The Global Innovation Clusters initiative is a groundbreaking program designed to foster innovation and drive economic growth in Canada by promoting collaboration among businesses, research institutions, and governments. 

This initiative provides open intake grants and funding opportunities for organizations looking to enhance their innovation capabilities and contribute to the development of cutting-edge technologies in various sectors.

Objectives of the Global Innovation Clusters

The primary objective of the Global Innovation Clusters program is to accelerate innovation and strengthen Canada’s competitive advantage in key industries. By connecting businesses with research expertise and fostering collaboration, the initiative aims to create an environment where innovative ideas can thrive. The clusters focus on specific sectors, including advanced manufacturing, clean technology, digital industries, and agri-food, among others. This targeted approach ensures that funding is directed toward projects that have the potential to drive significant economic impact.

Open Intake Grants and Funding

The Global Innovation Clusters program offers open intake grants designed to support a wide range of projects that align with the goals of innovation and collaboration. Eligible projects can receive funding for activities such as research and development, technology commercialisation, talent development, and capacity building. Grants are awarded based on the potential for projects to contribute to the cluster’s objectives, stimulate job creation, and enhance the overall competitiveness of Canadian industries.

Funding amounts vary depending on the project scope and objectives, providing flexibility for organizations of different sizes and capacities. The open intake model allows applicants to submit proposals at any time, ensuring that innovative ideas can be pursued without delays. This approach not only encourages rapid development but also fosters a culture of continuous improvement and adaptation.

Eligibility and Application Process

To be eligible for funding through the Global Innovation Clusters program, organizations must demonstrate their commitment to collaboration and innovation. Applicants can include businesses, research institutions, non-profits, and other stakeholders that contribute to the innovation ecosystem. Proposals should clearly outline the project’s objectives, expected outcomes, and how it aligns with the goals of the cluster.

The application process involves submitting a detailed proposal that includes information on project timelines, budgets, and collaboration partners. Successful applicants will be evaluated based on the merit of their proposals, with an emphasis on the potential for measurable impact and sustainability.

Impact on Canadian Innovation

The Global Innovation Clusters initiative represents a significant investment in Canada’s innovation landscape. By providing funding and support for collaborative projects, the program is poised to drive economic growth, create jobs, and enhance the country’s global competitiveness. The focus on innovation clusters fosters knowledge sharing and accelerates the development of transformative technologies that can address pressing societal challenges.

The Global Innovation Clusters program and its open intake grants offer a unique opportunity for organizations in Canada to enhance their innovation capabilities and contribute to the nation’s economic development. By fostering collaboration and supporting impactful projects, the initiative is set to play a pivotal role in shaping the future of Canadian industries.

Sources

https://ised-isde.canada.ca/site/global-innovation-clusters/en?utm_source=bbf-orae&utm_medium=website&utm_campaign=FTF&utm_term=business_benefits_finder-outil_recherche_aide_aux_entreprises 

https://www.youtube.com/watch?v=uhY7o0RVWgY 

Alberta may lead the provinces with the highest median household income, but Nunavut grabs the national spotlight. The three territories dominate with the highest average salaries. However, in 2022, Nunavut saw a slight decrease in overall average yearly salaries, dropping from $87,355 to $82,875—a 5.13% decline.

On the flip side, poverty is hitting 15% of elderly Canadians hard, and women are still grappling with an 11% pay gap compared to men. Indigenous workers are facing a substantial income disparity compared to their non-Indigenous counterparts. But it’s not all doom and gloom—British Columbia boasts the highest minimum wage in the country at a solid $17.40 per hour.

The income game has been wild for Canada’s richest. Back in 2018, the top 1% of earners were bringing in an average of $496,200 annually. Fast forward to 2021, and that figure had jumped to a jaw-dropping $685,000. The richest 0.1% saw even crazier gains, with their average yearly income soaring from $1,669,400 in 2018 to a staggering $2.6 million in 2021.

Ontario’s hourly wages have been on a slow and steady climb. From a modest $8.75 in 2008, wages ticked up to $10.25 by 2010 and held steady until 2013. After a series of gradual increases, they hit $14.00 in 2018. There was a two-year pause, but they’re back on the rise, reaching $15.50 in October 2022, $16.55 in October 2023, and are set to hit $17.20 by October 1, 2024.

Between 2016 and 2020, Canada’s median after-tax income saw a boost from $60,400 to $66,800, with Alberta leading the charge and Newfoundland and Labrador trailing behind. By 2023, individual median incomes show a wide range, with the Northwest Territories at $77,900 and Prince Edward Island at $46,160. Regional income disparities are stark, as evidenced by Yellowknife’s impressive $141,700 versus Dehcho’s $75,584.

