Return on Invested Capital – Investing News Wire http://investingnewswire.club/ Thu, 30 Jun 2022 10:30:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://investingnewswire.club/wp-content/uploads/2021/05/default1.png Return on Invested Capital – Investing News Wire http://investingnewswire.club/ 32 32 The value of the Fonds de solidarité FTQ share is $52.61 at the end of the 2021-2022 fiscal year https://investingnewswire.club/the-value-of-the-fonds-de-solidarite-ftq-share-is-52-61-at-the-end-of-the-2021-2022-fiscal-year/ Thu, 30 Jun 2022 10:30:00 +0000 https://investingnewswire.club/the-value-of-the-fonds-de-solidarite-ftq-share-is-52-61-at-the-end-of-the-2021-2022-fiscal-year/ A 9.1% return on private equity investments Highlights at May 31, 2022: Share the value to $52.61 (down $3.16 of December 31, 2021 and $0.60 of June 30, 2021); Annual return of -1.1%; Compound annual return to shareholders of 6.2% for 3 years, 6.8% for 5 years and 7.1% for 10 years; Overall annual result […]]]>

A 9.1% return on private equity investments

Highlights at May 31, 2022:

  • Share the value to $52.61 (down $3.16 of December 31, 2021 and $0.60 of June 30, 2021);

  • Annual return of -1.1%;

  • Compound annual return to shareholders of 6.2% for 3 years, 6.8% for 5 years and 7.1% for 10 years;

  • Overall annual result of –$0.2 billion;

  • net assets of $17.4 billion;

  • Investments of $1.4 billion support the Quebec economy;

  • 748,371 shareholder-savers.

MONTREAL, June 30, 2022 /CNW Telbec/ – For its fiscal year ended May 31, 2022the Fonds de solidarité FTQ posted an overall result of -0.2 billion dollars. The annual return to shareholders is -1.1% (including -5.7% in the second half of the year). The value of the Fund’s share is now $52.61. The net assets amount to $17.4 billionrepresenting a growth of $0.2 billion compared to last year, when the number of shareholder-savers is 748,371, an increase of more than 24,000 in one year.

Compound annual return to shareholders of the Fund (excluding tax credits) at May 31, 2022is -1.1% for 1 year, 6.2% for 3 years, 6.8% for 5 years and 7.1% for 10 years.

“The 9.1% annual return generated by the private equity portfolios offset part of the impact of the stock and bond markets,” explained the Fund’s President and Chief Executive Officer. Janie C. Beique. “Despite the economic turmoil, we remain confident in the Fund’s ability to deliver a reasonable return over the long term.”

Investments of $1.4 billion for the Quebec economy thanks to the savings of Quebecers

During the year, the Fund invested $1.408 billion support the economic development of Quebec. This is the fifth consecutive year that the Fund has invested more than $1 billion in the Quebec economy.

“One of the fundamental characteristics of the Fund is to have a long-term vision. Because they are building up savings for retirement, our savers invest with us for the long term. And we are investing in Quebec companies for the long term, for the benefit of all Quebecers,” continued Ms. Béïque.

“We know how important it is to have a long-term view, not only for financial returns but so that our investments can also generate a social return. Our organizational DNA is unique. The Fund was born during a major economic crisis, almost 40 years ago The social and human values ​​which were at the heart of the creation of the Fund and which still drive our actions today give us the tools necessary to measure our financial performance but also our social impact, which is just as important to us,” concluded Ms. Béique.

During the year, the Fund invested in CarbiCrete, a Montreal-based company that uses industrial by-products while continuously capturing CO2 in the resulting concrete. This type of investment is in line with the Fund’s objective of achieving $12 billion sustainable assets within five years.

The Fund also supported the succession project of the engineering consulting firm GCM Consultants. This investment was made through the Fonds régional de solidarité FTQ, the gateway for many SME owners looking for financing solutions.

Finally, the Fund reinvested in Worximity, which develops Industry 4.0 solutions for the manufacturing industry, and supported the launch of Accelia Capital to propel innovative companies and accelerate female leadership in technology.

About the Solidarity Fund QFL

The Fonds de solidarité FTQ invests to build a better society by channeling the savings of its 748,371 shareholders into development and venture capital investments to help Quebec make the transition to a green economy, to a world of work centered on people and towards a healthier society. The Fund offers businesses unsecured financing and strategic support. With $17.4 billion of net assets as of May 31, 2022, the Fund has supported 3,620 partner companies and 296,927 jobs.

Please read the prospectus before buying shares of the Fonds de solidarité FTQ. Copies of the prospectus can be obtained online at fondsftq.com, from a local representative or at the offices of the Fonds de solidarité FTQ. The indicated rates of return are historical compound annual total returns, including changes in stock value and reinvestment of all dividends, and do not take into account income taxes payable by any security holder which would have reduced returns. . Units of the Fonds de solidarité FTQ are not guaranteed; their value changes and past performance may not be repeated.

The acquisition of shares of the Fonds de solidarité FTQ may give rise to tax credits to a labour-sponsored fund. The tax credits amount to 30%, i.e. 15% at Quebec federal level and 15% at the federal level, and are limited to $1,500 per fiscal year, which represents a $5,000 purchase of shares of the Fonds de solidarité FTQ.

