GENERAL RESPONSIBILITIES

Reporting to the Assistant Consultant, the Paraplanner will assist the financial planning team in developing and implementing financial plans for individuals, corporate executives and professionals.

SPECIFIC RESPONSIBILITIES

• Provide sustainable continuous support to the financial planning team and clients including:
• Data entry for the preparation of financial plans, using in-house software & Excel.
• Drafting correspondence and meeting agendas.
• Research various financial planning and tax issues.
• Follow up on financial planning issues with outside professionals as required.
• Input tax returns and review notices of assessment.
• Follow-up with CRA on client tax issues.
• Assembly of financial plans and tax returns.
• Various other tasks as assigned, including office administration/reception backup.

QUALIFICATIONS

• University degree or college diploma (preferred).
• Working towards CFP designation (preferred).
• Advantageous to have related courses such as Canadian Securities Course, accounting or tax.
• Knowledge of tax and investment strategies, securities, insurance, pension plans and real estate is a definite asset.
• Excellent communication skills (written and verbal).
• Self motivated, organized with exceptional time management skills.
• Above average attention to detail and accuracy in work.
• Ability to work well as part of a team but can also work independently (with little supervision) to complete tasks and prioritize work for oneself.
• Enjoys a fast paced environment.
• Computer literate.

LOCATION:  Vancouver

To explore this unique opportunity, please send your resume to Tammy Newsted: tnewsted@tewealth.com.

When the California Public Employee Retirement System (CalPERS), the second largest pension fund in the US, announced in late March that the fund was contemplating abandoning active investment management – i.e. strategies aimed at outperforming the market – some considered it a very telling development in the decades-long active versus passive debate.

In our March commentary we touched on the fact that the merits of active management have long been questioned. Proponents of passive index strategies cite numerous academic studies and investor experiences that show consistently beating the market is quite difficult. It is interesting to note that although the majority of Canadian investment managers have been up to the task recently, their US and international counterparts have not fared so well. The latest S&P Dow Jones Indices Versus Active (SPIVA) report found that more than 63% of US large-cap equity managers underperformed the S&P 500 last year, while greater than 56% of international funds also fell short of their index. The apparent ineptitude of active management in these regions is further highlighted when some longer-term performance records are studied.

An optimist can examine these numbers and conclude that, on average, roughly 30% of active managers in any given market can deliver consistent, long-term outperformance. However, pessimists will note that the task of finding these managers in advance is exceedingly difficult. One issue is the fact that outperformance can be wiped out once investment management fees are considered. Furthermore, even if an active fund has achieved a track record of outpacing the benchmark after fees, it has been shown that chasing yesterday’s winners tends to be a losing strategy.

With necessity often breeding innovation, researchers at Yale University devised a relatively new metric called “active share” to help identify managers that are poised to continue outperforming. This metric is the percentage difference between a fund and the corresponding index. An active share of 0% indicates that the portfolio is identical to the index, having the same allocation to the same stocks in the benchmark. Higher active share indicates that the portfolio is different from the index, either in terms of the weights allocated, the stocks held, or a combination of both.

The graph above shows the results of their 2010 study. Drawing on a database of over 2500 US Equity mutual funds from 1990 through 2009, each fund’s active share was calculated and sorted from highest to lowest. They found that managers with the highest active share consistently outperformed their corresponding index, on average by 1.26% per year after fees. Furthermore, they found that “closet indexers” – funds that charge active management fees, but construct relatively index-like portfolios – underperformed both gross and net of expenses. More importantly, the study found active share tends to be a reliable indicator. Funds with high active share in one period had high active share in subsequent periods and continued to achieve better performance.

It would be a stretch to conclude that active share measurements provide us with a crystal ball of sorts, which can perfectly forecast fund performance. However, it is a useful quantitative tool that can be combined with careful qualitative judgments to tip the scales in our favour. While the task of selecting top managers is always a challenge, T.E. Investment Counsel firmly believes in the merits of active investment strategies. With fundamentals increasingly driving returns, funds with an active approach to stock selection are likely to benefit.

Toronto is home to more than a quarter of Canada’s millionaires, according to statistics compiled by English consulting firm WealthInsight.

Look around Toronto, because there are some seriously rich people walking (but more likely, flying in private jets or being driven in limos) among us.

So says the London-based wealth consultancy firm WealthInsight, which has found that 28 per cent of Canada’s millionaires live in the city of Toronto.