• Income by Age

Income typically increases with age, peaking in the 45-54 age group at $66,700 annually. Salaries then decrease as individuals approach retirement, averaging $54,600 annually for those 55 and older.

• Elderly Income

Canadians over 65 average $22,600 annually, partly due to reliance on the Guaranteed Income Supplement. Approximately 15% of seniors live in poverty.

• Minimum Hourly Wages

British Columbia leads with the highest minimum wage at $17.40, followed by Ontario at $17.20. Yukon stands at $16.77, while Alberta, Nova Scotia, Newfoundland and Labrador, and Saskatchewan have the lowest minimum wage, set at $15.00 per hour.

• Wage Gaps

Women earn 11% less than men, and Indigenous workers make 34% less than non-Indigenous counterparts in urban areas.

• Taxes

Canadians pay federal taxes from 15% to 33% and varying provincial taxes, averaging 42.6% of their income.

Originally published on Reveal Niagara Business Magazine – August Edition

Source: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110023901

https://www.dundaslife.com/blog/average-income-in-canada#toc-how-is-income-distributed-by-age-in-canada-

https://www.peninsulagrouplimited.com/ca/resource-hub/minimum-wage/ontario-minimum-wage-history/#:~:text=It%20changed%20to%20%2414.00%20in,as%20of%20

The Toronto Stock Exchange (TSX) remains a vital hub for both emerging and established businesses seeking to raise capital and expand their reach. Each month, the TSX welcomes new company listings, marking a significant event in Canada’s financial landscape. These new listings reflect the dynamic nature of the market and offer investors fresh opportunities to engage with a diverse array of industries.

From innovative tech startups to established players in traditional sectors, the TSX’s monthly additions span a broad spectrum. Each new listing not only signifies a company's growth ambitions but also introduces unique investment opportunities. The diverse nature of these listings highlights the TSX's role as a critical platform for fostering business development and economic growth in Canada.

For investors and market watchers, keeping abreast of these monthly listings provides valuable insights into emerging trends and potential market shifts. As the TSX continues to attract a wide range of companies, its monthly updates serve as a key indicator of market health and investment potential.

TSX New Company Listings

Source:

https://www.tsx.com/en/news/new-company-listings

Canadian policymakers are closely monitoring rising household debt, particularly in the context of elevated house prices, inflation, and higher interest rates, which pose risks to financial stability. While debt can be a tool for wealth accumulation, the current environment has made it riskier, especially for those with high loan balances.

Non-mortgage loans have surged since the pandemic, driven by consumer goods, vehicle loans, and lines of credit. Despite initial declines during lockdowns, these loans reached $553.1 billion by Q3 2023, reflecting a 13.7% increase from Q1 2020. Inflation and higher interest rates have pressured Canadians, leading to increased borrowing costs and higher debt levels.

Mortgage debt, which accounts for about 70% of total loans, also saw significant changes. Uninsured mortgages have grown faster than insured ones, driven by rising house prices and regulatory constraints. By Q3 2023, uninsured mortgages were prevalent in major urban centers where housing prices remained high.

Rising interest rates have also led to changes in mortgage terms, with many borrowers facing longer amortization periods and higher payments as they hit trigger rates on variable-rate mortgages. The analysis underscores the growing financial burden on Canadian households and highlights the importance of understanding the implications of both mortgage and non-mortgage debt in maintaining financial stability.

Source:

https://www150.statcan.gc.ca/n1/pub/11-621-m/11-621-m2024009-eng.htm 

Learn essential strategies for effectively managing business cash flow with these five best practices from across business spectrum.

Accurate Forecasting and Budgeting

Develop detailed cash flow forecasts and budgets, considering seasonal variations and economic trends. Regularly update these forecasts to reflect actual performance, ensuring you anticipate cash shortfalls or surpluses. Accurate forecasting helps in making informed decisions about spending, investments, and when to seek additional financing.

Increase Sales and Productivity

Enhance your sales and productivity by nurturing your client relationships and organizing your sales activities, whether electronically or meeting person. Invest in effective marketing strategies, improve customer service, and use technology to streamline operations. Provide training for employees to optimize sales processes, which can lead to increased revenue and more efficient resource use, positively impacting your cash flow. 

Efficient Invoicing and Collections

Implement a prompt invoicing system and set clear payment terms. Use automated invoicing software to reduce delays and follow up on overdue accounts systematically. Offering incentives for early payments and penalties for late ones can motivate timely payments, improving your cash inflow consistency.

Expense Management

Regularly review and manage your business expenses. Identify and eliminate unnecessary costs, negotiate better terms with suppliers, and look for cost-effective alternatives. Implementing strict expenditure controls ensures that your cash outflows are minimized, maintaining a healthier   cash balance.

