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"A Family Tradition for 128 Years" PORT PERRY STAR - Tuesday, Tuesday, February 14, 1995 - 13 -- The Information Age Here we are, in 1995, and whether we like it or not, we find ourselves in the "Informa- tion Age". I would like to address how you could profit from the "Infor- mation Age" where it counts the most, in your pocket. If you don't have an Investment Port- folio at present, do not be dis- mayed. For as little as $50.00 per month, or a lump sum of $1,000.00 you could start to build your financial future this month. It has been said that everyone requires the services of a finan- cial advisor. I certainly agree, since as a financial advisor I have helped many people in the past 20 years. In spite of the fact that no one investment could possible address a client's needs, I have found that many Durham residents rely on Guar- anteed Investment Certificates exclusively for their financial well-being. This is not a wise or prudent approach when all as- pects are considered. In order to create a well- balanced portfolio it is essential to determine the investor's goals and objectives. It would then be necessary to determine their tax situation, marginal tax rate, and their understand- ing of the investment process. Tolerance for risk and their need for income and growth would also be factored in to any recommendation to a client. As a general rule the amount, or percentage, of a person's portfo- lio devoted to growth is deter- mined by subtracting their age from 100 and the remainder is the percentage that may be ear- marked for equity ownership. Remember that this is a general rule, and other factors will in- crease or decrease this percent- age. Investments can basically be divided into three asset classes: Cash and Cash Equivalents Fixed Income Investments Equity (ownership) Invest- ments Investment in the cash and cash equivalents category in- clude Canada Savings Bonds, Treasury Bills, Savings ac- count, Short-term Bank depos- its, and Money Market Funds. Fixed income investments in- clude GIC's, Goverment of Can- ada Bonds, Debentures and Strip Coupon Bonds, Preferred Shares and Bond Funds. Equity investments would in- clude, common stock, Equity mutual funds, and foreign mu- tual funds. Since the amount of risk var- ies on every investment, the more guaranteed itis generally. the lower the expected returns, while higher risk investments have higher expected returns. In closing, I would like to say that NO one investment type, for example, Guaranteed In- vestment Certificates or Treas- ury Bills, will provide a proper, efficient, balanced and profita- ble investment portfolio for the future. Courtesy of Stephen Gooding TPA Securities Inc. Oshawa Own a business? You'll appreciate the careful attention H & R Block will give you and your tax return. Our tax preparers have been carefully trained to understand the income tax laws that apply to business. At H&R Bock, we want to make sure you pay the lowest legitimate tax. 174 Perry St. Port Perry __985-9803 _ H&R BLOCK ss ------------ THE INCOME TAX SPECIALISTS UNIVERSAL WORLD GROWTH RRSP FUND World Growth Potential. 100% RRSP-Eligibility. Mackenzie's Universal World Growth RRSP Fund participates in the growth potential of companies in a revit®ized global economy -- but still retains full RRSP | eligibility. Directed by the professionals at Mackenzie Investment Management Inc. in Boca Raton, Florida, this new RRSP investment option offers access to markets around the world with strong growth potential. For more information on how some or all of your RRSP investments can experience the world, please call us today at the number below. ROBERT GOW i (905) 434-7156 or 1-800-267-1522 CH 111 Simcoe St. N., Oshawa, Ontario L1H 7M9 CC) Invest wisely: Important information about this mutual fund is contained in the simplified prospectus. Investors should obtain a copy from their invest-| ment advisor and read it carefully before investing. When purchasing mutual funds, investors should be aware that: * mutual fund investments are not! guaranteed; * unit values and investment returns will fluctuate over time; and' * past performance does nol assure similar future returns. - THE B '@®universaL Mackenzie A FUNDS Building Financial Independence | Choosing a Mutual Fund With more than 600 mutual funds sold in Canada, choosing which mutual fund to invest in can be difficult, even for the experienced investor. But by exploring the possibilities and deciding exactly what goals the investor has in mind, the choices can be narrowed down to a few funds, some of which are eligible for tax shelters like Registered Retirement Savings Plans. While there are no guaranteed techniques for picking a top performer in the mutual fund field, there are a number of trends the investor should examine before making an investment decision. Past performance