J.C. HOOD INVESTMENT COUNSEL INC.

 

 

Monthly Newsletter-February 2014

 

Hello Everyone:

 

Housekeeping

 

Tax Receipts:  I am completing your fee receipts for tax purposes and have begun emailing them to you.  Please remember that this is a receipt not an invoice.  We sometimes receive an additional but unnecessary cheque.

 

Trading Summaries:  Have already been mailed by NBCN and you should receive them within a week.

 

Taxable Distributions in ETFs:  These will be provided through NBCN but the ETF providers are always late.  The reason is, for example, if there are 60 or 500 companies in the ETF, the ETF provider has to wait until each company pays out its dividends or other income before calculating the type of distribution.

 

Gains/Loss Summaries:  Trading summaries do not calculate gains/losses in non-registered accounts but just email me and I will provide them.

 

Performance stats are available upon request as well as the Portfolio Asset Allocation spreadsheets.  These are very useful as they quickly show color graphs of your equity asset allocation, e.g. CDN/US/Global and the bond component.  This is important as your monthly statements do not differentiate between bond and equity ETFs so it appears as though everyone is 95% equity not the actual allocation of 60% with app.40% in bonds/fixed income.

 

New Clients:  While our new clients’ portfolios have largely been invested, I have deliberately held back about 5-10% equities as I do not like ‘chasing returns’ in markets which appear to be struggling a bit.

 

Markets:  Despite some volatility in January, markets have largely bounced back; nonetheless, we anticipate some further volatility.  I had started to buy the EUR, one of the three new Canadian dollar hedged European ETFs but have pulled back, waiting to see events become a little clearer in the Ukraine.  When I hear that Russian troops are ‘on alert’ in the Crimea, the military historian in me starts to twitch as I remember Sevastopol and the Light Brigade, not to mention the Russian Black Sea fleet.

 

If you have any questions, please don’t hesitate to call.

 

THANK YOU FOR YOUR BUSINESS

 

John

 

Member of the PORTFOLIO MANAGERS ASSOCIATION OF CANADA

And the CFA Institute

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John Hood, B.A., M.A., FCSI
Pres. & Portfolio Manager
J.C. HOOD INVESTMENT COUNSEL INC.
505 Bella Vista Drive,
Pickering, Ontario L1W 2A7
Tel:  905-492-4444
Fax: 905-492-4444
http://www.jchood.com
email: jchood@rogers.com
Member of the Portfolio Management Association of Canada