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Views from the Hill  
An off-the-cuff forum to comment on the trends
and happenings we see affecting markets.

Views from the Hill

Oct

17

2014

North American Financials Capital Securities Trust - Special Meeting to Extend the Mandate

Posted by Aston Hill Capital Markets Inc.

Aston Hill Capital Markets Inc. has recently filed a Notice of Meeting and Information Circular for the Special Meeting of Unitholders of the North American Financials Capital Securities Trust.  It is being mailed out to all unitholders in the Fund.  The Circular contains all of the information regarding the Special Meeting and what needs to be done in order to for an investor to vote their units.  We have chosen to ask unitholders to extend the Fund for a variety of reasons (some listed below) but the primary reason is that we have received a lot of positive feedback from our clients about the Fund and their desire for it to continue.

The Connor Clark & Lunn Investment Management fixed income team has done a very good job, producing good results and making some very good macro calls.  For example, they had done their research and were able to trade out of the Tier 1 notes that had a regulatory par call feature long before the market realised the issue. By doing so, the Fund missed the significant move down in those notes.   The Class A units have an annualized return since inception of 9.23%* which compares quite favourably to the FTSE TMX Canada Universe Bond Index at 5.26% over the same time period.

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Oct

17

2014

Anatomy of a Correction

Posted by Jeff Burchell & Helen Liu

Everyone says a correction is healthy, but when it actually happens, no one likes it or remembers how painful it feels...

Earlier this week we hosted a conference call (along with portfolio manager John Kim) for advisors and their clients to walk through Aston Hill's "unscientific" analysis of what a market correction actually looks like.  The purpose of the call was to highlight the work we have been doing over the last couple of years to understand how the market moves when there is a correction.

In doing this, we looked back at all of the ‘pullbacks’ in the market (i.e. greater than a 6% decline in the S&P 500 Index) and at ‘corrections’ (i.e. a decline of 10% or greater) over the last 15 years - from 1990 onward - as a way to determine the "goal posts" of market movement. The takeaway: no two pullbacks or corrections are the same.

  • In 34 out of 36 times when we have had a pullback or correction, it takes 2 to 6 weeks to find a bottom. (There have only been two periods when this rule has not held: Fall of 2008 to March of 2009, and June to October of 2002.) 
  • You’ll get market pullbacks (down 6%+) more frequently than you get corrections (down 10%+). From 1990 onwards - excluding 2008/2009 - the markets corrected 17 times. 
  • Generally speaking, the market corrects or has material pullbacks 1 to 2 times per year.  The most number of pullbacks in one year was 4 in 1999.

To view the underlying data we compiled and analyzed, click here or click the image below.
 

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Oct

15

2014

Aston Hill Market Update

Posted by Aston Hill Investment Team

Everyone says a correction is healthy, but when it happens no one likes it or remembers how painful it feels…

We think it is important to provide timely information given what is going on in the markets, so the Aston Hill Investment Team has published a Market Update report that we hope you find pertinent.

Click here to download the report.


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Oct

1

2014

2014 Oil & Gas Market Commentary

Posted by Joanne Hruska & Carol Pretty

After three years of U.S. outperformance, the commodity heavy Canadian markets finally took the reins in the first half of 2014 outperforming healthy U.S. markets in the Composite Index and Energy indices.  The Canadian indices were lifted by a relatively stronger earnings outlook for Canada’s export based market assisted by a lower Canadian dollar and stabilizing Chinese growth.  Better earnings combined with better valuations led to a growing appetite for Canadian equities by both domestic and foreign investors.  This contributed to a long overdue rebound in the energy sector which was supported by rising commodity prices, a cyclical rotation into undervalued energy stocks and the improved profitability of a restructured North American energy sector.

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Aug

7

2014

"Pro tips on how to diversify your investment portfolio"

Posted by Aston Hill Sales & Marketing Team


Vivian Lo discusses the importance of diversifying your portfolio... click here to read the feature.

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SOURCE: GOLDEN GIRL FINANCE

Keep your options open to optimize your returns - says Vivian Lo of Aston Hill Asset Management 

Everyone wishes they had a crystal ball to know exactly what the market is going to do next. The unfortunate reality is that no such foresight exists.