SOURCE Solidarity Fund QFL

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How the stock market and traders are still affected by the pandemic https://investingnewswire.club/how-the-stock-market-and-traders-are-still-affected-by-the-pandemic/ Mon, 27 Jun 2022 18:21:14 +0000 https://investingnewswire.club/how-the-stock-market-and-traders-are-still-affected-by-the-pandemic/ sergeitokmakov/Pixabay At the start of 2022, many economists and analysts predicted difficult business conditions for the coming year, due to high inflation, stagnant economic growth and the rising cost of living. For the most part, they were right in their prediction that 2022 would be a tricky year for those who invested capital. You also […]]]>
sergeitokmakov/Pixabay

At the start of 2022, many economists and analysts predicted difficult business conditions for the coming year, due to high inflation, stagnant economic growth and the rising cost of living.

Play quizzes 4

For the most part, they were right in their prediction that 2022 would be a tricky year for those who invested capital.

You also wonder what the influence of post-pandemic problems is. While COVID-19 is less of a medical emergency these days, more or less, the havoc the pandemic has inflicted on the economy is still being felt to this day.

[Exclusive] ExodusPoint has been in the green since the start of the year, led by rates and emerging/macro strategies

ESG Investing Leon CoopermanInternational fund ExodusPoint Partners returned 0.36% in May, taking its year-to-date return to 3.31% in a year that has been particularly difficult for most hedge funds, by pushing a lot into the red. Macroeconomic factors continued to weigh on the market, leading to significant intra-month volatility in May, although risk assets generally ended the month flat. Macro Read more

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First Quarter 2022 Hedge Fund Letters, Talks and More

Some business trends, such as increased appetite for stocks in the pharmaceutical and healthcare sectors, have bottomed out, but other patterns of investment behavior continue more than two years after the pandemic hit.

Ethical trade

Reflecting on the horrors of the pandemic, many traders have had to think about their own ethical stance when it comes to the types of businesses they invest in.

Some have turned to investment models that have bolstered their green and ethical credentials, with the best sustainable ETFs enjoying renewed interest – these ensure that all companies promoted as investment opportunities have been vetted for their environmental and socially responsible practices.

Opponents believed that interest in so-called ESG (environmental, social and governance) stocks was simply related to bullish market conditions. However, the trend solidified months and even years later.

The appetite for green energy and social responsibility is here to stay, and ESG investors are hoping to take full advantage of it in the markets.

Next Generation Technology

An analysis of the best performing stocks since the start of the pandemic is illuminating.

Some of the companies on the list are self-explanatory — pharmaceutical company Moderna, which founded one of the first globally approved COVID-19 vaccines, and Etsy, which encouraged customers to design their own custom face masks, n were only two who flourished.

However, others have also had stellar moments – including a number of companies that could be broadly described as ‘next generation tech’ providers.

NVIDIA is best known for producing graphics chips for computers and other devices, but it has also entered the cloud gaming space – and the success of its GeForce NOW platform has seen the company achieve strong performance in the final months of 2021 and into the new year.

The electric vehicle revolution hasn’t really taken hold yet, but those supplying the sector have had a decent time as well. Albemarle, one of the world’s leading producers of rechargeable lithium batteries, has signed a creative deal with the US Department of Energy – needless to say, its stock has outperformed the industry benchmark.

Work at home

While the edict for working from home has weakened in line with the reduced severity of the pandemic, there is still plenty of evidence to suggest that any hybrid model – some days in the office and the rest at home – could become the norm. for many businesses and industries.

To that end, we can wonder if stocks like Zoom, which enjoyed remarkable booms during the height of the pandemic before crashing dramatically afterwards, still have room to grow.

Supply chain management

The pandemic, combined with other global forces, has made it a little more difficult to manage a business that transcends international borders.

Additional security checks and the increased cost of sending large shipments of goods and products overseas have led many business leaders to become smarter and leaner in their thinking.

Some have chosen to “overstock,” essentially ordering too much supply of their foreign-made products so they can order fewer shipments. Another option has been the “regionalization” of their supply chain, which can range from creating a “hub” in a foreign country closer to the United States than where their supplier is located, usually in Asia. Some have chosen to store their products and manage their logistics entirely in America.

While matching the performance of nearly all of the rest of the stock market, companies like Union Pacific have seen their value rise from the ashes of the pandemic. However, it is their value during the current bear market — down about 13%, compared to a loss of about 24% on the Nasdaq — that highlights their value.

Rise of the small business owner

Research shows that Americans are starting their own small businesses at a faster rate than ever before.

A good portion of these new businesses operate solely online, and the demand for the necessary IT infrastructure – whether it’s buying domain names, designing websites, cloud storage, etc – has therefore enjoyed increasing popularity.

GoDaddy, which is the world’s largest retailer of domain names and related products, is another company that has performed extremely well during the pandemic and continued with above-average losses during the bear race – c is down 13.82% in the past six months from that Nasdaq average of 24%.

Unemployment, whether temporary or permanent, was a major driver of this phenomenon, but there has also been a change in mentality – the same study found that millions of Americans have actually quit their jobs. during the pandemic to pursue their dream of escaping the crisis. rat race or turn an idea they had for their own business into reality.

As has been the case in business for decades, some of these start-ups will fail and others will thrive – in any case, demand for IT infrastructure remains as strong post-pandemic as it is. was during.

