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“CTI Capital Securities’ new hybrid advice platform targets the mass affluent”
Clients will initially sign up with CTI ePortfolio by filling in an online questionnaire then meet with a rep in person to confirm the answers before any money is invested
By Fiona Collie |
Montreal-based CTI Capital Securities is looking to enter the mass affluent retail financial services market with the launch of its hybrid advice platform, CTI ePortfolio.
CTI has focused on the institutional channel and mostly traded in Canadian provincial and corporate bonds since it was founded in 1987. “We have been servicing clients at the institutional level and we want to evolve and give that know-how to the retail level,” says Sophie Buu, CTI’s vice president of administration.
Similarly to digital wealth-management platforms (a.k.a robo-advisors), clients will initially sign up with CTI ePortfolio by filling in an online questionnaire covering topics such as the investor’s investment horizon and investment knowledge. The platform’s algorithm will then make an initial portfolio recommendation based on the answers.
Before any money is invested, however, clients will meet with a CTI representative in person to confirm their answers and to get a better understanding of their investment needs.
“We want to separate ourselves from the rest of the pack by saying we’re not electronic,” says Mark Chadakhtzian, chief financial officer and chief compliance officer with CTI. “It’s not like you’re going to sign up and you’re not going to hear from us.”
Once the information is confirmed, the client’s money is invested in a portfolio of ETFs. The portfolios can have a maximum of 25 holdings and cover all asset classes and regions from Canada, to the U.S. to globally focused ETFs. Growth-oriented or aggressive portfolios also have the option to use margin of up to 25%.
Investors must have a minimum of $100,000 to access CTI ePortfolio. The new platform has a management fee of 0.7% as well as the ETFs’ underlying management fees and a $9.99 trading fee.
For the time being, CTI is focused on working with clients in Quebec, but it’s also licensed in British Columbia, Alberta, and Ontario. To that end, although the company will always try to meet with clients personally, Chadakhtzian says that the firm could use other means of communication, such as Skype, to work with clients in the future.
Photo copyright: denis0856/123RF
09/02/2017
Market Update
US tsys lower, curve steeper 10Y 2.352% (+3.2bps) reversing most of Wed rally on light volume in TY futures. A large bearish bet in Eurodollar options betting on a more aggressive Fed next year , four rate hikes by June 18. European yields higher, 10y gilt yield higher for the first day in six, risk on as peripheral yields decline except for Greece where 2Y yields are 67 bps higher @9.91%. US auctions $15bln in 30Y bonds at 1pm with the WI @ 2.975. GOCs lower in line with tsys, little reaction to lower New Housing data for Dec. Provis starting unch, Quebec 27 still rumoured,also NB after budget yest.
News headlines
Europe Stocks Rise on Earnings, French Bonds Gain: Markets Wrap (Bloomberg) Positive momentum from earnings filtered through stocks after Societe Generale SA beat estimates, while Treasuries fell with German bunds and the debt of France and Italy gained amid ebbing political risk. Banks paced gains as the Stoxx Europe 600 Index rose for a third day. Societe Generale benefited from consumer banking, offering relief to lenders that have been dragged lower by anxiety over looming elections. Treasuries halted the longest stretch of gains since the weeks before June’s Brexit vote while bonds of peripheral countries and France rebounded. Gold backed off its highest level since November.
Oil up on U.S. gasoline stocks, but market bloated (Reuters) Oil prices rose on Thursday, supported by an unexpected draw in U.S. gasoline inventories, although bloated crude supplies meant that fuel markets remain under pressure. Benchmark Brent crude LCOc1 was up 50 cents a barrel at $55.62 per barrel by 1130 GMT. U.S. light crude CLc1 was 50 cents higher at $52.84 a barrel.
Germany’s 2016 trade surplus sets record, may fuel U.S. tensions (Reuters) Germany’s trade surplus climbed to a record high in 2016, official data showed on Thursday, days after U.S. President Donald Trump’s top trade adviser accused Berlin of exploiting a “grossly undervalued” euro to its advantage. The surplus is likely to worsen tension between Washington and Berlin, which is trying to safeguard global free trade this year during its presidency of the Group of 20 leading economies, adopting the motto “Shaping an Interconnected World”.
U.S. to sell 10 mln barrels of SPR oil in Feb -Energy Dept (Reuters) The U.S. Energy Department said on Wednesday it will sell 10 million barrels of oil from the government’s emergency crude reserve in late February. The sale from the Strategic Petroleum Reserve (SPR) was required by a law passed last year as a way to help increase funding for medical research. The law mandated sales of 25 million barrels from the SPR over three years, starting with the sale of 10 million barrels this year.
Freeland talks tough on trade with Trump team (TheGlobeAndMail) Foreign Affairs Minister Chrystia Freeland has warned the Trump administration that Ottawa is ready to retaliate if the new President imposes tariffs at the border, potentially sparking a trade war between Canada and its largest trading partner.
Telus profit misses as it pays more to win wireless customers (Reuters) Telus Corp, one of Canada’s three big telecom providers, reported a smaller-than-expected quarterly profit on Thursday as operating expenses rose and it spent more to attract wireless customers. The company said it expects 2017 revenue to grow by 2.5-3.5 percent.
Overnight markets
Overview: US 10yr note futures are down -0.0997% at 125-8, S&P 500 futures are up 0.12% at 2293, Crude oil futures are up 0.99% at $52.86, Gold futures are up 0.21% at $1242.1, DXY is down -0.07% at 100.21, CAD/USD is down -0.26% at 0.7628.