But here’s the good news: By diversifying your portfolio, you can optimize returns and, just as importantly, position yourself to weather pullbacks in the market. And we’re feeling confident, after last learning from Vivian Lo of Aston Hill Asset Management about conducting the proper due diligence when assessing a company for investment.

But there’s a fine line between being diversified and being spread too thin. To find out just where that line sits, we talked to Vivian again - and she didn’t need a crystal ball to tell us how to diversity like a pro.

Ensure your eggs aren't all in one basket. Vivian explains... 

 

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Disclaimer:
This commentary is published by Aston Hill Financial Inc. (“Aston Hill”). The information contained herein does not constitute a recommendation by the authors or Aston Hill to buy or sell any of the securities, commodities, currencies or other financial instruments or assets discussed herein. This commentary has been prepared using information from sources that the authors and Aston Hill believe to be reliable, however neither the authors nor Aston Hill guarantees the accuracy of such information. This report does not constitute and may not be used for the purposes of effecting an offer or solicitation of units of any Aston Hill investment products. Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the prospectus and other publicly filed documents available at www.sedar.com before investing. 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 securityholder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Please correct the following errors:

Minimum Investment Requirements

The Aston Hill Credit Opportunities Fund is generally available to investors that can meet a certain minimum amount of money to invest. The minimum initial investment for residents in any province or territory in accordance with applicable securities laws is set out below:

All provinces and territories $125,000 or $25,000(1)
BC, NB, NS and NL Only: $5,000(2)

Notes:

(1) A minimum purchase of $25,000 is available to residents who meet certain requirements.
(2) A minimum purchase of $5,000 is available to residents who meet certain requirements and reside in BC, NB, NS and NL by way of the prescribed OM.
Investors should contact their investment dealer or Financial Advisor for more information.

If you can comfortably invest the minimum dollar amount required in your province or territory, please accept the disclaimer below to learn more about the AHF Credit Opportunities Fund.


Disclaimer: Information pertaining to AHF Credit Opportunities Fund is not to be construed as a public offering of securities in any jurisdiction of Canada. The offering of units in the AHF Credit Opportunities Fund is made pursuant to its offering memorandum only to those investors in jurisdictions of Canada who meet certain eligibility requirements. Please read the offering memorandum carefully before investing.

Minimum Investment Requirements

The Aston Hill Opportunities Fund is generally available to investors that can meet a certain minimum amount of money to invest. The minimum initial investment for residents in any province or territory in accordance with applicable securities laws is set out below:

All provinces and territories $150,000 or $5,000(1)

Notes:

(1) A minimum purchase of $5,000 is available to residents who meet certain requirements. Investors should contact their investment dealer or Financial Advisor for more information.

If you can comfortably invest the minimum dollar amount required in your province or territory, please accept the disclaimer below to learn more about the Aston Hill Opportunities Fund.


Disclaimer: Information pertaining to Aston Hill Opportunities Fund is not to be construed as a public offering of securities in any jurisdiction of Canada. The offering of units in the Aston Hill Opportunities Fund is made pursuant to its offering memorandum only to those investors in jurisdictions of Canada who meet certain eligibility requirements. Please read the offering memorandum carefully before investing.

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Markets

Oct 20, 2014 16:09 EDT

AHF-T 0.02 icon-arrow-up-green-small-dark.png 1.03
S&P/TSX 110.09 icon-arrow-up-green-small-dark.png 14,337.77
S&P 500 17.26 icon-arrow-up-green-small-dark.png 1,904.02
Dow Jones 19.26 icon-arrow-up-green-small-dark.png 16,399.67
NASDAQ 57.63 icon-arrow-up-green-small-dark.png 4,316.07
CAD/USD -0.00 icon-arrow-down-red-small.png 0.89
Oil (NY) 0.08 icon-arrow-up-green-small-dark.png 82.83
Gold 7.70 icon-arrow-up-green-small-dark.png 1,246.70
Natural Gas -0.09 icon-arrow-down-red-small.png 3.67
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