To be specific, Hogtown is home to 118,000 millionaires, 1,184 multimillionaires (defined as those with net assets of $30 million U.S. or more) and a mere five billionaires. All numbers exclude the worth of their primary residences.

“It’s the largest economy, it contributes a large portion of the GDP, and the population is the biggest,” said Andrew Amoils, senior analyst and head of the firm’s reports team. Those three factors, he said, explain why Toronto is Canada’s top city, when it comes to the number of rich residents.

The numbers also place the city 15th among the world’s top 20 millionaire and multi-millionaire havens. In the former category, Toronto is ahead of such cities as Chicago, Houston and Moscow. In the latter category, Toronto leaves Geneva, Shanghai and Los Angeles in the dust.

Toronto falls out of the top 20 in the billionaire rankings.

Terry Willis, vice-president at wealth management firm T.E. Wealth, says many of his clients are millionaires, and the firm has “probably 10 or 15 people” within the multi-millionaire range.

Those clients, he said, work in the financial industry, mining industry, are entrepreneurs and are executives with compensation plans that include stock options.

The numbers also make sense to Peter Viducis, manager of economic and cultural research for the city of Toronto.

Well-paid professionals and the heads of Canada’s major banks are among this city’s economic upper echelon, he said.

But when it comes to the peak of prosperity, Viducis noted that “you don’t get to be a billionaire by working for a living.”

Toyko boasts the most millionaires at 461,000. The most multimillionaires — 4,224 — live in London, England. But Manhattan is where those who are truly living it up, the billionaires, have settled. There are 70.

The numbers come from an analysis of WealthInsight’s database, which contains files on more than 60,000 millionaires. There are an estimated 16 million millionaires worldwide.

“We don’t have all of them, but we have a good sample,” Amoils said.

The firm looked at five years’ worth of data to determine where this planet’s wealthiest people live.

There were 422,000 millionaires in Canada in 2012, and Ontario is home to most of them — 198,000 millionaires live in this province, which represents 47 per cent of the country’s high rollers. Quebec is next in line, where just over 19 per cent of les millionnaires au Canada live.

By the numbers

422,000: millionaires in Canada.

198,000: millionaires in Ontario.

118,000: millionaires in Toronto.

1,184: multimillionaires in Toronto.

5: billionaires in Toronto.

T.E. Wealth Senior Vice President Sam Chinniah has many clients who have faced this dilemma. As there is no gift tax in Canada, giving money to your children during your lifetime can be more tax efficient. Sam, who works in the Toronto office, says, “I always remind my clients that when they are gone, their heirs will get the money anyway. If you give all or some of it to them earlier, you can improve their quality of life and take enjoyment from that.”

A guiding principle for giving money now is that the gift should help and not hinder the recipients. Sam cautions on not giving a substantial gift before adult children are established in a career to ensure the money won’t have undue influence. A frequent worry for affluent parents is whether the next generation will share their work ethic. As Sam points out, “If you give money too early or make life too easy, you may deter your children from realizing their full potential.”

Before you decide to give any amount away, you first need to establish that you and your surviving spouse or partner will have enough to live independently for the rest of your lives. If you are confident that you have this covered, the next step is to think about what you want to accomplish with your money. Winston Mundy, Investment Counsellor at T.E. Investment Counsel in Toronto, asks, “If you have been successful, what are you doing to pass your knowledge on to your kids? We have helped clients create opportunities for their adult children to learn how wealth is managed by setting up training portfolios for them.” Another option is to get the family involved in a philanthropic project, perhaps establishing scholarships, a research chair or a family foundation, where adult children sit on the board and decide what good works to support each year.

“One of the greatest gifts you can offer your children is time. This can mean helping them out financially so that one parent can be at home with the children or allowing them to not have to work long hours,” remarks Sam. Another opportunity is to create memories by paying for an annual family vacation or treating each child or grandchild to a special experience. Alternatively, if education is important to you, consider covering the costs of your grandchildren’s education, paying for private schooling when they are young and ensuring the money is there for their post-secondary ambitions later. According to Sam, “There are many ways that you can be instrumental in giving your children and your children’s children a head start in life.”

What you don’t want to do with your money is use it to control the next generation. In both Winston and Sam’s experience, this never works out well. Still, one of the most common concerns about giving money early is what happens if your child’s marriage breaks down. Planning techniques, such as an estate freeze combined with a family trust, are a tax-efficient way to address this issue. “Creating a family trust and an estate freeze will ensure the assets remain with the beneficiaries of the trust (your children) and any future growth will accrue to your children for tax purposes,” explains Sam.

