**March 21st Issue of The JMRD Market Observer**

March 21, 2014

 

In This Week’s Market Observer…

 

  • Announcements!!! 
  • JMRD Market Strategy Comments
  • Tax Reporting – Tax Slips
  • Notable Deals in Canada’s Energy Patch
  • How Paul Spent His March Break
  • Retirement Corner
  • Week at a Glance
  • Reads of the week
  • Economic Calendar
  • Earnings Reports

Announcements!!!

Awards of Excellence

Each year National Bank Financial recognizes those exceptional Investment Advisors and their teams through our Recognition of Excellence Awards.  This year, I’m proud to announce that the JRMD Wealth Management Team has been selected as the Wealth Manager of the Year and the Team of the Year for their Region. 

The Wealth Manager of the Year award is presented to those advisors who demonstrate a client–centred approach to their Wealth Management service offering.  The recipient must demonstrate that retirement planning, financial and estate planning, insurance planning, banking services and investment advice form the basis of their offering.  The recipient must also outperform both in terms of asset growth and overall client portfolio performance. 

The Team of the Year award is presented to teams who demonstrate excellence in all aspects of their business.  These Advisors produce superior results in the quality of their investment and portfolio management as well as involvement both within National Bank Financial and their community. They must also adhere to our strict ethical standards and continuously exceed them.

The JMRD Team continue to redefine the client experience and strive daily to improve their approach to Wealth Management.  Well respected within the firm and the industry as a whole, JMRD’s commitment to excellence is evidenced through their consistent and disciplined delivery of investment and financial advice for clients.  To top off an exceptional year, Reg and Paul were also named among the Top 25 Investment Advisors in Canada by Wealth Professional magazine.

I’m proud to represent a firm who hosts a team of the calibre of JMRD Wealth Management.  Year after year they set a new standard for other teams to strive for and for years now have maintained a reputation based on integrity and excellence.  I’m also proud to say that they are my Investment Advisors! 

Congratulations to the JMRD Team and their awards of Wealth Manager of the Year and Team of the Year!

 

Sincerely,

Brian Mills

Brian Mills

Vice-President

Regional Manager

 

JMRD Market Strategy Comments

This week proved to be an interesting one with continued tension in Ukraine and the first Federal Reserve Meeting with the new chair, Janet Yellen.  These issues, as well as other economic releases and credit news from China, caused some volatility in the financial markets.  With the recent strength in the general equity markets it is not surprising that there would be some fluctuation as various headlines are absorbed by market participants.

We still believe that the global economy is improving, slowly but surely.  We also believe that interest rates will move up over time and that was confirmed by Janet Yellen after her first meeting this week. We think that a generally improving economy and an orderly rise in interest rates over time is still a good scenario for higher equity prices.  There may be some risk in the fixed income market but we are positioned to limit the effect by using GICs and shorter term fixed income holdings.

In summary, there will always be fluctuations but the important thing is to have a long term plan that you can stick with.  It must be monitored regularly but should not be overhauled based on day to day changes in the financial markets.

Tax Reporting – Tax Slips

Now that tax season is in full swing, you are probably eager to file your tax returns to beat the end of April rush.  You should have started to receive various tax slips in the mail, reporting a variety of items such as: RRSP contributions, RRIF T4’s for RIF Income, T5s for interest and dividend income and T3s for mutual fund trust distributions/income.  T3s are usually the last to arrive as reporting companies have until the end of March to mail out this information.  As always, we encourage clients to wait until mid-April before filing their returns, in case late or amended slips have yet to be received.

If your investment situation hasn’t changed much from last year to this year, you may have a good idea of the slips to be expected.  However, if you have any questions on your tax situation, please do not hesitate to call or email Lori Mickle or Erin Finnegan at 519-439-6219 or 519-439-8154 respectively.

Ready to file your taxes?  Don’t jump the gun. – “Globe and Mail

Notable Deals in Canada’s Energy Patch

Slowly but surely it seems that there is renewed interest in Western Canadian energy assets based on a few notable deals this week that specifically affected some of the energy names in our baskets.  The first is Whitecap Resources (WCP) agreeing to acquire assets from Imperial Oil for $855 Million.  This is a sizeable acquisition for Whitecap, who also increased production guidance and its dividend payout by 10%.  Even with the increased dividend, the company’s payout ratio will fall from 96% to 84% next year.  The transaction was well received by the market and the stock had risen 8% this week.  Whitecap comprises 7% of the DIG Basket.  More information on the deal is provided below.

http://www.calgaryherald.com/business/Whitecap+buys+Imperial+legacy+assets/9627190/story.html

http://www.edmontonjournal.com/business/energy-resources/Lamphier+Imperial+asset+sale+signals+year/9628429/story.html?__lsa=2d90-650f

In a deal that garnered less attention, Canyon Services Group (FRC) acquired surplus fracking assets from Gasfrac Energy Services.  It was an opportunistic purchase for Canyon and the company will immediately incorporate this equipment into its own operations. The purchase of extra ‘horsepower’ coincides with evidence of an uptick in activity and pricing levels for companies providing services in this sector.  Canyon, which is 5% of the All Cap Basket, was purchased at $12.12 when the Basket was launched in October.   The stock started the week at $12.01 and is currently trading for $13.54, an increase of 12%.  We have attached our analyst’s take on this week’s events.

Canyon Services Group

How Paul Spent His March Break

Last week my wife and I, along with our kids, went to Las Vegas and I was lucky enough to participate in the Wayne Gretzky Fantasy Hockey Camp Tournament.

My wife and Reg prompted me to purchase the package at the most recent Country Classic Charity Auction for the London Hospitals.  The package was donated by our friends Mike and Melissa Malleck.  I had an amazing week and am very lucky and grateful that the Mallecks donated the package and that my wife and Reg pushed me to buy it.

The tournament week started with playing a full half of a game with Wayne himself as my winger.  See the attached photo for a great shot that Sue took while we were talking about who was going to play centre.   My other teammates, other former NHLers were Shayne Corson, Theo Fleury and Kelly Chase.  Our coach was Grant Fuhr.  They were all great to be around as were the other participants on my team.

The week finished with us playing in the gold medal game and me receiving four stitches mid-way through the game as I was hit with an errant high stick

We lost the game but I was lucky enough to receive the “Heart” award for the tournament during the final awards banquet.  There is a picture attached of Wayne presenting me with the award – you can see the stitches as well.

It was an amazing experience and to have my family with me to enjoy the experience topped it off.

If anyone is a Wayne Gretzky fan this is something you should really consider.  It was fantastic.   

Manders and GretzkyAward Ceremony

Retirement Corner

“Living in Retirement – Six Things to Consider before Downsizing” – (Globe and Mail)

“Five Little Known Facts about Retirement” – (Financial Post)

Week at a Glance

Week At A Glance

Reads of the Week

“Yellen Pursuing Bernanke’s FED Policies with More Direct Style” – (Bloomberg)

“Seven Ways Jim Flaherty Changed the Mortgage Market” – (Globe and Mail)

Economic Calendar

Monday March 24th – US Markit Manufacturing PMI

Tuesday March 25th – US Consumer Confidence Index, US New Home Sales

Wednesday March 26th – US Durable Goods, US Markit Services PMI

Thursday March 27th – US GDP, US Initial Jobless Claims, US Pending Home Sales

Friday March 28th – U. of Michigan Consumer Confidence

Earnings Reports

Monday March 24th – None

Tuesday March 25th – Legacy Oil+ Gas

Wednesday March 26th – AGF Management

Thursday March 27th – Advantage Oil and Gas

Friday March 28th – Blackberry

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