Fluctuations in the exchange rate can clearly have an impact on
your Canadian dollar returns.
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.
«If your approach is to just buy a bunch of reports to see what's going on in the marketplace, that's not as likely to get you a
return on your market research
dollars as a specific need,» says Robert Rubenstein, who spent three decades in the market research business at
Canadian corporate heavyweights Molson Breweries and TD Canada Trust before recently founding his own startup, Horizn.
If you're talking about a new project with no significant investment already deployed, building a new mine if you expect today's prices to hold in the long term is a tough call — a 50 - year oil sands project is a lot of risk for less than a 10 % rate of
return — but even there, you can see the impact of the lower
Canadian dollar and the hedge provided by a royalty regime which lowers rates when prices are low.
If you're talking about a new project with no significant investment already deployed, building a new mine if you expect today's prices to hold in the long term is a tough call — a 50 year oil sands project is a lot of risk for less than a 10 per cent rate of
return — but even there, you can see the impact of the lower
Canadian dollar and the hedge provided by a royalty regime which lowers rates when prices are low.
A stronger U.S.
dollar adds another 2 % to those
returns for
Canadian investors.
«The RBC PMI
returned to positive growth territory during June, reflecting the lift to Canada's manufacturers provided by an improved U.S. economy and a more competitive
Canadian dollar,» said Craig Wright, senior vice-president and chief economist, RBC.
The new report, by University of Guelph economics professors Douglas Auld and Ross McKitrick, finds that the cost to
Canadians of biofuels support programs has been between $ 3.00 and $ 3.50 for every
dollar these programs
return in benefits.
Canadian stocks, EAFE markets (all foreign market
returns are reported in
Canadian dollar terms), Emerging markets and REITs all posted double digit gains in the past quarter.
Only 8 % of actively managed U.S. equity funds outperformed the S&P 500 in
Canadian dollar terms, while less than 5 % of actively managed International equity funds outperformed their respective index
return.
They are
returning to moderate levels from where they were a year or 18 months ago; and the effect should be positive for
Canadian companies, as they will continue benefiting from a lower
Canadian dollar.
The depreciating
Canadian dollar boosted foreign stock
returns somewhat.
Note the differences in
returns between gold priced in U.S.
dollars and gold priced in the Brazilian real, Turkish lira,
Canadian dollar, Russian ruble and Indonesian rupiah.
OTTAWA — A five - year $ 50 - billion public infrastructure spending initiative would generate a
return on investment to
Canadians over the long term as high as $ 3.83 per
dollar spent, trigger significant private sector investment and stimulate wage increases, according to a new study by an independent economic modelling firm.
«Currency gains accounted for the bulk of the
return this quarter, as the
Canadian dollar continued to slide against most major currencies,» added MacDonald.
The big gains were provided by international stocks: US stocks gained 9.5 %, Emerging markets were up 10.2 % and European stocks were up 5.9 % (all
returns in
Canadian dollar terms).
During that period, his portfolio posted an annualized 8.3 - per - cent
return before fees, compared with 5.6 per cent for the S&P / TSX Total Return index and a 3.2 - per - cent loss for the S&P 500 Total Return index in Canadian do
return before fees, compared with 5.6 per cent for the S&P / TSX Total
Return index and a 3.2 - per - cent loss for the S&P 500 Total Return index in Canadian do
Return index and a 3.2 - per - cent loss for the S&P 500 Total
Return index in Canadian do
Return index in
Canadian dollars.
«From 2011 to 2016, the TSX had an annual compound
return of 5.2 per cent (including dividends) while the S&P 500 had an annual compound
return of 12.4 per cent, or 17.3 per cent in
Canadian dollars.
«If you look at the S&P / TSX Composite Index, it had an annual compound
return (including dividends) of 8.9 per cent between 2001 and 2010 while the S&P 500 had an annual compound
return of 3.0 per cent, or -2.3 per cent in
Canadian dollars given our currency's appreciation during that period,» says Dimock.
