March 2020 News

New Office Assistant Proposed Class Action Lawsuit Against Certain Banks Corona Virus QUOTES
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New Office Assistant

We’re pleased to share with you that we have hired a new office admin assistant, Kristen Den Uyl. We have been working without an assistant for the past few months since Adeline’s retirement and we are both very excited to have found Kristen and believe she will a great addition to the team and office. Kristen moved to Nanaimo from Kelowna, BC in 2019 with her partner and their 4 children ranging in ages from 7-16 years old.

Kristen has 14 years’ experience as an administrative assistant with various business backgrounds along with 21 years’ experience as a customer service specialist in everything from municipal government to coffee shops and grocery stores. She values hard work, efficiency, honesty and loyalty. When not at work she makes room for family outings, crafting and creating.

Proposed Class Action Lawsuit Against Certain Banks

Certain banks have had a class action lawsuit filed against them. The law firms organizing the suit allege that these banks “received fees for conducting an investment strategy based on active management” but were actually “closet indexing.” A strategy designed to replicate but not exceed the performance of the S&P/TSX Composite Index.

Why is this an issue? Both banks involved have relatively low-cost funds, that some of our own clients use, which aim to mirror the S&P500 or S&P/TSX Composite Index, and yet advisors at the alleged banks were advising clients use the funds with full 1% management fees despite these funds in question having very little active share (active share is the measurement used to compare overlap to a funds index.)

Active share is one of the metrics we as independent investment advisors look at when making a recommendation, if a fund overlaps it’s index by 90%+ we should be considering the index instead at a marginal fee to the client. Indexing has its own set of advantages and disadvantages and may be suitable for some clients and not for others. Contact us if your interested in exploring this approach for a portion of your portfolio.

Corona Virus

The Coronaviruses are a large family of zoonotic viruses, meaning they are transmitted between animals and people. Common signs include respiratory symptoms, fever, cough, shortness of breath, etc. In Canada, of 464 people under investigation only 9 have been diagnosed with the virus. In the USA, with a population almost 10x that of ours, they have only had 34 diagnosed.

All of this to say, there are 79,000 cases of the virus worldwide, but the overwhelming majority of those cases are in China and the middle east. Our hearts certainly go out to those who are infected or even at high risk of infection.

Through the lens of an investment advisor however, we are not overly concerned with the downside risk associated with the virus. The majority of our invested dollars are in Canada and the USA. The US economy is very self-sufficient, and we don’t see reduced productivity in emerging markets as a large threat to the Canadian economy. The narrative could change quickly if the virus began to spread in North America, but as we see it today, not a huge risk. This opinion is based largely on the results past epidemics have had on markets. See below for chart from DOW Jones Market Data.

Market Returns

When you want to go somewhere, it is best to find someone who has already been there.

Robert Kiyosaki

The will to win, the desire to succeed, the urge to reach your full potential… These are the keys that will unlock the door to personal excellence.


If freedom of speech is taken away, then dumb and silent we may be led, like sheep to the slaughter.

George Washington

DISCLAIMER: This newsletter contains general information only and is intended for informational and educational purposes provided to the clients of Anne Marie Dryden & Hans Bischoff. While information contained in this newsletter is believed to be reliable and accurate at the time of printing, Anne Marie Dryden & Hans Bischoff do not guarantee, represent or warrant that the information contained in this newsletter is accurate, complete, reliable, verified or error-free. This newsletter should not be taken or relied upon as providing legal, accounting or tax advice. You should obtain your own personal and independent professional advice, from your lawyer and/or accountant, to take into account your particular circumstances. Commissions, trailing commissions, management fees and expenses all may be associated with ETF & mutual fund investments. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. ETF’s & Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the prospectus before investing. The views expressed in this message are not necessarily the views of Investia Financial. Exchange traded funds, mutual funds and exempt market products are offered through Investia Financial Services Inc.

Hans Bischoff Author Thumbnail
Hans started with the firm in 2016 providing clients with fee-based investment advice, tax planning, estate planning, risk optimization and life insurance advice. He is also currently working towards his CFP designation. Hans’s structured and functional approach ensures his clients are looked after with the utmost care while building wealth and minimizing taxes.
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