That's because if you own Royal Bank shares on the NYSE and the Canadian dollar rises 5 % against the U.S. dollar, your RBC shares will also rise 5 % in value since
this Canadian dollar asset is suddenly worth 5 % more in U.S. dollar terms.
Not exact matches
Investors who were underweight on the
Canadian market because of negative outlooks on the
Canadian dollar, oil and other commodities are returning, says Lesley Marks, senior vice-president and chief investment officer, Fundamental
Canadian Equities, at BMO
Asset Management.
Later, in a response to a question on why the
Canadian dollar remains buoyant despite so many negatives, the governor said
Canadian asset prices tend to track what's happening in the U.S. because, historically, when the American economy grows, the
Canadian economy grows with it.
Such a move by the Trudeau government to draw more revenue into federal coffers would take Canada in the opposite direction as the United States, Mr. Rosenberg said, noting that «the implications for the
Canadian dollar is decisively negative, not to mention the deflating effect on
asset values.»
For the past two weeks
Canadian funds have been buying U.S.
dollar assets when the
Canadian dollar was weak, said Robert Keiser, analyst with MCM Currency Watch in New York.
By owning Enerplus, you own oil and gas, a valuable tangible
asset, in
Canadian dollars, which stand to appreciate further against the U.S.
dollar.
Despite the move, the Aussie, and the also rallying
Canadian Dollar are still well below the pre-crash highs, and as they have led the market during the correction, we still remain defensive towards risk
assets here.
Should the Aussie and the
Canadian Dollar pick up some bullish momentum, we could be in for a more durable rally in equities too, as they have been leading risk
assets in recent weeks.
The decision by the U.S. Federal Reserve to move away from its quantitative easing policy — in which the central bank creates billions of
dollars to buy financial
assets each month — comes amid signs the American economy is beginning to heat up, which would boost demand for
Canadian imports.
Financial institutions continued to diversify their funding sources, borrowing predominantly in pounds sterling, euros and
Canadian and US
dollars, while
asset - backed issuance was fairly evenly divided between US
dollars and euros (Graph 59).
At the same time, a falling
Canadian dollar, combined with low oil prices means that US
assets increase in value if priced in CAD.
For purposes of the category definition, up to 30 % of a Fund's
assets may be held in Foreign Fixed Income products which will be treated as
Canadian content provided that the currency exposure on those holdings is hedged into
Canadian Dollars.
Of course, since 2005 gold has been the best performing
asset class, with annualized returns of about 18 % in
Canadian dollars.
My colleagues both chose the Claymore S&P / TSX
Canadian Dividend ETF (CDZ), one of the more popular ETFs in Canada, with almost half a billion
dollars in
assets.
Baskin says investors who plan to spend their retirement income in
Canadian dollars should hold their
assets in the same currency.
One is that it reduces currency risk: if your expenses are in
Canadian dollars, it makes sense to hold most of your
assets in the same currency.
The
Canadian Investor Protection Fund (CIPF) helps to ensure that an investors
assets up to $ 1 million
dollars are insured by the government of Canada in the event that the CIPF member firm becomes insolvent.
In my personal portfolios, I track the
asset allocation in
Canadian dollars by converting foreign holdings into
Canadian dollars using the prevailing exchange rate.
For purposes of the category definition, up to 30 % of a Fund's
assets may be held in Foreign Fixed Income products which will be treated as
Canadian content provided that the currency exposure on those holdings is hedged into
Canadian Dollars.
Large bond investors not restricted by the FPR like insurance companies have «
asset swapped» into foreign issuers by purchasing their bonds directly and using currency and interest rate swaps to convert the cash flows to
Canadian dollar.
EWJ would gain 1 % from the value of its Yen
assets, but you would lose.5 % when translating it into
Canadian dollars.
* The segregated funds invest substantially all their
assets in
Canadian dollar hedged Class Z shares of the Standard Life Investments Global SICAV Global Absolute Return Strategies Fund (the «GARS Fund»).
Why would trading the same stocks in U.S. vs.
Canadian dollars expose you to currency risk if the companies
assets are all overseas?
Worse, if the loonie continues to strengthen, the value of U.S.
assets will fall in
Canadian dollars.
Canada lags other developed countries, but Jack hopes Ottawa and the provinces will move to help
Canadians gain access to billions of
dollars worth of
assets.
If your
asset allocations for US, international and emerging markets are all underweight by a few thousand
dollars and you want to rebalance your portfolio (and have both CAD and USD cash), US and emerging markets equities would likely reduce your foreign withholding tax bill the most (assuming that you purchase
Canadian - listed international equity ETFs that hold the underlying stocks directly with your
Canadian dollars).
Assuming you measure your returns in
Canadian dollars, that would result in a loss even if the price of the underlying
asset were unchanged.
The price might list as CAD, but if the USD weakens, your
assets of an American company operating in the US will, all else being equal, be worth less of your stronger
Canadian dollars.
You could also convert the money into U.S.
dollars and use some or all of it to buy U.S. -
dollar denominated investments that represent
Canadian dollar - denominated
assets, Margaret.
When it comes time to sell your VEA and VWO shares the
assets will be converted from overseas currencies via US
dollars into
Canadian dollars (unless you choose to keep them in US
dollars.)
The Smithsonian • Kroger •
Canadian CEO Symposium • Omaha World Herald Investment Conference • Acme Brick • National Business Aircraft Association • Financial Analysts Society • Justin Brands • University of Nebraska • American Association of Individual Investors • Quebec City Chamber of Commerce • Taking Stock in Children • Iowa Bankers Assoc • Goldman Sachs
Asset Management, Nightingale Conant Insiders Club • Mastermind Alliance Group • Leadership Tampa • Freeman Fox (Australia) • Berkshire Group and AIC Funds (Canada) • Rentrop Publishers (Germany) • Oxford Club (Europe) • Louisiana State University • Value Investor Conference • Commonwealth Advisors, University of Texas • Million
Dollar Round Table • Top of the Table • Asia Financial Planning Journal (Singapore) • Asia Pacific CEO Association (China) • Financial Planning Association of Australia • Times of India • Mindscape and more...
For these companies, the American
assets would generate revenues and profits in U.S.
dollars, but since the results are reported in
Canadian, the earnings would receive a boost when translated back to
Canadian dollars.
There may be some risk to holding a large amount of
assets in foreign currencies, since you are still dependent on the strength of the
Canadian dollar when you receive dividends or sell the
assets.
First,
Canadian companies with
assets in the United States, but report their results in
Canadian dollars stand to benefit.
Even people with more modest
assets need to consider what might happen if they die, given real estate prices in some
Canadian cities and life insurance on both spouses, when added to the mix, can make many «simple» estates into million
dollar ones.
A new report by the
Canadian Constitution Foundation and Institute for Liberal Studies says the civil forfeiture laws are cash grabs for provincial governments, which have collected millions of
dollars in
assets as proceeds of crime.
The country's banks did not require bailing out; the
Canadian dollar is trading at record levels, and the country's pension funds — such as Stikeman Elliott client the Ontario Teachers» Pension Plan — are aggressively buying
assets abroad.
OMERS — Ontario Municipal Employees Retirement System, is known to be one of the largest pension funds in Canada with $ 72 billion
Canadian dollars (CAD) in net
assets.
With some help from a financial specialist in the collaborative process, and after several collaborative law sessions, Springfield Collaborative Divorce and the collaborative team were able to devise a way to divide pre-tax
assets,
Canadian dollars, U.S. investments and cash, and the potential tax liabilities in a way that was fair and equitable to both parties.