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SGS (VTX:SGSN) looks to extend its impressive returns https://investingnewswire.club/sgs-vtxsgsn-looks-to-extend-its-impressive-returns/ Sat, 25 Jun 2022 07:18:06 +0000 https://investingnewswire.club/sgs-vtxsgsn-looks-to-extend-its-impressive-returns/ Finding a business that has the potential to grow significantly isn’t easy, but it is possible if we look at a few key financial metrics. In a perfect world, we would like to see a company invest more capital in their business and ideally the returns from that capital also increase. Ultimately, this demonstrates that […]]]>

Finding a business that has the potential to grow significantly isn’t easy, but it is possible if we look at a few key financial metrics. In a perfect world, we would like to see a company invest more capital in their business and ideally the returns from that capital also increase. Ultimately, this demonstrates that this is a company that reinvests its earnings at increasing rates of return. With this in mind, the ROCE of SGS (VTX:SGSN) looks attractive right now, so let’s see what the yield trend can tell us.

What is return on capital employed (ROCE)?

Just to clarify if you’re not sure, ROCE is a measure of the pre-tax income (as a percentage) that a business earns on the capital invested in its business. To calculate this metric for SGS, here is the formula:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)

0.20 = CHF 971 million ÷ (CHF 7.0 billion – CHF 2.2 billion) (Based on the last twelve months to December 2021).

Therefore, SGS has a ROCE of 20%. This is a fantastic return and not only that, it exceeds the 12% average earned by companies in a similar industry.

See our latest analysis for SGS

SWX:SGSN Return on Capital Employed June 25, 2022

In the chart above, we measured SGS’s past ROCE against its past performance, but the future is arguably more important. If you wish, you can view forecasts from analysts covering SGS here for free.

The ROCE trend

We would rather be satisfied with returns on capital like SGS. The company has employed 25% more capital over the past five years, and the return on that capital has remained stable at 20%. Such returns are the envy of most companies and given that they have repeatedly reinvested at these rates, even better. You will see this when you look at well-run businesses or favorable business models.

Our view on SGS ROCE

In summary, we are pleased to see that SGS has compounded returns by reinvesting at consistently high rates of return, as these are common characteristics of a multi-bagger. And given that the stock is only up 11% in the past five years, we suspect the market is starting to recognize these trends. So, to determine if SGS is a multi-bagger going forward, we suggest digging into other business fundamentals.

However, SGS carries certain risks, and we have identified 2 warning signs for SGS that might interest you.

SGS is not the only stock to generate high returns. If you want to see more, check out our free list of companies with high returns on equity with strong fundamentals.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Those who invested in Virtu Financial (NASDAQ:VIRT) five years ago are up 60% https://investingnewswire.club/those-who-invested-in-virtu-financial-nasdaqvirt-five-years-ago-are-up-60/ Thu, 23 Jun 2022 10:36:42 +0000 https://investingnewswire.club/those-who-invested-in-virtu-financial-nasdaqvirt-five-years-ago-are-up-60/ Some Virtu Financial, Inc. (NASDAQ:VIRT) shareholders are probably pretty worried about the stock price dropping 35% in the past three months. But the silver lining is that the stock is up over five years. Unfortunately, its 30% return is below the market return of 62%. So let’s assess the underlying fundamentals over the past 5 […]]]>

Some Virtu Financial, Inc. (NASDAQ:VIRT) shareholders are probably pretty worried about the stock price dropping 35% in the past three months. But the silver lining is that the stock is up over five years. Unfortunately, its 30% return is below the market return of 62%.

So let’s assess the underlying fundamentals over the past 5 years and see if they have moved in step with shareholder returns.

Check out our latest analysis for Virtu Financial

To paraphrase Benjamin Graham: in the short term, the market is a voting machine, but in the long term, it is a weighing machine. An imperfect but simple way to examine how a company’s market perception has changed is to compare the evolution of earnings per share (EPS) with the movement of the share price.

In half a decade, Virtu Financial has managed to increase its earnings per share by 37% per year. The EPS growth is more impressive than the 5% annual share price gain over the same period. Therefore, it seems that the market has become relatively pessimistic towards the company. The reasonably low P/E ratio of 7.38 also suggests market apprehension.

You can see how EPS has changed over time in the image below (click on the graph to see the exact values).

NasdaqGS: VIRT Earnings Per Share Growth June 23, 2022

We know that Virtu Financial has improved its results over the past three years, but what does the future hold? This free Virtu Financial’s Interactive Balance Sheet Strength Report is a great place to start if you want to dive deeper into the stock.

What about dividends?

In addition to measuring share price performance, investors should also consider total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital increases, as well as any dividends, based on the assumption that dividends are reinvested. It can be said that the TSR gives a more complete picture of the return generated by a stock. It turns out that Virtu Financial’s TSR for the past 5 years was 60%, which exceeds the share price return mentioned earlier. And there’s no price guessing that dividend payouts largely explain the divergence!

A different perspective

While it hurts that Virtu Financial posted a 12% loss over the past twelve months, the broader market was actually worse, posting a 20% loss. Of course, the long-term returns are much more important, and the good news is that over five years, the stock has returned 10% for each year. At best, the past year is only a temporary breach on the path to a brighter future. I find it very interesting to look at stock price over the long term as a proxy for company performance. But to really get insight, we also need to consider other information. Even so, be aware that Virtu Financial displays 4 warning signs in our investment analysis you should know…

Sure Virtu Financial may not be the best stock to buy. So you might want to see this free collection of growth values.

Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on US exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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5 stocks that could hold up https://investingnewswire.club/5-stocks-that-could-hold-up/ Mon, 20 Jun 2022 14:30:47 +0000 https://investingnewswire.club/5-stocks-that-could-hold-up/ Suddenly, investors are looking for companies that can survive a possible recession. Companies with high profitability and low debt seem like a very good bet. Most business leaders, in a recent Wall Street Journal poll, said a recession has already started or will start within the next 12 to 18 months. I put the odds […]]]>

Suddenly, investors are looking for companies that can survive a possible recession. Companies with high profitability and low debt seem like a very good bet.

Most business leaders, in a recent Wall Street Journal poll, said a recession has already started or will start within the next 12 to 18 months. I put the odds at around 40% this year and 60% next year.

Here are five stocks that I believe have the financial and operational strength to weather a recession in good shape. Each has achieved a return on capital of 17% or better over the past year and has debt at or below 10% of equity.

Modern

Moderna inc. (mrna, Financial), based in Cambridge, Massachusetts, burst into public consciousness when it developed a vaccine for Covid-19, first approved in early 2021.

Moderna’s revenue was just $60 million in 2019. Over the past four quarters, it was more than 300 times larger, or $22.6 billion. Many marketers believe that as the Covid pandemic eventually subsides, Moderna’s revenue will also decline. That’s why stocks trade at a paltry multiple of four times earnings.

I would bet the other way around. Company executives believe its messenger RNA technology may be applicable to other diseases. The advantage is enormous if they are right.

Teradyne

I have owned Teradyne Inc. for years (TER, Financial), which manufactures semiconductor test equipment. But I take another look.

Based in North Reading, Mass., Teradyne has recorded average annual revenue growth of 12% over the past decade. It has made a profit in 12 of the past 15 years. Its return on invested capital was over 52% last year and 34% last quarter.

It is natural for investors to worry about the cycles of feast and famine in the semiconductor industry. The industry has seen a lot. But right now, there’s a global shortage of semiconductors, so I expect Teradyne’s earnings to stay strong.

Logitech

I recommended Logitech International SA (LOGI, Financial) a year ago and it went terribly well. But the Swiss manufacturer of computer peripherals (keyboards, mice, webcams, etc.) has a superb profitability record.

Its return on invested capital has exceeded 17% in 11 of the past 15 years. I consider anything over 10% to be good. If you had owned Logitech stock over the past decade, you would have almost quintupled your money.

When I recommended it a year ago, stock was expensive. But today, that’s less than 15 times recent earnings. A recession could reduce sales for a while. But without debt on its balance sheet, I think Logitech would hold up well.

Sanderson Farms

Americans have steadily increased their chicken consumption. In 1985 it overtook pork in popularity and in 1992 it overtook beef.

Sanderson Farms Inc. (SAFM, Financial), based in Laurel, Mississippi, is the third-largest chicken producer in the nation, with nearly 10% market share. Last year it agreed to be acquired by a joint venture of Cargill and Continental Grain for $203 per share.

This merger is on hold while the US Department of Justice investigates. Meanwhile, the stock rose to $208.

Assuming Sanderson stays independent, I think it’s a good investment. Debt represents only 1% of equity. The shares trade for only five times earnings.

Muller

What product could be more prosaic than refrigerator coils? Mueller Industries Inc. (IML, Financial) manufactures them, as well as a wide variety of tubes, valves, heat exchangers and other forgings.

Mueller, based in Memphis, Tennessee, was founded in 1917 and has been profitable for at least 30 consecutive years (as far back as my database goes). This includes the Great Recession of 2008-09.

The record

It’s the 18the column I wrote on high-yield, low-leverage stocks.

My picks from a year ago were the worst of the previous 17 years, down 39%. The worst performers were Turtle Beach Corp. (TO LISTEN, Financial), down 59%, and Logitech International, down 58%. Also in the red were Sturm Ruger & Co. (RGR, Financial), down 22%, and Gentex Corp. (GNTX, Financial), which fell 17%.

By comparison, the Standard & Poor’s 500 Total Return Index fell 11.8%.

The long-term picture is better. Of the previous 17 columns, 11 showed a profit and 10 beat the index. The one-year average return of my picks was 10.8%, versus 9.0% for the index.

Keep in mind that the results in my column are hypothetical and should not be confused with the results I get for clients. Also, past performance does not predict the future.

John Dorfman is president of Dorfman Value Investments LLC in Newton Upper Falls, Massachusetts, and a syndicated columnist. His company or his clients may own or trade in the securities discussed in this column. He can be reached at [email protected].

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Corey Hoffstein on Managed Futures and Yield Stacking https://investingnewswire.club/corey-hoffstein-on-managed-futures-and-yield-stacking/ Wed, 15 Jun 2022 19:33:02 +0000 https://investingnewswire.club/corey-hoffstein-on-managed-futures-and-yield-stacking/ I recently had the good fortune to meet Corey Hoffstein, co-founder and CIO from Newfound Research, to discuss return stacking and return stacking models, a more unique approach to investing in stocks, bonds and alternatives that can provide more traditional beta-like returns while generating alpha from managed futures or other alternatives. Hoffstein explained that stacking […]]]>

I recently had the good fortune to meet Corey Hoffstein, co-founder and CIO from Newfound Research, to discuss return stacking and return stacking models, a more unique approach to investing in stocks, bonds and alternatives that can provide more traditional beta-like returns while generating alpha from managed futures or other alternatives.

