CI Financial & TD Bank Are Slow to Realize ETF Potential

BMO’s Farsighted ETF Vision

First Published Date: November 19, 2015

Canada’s second largest publicly-traded fund company CI Financial likes to see itself as an industry pioneer that consistently anticipates and responds to the changing needs of the marketplace. Remember the CI Pacific fund, Segregated Funds, and Sector Funds concepts that CI revolutionized? However, CI missed the boat on ETF funds, as did TD Bank, because they finally realized that the ETF arena is where money will be pouring in for the next several decades, and where another player BMO is already reaping benefits from its farsighted vision that made BMO enter the ETF arena in 2009.

CI enters the ETF arena by acquiring First Asset Investment Management, which has $3 billion in assets under management and $1.6 billion of that is in active ETFs. BMO’s ETF assets under management are already staying high at nearly $24 billion, making it Canada’s second largest ETF provider after iShares.

And TD? It will be entering the ETF arena as the 3rd bank player (after BMO and RBC) in early 2016. TD hasn’t revealed much detail yet about its ETFs, but it was widely expected that, like CI, TD would have had no choice but to enter the ETF marketplace. However, the difference between CI and TD is that TD already attempted to enter the ETF marketplace in the past (in 2001), but failed to keep up its pace due to unexpected low trading volumes.

Things have changed since then. The Canadian ETF sector has come a long way and is currently sitting with $87 billion under management with 12 players. The growth potential of ETF industry cannot be ignored anymore and CI and TD made the right delayed call to enter the marketplace. Here is a simple example of how BMO rapidly increased its AUM by acting ahead of everyone else.

BMO ETF AUM (Asset Under Management)

2009 – Start

2010 September – $1 billion

2011 April – $2 billion

2011 September – $3 billion

2012 January – $4 billion

2012 March – $5 billion

2012 August – $7 billion

2013 March – $10 billion

2015 November – Nearly 24 billion

So what does it mean to have more players for Canadian investors? More competition, wider selections, more choices, broader distribution channels, and yes, lower costs. As the ETF sector is maturing and going through tremendous growth in Canada, expect to see more players putting their feet in in the days to come.

Real Estate In Phuket

Buying Property in Phuket

First Published Date : May 8, 2010

One of the most beautiful regions of Thailand is Phuket. Sitting on Phuket Island, the third largest island in Thailand, the capital city of the Phuket Province is Phuket City, with 75,000 inhabitants. This region is highly sought after for real estate investment and for vacation homes for the simple fact that it lies close to the equator, giving an average temperature of 32C/90F, while only going down to an average low of 24C/75F. While the region is dry from December to March, it can be very wet in the monsoon time of year from April to November.

When you are looking to buy property within Phuket, you should look along the Hat Patong, which is the most-developed beach on the island. Situated in a three-kilometer long-bay, you can enjoy windsurfing, sailing, swimming or just sun-tanning during the day, while taking in the restaurants and thriving nightlife at night.

Phuket is currently going through a real estate boom with a great deal of development going on in the area of condos, homes for retired individuals, rental homes and luxury housing. With over 4,000,000 people visiting the island each year as part of their vacation, there are many who want to have a home they can go to while on this beautiful island.

If you are thinking of moving to Phuket, you should first be commended for deciding to live somewhere this beautiful. Choosing a place, whether it is a condo, villa, or house, will depend greatly on what you are looking for. If you want to live in a remote area, you can look in the Rawai area or the Naiharn area. However, if you want to be close to golf courses, hospitals, shopping areas and urban centers, then the Kathu area of the island is a good idea.

When people talk about the benefits that come from living in the Phuket province, or in Phuket City, it often revolves around the traditions, food and local life of this amazing area.

When you are looking for condos, villas, or homes within Phuket, there are some things to consider, including:

1.    Make sure you choose a reputable real estate company. This is true if you are buying over the phone, or from your current country. You want to make sure the company you go through is going to make sure that you get a home you not only want, but that you can afford as well.

2.    If you need to, get some legal advice on how to buy a home in Phuket.

3.    Do as much research as you can into Phuket because you want to live in an area that is conducive to your lifestyle. If you are young, you may want to be in an urban area where there is a night life. If you are looking for some place quiet, then a villa in a remote village may be a better choice. If you have children, a villa on a cliff may not be a good idea because of the dangers presented by the cliff.

The time is now to buy in Phuket. The financial crisis has made many luxury homes affordable on the island and they are starting to be snapped up by foreigners. In the past few years alone, the number of condos has doubled on the island and all these islands are also selling quickly. Most of the people interested in buying homes in Phuket are from the United States, United Kingdom, Australia and Scandinavia, so don’t let them snap up your home on Phuket Island.

This is a beautiful island that is quickly becoming the go-to destination for many individuals in the Western World who are tired of the snow, cold and day-to-day grind.

Now, it should be noted that under Thailand’s laws, it is forbidden for a foreigner to own land within the Kingdom of Thailand. Now, you are allowed to buy a condo under your own name if the condo is a freehold title. If the condo is not a freehold title, then you can lease it for 30 years, with an extension of 30 years on top of that.

If you want to get cheap property within Phuket, you can look at two places; auction and banks. If you are planning to buy a property at auction, you need to get research done on the title before you do. You need to have a friend based in Thai ask the right sorts of questions for you if you do this and you need to be able to move quickly as someone else may take your property from you. Most newspapers within Phuket will have auction notices so all you need is someone in Phuket to let you know about possible properties. Let them know what you want to spend and what you are looking for and your Thai friend can make things much easier for you when you are shopping for a home in Phuket. Buying through auction can save you a lot of money but again make sure you research the property and have a lawyer ensure there are no problems with the property and to ensure that the title is completely free and clear.