Maintain a Cash Reserve

Establish a cash reserve to cover unexpected expenses or periods of low revenue. Aim to save enough to cover at least three to six months of operating expenses. This reserve acts as a financial buffer, ensuring your business remains operational during economic downturns or emergencies.

Implementing these strategies can aid small businesses maintain financial health in dynamic business environment.

Sources: https://www.americanexpress.com/en-us/business/resources/grow-business/small-business-cash-flow-management/

As originally published on Reveal Niagara Business Magazine

It's the long-awaited news for millions of Canadians. The Bank of Canada has brought an end to its historic cycle of interest rate increases by lowering its key rate for the first time since the onset of the COVID-19 pandemic.

The Bank of Canada has cut its key overnight rate by 25 basis points to 4.75%, the first reduction in four years. This decision comes after keeping rates steady at 5% since July 2023. The move, largely anticipated by markets, signals a shift towards more typical interest rate levels amidst persistent inflation pressures.

Despite the adjustment, monetary policy remains restrictive, with inflation rates consistently lower over the past year. Weaknesses in the labor market, including sluggish employment growth and easing wage pressures, are also highlighted.

The Bank foresees continued easing in price pressures due to excess supply in the economy, with headline CPI expected to reach the 2% target by 2025. Attention now shifts to the pace of further cuts, with decisions to be made on a meeting-by-meeting basis.

While the rate cut aims to alleviate borrowing costs for Canadian households, interest rates are expected to remain relatively high and restrictive. Policymakers express confidence in a downward trajectory for future inflation. Insights into housing, wage growth, and inflation will be gleaned from upcoming reports and surveys, with another 25 basis point cut anticipated in July.

Sources:

 #GlobalNews

In recent years, a seismic shift has been underway in the world of finance. Investors are no longer solely focused on financial returns; instead, they are increasingly prioritizing the triple bottom line – a commitment to people, the planet, and profit. This evolution is embodied by the rise of Sustainable Investing, a movement that places Environmental, Social, and Governance (ESG) factors at the forefront of investment decisions. Let's explore the growing influence of ESG considerations and explore how this trend is reshaping the traditional financial landscape.

The Evolution of Sustainable Investing:

Sustainable investing is not merely a passing trend; it represents a fundamental transformation in how investors perceive risk, value, and success. Environmental considerations assess a company's impact on the planet, social factors evaluate its relationships with people and communities, and governance scrutinizes its leadership and ethical practices.

Historically, financial success was synonymous with profit margins and shareholder value. However, the modern investor is realizing that financial performance alone does not capture the complete picture. A company's ability to thrive in the long term is increasingly tied to its ability to operate sustainably and responsibly.

ESG Integration in Investment Decisions:

The integration of ESG factors into investment decisions is no longer a niche practice. Investors are recognizing that sustainable practices contribute not only to a healthier planet and society but also to enhanced financial performance. As a result, they are incorporating ESG considerations into their decision-making processes, influencing the allocation of capital across industries.

Companies that exhibit strong ESG performance are not only seen as responsible corporate citizens but also as potentially resilient investments. The logic is clear: businesses that prioritize sustainability are better equipped to navigate regulatory challenges, attract and retain top talent, and build stronger relationships with customers. This, in turn, can lead to enhanced long-term shareholder value.

The Impact on Traditional Investment Practices:

The rise of sustainable investing is challenging traditional notions of risk and return. Investors are now realizing that a company's environmental impact, social responsibility, and governance practices are critical indicators of its overall health and stability. As a result, traditional financial metrics are being supplemented, and in some cases, replaced by a more holistic approach.

Institutional investors, such as pension funds and asset managers, are increasingly integrating ESG considerations into their investment strategies. This shift is not only driven by a sense of responsibility but also by a recognition that companies with strong sustainability profiles are more likely to weather the storms of market volatility and regulatory changes.

The Role of Technology in Advancing Sustainable Investing:

Advancements in technology are playing a pivotal role in the mainstreaming of sustainable investing. Big data analytics, artificial intelligence, and machine learning are empowering investors to analyze vast amounts of ESG-related information, enabling more informed decision-making. Technology is providing the tools to assess the long-term sustainability of companies, making it easier for investors to align their portfolios with their values.

The rise of sustainable investing and the integration of ESG factors into mainstream investment practices signal a profound shift in the financial landscape. Investors are recognizing that financial success is inseparable from environmental and social responsibility. As this trend continues to gain momentum, it is poised to reshape the way we think about risk, return, and the role of capital in building a sustainable future. In this new era, investing isn't just about making money; it's about making a difference.