One of the challenges of giving away some of your estate now is making sure that the gifts are equal. Your grown children will all have different needs and wants. Some may be single, some may be childless and those who have children may have families of different sizes. In addition, you never know what the future will bring. Once you have determined what you can afford to give, you’ll need to carefully consider how to give the money in a way that will be considered equitable. Whatever you decide, be sure to discuss your plans with your adult children so that there are no misconceptions or hard feelings. As Sam points out, “Just as there are no easy answers when it comes to distributing your estate, there are no easy answers for giving your money away. But with thoughtful planning, you can accomplish your goals.”

Louise Piché is in an enviable position. She has the financial resources to retire at any time while continuing to have access to stimulating work through her consulting business. Louise’s good fortune is not only the result of thoughtful planning but also disciplined spending and saving habits. In addition, as a T.E. Wealth client for more than 30 years, she is the beneficiary of sound planning and investment advice along the way.

When Louise first engaged T.E. Financial Consultants (the predecessor to T.E. Wealth), retirement was far from her mind. As the executive in charge of Human Resources for Canadian National Railways (CN), she was given a mandate to find a company that could provide financial counselling to their executives. As Louise recalls, “CN was always state of- the-art in terms of benefits, but as a crown corporation, we couldn’t give our executives stock options. We were looking for something we could do for them that would take some of the stress out of their personal lives and ensure that they appreciated their overall compensation package.” With its national reach and FEE-ONLY™ difference, T.E. Financial was selected, and, as one of CN’s executives, Louise had her first experience with financial planning.

At the time, Louise was in her midthirties and her goals were simple – optimize after-tax income and make sound investment choices; and they really haven’t changed in any fundamental way since. But her life has changed and over the years T.E. Wealth has been there to help Louise and her husband, André Haddad, invest their savings, set up a retirement plan, create an estate plan, launch their consulting business and look after their personal and corporate taxes. As Louise explains, “My husband and I see T.E. Wealth as our accountant, financial counsellor, tax preparer and investment advisor – a true one-stop shop so that we don’t need to work with anyone else.”

Today, the couple is as busy as they want to be pursuing consulting opportunities, Louise in executive coaching and teaching, and her husband in leading through innovation. With a country home for relaxing and an apartment in Montreal, these seasoned travellers are staying closer to home these days to care for their elderly parents. But additional travel is definitely in their future with plans to eventually live for three months of the year in a destination outside of Canada where they can immerse themselves in the local culture. Income from their consulting business and pension plans has meant that they haven’t had to draw on their investment portfolio in any significant way. And they expect that, when they have the time to live abroad, the money saved by giving up their Montreal apartment will help cover the costs of their new adventures.

Gilles Couturier, Regional Vice President at T.E. Wealth in Montreal has worked with Louise for more than ten years. In his experience, he is seeing more and more clients exploring the type of transitional retirement that Louise has achieved, mixing some work with more free time. Gilles stresses that the key to making this approach work is having the flexibility to be able to choose whether or not to retire; and that means getting your finances right.

Two years ago, the couple did an extensive review of their retirement plan with Gilles to confirm that they could comfortably afford their lifestyle and to put their minds at ease. After examining their income from all sources on a pre-tax and after-tax basis, and exploring various scenarios and different asset mixes, the couple had a clear picture of their situation and could make some decisions with clarity and confidence. As Gilles points out, “Our role is not to make the decisions for the client but to present the options, the associated risks and benefits, so that they can be secure in their decision.”

Joe De Giorgio, Vice President & Investment Counsellor at T.E. Investment Counsel in Montreal, has worked with the couple since 2002, making sure they have the proper asset allocation structure for all of their investments (including assets being held through T.E. Investment Counsel and other non-TEIC directed investments). “Our approach is similar to a pension fund manager – we do the research and due diligence to find the right managers, monitor their performance and provide comprehensive quarterly reports as well as extensive performance history so investors can see their progress. In this case, we have combined individual investment managers in a complementary way to contain risks and minimize volatility within an overall conservative/balanced portfolio,” explains Joe.

This work has paid off with relatively stable returns throughout market swings, which the couple has greatly appreciated. Even after experiencing the market upheaval in 2008 and 2009, Louise says, “I don’t worry about my investments. T.E. Wealth is conservative and stable and that suits me.”

By being pro-active and diligent, Gilles keeps Louise and André on track by letting them know when tax installments are approaching and corporate tax filings are due. After experiencing the declining health of their parents, the couple heeded Gilles’ advice to get their estate plan in order and establish the necessary mandates for finances and personal care. As Gilles explains, “We cover all of the bases of financial planning – retirement, estate, tax, investments and the risks associated with death and disability, keeping an eye out for opportunities as well as any risk exposures and recommending a course of action.”