But if you take a slightly longer term view and consider the fact that XSP has trailed IVV
returns in US
dollars every year for the past five years, you'll find that XSP's outperformance is significantly eroded by the tracking error even with a significant appreciation in the
Canadian dollar.
On the contrary, from 1983 through 2004, inflation averaged about 3 %, but the nominal annual
return on gold in
Canadian dollars during this period was — 0.3 %.
During the 10 years ending in 2011, U.S. stocks (measured by the S&P 500 in
Canadian dollars) delivered negative
returns, while developed markets in Europe, Asia and Australia (measured by the MSCI EAFE index) were just barely positive.
The ETF hedges foreign currency exposure, so the index
returns are measured in
Canadian dollars.
You then report the capital gain, or loss, on your tax
return based on «the difference between those two
Canadian dollar amounts.»
It has some of the most innovative and entrepreneurial companies in the world, and historically, U.S. equities have delivered some of the highest equity
returns in
Canadian dollar terms, says Wong.
Hedging worked well in the mid-2000s and other periods when the
Canadian dollar rose dramatically, but over the long term it causes a drag on equity
returns and may even increase a portfolio's volatility.
In the past two years, the
Canadian dollar's rise against the many other currencies partially muted strong global equity
returns.
Still, the CPPIB acknowledged that its second - quarter
returns were eroded by a strengthening
Canadian dollar.
Therefore, the strength or weakness of the US
dollar has no effect on the
return that international equity ETFs deliver to
Canadians.
Of course, since 2005 gold has been the best performing asset class, with annualized
returns of about 18 % in
Canadian dollars.
All
returns are expressed in
Canadian dollars.
Inflation in Canada averaged almost 9 % from 1970 through 1982, and gold would have provided an enormous safety net during this period: its annualized
return (in
Canadian dollars) was over 25 % during those 13 years.
For the S&P 500 in the U.S., converted to
Canadian dollars,
returns were 10.55 %, 9.77 % and 11.59 %.
I'll be posting complete 2012
returns for all of the model portfolios — adjusted for
Canadian dollars — as soon as all the data are available.
Her ETF is denominated in US
dollars, but her
returns are measured in
Canadian dollars.
If a
Canadian buys an unhedged index fund that tracks US stocks, her
returns will suffer if the US
dollar declines against the loonie.
In 2009, while U.S. stocks made huge gains, the plunging American
dollar trimmed some 15 % from the
returns of
Canadians holding those stocks.
However, the Fact Card for CGL quotes data from 1994 that shows the standard deviation of gold
returns is actually slightly lower in
Canadian dollars (14.69 %) than in US
dollars (15.15 %).
So for a
Canadian holding CGL, a declining US
dollar could be doubly good: it would likely correspond with a rise in the price of gold, and the hedging would mean even higher
returns in
Canadian -
dollar terms.
The managers use complicated financial instruments designed to smooth out currency fluctuations and deliver the full
return of the underlying stocks in
Canadian dollars.
To test this idea, I looked at equity index
returns for Canada, the US and international developed markets (in
Canadian dollars) since 1970.
Returns for US - listed funds are expressed in
Canadian dollars.
Not only have US stocks significantly outpaced Canada and the rest of the world (albeit with low
returns by historical standards), but the US
dollar appreciated more than 1 % annually, which boosted
returns for
Canadian investors who did not use currency hedging.
So investors in XIN should expect the same
return in
Canadian dollars that local investors in Europe, Asia and Australia receive in their own currencies.
Yet the nominal
return on gold in
Canadian dollars during this period was — 0.3 % annualized.
To an investor measuring her
returns in
Canadian dollars (as most of us do), the
returns of the two versions would have been the same.
So, you get the same
return as the S&P 500 in
Canadian dollars.
Canadian bonds (a higher
Canadian dollar will keep inflation low, hence reinforcing positive fixed - income
returns)
But
return from foreign stocks was muted by the continuing strength of the
Canadian dollar.
The big gains were provided by international stocks: US stocks gained 9.5 %, Emerging markets were up 10.2 % and European stocks were up 5.9 % (all
returns in
Canadian dollar terms).