The financial services industry has witnessed a seismic shift in recent years, thanks to the rapid growth of Financial Technology, or FinTech. This technological revolution has fundamentally transformed the way traditional banking and finance operate, creating a dynamic landscape that challenges established norms and institutions.

The term "FinTech" refers to a broad category of innovative technologies designed to enhance and streamline financial services. These innovations encompass a wide array of applications, including mobile payments, peer-to-peer lending, blockchain-based cryptocurrencies, and more. FinTech start-ups and established technology companies have been at the forefront, creating a diverse ecosystem and transforming the financial industry.

One of the most striking features of FinTech is its ability to democratize financial services. Traditional banking institutions often struggle to serve segments of the population that are underbanked or have limited access to financial services. FinTech solutions, on the other hand, offer a more inclusive approach, reaching previously underserved individuals and businesses. Mobile banking applications have become indispensable for customers seeking convenience and accessibility. With these apps, individuals can check their account balances, transfer funds, pay bills, and even invest with just a few taps on their smartphones.

Traditional banking and finance institutions often grapple with inefficiencies and high operational costs associated with legacy systems and processes. FinTech solutions have stepped in to address these challenges by offering streamlined and cost-effective alternatives.

For example, blockchain technology has the potential to revolutionize the way financial transactions are conducted. By creating secure, transparent, and tamper-proof ledgers, blockchain reduces the need for intermediaries, such as clearinghouses and banks, resulting in faster and cheaper transactions.

Furthermore, FinTech has enabled automation in various financial processes, reducing the need for manual intervention and minimizing the risk of errors, improving efficiency as well as customer experience.

While FinTech brings undeniable advantages, it also poses a significant threat to traditional models. As FinTech companies gain traction and market share, traditional banks are looking to adapt. The rise of digital payment platforms, for example, has the potential to diminish the importance of traditional banks in the payment ecosystem. As more consumers and businesses embrace digital wallets, the need for physical branches and traditional services could diminish.

Growth in FinTech has drawn regulators' attention. Though they value innovation, their primary concern is the stability, security, and integrity of financial markets. Consequently, FinTech companies face a maze of compliance demands. Notably, cryptocurrency exchanges have been under watch to curb money laundering and fraud, requiring these businesses to continually adjust to the evolving regulatory landscape.

In addition to regulatory challenges, cybersecurity concerns are paramount in the FinTech industry. With the increasing reliance on digital technology, FinTech companies must invest heavily in cybersecurity measures to protect customer data and maintain trust.

While FinTech may pose a threat to traditional banking models, it also presents collaborative opportunities. Banks are exploring ways to leverage blockchain technology to improve their own operations, such as streamlining and protecting cross-border payments and trade finance processes.

Machine learning algorithms and AI-powered chatbots are transforming customer service, fraud detection, and risk management. AI-driven fraud detection systems analyze vast amounts of transaction data in real time to identify suspicious activities and protect customers from financial fraud.

Moreover, AI is being used to develop predictive analytics models that can assess credit risk more accurately. By analyzing a wide range of data points, including transaction history, social behaviour, and online activity, AI can provide more nuanced and precise credit assessments, potentially expanding access to credit for individuals who might be overlooked by traditional models.

As FinTech firms handle extensive customer data, data privacy is crucial. Mismanagement can lead to regulatory fines and reputational damage. Regulations such as the General Data Protection Regulation (GDPR) in Europe and similar laws in other regions necessitate prioritizing data protection. Abiding by these rules and emphasizing privacy not only ensures compliance but also fosters customer trust, essential for attracting and retaining clients concerned about their financial data's security.

The impact of FinTech on traditional banking and finance is undeniable. It has reshaped the industry by enhancing customer experiences, improving efficiency, and driving financial inclusion while disrupting traditional models and challenging established institutions to adapt or collaborate.

As FinTech continues to evolve, the financial services industry must navigate regulatory challenges and cybersecurity concerns. Collaboration between traditional banks and FinTech companies offers a path forward, enabling the industry to harness innovation while addressing these challenges.

Ultimately, the FinTech revolution has the potential to create a more accessible, efficient, and inclusive financial system. While the road ahead may be marked by regulatory hurdles and competition, the transformation of banking and finance is well underway, and the industry must embrace the opportunities and challenges that lie ahead.

Sources:
https://www.bcg.com/en-ca/publications/2023/future-of-fintech-and-banking

https://www2.deloitte.com/us/en/pages/financial-services/articles/future-of-commercial-banking-industry.html

https://www.forbes.com/sites/joemckendrick/2023/01/14/the-coming-democratization-of-financial-services-thanks-to-ai/?sh=4684e451582b

https://www2.deloitte.com/uk/en/pages/financial-services/articles/is-gdpr-a-competitive-advantage-for-fintechs.html

Navigating the competitive landscape of entrepreneurship and launching a small business or startup requires not just innovative ideas but also financial support. Fortunately, the Canadian government recognizes the vital role that small businesses and startups play in the economy and offers a range of grants and incentives to empower entrepreneurs. These programs provide financial assistance, mentorship, and resources, helping businesses thrive and contribute to economic growth.