If you decide to go through a bank, look for property that has gone through repossession. Banks will sell at a discount because they do not want to go to auction, where they will lose more money. You can find many properties through banks on the internet in Phuket, which have gone through foreclosure. Although, if you can’t read Thai, you may have some trouble so a Thai friend again comes in handy. Having a Thai friend can also aid you in seeing the hoe and because banks will often hold special open houses when your Thai friend can check out the home for you.

Which Credit Cards Offer an Annual Companion Flight?

Save Money with an Annual Companion Flight

First Published Date: November 25, 2015

There are many perks and features credit cards come with that a lot of people aren’t aware of. Today, I will talk about how you can travel for a lot less with the annual companion flight that comes with some credit cards.

There are currently two credit cards that offer an annual companion flight. What this means is that you buy one plane ticket at regular price and you get a companion ticket at a heavily-discounted price. Here are the two cards:

WestJet RBC World Elite MasterCard – Buy a ticket at regular price anywhere within Canada or U.S. (excludes Hawaii and Puerto Rico) where WestJet flies and get a companion round-trip with you for $99 (excluding taxes, fees and charges). Read my WestJet RBC World Elite review here. Annual fee = $99.

MBNA Alaska World Elite MasterCard – Buy a ticket at regular price anywhere within Canada, U.S. (including Alaska and Hawaii) or Mexico where Alaska Airlines flies and get a companion round-trip with you for from $121 USD. Annual fee = $75.

There are some other cards that offer an annual companion flight with a catch, such as you have to fly on rewards points or spend certain amounts. Example: American Express Air Miles Reserve Card, American Express AeroplanPlus Reserve Card, American Express AeroplanPlus Platinum Card, and RBC British Airways Visa Infinite

Which Credit Cards Offer Airport Lounge Access?

Free Lounge Access with Credit Cards

First Published Date: December 13, 2015

When you are on a long international flight, the crummy and horrible waiting area can be a torturous place to spend your time. Your travel experience can get even worse if you have several never-ending layovers in between. Lounge access can make your whole journey memorable, with free amenities such as better food, resting area, shower facility, drinks, workstation, and much more that you would not have access to otherwise. Airport lounges are the travel industry’s best-kept secret and annual membership is expensive. But savvy travellers can score access to these calm, secluded, and ultimate relaxation area lounges for free, regardless of their flight class, with some credit cards that offer free lounge access.

Credit Cards with Lounge Access

1. BMO Air Miles World Elite MasterCard

Credit Card Annual Fee = $120

Lounge Access = 2

2. BMO World Elite MasterCard

Credit Card Annual Fee = $150

Lounge Access = 4

3. Amex Air Miles Reserve

Credit Card Annual Fee = $299

Lounge Access = 4

4. ScotiaBank Amex Platinum

Credit Card Annual Fee = $399

Lounge Access = 10

5. Amex Business Platinum

Credit Card Annual Fee = $399

Lounge Access = Unlimited

6. Amex Aeroplan Plus Platinum

Credit Card Annual Fee = $499

Lounge Access = Unlimited

7. Amex Platinum

Credit Card Annual Fee = $699

Lounge Access = Unlimited

Canada: The Genuine Alternative To America

Canada Welcomes the World

First Published Date: Sep 25, 2009

There has always been a feeling in this world that the near neighbours of the larger or more prominent and influential countries in the world suffer from something of an inferiority complex when placed against their neighbour. As New Zealand is to Australia, as Scotland is to England, there is a feeling that Canada is the poor relation to the United States of America. This feeling comes from nothing more than a cheap, basic reading of the geography and the media profiles of the countries, and is typically quite wide of the mark, but it is still prominent in the way that people talk about the “junior” neighbour. So it should be embraced and celebrated when it is made clear, in any way, that the so-called “little guy” scores a notable success.

For instance, in July the number of people traveling North to Canada from the USA increased by nearly five per cent. There is an increasing feeling that Canada is far from being the “poor relation” here, but rather the more grown-up, sensible alternative to the admittedly attractive superpower with which it shares a border. Since the global financial crisis really dug its claws in (and the vagaries of global trade are such that when it got to one major country its neighbours and trade partners would be affected too), there have been experts in Canada and outside falling over themselves to credit Canada with being uniquely well-positioned to deal with a recession.

Part of Canada’s problem, if it really has one to be concerned with, is that “sensible” is seen as being an unsexy word. There is something of a problem in this world with “dumbing down”, and a country which can claim to be sensible – a highly desirable quality to have, surely – will raise fewer eyebrows than one which can come out, all guns blazing, and promise to really put on a show you will never forget. However, there is now a sense that we are tiring of dumbing down, and that this world has more to offer than the typical and well-worn attractions of the “bigger” neighbours. It is not just Americans who are pouring into Canada. The increase in visitors from Japan in July was a huge 32.4% – and visitors from all over the world increased too.

What this means for Canada is something essentially quite simple. Where there is tourism, there are dollars. As Canada boosts its visitor numbers, it will increase its income from holidaying families and also increase the demand for jobs in its travel sector. This is something that will increase further in the New Year as Vancouver plays host to the Winter Olympics, bringing visitors to Canadian shores in yet greater numbers and showcasing a country that has plenty to be proud of in terms of natural beauty, ease of visiting and a thriving hospitality sector. When Canada welcomes the world, what the world sees is not simply a country which is sensible, but the country that many others would like to be.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on Sep 25, 2009.