Making sense of the markets this week: July 10
Pensions are in good shape
Need some good news? Rare these days, I know.
Despite a multitude of factors—including historically high levels of inflation, recession fears and year-to-date asset losses—the funded positions of most defined benefit (DB) pension plans improved during the second quarter of 2022, according to the Mercer Pension Health Pulse (MPHP) study. That includes CPP, too.
The MPHP, which tracks the median solvency ratio of the DB pension plans within Mercer’s pension database, increased from 108% as at March 31, 2022, to 109% as at June 30, 2022.
Beat the TSX portfolio handily beats the John Heinzl portfolio
Here is the mid-year review of the Beat The TSX Portfolio. Simple rules-based BTSX beats the thinking of experts such as the John Heinzl portfolio, writes Matt Poyner at dividendstrategy.ca.
The high-yield dividend strategy has had a good run in Canada and in the U.S. in 2022. I also track the Beat The TSX Portfolio on my blog.
Bank brokerages remove competition for their savings accounts.
A few banks in Canada do not offer high-interest savings (cash) exchange-traded funds (ETFs) at their discount brokerages. The discount brokerages at Royal Bank of Canada (RBC Direct), Bank of Montreal (BMO InvestorLine) and Toronto-Dominion Bank (TD Direct) don’t offer cash ETFs. Why not? Who knows, but I do know these cash ETFs would compete with the banks’ own paltry “savings” accounts that pay next to nothing with respect to interest rates.
I connected with Mark Noble of Horizons ETFs over email. He says if you’re a TD client, you can call in to access cash ETFs, but you would not be able to purchase them online.
That’s similar to the TD e-series index funds listed in the Canadian Couch Potato series. They are a wonderful option, but good luck getting a TD advisor to help you find them.