Managed Money Reporter Newsletter Editors: Carl Spiess & Allan McGlade

Issue 185 July 2002

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Featured Articles

• Reflections as The Bear Growls
• Improved Fund Information on Scotia Online
• Fund Profile - Templeton International Stock Fund
• Fund News - Dynamic to Acquire StrategicNova
• Recommended Site of the Month - Scotia Online
   

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Reflections as The Bear Growls

"Now that the bear market for stocks has lasted three years it is well to remember that both bear markets and business depressions are temporary. People do not remain pessimistic forever."

While it is hard to be optimistic in these times, it is important to realize that the quote above was penned over 50 years ago, in June 1949 to be exact, by none other than Sir John Templeton.  Through dozens of market cycles, the old adage of buy equities and hold for the long term remains.

A recent Globe & Mail article summed things up well: "Guess What? Investing is Hard", which stresses the importance of professional management.  Warren Buffet's Berkshire Hathaway is held up as a well run company, and that company is essentially a mutual fund, diversified by owning several great businesses.  Berkshire Hathaway is a major holding in 29 AIC funds, including the AIC Advantage funds, 10 Mackenzie Ivy funds and the 6 CI Harbour funds.

While market returns and headlines are very discouraging, it is important to realize how much does not change.  Friends, family, and work obligations continue.  And very real, especially for those in or near retirement mode, is the fact that bills and expenses keep coming in.  While that last part can be difficult, as investors, it is important to realize the world is not ending.  All those companies that we will buy things from today, tomorrow and next week, expect to send us bills, get paid, and earn profits.  And they will or they will shut down, to be replaced by more efficient organizations, earning more money for their shareholders.

• Do you expect that next year you will be able to buy a faster computer, for less money than today? 
• Do you expect that your next car will be better built, have more power, have more features and simultaneously use less gas and create fewer emissions? 
• To you expect to pay less for a long distance phone call next year? 

The answer to all of the above is "yes". The reason is the relentless improvements that technology can provide. And long term, for same reason, we can expect our economy to become more efficient, and shareholders will be rewarded. 

While we are optimistic long term, we recognize how difficult it is to see months and now even years of declines.  Financial markets have been turbulent for many investors. As financial advisors, we work very hard to help people reach their goals. We at ScotiaMcLeod would like to thank all of our clients for their continued trust and confidence in us.  Please contact us at any time if you wish to have a personal review of your investments and goals.

Improved Fund Information on Scotia Online

As an example of the relentless quest for improvement, please consider the enhanced information available on Scotia Online.  Our online portfolio access service, now includes Morningstar Quicktake fact sheets (see attached screen shot), along with ScotiaMcLeod's proprietary fund research.

The information is updated daily with your current holdings, so there is no need to manually set up a list of funds to watch.  Just log in, view your account balances, and click on the fund you currently hold.  Up pops a wealth of information, including star rankings and valuable analysis.

Fund Profile - Templeton International Stock Fund

We recently had breakfast with the Templeton fund management team prior to their annual meeting. We continue to be impressed with the Templeton International Stock Fund, one of our top recommended funds. 

Run by Don Reed, this fund is a core holding in many portfolios - a true value fund. Not quite a sister fund to Templeton Growth Fund, as the Growth fund will hold US positions.  The Templeton International Stock Fund helps you to invest completely outside of North America.  It has been on our recommended list now for over 10 years.  Naturally, the fund has suffered along with the markets of late, however its short and long term returns have been well above average.  The fund also sports a lower risk (volatility) figure than most of its competitors.

View the complete ScotiaMcLeod report on Templeton International Stock Fund (.pdf 92k) and contact us or log onto Scotia Online for similar analysis of other funds. 

Fund News - StrategicNova Acquired by Dynamic

There will be yet another name change for investors in what were once the O'Donnell funds.  They were renamed the SVC O'Donnell funds, then StrategicNova, and now StrategicNova has been acquired by Dynamic.  We will be keeping an eye on the funds, and advising if there are any opportunities for change once the merger of the fund families is completed.

View the Dynamic Press release

Mutual Fund Reporter Recommended Website of the Month 

Since the fund information and research available on Scotia Online has improved so drastically recently, we will be indulging in some unabashed self-promotion.  

If you don't already use Scotia Online to occasionally view your accounts, you should.  It's free, always up to date, allows you to create watch lists and even get alerts on individual stocks.  If you already bank with Scotiabank, signing up will allow you to see your investment accounts on the same screen when you log in to transfer funds.  You can even make your RSP contributions online.

Click here to complete the forms to sign up here for ScotiaOnline.