Let's delve into some of the prominent Canadian government grants and incentives available to small businesses and startups, while providing links and references for further exploration. Keep these on your radar for ongoing review. 

Canada Small Business Financing Program

The Canada Small Business Financing Program (CSBFP) is a federal initiative designed to help startups and small businesses secure affordable financing. It assists by sharing the risk with financial institutions, enabling businesses to access loans for purchasing equipment, expanding operations, or modernizing facilities. With a cap of $1 million, this program provides a financial safety net for entrepreneurs who may have difficulty obtaining traditional financing.

Save the Link: Canada Small Business Financing Program

Scientific Research and Experimental Development (SR&ED) Tax Incentive

The SR&ED tax incentive is a boon for businesses engaged in research and development activities. It offers tax credits and deductions for expenditures related to innovative projects. Both small businesses and startups can benefit from this program, using the funds to drive technological advancements, improve products, and foster innovation.

Save the Link: SR&ED Tax Incentive

Canada Job Grant

For businesses looking to upskill their workforce, the Canada Job Grant provides a platform to enhance employee training. This cost-sharing initiative assists in covering training costs for skills development, promoting a skilled and adaptable workforce that contributes to business growth.

Save the Link: Canada Job Grant

Industrial Research Assistance Program (IRAP)

IRAP supports small and medium-sized enterprises (SMEs) in their quest for technological innovation. Through funding and advisory services, businesses can receive guidance on research and development, technology adoption, and commercialization strategies.

Save the Link: IRAP

Women Entrepreneurship Strategy (WES)

Promoting gender equality in entrepreneurship, WES provides funding, resources, and mentorship to women-led businesses. It aims to remove barriers and empower women entrepreneurs to build successful ventures.

Save the Link: Women Entrepreneurship Strategy

CanExport Program

The CanExport program supports businesses in expanding into international markets. Financial assistance is provided to cover expenses related to market research, business development, and international marketing initiatives.

Save the Link: CanExport Program

The Canadian government's commitment to fostering entrepreneurship is evident through its array of grants and incentives designed to support small businesses and startups. From financing to tax incentives, these programs empower businesses to innovate, grow, and contribute to the nation's economic prosperity. By availing these resources, entrepreneurs can turn their visionary ideas into successful enterprises, ensuring a vibrant and dynamic business landscape in Canada.

Aspiring entrepreneurs and established business owners can explore the government resources provided above to gain a deeper understanding of these programs and how to leverage them to their advantage. With a helping hand from these initiatives, the path to entrepreneurial success becomes more accessible than ever before.

In today's fast-paced world, managing personal finances has become increasingly important. Whether you're a recent college graduate starting your first job, a young family trying to make ends meet, or someone preparing for retirement, understanding the art of budgeting and saving is crucial for achieving financial security and independence. Get out your notebook and join us as we explore some practical and effective strategies to navigate the world of personal finance, helping you take control of your financial future.

1. Assess Your Financial Situation

Before diving into budgeting and saving, take some time to assess your current financial situation. Review your income, expenses, debts, and assets. Understanding your financial standing will provide a solid foundation for crafting an effective budgeting plan. Make use of various financial tools and apps that can assist in tracking your finances and categorizing expenses.

2. Create a Realistic Budget

A budget serves as a roadmap for your financial journey. It helps you allocate your income towards essential expenses, savings, and discretionary spending. Be realistic when setting your budget; avoid underestimating expenses or overestimating income. Account for periodic or irregular expenses, such as vacations or car maintenance, by setting aside funds each month.

3. Prioritize Savings

"Pay yourself first" is a popular adage in the world of personal finance, and it holds true for good reason. Treat your savings as a non-negotiable expense and allocate a portion of your income to savings before addressing other expenses. Consider setting up automatic transfers to a dedicated savings account. Having an emergency fund equivalent to three to six months' worth of expenses provides a safety net during unforeseen circumstances.

4. Reduce Unnecessary Expenses

Identify areas where you can cut back on expenses without compromising your quality of life. This might include eating out less, reducing impulse purchases, or finding cost-effective alternatives for utilities and services. Small changes can add up significantly over time, freeing up funds that can be redirected towards savings or investments.