Hoffstein explained that stacking returns allows for a new approach to the type of investment strategies that institutional investors have used over the past four decades. It allows investors to seize alpha opportunities without being at the expense of beta allocations.

“The whole basic concept was to say ‘we don’t have to make this trade-off between one or the other: we can have our beta and also have our alternatives and our diversifiers,'” Hoffstein explained. . “None of this was really available to retail investors unless they had margin accounts, which tended to be expensive. [due to the margin/cost of borrowing being expensive], or if they were unwilling to trade futures, which some are; most are not.

Yield stacking allows for a newer approach to the traditional 60/40 that seeks to stay invested in the globally diversified risk premium allocations of stocks and bonds that will continue to lead the markets over the long term, but make room within the portfolio to also allocate for inflation volatility. What the traditional 60/40 portfolio is particularly sensitive to.

The return stacking concept can be thought of as a 60/40/+, in which a 60/40 return stacking model is achieved through an investment in a fund such as the WisdomTree U.S. Efficient Core Fund (NTSX)a ETFs which invests in both US large cap stocks as well as US Treasury futures and increases capital efficiency for a portfolio.

Thanks to the use of a leverage effect of 1.5x per NTSX provide 60% equity and 40% US Treasuries to the portfolio by allocating 2/3 of portfolio assets to NTSXthe performance of NTSX attribution mimics Vanguard Balanced Index Fund Investor Stocks (VBINXName), Vanguard’s US 60/40 fund. At the same time, 1/3 of portfolio assets are freed up for alternative allocations, such as managed futures.

In the current environment, some advisors might look to commodities for this remaining allocation, but due to their heavy weighting to energy and positive return potential which is strongly tied to inflationary periods and nothing else, Hoffstein doesn’t see them as an ideal option for investors in all environments.

There might be a temptation to look at managed futures contracts and iMGP DBi Managed Futures Strategy ETFs (DBMF) as a return set in a return stacking pattern that uses NTSX and DBMF, given its outperformance this year (the fund’s year-to-date return is currently 30.49% as of 6/14/22 according to the website). For Hoffstein, the inclusion of managed futures and DBMFin particular, it is so much more.

“If you look at historically managed futures contracts, whether you only look at the individual rounds like rate trend, stock trend, commodity trend, currency trend, what you see, that is that they perform well historically in inflation and deflation environments,” Hoffstein said.

The big appeal of managed futures funds is their option in many different spaces, including long and short commodity positions, long/short interest rate positions, and long/short currency positions such as than the US dollar. Due to the number of futures contracts managed in the markets, they can react better to the specific type of inflation that occurs.

DBMF in particular is attractive for a return stacking model because it avoids the dispersion that is common in managed futures hedge fund performance, Hoffstein explained. It does this by looking to track the average performance of existing hedge fund strategies, drawn from 20 of the largest managed futures hedge funds using performance data from SocGen. call to action Hedge fund index, eliminating the biases and performance outliers that can arise from following a single issuer strategy.

“What I like about this DBMF tries to achieve, and has historically achieved, gives you a highly correlated return stream to the broad index and completely eliminates the underlying fees associated with hedge funds,” Hoffstein said. “You can really think about capturing the index plus 150 or 200 basis points over time because you’re eliminating a lot of that cost.”

Hoffstein compares investing in DBMF as a managed futures option to invest in the S&P 500 as an equity option due to its low cost for the exact type of exposure desired. This is a solid core allocation for managed futures and helps bridge the gaps in inflation volatility found in traditional 60/40 portfolios.

Newfound Research also uses DBMF in some of its portfolio models.

For more news, insights and strategy, visit the Managed Futures channel.

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How to start talking about investing with your kids https://investingnewswire.club/how-to-start-talking-about-investing-with-your-kids/ Mon, 13 Jun 2022 20:39:22 +0000 https://investingnewswire.club/how-to-start-talking-about-investing-with-your-kids/ Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We earn commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners. Investing can be quite a complex subject for anyone to master, especially teenagers and young adults. […]]]>

Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We earn commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.

Investing can be quite a complex subject for anyone to master, especially teenagers and young adults.

A Fidelity Investments “Teens and Money 2022 Study” mirrors exactly that sentiment, with more than half of teens aged 13-17 saying investing is too confusing. The study also found that 70% of teens see their family members as financial role models, while only 34% said their family actually talks about investing regularly at home.

Although discussing money can sometimes be awkward or difficult, broaching the subject of investing can seem quite daunting as there is a lot of jargon to learn – index funds, exchange-traded funds (or ETFs), dividends, mutual funds investment – and rules to understand. , such as capital gains and tax loss harvesting.

Below, Select details some ways parents can allocate investments for young people, as well as the benefits of starting to invest early in life.

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How to talk to your kids about investing

John Boroff, vice president of youth investing at Fidelity, has one general advice when it comes to talking to your kids about investing: don’t wait. “There are lots of reasons to talk about money, but the most important thing is to start,” he says.

And there are good reasons to do so. The more you and your family talk about money, the more you will be able to create wealth, according to Boroff.

Start by explaining what the stock market is and show how you can invest in the businesses your children interact with every day. For example, if they enjoy watching Disney cartoons, show them how buying a Disney stock makes them a co-owner.

Then, help them understand how investing in businesses can be a much more profitable experience than spending the same amount of money on something that isn’t needed in the long run. For example, buying a stock of Coca-Cola rather than buying an actual soda can be financially rewarding, especially if you’ve owned it for years.