Louise describes her financial style as being “frugal without being cheap” – she enjoys the good things in life but in moderation and it’s a good fit with T.E. Wealth. Not surprisingly, as her career led her to other organizations, Louise took T.E. Wealth with her. And not just as her personal financial advisor, but also to provide executive financial planning for her new employer’s executives. That’s a tremendous vote of confidence for the service that T.E. Wealth provides and it’s backed up the rosy retirement picture Louise and André have achieved.

We’ve all seen the headlines – irregularities in expense accounts, spending in excess of income, accusations of insider trading, income tax improprieties, and, more recently, money funneled to off-shore tax havens. If an executive is the target of these charges, you can bet the company that he or she works for will soon be in the press. The media can be relentless if they smell a scandal and the more senior the executive, the longer the story is likely to have legs. So a misstep by one of the company’s representatives, whether intentionally committed or inadvertently, can quickly tarnish a company’s reputation, resulting in costly rehabilitation of the business’s good name.

One way companies can take steps to mitigate this risk is through our Executive Financial Counsel service.

Often, when companies provide their executives with financial planning services it is considered a perk, up there with car allowances and club memberships. We view our Executive Financial Counsel service as much more – providing valuable benefits to both the executive and the company, something that other perks do not. In fact, I would argue that our Executive Financial Counsel program is as much a part of a company’s risk management strategy as it is a part of the benefits plan.

Benefits for the business

Through Executive Financial Counsel, the company benefits from pro-active risk management. Today in Canada we have a skills shortage, and retention of top talent is a prime concern. Our Executive Financial Counsel service can help companies limit the risk of losing key employees to the competition and can enhance the offer to new recruits. It fosters greater appreciation of the total compensation package – executives will fully realize the value of benefits, such as stock options, supplementary pensions and insurance coverage. And it says that the company cares about the financial well-being of the executive and his or her family. Lastly, when their personal finances are not a source of unnecessary stress, your key employees are more likely to avoid costly mistakes on the job and be more productive.

Our Executive Financial Counsel service also helps companies protect against unwelcome negative press coverage. By having ongoing access to prudent advice, the risk of the executive committing an inadvertent error is eliminated. In addition, we can identify any potential problem areas and recommend corrective action before a private issue has the chance to become a public one. Our services to the executive are completely confidential.

Benefits for executives

For the executive, our holistic approach to Executive Financial Counsel provides many benefits. First of all, there is the peace of mind that comes from knowing their personal finances are in good shape and on the right side of complex tax and securities laws. Our service includes tax planning and annual tax return preparation. Not only does this ensure that everything is done accurately and on time, it also gives us an excellent vantage point to provide overall guidance on how to optimize after-tax income. Secondly, there is no better way to help your key people fully appreciate their compensation package when they can see how all components can work toward their longterm financial benefit. Furthermore, when an executive has a sound retirement plan in place, their future is secure and they can give their undivided attention to the business. In addition, we seamlessly work in concert with any other advisors the executive may work with, such as their lawyer, investment advisor or accountant. In comparison to other firms, our Executive Financial Counsel service is not about gathering assets to manage; it’s about providing sound financial guidance in all areas of concern – retirement, estate planning, debt management, tax and personal risk. Finally, Executive Financial Counsel is not a one-time endeavor but an ongoing long-term advisory relationship with many clients choosing to retain the service long after they have retired from the business.

Part of our history

T.E. Wealth was founded on Executive Financial Counsel services, a discipline we have honed through our 40 years of providing this service to many of Canada’s best-known corporations and several foreign subsidiaries of multi-national businesses. A large portion of current clients were introduced to T.E. Wealth through this service and have continued their relationship with us into retirement – you can meet one of them, Louise Piché, in our lead article on the cover of this issue of Strategies. Recognizing a growing need in this area, we are increasing our emphasis on Executive Financial Counsel, reaching out to corporations that could benefit from having our expert counsel as part of their risk management strategy. If you know of a business that could benefit from our Executive Financial Counsel service, we would like to hear from you.

If we look at a simple situation, the purchase of stock, for example, the adjusted cost base is basically the purchase price per share multiplied by the number of shares plus any commission paid to acquire the shares. If we divide this total by the number of shares, we arrive at the adjusted cost base per share. If you decide to sell some shares later, the gain or loss is calculated by subtracting the adjusted cost base from the sale price per share. Keep in mind that if you hold the same stock in several accounts, or have acquired it over different time periods, as would be the case with a dividend reinvestment plan or employee stock ownership plan, the adjusted cost base is calculated using a weighted average.