US Economic Data
| 8:30 AM | Initial Jobless Claims, Feb 4th , 234k, est. 249k (prior 246k) |
| Continuing Claims, Jan 28th, 2078k, est. 2058k (prior 2064k, revised 2063k) | |
| 10:00 AM | Wholesale Trade Sales, m/m, Dec, (prior 0.4%) |
| Wholesale Inventories, m/m, Dec F, est. 1.0% (prior 1.0%) |
Canadian Economic Data
| 8:30 AM | New Housing Price Index, m/m, Dec, 0.1%, est. 0.2% (prior 0.2%) |
| New Housing Price Index, y/y, Dec, 3.0%, est. 3.1% (prior 3.0%) |
Disclosure and Disclaimer
The following sources of information have been, or may have been, used partially or in their entirety to compile the herein provided CTI Capital Securities Inc. (“CTI Capital”) ‘Morning Comments.’ CTI Capital believes these sources to be generally reliable, however, as said sources are varied and from third parties, CTI Capital cannot guarantee the accuracy or completeness of said information: Canadian Press (CP); Bloomberg News (BN); Wall Street Journal (WSJ); Stone & McCarthy Research Associates (SMRA); New York Times (NYT); Financial Times (FT); Market News International (MNI); Globe and Mail; Associated Press (AP); CNW Group (CNW); Reuters; Business News Network (BNN); Market Watch; and others.
Ivan Greenstein, Stephan Buu, David Leclair-Legault
Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.
Tel : (514)-861-0240
Fax: (514)-861-3230
08/02/2017
Market Update
Us tsys higher, yields 2-3bps lower led by the 7Y , picking up on strength in EGBs. Core Europeanbonds aharply higher, flatter , German 10Y 0.30% at one month low. Stop loss buying in binds, dovish comments from ECB Weidmann who said ECB was in no rush to end its accomodative policy.. Demand for shorter term bunds driven by FTQ bid all week ahead of French election, Greece . France/German 10Y spread continues to widen on uncertainy, with supply also weighing as Finland expected to launch 5 & 30Y dual tranche issue. GOCs higher in line with tsys led by 10Y below 1.65%, 2s10s 3bps flatter. Provis well bid despite lower all in yields , Quebec, MP rumoured as potential issuers after Ontario 10Y on Monday @ 68.5 (69/68). BOC auctions $400mln in RRB 1.25 Dec 47s at noon. Long term breakevens have rallied since the US election ~30bos yet are 10bps off the highs of early Jan. Carry is negaive due to weak Dec CPI yet should improve markedly next month.
News headlines
Earnings Buoy Stocks as Peripheral Bonds Recover: Markets Wrap (Bloomberg) European stocks got a boost from earnings pointing to improving corporate and economic health, while bonds from Italy to France recovered as attention was diverted away from political risk.
Oil prices fall on bloated U.S. fuel inventories, stalling China demand (Reuters) Oil prices slid on Wednesday to extend falls from the previous session, as a big increase in U.S. crude inventories and a slump in Chinese demand implied that global oil markets remain oversupplied despite OPEC-led efforts to cut output.
OECD flags growth pick-up in U.S., Japan, Germany, France (Reuters) Economic growth appears to be picking up in the United States, Japan, Germany and France, the Organisation for Economic Co-operation and Development (OECD) said on Wednesday.
Greece Hits Back Against IMF as Bond Market Remains Spooked (Bloomberg) Greece pushed back against the International Monetary Fund’s view that the government’s economic reforms are heading off track. In official responses, published with an IMF report on Greece late Tuesday, Finance Minister Euclid Tsakalotos said the fund’s assessment was not based on recent evidence, while Bank of Greece governor Yannis Stournaras said it downplayed progress on the financial sector and was unduly pessimistic.
Political risks weigh on euro, yen gains (Reuters) The euro fell another third of a percent against the dollar on Wednesday, as concerns around a resurgence in political risk to the single currency project drove its worst run of daily losses in almost two months.
Canada Pledges $282 Million in Aid for Bombardier’s Marquee Jets (Bloomberg) Canada’s government will provide C$372.5 million ($282 million) in support for Bombardier Inc. to help fund two jet programs including the C Series, the single-aisle plane that competes with Boeing Co. and Airbus Group SE products.
Japan’s Abe hopes promises on jobs, defense will temper Trump’s tone on trade (Reuters) Prime Minister Shinzo Abe heads to Washington on Thursday hoping promises to help create U.S. jobs and bolster Japan’s military will persuade U.S. President Donald Trump to turn down the heat on trade and currency and stand by the decades-old alliance.
Overnight markets
Overview: US 10yr note futures are up 0.1249% at 125-9, S&P 500 futures are down -0.12% at 2285.75, Crude oil futures are down -0.88% at $51.71, Gold futures are up 0.36% at $1240.5, DXY is up 0.11% at 100.37, CAD/USD is down -0.28% at 0.7605.
US Economic Data
| 7:00 AM | MBA Mortgage Applications, Feb 3rd, 2.3% (prior -3.2%) |
Canadian Economic Data
| 8:15 AM | Housing Starts, Jan, 207.4k, est. 197.3k (prior 207k, revised 206.3k) |
Disclosure and Disclaimer
The following sources of information have been, or may have been, used partially or in their entirety to compile the herein provided CTI Capital Securities Inc. (“CTI Capital”) ‘Morning Comments.’ CTI Capital believes these sources to be generally reliable, however, as said sources are varied and from third parties, CTI Capital cannot guarantee the accuracy or completeness of said information: Canadian Press (CP); Bloomberg News (BN); Wall Street Journal (WSJ); Stone & McCarthy Research Associates (SMRA); New York Times (NYT); Financial Times (FT); Market News International (MNI); Globe and Mail; Associated Press (AP); CNW Group (CNW); Reuters; Business News Network (BNN); Market Watch; and others.
Ivan Greenstein, Stephan Buu, David Leclair-Legault
Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.
Tel : (514)-861-0240
Fax: (514)-861-3230