Keep your kids interested by tracking down a social media account (where they consume the most content) that offers legitimate, age-appropriate personal financial information for your kids. I like to follow the Personal Finance Club on Instagram and Graham Stephan on YouTube and find them quite family friendly.

You can also get them involved by creating a mock portfolio so they can see what it’s like to buy and sell stocks with fake money and track their performance in the market.

As you teach your children about investing for the future, explain to them that although this is not a toy to play with, if used wisely it can give them a lot. more financial freedom later in life.

It pays to invest at a young age

The most important part of investing is letting compound interest works for you. Note that this is a different type of interest than the simple interest you earn on a checking or savings account. Compound interest means the ability to earn even more interest on top of the interest you’ve already earned. Think of it as if it were a snowball rolling down a slope – it will pick up more snow along the way and grow bigger over time.

Here’s how that translates into investing:

Let’s say you start investing $100 in an S&P 500 index fund every month starting at age 16. By the time you reach age 30, your total investment will be $16,800. Assuming a 10% return compounded annually* over a period of 14 years, the value of your account will be $33,569.98. Even if you never invested another dollar between 30 and 60, it would be worth $585,776.09 at the end of those 30 years, assuming a 10% return compounded annually. This is the power of compound interest.

Naturally, a key part of this calculation involves making monthly contributions to your investment account at one time or another. As a teenager, this may be harder to do when you’re not yet employed full time, but the idea is that you can use whatever money you earn, whether it’s through a job after school or summer, to make you After silver.

*Although the S&P 500 has historically generated nearly a 10% average annual return over time, remember that future returns are not guaranteed.

How to invest as a miner

Investing as a minor is a slightly different process than investing as an adult, but the basic principles and ideas remain the same.

Parents or guardians of children under 18 can open one of these investment accounts for them:

  • A Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA) account, both generally custodial in nature and with certain tax advantages
  • A 529 plan, which is a tax-advantaged account designed to help you save and invest for your education expenses
  • A custodial Roth IRA, ideal when your child has taxable income from any type of job, because it allows you to invest after-tax dollars for tax-free earnings

Each of these accounts comes with different tax advantages. So be sure to consult a tax professional if you have any questions about which account would be best for your child. When you’re considering opening an account, robo-advisor Wealthfront offers a 529 college savings plan, and brokers Vanguard, Fidelity, and Charles Schwab all offer custodial Roth IRAs for your child.

And newer to the teen investment market is the Fidelity® The Youth Account, which gives people aged 13 to 17 the flexibility to buy and sell real stocks (although riskier trading options are limited), ETFs and Fidelity mutual funds. Plus, it comes with a debit card. Learn more about how the Fidelity Youth account works.

Fidelity® Youth Account

On Fidelity’s secure site

  • Minimum deposit and balance

    Teens are not tied to any account minimums and there are no monthly fees

  • Costs

    $0 commission for US stocks online*

  • Prime

    For a limited time: When you (parent or guardian) initiate a new Youth Account and your teen (ages 13-17) downloads Fidelity Mobile® App and activate the new account, your teen will get a $50 deposit as a reward1

  • Investment vehicles

  • Investment opportunities

    Stocks, ETFs and Mutual Funds

  • Educational resources

    Teens can access a financial program designed just for them to learn how to save, spend and invest

*A commission of $0.00 applies to online trades in US stocks and exchange-traded funds (ETFs) in a Fidelity retail account only for retail clients of Fidelity Brokerage Services LLC. Sell ​​orders are subject to an activity assessment fee ($0.01 to $0.03 per $1,000 of principal). Other exclusions and conditions may apply. See Fidelity.com/commissions for details. Employee stock-based compensation transactions and accounts managed by advisors or intermediaries through Fidelity Clearing & Custody Solutions® are subject to different commission schedules.

The Fidelity Youth account can only be opened by a parent/guardian. Account eligibility limited to teens ages 13-17.

1Limited time offer. Terms apply. Before you open a Fidelity Kids account, you should read the account agreement carefully and make sure you fully understand your responsibilities for monitoring and supervising your teen’s activity on the account.

At the end of the line

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff alone and have not been reviewed, endorsed or otherwise endorsed by any third party.

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It may be time to reap tax losses || Thomas Callaway https://investingnewswire.club/it-may-be-time-to-reap-tax-losses-thomas-callaway/ Sat, 11 Jun 2022 14:39:12 +0000 https://investingnewswire.club/it-may-be-time-to-reap-tax-losses-thomas-callaway/ File/eExtra News Watching your investments tumble in the stock market is usually not a fun experience. But seasoned investors know that market volatility — and the ups and downs that come with it — is a natural part of the process, and that historical trends show that market swings even out over time. Under the […]]]>

File/eExtra News

Watching your investments tumble in the stock market is usually not a fun experience. But seasoned investors know that market volatility — and the ups and downs that come with it — is a natural part of the process, and that historical trends show that market swings even out over time.

Under the right conditions, a market decline can even present opportunities, such as with the harvesting of tax losses.

If this concept intrigues you – especially in light of recent stock market index declines – here’s what you need to know:

A Potential Tax Saving Strategy

The tax loss strategy applies specifically to investments held in taxable accounts. Since current taxes do not apply to IRAs or workplace retirement plans, this strategy does not apply to these accounts.

