As you know social distancing is something that is highly promoted right now and therefore our office will be doing its part by postponing all our in-person meetings for the next three weeks. We are committed to keeping you informed and as such will be available by phone, email, or video conferencing should you wish to reach out to us. In the meantime, I will continue to send out weekly information pieces highlighting such topics as: your holdings, general market information, office news and our thoughts as this unfolds.
Given the recent market slide and volatility, we thought it prudent to pass along a few Informative pieces that you may want to review to give a perspective on the current Market situation.
On March 18, 2020 a set of economic measures, as part of the Government of Canada’s Covid-19 Economic Response Plan, were announced. The statement included proposed changes to the calculation of the 2020 required minimum withdrawal for registered retirement income funds (RRIF/LIF) by 25% for 2020. For example, if your 2020 minimum RRIF payment is $10,000 and you choose to reduce the payment for this year, your new minimum payment will amount to $7,500.
I wanted to touch base on a few topics of interest and provide everyone with an update on the transition. The effort my office has shown over the past 3 months has been unparalleled. The trials and tribulations that come with such a change have been overcome and I am excited with what the future holds for all of us. A few Items to bring to your attention:
As you may know, you hold the Dynamic Alternative Yield Fund (DAYF) within your portfolio. Please find below an update on its performance you have enjoyed, with an impressive return of 25.2% in 20191. Many Investors are conditioned to measure performance of their investments on an annual basis. However, when we construct portfolios we take a longer view than just one year (a Warren Buffett Principle), and in doing so look for outperformance over several business and economic cycles.
I hope everyone had a relaxing, enjoyable holiday season. So much has changed due to COVID-19, it’s hard to know where to start taking stock of the year or begin thinking ahead to the next one. 2020 was a year of surprises. There was the speed at which the pandemic escalated, the severity of the lockdowns, the size of the global government stimulus measures, and the magnitude of the equity market decline and rebound. Out of necessity, your priorities may have shifted.