STOCKS DENOMINATED IN A FOREIGN CURRENCY

Canada Revenue Agency requires that you report capital gains in Canadian dollars. If you own stocks denominated in a foreign currency, the adjusted cost base is based on the purchase price in Canadian dollars. You have a couple of options when it comes to the currency conversion values you use and you will want to use the one that results in the least tax. You can use the actual currency value on the date of purchase, the monthly average, or the annual average. However, once you choose an option, you must consistently apply that option to all transactions, buying or selling, in a tax year.

MUTUAL FUNDS

On the surface, the adjusted cost base for mutual funds seems straightforward – it’s the unit price you pay for each unit at purchase. However, fund distributions are used to purchase more units so these will affect the adjusted cost base. And if the fund has a front-end load, this will need to be factored in the adjusted cost base calculation. Another complication comes with monthly-income funds, as a portion of the income these funds pay out is return of capital and this actually lowers your adjusted cost base. For the mutual funds you own, make sure you know what records are kept, either through your investment advisor or by the mutual fund company directly, and how you can access this information before you sell.

REAL ESTATE

To establish an adjusted cost base for real estate, each property you own must be tracked individually. As real estate can be improved to enhance its value, the tracking of the costs associated with any improvements increases the adjusted cost base and ultimately reduces any gain for tax purposes. Ongoing maintenance, such as painting, repairs and grounds keeping, are not eligible. Capital improvements, including additions, permanent landscaping, new windows and updated plumbing, that add to the long-term value and longevity of the property do qualify and should be substantiated with receipts. Capital improvements of rental properties cannot be deducted against rental income but you will still want to track these costs to increase the adjusted cost base of the property. All property owned on December 31, 1971 takes the value on this date as its adjusted cost base going forward. If your property is outside of Canada you will need to know the currency conversion into Canadian dollars when costs were incurred and you have the same options for calculating the adjusted cost base as outlined under foreign-denominated stocks. An individual or couple can elect one property as their principal residence for any given year as long as they live in it for part of the year. A principal residence is exempt from capital gains tax, but it’s a good idea to keep track of the adjusted cost base. If you have more than one property, you may decide to change the property you elect as your principal residence depending on which one has the greatest gain.

HOW T.E. WEALTH CAN HELP

One of our key financial planning goals for clients is to minimize the amount of income tax they pay, and we do cost base tracking for our clients as part of our tax reporting service.

Retail investors are starting to wake up to the trend that institutional investors caught on to some time ago, namely that equities are on the rise. According to the Investment Funds Institute of Canada, as of the end of February 2013, flows into equity mutual funds topped $830 million in Canada compared with net redemptions of $2 billion for the same period in 2012. At the same time, year-to-date investment in bond funds was still a healthy $1.55 billion, although down from $5.25 billion a year earlier. Even in the U.S., where the reversal of flows into equity funds made headlines in January of 2013 when $38 billion poured into equity mutual funds – the best performance on a monthly basis since 1996, fixedincome funds still managed to attract just under $32 billion.

While equity inflows have improved from a year ago, returns from equities have done much better, particularly international equities. As at the end of March 2013, the Canadian market had an annual return of 6.1%, the U.S. market gained 15.9% while Europe, Asia and the Far East advanced 13.1%. Canada’s underperformance relative to other developed markets may explain the more tepid response by Canadian investors to the uptick in equities – fund inflows to bond funds still exceed those to equity funds by almost two to one.

The performance of the Canadian market and that of the U.S. began to diverge about two years ago when a downturn in two of the Canadian market’s three major sectors – Materials (particularly gold stocks) and Energy, dampened the S&P/TSX index’s performance. Although the S&P/TSX index is well off its high of 15,073 (June 2008), the S&P 500 index and the Dow Jones Industrial Average have both surpassed their previous high water marks from before the financial crisis. The big question that is concerning investors everywhere is whether or not this latest equity advance is sustainable.

According to a report from Bloomberg News, the shares of companies listed on the S&P 500 index are less expensive now than they have been at any other record high for the index since 1980. The index is currently trading at 15.4 times reported profit compared with the average of 19.9 for bull markets going back as far as 1962. For the bullish, the growth in the U.S. economy is strengthening, government stimulus remains in place and valuations are historically cheap. But the bearish see a rally born out of the U.S. Federal Reserve Board’s QE3 that will evaporate as soon as the stimulus disappears. And for the skittish, there is always some unknown shock around the corner that can derail the recent equity advance. Here in Canada, the market faces cyclical headwinds that have dampened demand for commodities and an economy that is mired in sub-par growth.