5. Eliminate High-Interest Debt

High-interest debts, such as credit card balances, can be a significant drain on your finances. Prioritize paying off these debts as quickly as possible. Consider adopting the "debt snowball" method, where you focus on paying off the smallest debts first, gaining momentum as you clear each one. Alternatively, use the "debt avalanche" approach, targeting debts with the highest interest rates first, ultimately saving more money in interest payments.

6. Invest Wisely for the Future

Beyond savings accounts, consider investing to grow your wealth. Diversify your investments across different asset classes to spread risk. If you're unsure about investment options, seek advice from a financial advisor. Understand that investing involves risk, and short-term fluctuations are a natural part of the process. Staying committed to your long-term investment goals can yield substantial returns.

7. Stay Informed and Educate Yourself

The world of personal finance is continually evolving, with new tools and strategies emerging. Stay informed by reading financial literature, following reputable financial websites and attending seminars or workshops. Empowering yourself with knowledge will help you make informed financial decisions and adapt to changing circumstances.

8. Set Financial Goals

Having clear financial goals provides direction and motivation for your financial journey. Set short-term, medium-term, and long-term goals. Short-term goals could include paying off a credit card, while medium-term goals might involve saving for a down payment on a house. Long-term goals can encompass retirement planning. Regularly review and adjust your goals as your life circumstances change.

Navigating the world of personal finance requires discipline, awareness, and a willingness to adapt. Budgeting and saving are foundational elements to secure your financial future, but they are just the beginning. By assessing your financial situation, setting realistic budgets, prioritizing savings, reducing expenses, eliminating high-interest debt, and making informed investment choices, you can pave the way to a prosperous and financially secure life. Stay committed to your goals, seek advice when needed, and remember that small steps towards financial freedom can lead to significant accomplishments in the long run. Start today and take control of your financial destiny.

In recent years, there has been a remarkable surge in ethical investing in Canada, as a growing number of investors seek to align their financial goals with their social and environmental values. Ethical investing, also known as socially responsible investing (SRI) or sustainable investing, has moved from a niche approach to a mainstream investment strategy, demonstrating a significant shift in the investment landscape. Let's explore the reasons behind the rise of ethical investing in Canada and the impact it has on both financial markets and society at large.

Defining Ethical Investing
Ethical investing is a conscious investment strategy that prioritizes financial returns while also considering the impact of investments on society and the environment. Investors who embrace this approach actively seek out companies and funds that adhere to ethical and sustainable principles, while simultaneously avoiding businesses engaged in harmful activities, such as tobacco production, fossil fuel extraction, or weapons manufacturing.

The Rise of Ethical Investing in Canada

1. Changing Investor Mindsets: Canadian investors, particularly the millennial and Gen Z generations, are increasingly placing a premium on environmental, social, and governance (ESG) factors when making investment decisions. As these demographics amass wealth and inherit substantial assets from older generations, they are using their financial power to drive positive change and influence corporate behaviour.

2. Heightened Awareness of Climate Change: Canada, as a country with diverse natural resources and a significant role in the global energy sector, has seen the devastating effects of climate change firsthand. Extreme weather events, melting polar ice caps, and rising sea levels have propelled climate change to the forefront of public discourse, prompting investors to seek greener investment alternatives.

3. Corporate Social Responsibility: Many Canadian companies have recognized the importance of aligning their business practices with ethical and sustainable values. Businesses that demonstrate a commitment to corporate social responsibility (CSR) and sustainable practices are rewarded with increased investor confidence and loyalty.

4. Government Support and Regulation: The Canadian government's commitment to combating climate change and promoting sustainable development has led to the implementation of various policies and incentives that favor green initiatives. Investors are encouraged to put their money into sustainable projects, knowing that the government is also supporting these efforts.

Benefits of Ethical Investing

1. Aligning Profit with Principles: Ethical investing allows individuals to achieve their financial goals while staying true to their personal values. Investors no longer have to compromise on their principles to seek financial growth, as ethical investments offer the potential for both profit and positive impact.

2. Driving Positive Change: By investing in companies with strong environmental and social practices, ethical investors can contribute to positive change in various sectors. This approach not only encourages responsible corporate behaviour but also supports the transition to a more sustainable and equitable world.

3. Risk Mitigation: Ethical investing can also serve as a risk mitigation strategy. Companies that prioritize ESG factors tend to be better equipped to manage long-term risks, such as regulatory changes, resource scarcity, and reputational damage.

Challenges and Future Outlook
While ethical investing in Canada is experiencing rapid growth, it still faces challenges that must be addressed for sustained progress. One key issue is the lack of standardized metrics for measuring ESG performance, making it difficult for investors to compare companies effectively.

However, the future of ethical investing in Canada remains promising. With increasing demand from investors, regulators, and stakeholders, the investment industry is responding by developing more transparent and standardized ESG reporting frameworks.