is one of the best ways to judge a fund. Although past performance doesn't always accurately reflect the way a fund will perform in the future, it will reveal how a fund performed under particular market conditions. For example, some funds might perform well in strong, active markets but not fare so well when the market takes a downturn. An excellent tool for examining the various funds and their performance records is the newspaper. The Globe and Mail, The Financial Post, and The Financial Times of Canada publish surveys of mutual fund per- formance on a monthly basis. The Financial Times, for example, publishes six performance figures for each fund: one month, three months and one year; and average annual compound rates of return for three years, five years and ten years. Another method of researching the funds is to use the various databases that can be accessed through your computer modem or at a public library. There are a number of organi- zations, such as Infoglobe and Informat- Online, that specialize in financial research and will gladly help you gather information on mutual funds. Newspaper libraries are often also open to the public. You might be wondering: What is more important, short-term or long-term perfor- mance? Many financial professionals consider mutual funds to be long-term investments. But investors should also examine the fund's _ current performance as it may reveal some changes that could conceivably cause an inves- tor to change or reconsider their investment. For example, a well-established fund with a long and proven record may begin to fall behind competing funds in a market that is recovering from a crash. This could be an indi- cation that the fund manager has changed his or her strategy or is being ultra-conservative, believing that the market is not ready to recov- er. Or, more ominously, a change of fund managers may have occurred. It may be difficult for the average investor to ascertain why the fund has taken a turn for the worse, despite all the research tools at your disposal. The answer might lie in the fund's quarterly report or with an independent mutual fund specialist or stock broker who tracks the performance of that particular fund. While measuring the returns of comparable funds, an investor should also examine their risk, such as how stable the fund is. Technically speaking, this is known as volatili- ty. The Financial Times' survey measures vol- atility in two ways. The first, called standard deviation, shows the relative volatility of monthly rate of return. The higher the figure, the more volatile the monthly rates of return. For example, gold funds have high volatility figures while money market funds have lower ones. ; The second measures is a percentage figure that ranks by volatility within groups of funds. For example, gold funds tend to have high per- centage figures while balanced, equity and income funds have low percentage figures. When making a decision about a long-term investment between two funds with similar performance levels, you should choose the one with the lower volatility figure. Performance consistency is the key when choosing a mutual fund. When a fund does well each year and out-performs the majority in bad times, then it's the best bet an investor has. It proves that studying the past perfor- mance of a fund is as close as investors can get to predicting future performance of the funds of their choice. Consult with an investment advisor or stockbroker to find a fund that best suits your needs. The solution for investors zliezite Mo Rt (ea a8 If you need an RSP that will outperform but don't want to check the stock market pages every day, Investors Digest offers this thought: "...funds such as Trimark's Canadian Fund have achieved excellent long-term returns...without causing unitholders to go racing for their ulcer medications." TRIMARK FUND performance as of December 31, 1994 AIL 49 I YEAR 1H > YEARS 169" 10 YIARS TRIMARK CANADIAN FUND performance as of December 31, 1994 vd BL Rng i 3 YEARS ) YEARS TURN RY IS) ATRIMARK MUTUAL FUNDS WE MANAGE. To OUTPERFORM. BOB GOW (905) 434-7156 * 1-800-267-1522 3 YEARS I YEAR For morc information on Trimarlk's RSP Mutual Funds contact: a 111 Simcoe Street North, Oshawa, Ontario L1H 7M9 All returns: audited by Emist & Young, Chartered Accountants, are historical annual compounded total rates of return and rcflect changes in unit value and distributions reinvested They do not take into account sales charges or admmistrative fees pavable by unitholders which would have reduced retwms Past performance docs not guarantee futwe results Your unit value and investment return will fluctu- atc Important information about any mutual fund is contained m its simplified prospectus Read your prospectus carcfully before imvestmg You can obtain onc from the financial adviser hsted above Designed by Trimark Investment Management Ine Le