The tax benefit of selling a security in a loss position is that these losses could potentially reduce your tax liability. Suppose you invested $10,000 to buy 1,000 shares of a stock for $10 per share over a year ago. Today, if the stock value has dropped to $8 per share, your original investment is now valued at $8,000. The stock may recover and possibly increase in value. But if you sell it today, you could claim a long-term capital loss of $2,000. Is this the right choice?

The benefits of tax-loss selling

A deciding factor is whether you have capital gains that can be offset by the losses you incur by selling securities in a negative position. Long-term capital gains related to assets you’ve held for more than a year are taxed at rates of 0, 15 or 20% depending on your federal taxable income. If you had a long-term capital gain of $3,000 to claim on your 2022 tax return, that would come with a federal income tax bill of $450 if your long-term capital gain is taxed at the rate of 15%. If, at the same time, you lock in a long-term capital loss of $3,000 on a different investment, this will offset that gain and eliminate the tax payable on that capital gain.

Likewise, if you own mutual funds in a taxable account, they may pay capital gains distributions this year, even if they are not performing well at present. These gains may also be offset by any capital losses you claim.

Note that you may not need or want to offset capital gains if your taxable income in 2022, including gains, is $41,675 or less for single filers or a married taxpayer filing separately , or $83,350 or less for a married couple filing jointly. Taxpayers with total taxable income and gains below these income thresholds are entitled to a 0% long-term capital gains tax rate.

Single and married couples filing jointly can use up to $3,000 of net capital losses to offset ordinary income ($1,500 for a married filer, filing separately). Beyond that, unused losses can be carried forward to offset potential taxable capital gains in future tax years.

Cautions regarding tax-loss selling

The downside to selling a position that has suffered a loss is that you cannot buy that specific security or a security that is “substantially identical” to it 30 days before or after the loss sale without the ability to go against washing. selling rules and loss carry forward. Choosing to sell also means that you are sacrificing the potential to benefit from a rebound in the security’s price while you are out of position. You want to be certain that you are comfortable not holding a specific security for a period of time that could be a candidate for tax loss harvesting.

Importantly, any buying or selling decision you make regarding your portfolio should go beyond just tax consequences. Discuss with your financial advisor how tax loss harvesting opportunities fit into your overall financial plan. Also be sure to consult your tax advisor to understand how the tax rules apply.

Thomas A. Callaway CRPC®, is a financial advisor at Ameriprise Financial Services, Inc. in Paris TX. He specializes in fee-based financial planning and asset management strategies and has been practicing for 29 years. To contact him you can go to www.ameripriseadvisors.com/thomas.callaway or call (903)785-7000, office located at 2219 Lamar Ave Paris TX 75460.

Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser.

Investment products are not insured by the FDIC, NCUA, or any federal agency, are not deposits or obligations of, or guaranteed by, any financial institution, and involve investment risks, including possible loss of capital and a fluctuation in value.

Ameriprise Financial and its affiliates do not provide tax or legal advice. Consumers should consult their tax advisor or attorney regarding their particular circumstances.

Ameriprise Financial Services, LLC. FINRA and SIPC member.

© 2022 Ameriprise Financial, Inc. All rights reserved.

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Duff & Phelps Utility and Infrastructure Fund Inc. Announces Dividend and Discloses Sources of Distribution Section 19(a) Notice | New https://investingnewswire.club/duff-phelps-utility-and-infrastructure-fund-inc-announces-dividend-and-discloses-sources-of-distribution-section-19a-notice-new/ Thu, 09 Jun 2022 20:52:17 +0000 https://investingnewswire.club/duff-phelps-utility-and-infrastructure-fund-inc-announces-dividend-and-discloses-sources-of-distribution-section-19a-notice-new/ CHICAGO, June 9, 2022 /PRNewswire/ — The Board of Directors of Duff & Phelps Utility and Infrastructure Fund Inc. (NYSE: DPG), a closed-end fund advised by Duff & Phelps Investment Management Co., today authorized the payment of dividends on its ordinary shares as follows: Cents per share Secondment date Registration Date Payment date 35.0 September […]]]>

CHICAGO, June 9, 2022 /PRNewswire/ — The Board of Directors of Duff & Phelps Utility and Infrastructure Fund Inc. (NYSE: DPG), a closed-end fund advised by Duff & Phelps Investment Management Co., today authorized the payment of dividends on its ordinary shares as follows:

Cents per share

Secondment date

Registration Date

Payment date

35.0

September 14, 2022

September 15, 2022

September 30, 2022

The Fund adopted a managed distribution plan (the “Plan”) in 2015 in order to maintain its 35 cents payout rate per share. Under the plan, the Fund will distribute all available investment income to its shareholders, in accordance with the investment objective of the Fund. If and when sufficient investment income is not available on a quarterly basis, the Fund will distribute realized capital gains and/or return of capital to its shareholders in order to maintain the 35 cents distribution level per share.

The following table shows the estimated quarterly June Fund distribution amounts to shareholders of record as of the close of business on June 15, 2022 (ex-date June 14, 2022), payable June 30, 2022, as well as the cumulative distributions paid in this year to date from the following sources. All amounts are per common share based on US generally accepted accounting principles, which may differ from federal income tax regulations.