The rise of ethical investing in Canada marks a significant turning point in the world of finance. As more investors embrace the philosophy of aligning profit with principles, the financial landscape is transforming into a force for positive change. By using their investment choices to support ethical and sustainable businesses, Canadians are proving that responsible capitalism can thrive, and profit and purpose can go hand in hand. As ethical investing gains momentum, it has the potential to reshape the way financial markets function, paving the way for a more sustainable and equitable future for generations to come.

The content in this article is designed to offer general insights into financial matters and is not intended as professional financial advice. Readers are advised to consult certified financial advisors for personalized guidance. While efforts are made to provide accurate and up-to-date information, we do not guarantee its accuracy or completeness. Any actions taken based on this information are at the reader's own risk, and we disclaim liability for any outcomes. This article serves as a starting point for financial understanding, but individualized advice is crucial for making informed decisions.

Ben McKenzie, widely recognized for his acting prowess in hit television shows such as "The O.C." and "Gotham," is now venturing into the realm of literature with his highly anticipated debut novel, "Easy Money." With its impending release, readers and fans alike are eagerly anticipating this new chapter in McKenzie's creative journey.

In an episode with the crew from Professional Insight podcast, they talk candidly with Ben McKenzie about the release of his new book, co-authored with journalist Jacob Silverman, and the insights and knowledge gained surrounding crypto. Brandon Currie, Trevor Lindey and Josh Bond were able to read a pre-release of the book and are blown away by what the information presented. This is an episode you will not want to miss - view it HERE on YouTube. 

About the Book (NOW ON SALE): 

"Easy Money" promises to be an engrossing tale that explores the intricate world of wealth, power, and moral ambiguity. Set against the backdrop of bustling New York City, the novel introduces readers to a diverse cast of characters whose lives intersect in unexpected ways. Jackson Reid, a charismatic Wall Street trader, Olivia Wells, a struggling artist seeking financial stability, and Marcus Thompson, a relentless detective aiming to uncover the dark underbelly of the financial world, take center stage in this gripping narrative.

Through "Easy Money," McKenzie aims to delve into the complexities of human nature and the consequences of our choices. The novel tackles the themes of ambition, materialism, and loyalty, inviting readers to question their own values and moral compasses. McKenzie's unique perspective as an actor enables him to delve deep into the intricacies of character development, breathing life into the diverse personalities that populate the pages of "Easy Money."

Readers can expect a narrative that skillfully balances suspense, emotion, and thought-provoking storytelling. McKenzie's talent for crafting engaging prose, coupled with his attention to detail and authentic dialogue, promises to transport readers into the captivating world he has created.

As the release of "Easy Money" drew near, fans of McKenzie's work eagerly anticipated the novel's arrival, eager to see how his creativity and storytelling abilities translate to the literary medium. With his proven track record in captivating audiences through the screen, it is no doubt that McKenzie's venture into writing brings forth a compelling and unforgettable reading experience.

In conclusion, Ben McKenzie's novel, "Easy Money," is poised to captivate readers with its enthralling narrative, complex characters, and exploration of timely themes. As McKenzie embarks on this exciting new chapter in his career, fans and literary enthusiasts alike dive in, curious to see the world he has crafted within the pages of his book.

Every company, no matter its size or purpose, needs financial management tools to keep it on track. A common misconception, often across new businesses, is that a bank account with detailed statements and shoebox bookkeeping method is enough to track expense and profitability.

Volker Loetfering, a Business Loans Officer with Venture Niagara, expresses the importance of working with experts - “Having a good bookkeeper and accountant that can explain the financial ratios and point out errors or warning signs is ideal. If budget allows, a consultant can help to educate yourself.”

The predominant tools that need to be at the core of every business include budgeting, forecasting, and modeling. The budget shows what you expect to spend, the forecast predicts where you’ll end up and the model shows how you’ll get there.

When asked what common misconceptions business owners have about financial tracking, Rahi Tajzadeh, Chief Executive Officer of The Big Leaf, shares “Often there is a lack of understanding the key metrics in their industry, market(s), and internal operations and marketing. They often focus on a few of each, without necessarily understanding the impact of all the metrics, especially on financial KPIs. This can be, and often is, related to a lack of communication within and between organizations' departments, leaders, and employees. Lastly, a lack of candor can contribute to this phenomenon, which acts as a significant source of risk in any business.”

Your Budget

A budget is a plan for how much money a company is going to make and spend over a period. A budget can be a monthly, quarterly, or annual, but typically the most common is an annual plan, created with the goal of balancing income and expenses.

