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Living on Savings: three scenarios, one conclusion

Living on Savings: three scenarios, one conclusion [1]

Stock markets worldwide continued to advance during the second quarter: the US market moved up another 4% or so while the Canadian market added 3%. As the saying goes, bull markets climb walls of worry. Can this be more accurate, especially when you read the newspapers littered with bad news, listen to stock market gurus who predict all kinds of bad outcomes? Although we do not know whether all these forecasts would turn out to be true, we prefer sticking with our quantitative and disciplined approach that identifies opportunities one company at a time.

We must say that as it was relatively easy to pick good companies at great prices in 2012 and 2013, we are finding it much more difficult to identify new names to add to our portfolios since the market has moved up. Thus our conclusion is that prudence is of the utmost importance.


There are many topics that we would like to highlight to you in our quarterly letter regarding saving, investing and spending in general. We have chosen 3 for you this quarter to help you understand the way we think in our day-to-day management of your portfolio:

We are now about to launch a new fund called the Claret “Outside-The-Box” Fund.

The objective of the fund is to seize opportunities:

We want to make sure that we treat every client fairly, in other words, include every client in all the strategies we use in our money management process that we believe will enhance their overall return.

We firmly believe every client should participate in this Fund. In doing so, nobody will miss any investment opportunity, no matter how complex the strategy is.

Above all, we will not stray from our investment philosophy, which is ONE INVESTMENT AT A TIME BASED ON A FUNDAMENTAL, QUANTITATIVE AND DISCIPLINED ANAYSIS PROCESS.

The Claret team


Compliance Updates

Ombudsman for Banking Services and Investments - OBSI

Claret has recently become a member of the OBSI - Ombudsman for Banking Services and Investments - as required by Nation Instrument 31-103 for provincial regulators across Canada, except for Quebec. OBSI is an independent dispute –resolution service that investigates unresolved disputes at no charge to the client. They can be reached at 1-888-451-4519 or at www.obsi.ca [2]. A similar service is available to clients in the province of Quebec through the AMF – Autorité des marchés financiers.

Canadian Anti-Spam Legislation - CASL

As of July 1st 2014 the first stage of the Canadian Anti-Spam Legislation CASL has taken effect and impacts how communications takes place through the internet with emails. As we have an ongoing business relationship with you we are either in compliance with or have an exemption from the new legislation.

Foreign Account Tax Compliance Act - FATCA

On May 2nd, 2014, the US Department of the Treasury and the Internal Revenue Service announced that calendar years 2014 and 2015 will be regarded as a transition period for purposes of IRS enforcement and administration with respect to the implementation of the Foreign Account Tax Compliance Act – FATCA.This only impacts US citizens and US residents. Claret is in the process of complying with this new legislation.

If you have any questions or comments please contact us directly at 514-842-6110 or toll free at 1-888-842-6110.