Some have speculated that the recent rise in equities is being driven by a “fear of missing out.” This may not be such a bad thing as investors who remained in the markets throughout the financial crisis have seen their portfolios mostly recover, and those who have committed new dollars to equities have been rewarded. When you’re investing for the long term, over several market cycles, there is never a “bad” time to invest. Since the lows of 2009, investors have had several opportunities to get back in and participate in the coming rally – August 2010, September 2011 and both May and November of 2012, all points where equity markets took back some of their gains but went on to advance again.

The intensity of the global financial crisis has now eased and there is an increased tolerance for taking on business and investment risk. However, in contrast to the United States, the economic outlook for Canada is less than rosy. With annualized GDP growth now below 1.0% and likely to remain there throughout 2013, Canada is in the midst of an economic slowdown. Under this scenario, the recent employment gains appear unsustainable and this was confirmed in March when the Canadian economy shed 55,000 jobs. A recent survey of capital spending intentions showed the weakest increase in business capital spending since 2009, another indication of continued low GDP growth. As a result, unemployment could drift higher in the summer months. In addition, Canada’s soft economy will increase both business and investor risk.

BUSINESSES ARE CHALLENGED

Amid slow growth, businesses will see liquidity, cash flow and cost control as increasingly important. Canadian companies face lower business volumes as well as upward cost pressures coming from industrial supplies that are imported from the U.S. For example, the housing rebound in the U.S. is stronger than expected and the supply chain for lumber and building materials is being challenged. During the housing downturn, suppliers downsized inventories and production capacity is not easily restored.

CONSUMERS ARE CONSTRAINED

Canadian consumers are becoming more cautious. In price-adjusted terms, retail sales in January 2013 were considerably lower than in November 2012 and 1% lower than in January 2012. Motor vehicle sales, a proxy for consumer confidence as they represent a big-ticket purchase, have experienced a significant decline on a seasonally-adjusted basis. Furthermore, the market for existing homes is weaker than expected and sales expectations are being revised downwards. Although the number of sales has not continued to decline after the downturn last summer, they do not seem to be re-accelerating either. Weakness in new housing is in the high-rise sector, which appears to be over-supplied despite relatively low vacancy rates for rental condominiums. The first-time buyer market is expected to be the hardest hit by economic uncertainty and tighter lending standards.

CREDIT IS TIGHTENING

Canadian banks have become increasingly concerned about household debt and are tightening underwriting standards for all borrowers. For the construction industry, pre-sale requirements and loan covenants have become more conservative. Although mortgage rates remain low, it has become more difficult to obtain a mortgage. Interest rates are likely to remain low for an extended period of time. The continuation of a strong Canadian dollar, slow economic growth and a low rate of inflation would seem to rule out an increase in rates from the Bank of Canada. The U.S. Federal Reserve Board is unlikely to increase interest rates until unemployment in the U.S. has declined to 6.5% and this is not expected until 2015.

EXPORT RECOVERY IS ON HOLD

Although the U.S. economy has grown over the past 12 months, Canadian exports to the U.S. have declined, both in value as well as volume terms. Exports of natural gas have dropped by 70% from 2008, reflecting the surge in natural gas production coming from shale gas deposits in the U.S. and the same trend is now evident in shale oil. As a result, the U.S. has sharply reduced its need for imports from Canada in terms of gas and oil. Increased uncertainty over oil prices, export demand and pipeline capacity is starting to slow Energy sector development. New pipeline construction uncertainty is also a concern. Some oil companies have announced reduced capital budgets but there is still a large number of oil sands projects that are either proposed, under construction or seeking regulatory approval.

This article was submitted by
T.E. Investment Counsel Inc.

This conference continues a strong tradition of celebrating the power of partnerships, offering outstanding opportunities to learn more about current trends and challenges and explore solutions that are finding success in the new realities of the industry.

A five minute drive from Banff, the beautiful Rimrock Resort nestled up on Sulphur Mountain offers exceptional views of the Canadian Rockies. The four diamond resort hotel is just steps away from the Banff Upper Hot Springs and the Banff Gondola.

Plan to join your industry colleagues in Banff to learn, network and relax in the beautiful Canadian Rockies.