INVESTED: June Edition

Dive into the latest trends and insights in this month’s Invested newsletter! Viewpoint CCO Paula Sexsmith explores Canada’s T+1 settlement rule, while trust-based philanthropy is revolutionizing charitable giving. We also explore shifts in Canada’s financial and energy sectors and gain insights from Viewpoint CIO Scott Smith on the risk parity framework. Happy reading!

VIEWPOINT SPOTLIGHT

PAULA SEXSMITH FEATURED IN CANADIAN FAMILY OFFICES ARTICLE

Buying a Boat, Trading Globally? Impacts of the T+1 Rule Change

Viewpoint Chief Compliance Officer (CCO) Paula Sexsmith discusses the T+1 settlement rule in Canada with Canadian Family Offices, highlighting its benefits of faster access to funds and operational efficiencies. However, it poses challenges for complex investments and international portfolios, particularly in cash management and foreign exchange. Will technological upgrades be the key to adapting successfully?

INSIGHTS FROM THE VIEWPOINT FOUNDATION

EXPLORING PHILANTHROPIC TRENDS & IMPACTFUL INITIATIVES

Trust-Based Philanthropy: Redefining the Dynamics of Giving

How can trust-based philanthropy transform charitable giving? Emerging as a response to the limitations of strategic philanthropy, this approach emphasizes mutual respect, transparency, and long-term collaboration between donors and recipients. By providing multi-year, unrestricted funding, trust-based philanthropy fosters innovation and adaptability, leading to more meaningful and sustainable change.

JUNE’S TREND WATCH

CANADA’S FINANCIAL & ENERGY SHIFTS: MORTGAGE WOES, URANIUM BOOM, & EV TARIFFS

Canadian Mortgage Borrowers Are Too Indebted to Fail at Big Six Banks

How did Canada’s highly indebted households end up with mortgages exceeding the 25-year limit? Following a low-rate, investor-driven home buying spree, many borrowers now struggle with rising rates, leading banks to extend mortgage terms beyond the legal maximum. Despite regulations, over 20% of some major banks’ portfolios have amortizations exceeding 35 years. Check out this article from Better Dwelling for more info.

Deadly and Wildly Profitable, Uranium Fever Breaks Out

Bloomberg columnists Geoffrey Morgan and Jacob Lorinc explore why Saskatchewan is the new mining hotspot. NexGen Energy’s Patterson Lake uranium project could power 40 million homes for 25 years. Despite uranium’s dangers, global nuclear energy demand is rising, making this site key to Canada’s booming uranium industry. But is this momentum sustainable?

Canada Prepares Potential Tariffs on Chinese EVs After US and EU Moves

Is Canada set to follow the US and EU by imposing tariffs on Chinese EVs? Prime Minister Trudeau’s government is weighing tariffs on Chinese-made electric vehicles to protect Canadian jobs and industries from China’s overproduction. With public consultations on the horizon, these measures aim to balance economic protection and environmental goals. Will these tariffs reshape the EV market? Dive into Brian Platt’s analysis for more insights.

PODCAST PICK

UNLOCKING INSIGHTS, ONE EPISODE AT A TIME

I Hear ‘Ya Podcast: Focus on Risk Parity with Viewpoint CIO Scott Smith

On this episode of the Global Allocators podcast, I Hear ‘Ya, Viewpoint Chief Investment Officer (CIO) Scott Smith joins the conversation to dive into the quantitative world of finance, explaining the risk parity framework, its key characteristics, and the requirements for pursuing this strategy. He also discusses how to incorporate risk parity into portfolio construction, providing valuable insights for expanding its use beyond institutional investors.

MORE TO EXPLORE

CURATED READS FOR THE INQUISITIVE

Money-Minting Peso Trade Upended by Mexico’s Election Shock

This article from Bloomberg News discusses the landslide victory of Claudia Sheinbaum in Mexico’s presidential election that has shaken markets, causing the peso to plunge and stocks to rebound. With the ruling party gaining a strong legislative majority, concerns about potential radical reforms have risen. Could this political shift mean the end of the peso’s upward march?

June was packed with significant political events from around the world! Find this topic interesting? Check out this piece from CIO Scott Smith: Frexit Fears Spark Investor Anxiety

Hedge Funds Pile Into Copycat Quant Trades They Once Derided

Wall Street’s half-trillion-dollar quant trade cloning business has drawn unexpected customers: the hedge funds whose strategies it imitates. Hedge funds, once critical of these copycat products, now embrace their convenience. Could the rise of Quantitative Investment Strategies (QIS) signal a new era of strategic adaptation in finance? Columnist Justina Lee investigates.