Perspectives
Avoiding Wealth Destruction over the Long Term
Carl Otto passed away on April 19, 2012. During his career, he was consistently at the forefront of introducing new and innovative investment strategies to pension funds. He was, as one client described him, an icon of the Canadian investment community. Carl used Perspectives to synthesize many of the ideas the he espoused throughout his [...]
Lire la suite >The “2 and 20″ Fee Structure
Not satisfied with traditional management fees of 0.2 to 1 percent, the Street has engaged in all manner of financial engineering, creating an array of “new” investment vehicles packaged under various names. These vehicles promise great returns, which allow them to charge a 2 percent management fee and a 20 percent carry fee. While this [...]
Lire la suite >The Future Ain’t What It Used to Be
When Yogi Berra famously declared that “the future ain’t what it used to be,” he proved himself to be oddly prescient. In a similar vein, he easily could have been describing the European debt crisis when he cautioned that “it ain’t over until it’s over.” As PIMCO’s Bill Gross reminds us in his year-end Investment [...]
Lire la suite >The Case for Emerging Market Debt
Most of us realize that over the last decade the roles of advanced economies (AEs) and emerging markets (EMs) have been reversed, but few of us have changed the structure of our portfolios to reflect this reversal. In the past, foreign-currency debt constituted a large part of the external liabilities of EMs. Today, however, foreign [...]
Lire la suite >World Economic Outlook
In the June update of its Economic Outlook, the IMF confirms the slowdown in the world’s economies, from 5.1% growth in 2010 to 4.3% in 2011. Developing Countries, with 6.6% growth, continued to outpace the 2.2% growth of Advanced Economies. This slowdown is occurring in all regions except Sub-Sahara Africa where growth is expected to [...]
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