provide an investor-friendly 2-4 page document called Fund …

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Monthly Income funds' payout sustainability - the sequel

By Dan Hallett, CFA, CFP

Earlier this year, I wrote about how to gauge the sustainability of monthly income funds’ fat distributions so that investors and advisors could make better decisions and set realistic expectations.  Since then, I’ve received a steady stream of phone calls and emails, mostly expressing concern over many funds.  However, one …

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T Series Funds: The Tax Efficiency Myth and Structural Risk

By Dan Hallett, CFP, CFA

Investors would rather invest in something that distributes a regular amount of cash than sell their shares to generate cash flow.  This psychological phenomenon seems to hold no matter what the source of cash distributions.  Add perceived tax-friendliness and it’s no wonder that T series mutual fund units are so popular.  …

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