Mapledene Financial Group

Mandeville Private Client Inc.

From the Desk of Mark McConnell 

First and foremost, thank you for placing your trust in me and making the move with me to Mandeville Private Client Inc. I am humbled by the vote of confidence we received by the overwhelming majority of our clients who chose to stay with me as their financial advisor. We look forward to continuing to serve you and helping you achieve your financial and investment goals.

I sincerely apologise if there were any disruptions that you may have experienced during the transition. If you feel that something has been missed or if you need clarity on your accounts as a result of the transition, please let us know. We are a phone call away, and no concern is too small.

Our website at www.mapledene.ca is back up now having been completely rebranded to Mandeville. We encourage you to visit our website as we maintain regular content updates. Mandeville’s Chief Investment Officer provides a monthly update on global markets for those of you who like to study the market trends more deeply. You are also able to go directly to your Mandeville accounts from a direct link on our website.

As a reminder, if you haven’t had a chance to set up your online access, please do so. There was an email sent to you from clientservices@mandevillepc.com within a week of signing those Mandeville account opening forms. There is a link in this email that you click on to start the online setup, and that link will expire soon. If you don’t set up online access, then you will start getting papers statements….and who wants all that paper? Please, find that email and save a tree. If you can’t find that email, please let us know and we will have our head office resend the link.

So besides a little paperwork that was filled out, anything else happen at the end of 2016?

Markets Report – 2016 Fourth Quarter

The fourth quarter of 2016 delivered more unexpected events, continuing with what had already been a surprising year. Few people predicted Donald Trump’s victory in the U.S. presidential election, a result that had a strong influence on capital markets. Although stocks initially sold off after the vote, investors soon turned back to equities, anticipating a pro-growth Trump agenda characterized by tax cuts, reduced regulation and increased infrastructure spending. The “Trump bump” was even more pronounced in the bond markets, where US and global bonds fell in price on anticipation of higher future interest rates to curb future inflation.

Most global equity markets advanced in the fourth quarter, resulting in generally solid results for the year. The MSCI World Index rose 0.6% in during the three-month period, bringing its gain for the year to 2.3% in Canadian dollars. The S&P 500 Index, a broad measure of the U.S. equity market, was up 3.8% for the quarter and finished 2016 with an increase of 9.5% in US$ (or up 6.4% in Canadian dollars).

Canada’s equity market, meanwhile, completed a strong turnaround from the previous year’s weak results, finishing as one of the world’s best-performing markets in 2016. Canadian energy and materials companies were buoyed by rising prices for oil and other commodities. Supportive business conditions and a post-election rally in Canadian bank stocks, based on the expectation of higher global interest rates, helped to boost the market further. The benchmark S&P/TSX Composite Index climbed 4.5% in the fourth quarter, capping off an impressive 17.5% gain for the year. Overseas, markets were somewhat mixed, with strong quarterly results in Japan, Britain, Germany and France, while Hong Kong’s Hang Seng Index lost ground amid relatively tepid results in Asia. China’s Shanghai Index was up in the fourth quarter, but finished the year with a loss of more than 12% in local currency terms.

The major commodities all increased last year, with Crude Oil WTI up 45%, Natural Gas up 30%, Gold up 8.6% and Copper up 16.1% (all prices in US$).  With all these increases in commodity prices, it was

surprising that inflation remained tepid at just 1.5% year over year as measured by the Bank of Canada’s Total Consumer Price Index.

Based on uncertainty in the global economy, bond yields had remained depressed for most of the year, but sharply reversed course in the fourth quarter, reflecting the market’s anticipation of U.S. fiscal expansion and higher inflation with Trump’s election. Although not unexpected, the U.S. Federal Reserve announced a long-awaited 0.25% increase in the federal funds rate in mid-December, causing bond prices to fall further. The yield on the benchmark U.S. 10-year government bond finished the year at 2.45%.

The Bank of Canada kept its overnight lending rate unchanged at 0.50%, citing significant slack in the Canadian economy and lingering uncertainty in the global economy. The FTSE TMX Canada Universe Bond Index, a broad measure of Canadian government and corporate bonds, lost 3.4% in the final threemonth period of 2016. However, the index remained positive for the full year, adding 1.7% in 2016.

The past year had many surprises (Trump’s election victory, Brexit, Brazilian presidential impeachment, Wells Fargo phony accounts, Samsung phone fires, cyber-security threats) and tragedies (continuing Middle East conflicts and war, Zika virus, terrorist shootings and Fort McMurray fires). It also had its share of positive stories (the Columbian peace accord, renewable energy capacity overtook coal’s, and the Chicago Cubs won the World Series). Some of these surprises created volatility and uncertainty in the capital markets, but they also created opportunities for experienced investors, and will continue to do so in the coming year. I continue to recommend a diversified, professionally managed portfolio that is tailored to your individual investment objectives to take advantage of opportunities as they arise, while protecting your investments from further volatility.

RRSP & TFSA Season

If you have the TV constantly on mute or refuse to read anything other than the comic strips in the newspaper, you may have missed that you are allowed to put another $5,500 into your Tax Free Savings Account. For those under the age of 71 and still interested in saving taxes, the deadline for contributing to your RRSP for tax year 2016 is March 1, 2017. As that is a Wednesday, we will be open all day, and accepting cheques of all shapes and sizes.

If you can’t make it here, we also accept online deposits. If you have never done an online deposit with us, don’t worry, it is very easy to do. But there are important directions and you are best to call or email our office before March 1st. In addition, if your Mandeville RRSP account number starts with a 400 (these are referred to as an off-book or client held account), you will have to sign a purchase form to complete the RRSP contribution. Again, it is very simple, but also very important. So just call us at 519432-6744 and we will let guide you to an easy RRSP or TFSA contribution.

Client Seminar

We are pleased to announce that we will be hosting an information seminar with Mandeville’s founder and Chief Executive Officer, Mr. Michael Lee-Chin. The tentative date is May, 2017. This seminar will be an exclusive opportunity for our clients and their guests to learn investment wisdoms from one of the world’s richest and most successful investors. Look for more information by early April.

Thank you Thank you again for providing us the opportunity to be your Financial Advisor. We are running advertisements now to try to expand Mandeville Private Client’s name recognition in our community. However the absolute best advertisement is word of mouth from our clients. And the best compliment I receive is a referral from a client to help a friend, family member or co-worker. Do you know someone who is changing jobs, or getting ready for retirement or welcoming a new child into the family? These are big events, and I know that most people in these situations benefit greatly from our financial and investment insights.

If you think of anyone, please have them call me directly at 519-432-6744 (so I don’t inadvertently call anyone on the Do Not Call list). Or alternatively, just give them my email address mmcconnell@mandevillepc.com and they can send a note to me. Everyone needs help at some time, and a little professional advice can go a long way to help people achieve their financial success.

On behalf of my assistant Susan and the rest of the team in our office, I would like to wish you and your family all the best for the year ahead.

Sincerely,

Mark McConnell, BA (Economics), DipBIS
Senior Investment Advisor

Mandeville Private Client Inc.
Unit-2,
309 Commissioners
Road West,
London, Ontario
N6J 1Y4

Top scroll to top