Distribution estimates

June 2022 (QTD)

Year-to-date (YTD)

(Source)

Per share

Rising

% of

Running

Distribution

Per share

Rising

% of

Cumulative

Distributions

Net investment income

$0.020

5.8%

$0.107

10.2%

Short-term net realized capital gains

0.000

0.0%

0.000

0.0%

Net realized long-term capital gains

0.000

0.0%

0.000

0.0%

Return of capital (or other source of capital)

0.330

94.2%

0.943

89.8%

Total

$0.350

100.0%

$1,050

100.0%

As of May 31, 2022

Average annual total return on NAV for the 5 years

4.64%

Current annualized payout rate as a percentage of net asset value

9.57%

Cumulative Total Net Asset Value Return for the Year

10.20%

Cumulative distributions for the year as a percentage of net asset value

7.18%

The Fund will issue a separate 19(a) notice at the time of each quarterly distribution using the most recent financial information available. You should not draw any conclusions about the investment performance of the Fund from the amount of such distributions or the terms of the Fund’s managed distribution plan.

The Fund believes it has distributed more than its income and capital gains; therefore, part of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money you have invested in the Fund is returned to you. A return of capital distribution does not necessarily reflect the investment performance of the Fund and should not be confused with “yield” or “income”.

The amounts and sources of distributions set forth in this notice are estimates only and are not provided for tax reporting purposes. Actual amounts and sources of amounts for tax reporting purposes will depend on the Fund’s investment experience over the remainder of the year and may be subject to change as a result of tax regulations. The Fund or your dealer will send you a Form 1099-DIV for the calendar year which will tell you how to report these distributions for federal income tax purposes.

About the Fund

Duff & Phelps Utility and Infrastructure Fund Inc. is a closed-end investment management company whose investment objective is to seek total return, resulting principally from (i) a high level of current income, with an emphasis on providing tax-efficient dividend income and (ii) growth in current income, and secondarily capital appreciation. The Fund seeks to achieve these objectives by investing primarily in the shares of domestic and foreign utility and infrastructure providers. Under normal market conditions, the Fund will invest at least 80% of its total assets in dividend-paying equity securities of companies in the utilities and infrastructure sectors. The utilities industry is defined to include the following sectors: electricity, gas, water, telecommunications and intermediate energy. The infrastructure industry is defined as companies owning or operating essential transportation assets, such as toll roads, bridges, tunnels, airports, seaports, and railways. For more information, please contact Shareholder Services at (866) 270-7598, by email at duff@virtus.com, or visit DPG’s website, www.dpimc.com/dpg.

About the Investment Advisor

Duff & Phelps Investment Management Co. is a subsidiary of Virtus Investment Partners (NASDAQ: VRTS), a distinctive partnership of boutique asset managers. Duff & Phelps has over 35 years of experience managing investment portfolios, including institutional segregated accounts and open and closed-end funds investing in utilities, infrastructure, MLPs and real estate investment trusts ( REIT). For more information, visit www.dpimc.com.

View original content for multimedia download: https://www.prnewswire.com/news-releases/duff–phelps-utility-and-infrastructure-fund-inc-announces-dividend-and-discloses-sources-of- distribution- article-19a-notice-301565250.html

SOURCE Duff & Phelps Utility and Infrastructure Fund Inc.

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Terra LUNA Classic has no future, say Terraform Labs insiders https://investingnewswire.club/terra-luna-classic-has-no-future-say-terraform-labs-insiders/ Tue, 07 Jun 2022 07:00:00 +0000 https://investingnewswire.club/terra-luna-classic-has-no-future-say-terraform-labs-insiders/ Terra LUNA Classic has no future, say Terraform Labs insiders Verified LUNC validators provided insight into Situation Room conversations prior to the 2.0 launch. LUNC and LUNA are trading at $0.00008555 and $5.39 respectively. Do Kwon was the least involved in the war room instituted before the launch of the new Terra Channel. In a […]]]>

Terra LUNA Classic has no future, say Terraform Labs insiders

  • Verified LUNC validators provided insight into Situation Room conversations prior to the 2.0 launch.
  • LUNC and LUNA are trading at $0.00008555 and $5.39 respectively.
  • Do Kwon was the least involved in the war room instituted before the launch of the new Terra Channel.

In a series of interviews, a group of insiders revealed that Do Kwon, the CEO of Terraform Labs (TFL), was the least involved in the war room instituted before the launch of the new Terra Channel, Terra 2.0.

These were the verified LUNA validators involved in the launch of TFL’s new channel.

Based on the chat logs, validators ThorchainMaximalist and PFC said there were significant issues with Terra’s crisis management process. They noted that during the collapse they had lost most of their net worth.

The group also said it had abandoned on-chain governance since people collected billions from Terra LUNA Classic (LUC) in the final hours of the crash. This would leave on-chain governance in the hands of the people who have accumulated the most LUNC tokens.

Asked about the future of LUNC, they expressed a negative view of the token. One of the validators said:

I don’t think he has much of a future. I am actively validating on classic and will continue to do so until there is no more traffic. People are still using it and getting value out of it… so who knows, it may continue to work for a while and have its group of people using it.

Changpeng Zhao, the CEO of Binance, tweeted that Binance Labs made a $3 million investment in Terra in 2018, in which they received 15 million LUNA tokens in exchange for their investment. However, Binance lost the invested capital by taking advantage of the position. The CEO also known as “CZ” argued that the investment was worth $1.6 billion at its peak.

At the time of writing, Terra LUNA Classic (LUNC) and LUNA 2.0 are trading at $0.00008555 and $5.39 respectively, according to CoinMarketCap.

Continue reading on CoinQuora

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