Investors

Invest in Canada

The Economist Intelligence Unit has rated Canada the #1 place to do business in the G-7 for the next three years. Canada’s competitive business costs, low corporate tax rates and successful innovation clusters are a few of the reasons why Canada continuously ranks as one of the most cost-effective global investment destinations. Also, according to both Forbes and Bloomberg, it is the best country in the G-20 to do business.


One of the Most Stable Financial System.

Ethnically Diverse and Multicultural Nation.

Among the Most Educated Country.

Hydro-Electricity and Aerospace Leader.

Leading Uranium Exporter. 18% of Worlds Production.

Net Oil Exporter. 5th International Producer.

The Second-Largest Country by Total Area.

Population of 35.1 Million people.

Leading Destination for International Migrants.

A Third of the Country Works in Services.

6th Economically Freest Country.

Montreal and Toronto have the highest rate of CFA per capita.


 

Why Invest with Emerging Managers

Although we hear about large asset managers more often in the media, there can be substantial advantages in investing with a more nimble and smaller sized manager. In fact, evidence suggests that it becomes more difficult to take advantage of opportunities in the market when managing a large portfolio. Some strategies or asset classes such as small capitalization stocks or certain derivatives can even be completely off limits for large hedge funds or portfolio managers.

The following article from Business Insider, explains the reasons behind the trend toward allocating assets to emerging managers:
Change in the Hedge Fund Industry.

Reasons to choose an emerging manager:

  • Recent studies have shown that emerging managers are more successful in preserving investor capital

  • Personal compensation is more directly tied to portfolio performance, unlike larger managers who have a sizeable “cushion” from baseline fee income from larger asset pools

  • Substantial alpha potential due to higher active share portfolios

  • Early stage access to capacity constrained asset classes/ strategies

  • Better alignment of incentives through independent firm ownership

In short, emerging managers have the ability to:

  • Take advantage of opportunities in all markets including the most thinly traded

  • Choose from a complete range of asset classes instead of being limited to traditional blue chip stocks and bonds

  • Be more nimble in entering and exiting positions

  • Be flexible to adapt to the needs of individual clients

  • Offer more competitive pricing structures

Why invest in Canada

A strong growth record. According to the World Bank, Canada led all G-7 countries in economic growth over the past decade (2003–2012).

Politics. By any standards, Canada is politically very stable. Its budget deficit is moderate relative to any other jurisdiction. The balance-of payments deficit is also small, with its most important trading partner as the United States, followed by China and Mexico. Canada enjoys a large surplus in its trade with the U.S. Canada faces very little inflation risk since the country has maintained a sound monetary policy

Unparalleled market access. Once the Comprehensive Economic and Trade Agreement (CETA), the free trade agreement between Canada and the European Union (EU), comes into force, foreign investors in Canada will have assured preferential access to both the North American Free Trade Agreement (NAFTA) and the EU – a vibrant market with a combined GDP of US$35 trillion, or nearly one-half of the world’s output of goods and services. This means more investment opportunities for the investors.

Low tax rates. According to Finance Canada, Canada’s overall marginal effective tax rate is by far the lowest in the G-7 – about 17 percentage points lower than that of the United States.

Competitive R&D environment. Canada offers the lowest business costs in the G-7 for R&D-intensive sectors, with a 15.8 percent cost advantage over the United States.

How to Invest

If you want to invest with one of the members of the EMB, you can get in touch with them directly by getting in touch with their contact person.

Alternatively, you may contact the EMB at info@emergingmanagers.ca

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