The process can be as simple as writing down all income earned by your business for the year, then finding out what you need to spend that amount on to operate your business (the expenses). “Make sure to include your own compensation, even if modest in the early stages,” says Volker.

Define what your expected surplus or shortfall will be. If you have an excess of funds left at the end of each month, use those funds to cover deficits incurred during previous months. If there are deficits at the end of each month, they should be put towards savings to offset any possible future deficit months.

A budget should be updated at least once a month to help you keep up with the flow of money coming in and out of your company. It also allows you to plan better because if there is an issue with cashflow, you'll know about it before it becomes a problem.

Expert Contribution:

Volker Loetfering, Business Loans Officer with Venture Niagara
A highly accomplished Business Development Manager, Volker holds 25+ years’ experience working in Europe and North America with extensive experience in business & economic development and financing and banking.

Your Forecast

A forecast is used to predict revenue and cashflow, generally created by looking at three things: the past, the future and assumptions about how certain events might unfold. “A cashflow forecast is paramount to all businesses, with a minimum of a two-year version that includes monthly revenue, COG (Cost of Goods) and expense details,” says Volker. 

As you grow, build the habit of breaking your forecast into three sections: short-term (next two years), medium-term (next five years) and long-term (next ten years). Updates can be made monthly or quarterly, depending on the business and how quickly it changes, or if you have updated your budget or model.

Your Model
A financial model is a way of analyzing the balance sheet and income statement to determine how a company will perform in the future, predicting expenses, revenues, and cash flow for up to five years.

Created every 12-18 months, there are many factors that influence the timeframe of updates, including the size and complexity of the business and its recent growth. A financial model can be updated as often or infrequently as you want, but it's best to do so after you've reached a milestone in your company's lifecycle. For example, if you're just starting out and haven't made any sales yet, there may not be much to update in your financial model until you begin tracking revenue. If you've raised funds from investors or partnered with another company, put together an updated plan for how this investment will affect your finances.

The most financially disciplined businesses leverage all three tools in their planning and operations. They have a budget for day-to-day operations, a forecast for the future, and a financial model that captures current realities. They also have an accurate understanding of both the cash balance (current assets minus current liabilities) as well as the company's overall liquidity (cash balance plus marketable securities). “Always compare actual numbers with what you have forecasted – if you are doing better than what you projected, repeat and build on it. If you are doing worse, find the reason and course correct it,” shares Volker.

The effective use of these tools provides decision makers actionable information to make sound decisions on things like whether to borrow money, whether to go into debt, what kind of pricing they should set for goods and services, how much inventory they should buy or sell, how many employees they should hire or lay off, and so on.

“All three of these tools need to be an integral part of a full (internal) business plan. The business plan is an all-encompassing document that summarizes everything the business knows about their industry, market, opportunities therein, value proposition(s), marketing plan, operations plan, and financial plan. As such, a detailed model is built into the internal business plan (also called the Full Business Plan), as are a detailed budget, and forecasts (or pro-formas); all are necessary, and necessarily integral to risk mitigation and informed decision/strategy making.” Shared Rahi.

The right mix of these different financials provides business leaders with data to make informed decisions about future opportunities. While each tool has its own function, when used together they provide complete insight into a company’s financial strength and is an incredible aid when seeking growth opportunities.

“Funding and financial support is available for businesses. Get to know your lending partners: establish rapport with your advisor, branch manager, especially the head-teller at your bank. And be prepared with your document packages,” says Volker.

Expert Contribution:

Rahi S. Tajzadeh, CMC, MScM, BComm, CEO with KnowQuest Inc & CEO with The Big Leaf Inc
A Certified Management Consultant, Rahi’s background in entrepreneurship, consulting, and research brings a unique perspective and set of tools to better identify opportunities, craft strategy, and execute.

There’s no denying that Canada’s financial system is one of the strongest in the world, however, the accumulated impact of how several vulnerabilities have evolved over this past year means that a downturn is inevitable. The resiliency witnessed throughout the pandemic does not change the fact that interest rates continue to rise, global inflation is high and geopolitical tensions continue to flare.

Anyone reviewing the data may find it quite discouraging. The Bank of Canada has provided extensive analysis surrounding key vulnerabilities such as elevated house prices and levels of household indebtedness, reliance of some businesses on high-yield debt markets, high potential demand for market liquidity relative to suppl, cyber threats in an interconnected financial system and mispricing of assets exposed to climate-related risks.

At a global level, The International Money Fund (IMF) reports regularly on the three largest global economies continuing to stall with world GDP growth estimated to drop to 2.9% in 2023 and advanced economies to as low as 1.4%.

Global inflation has been increasing over the past year, with the price of many goods and services increasing by more than 20%. The obvious contributors remain, such as worldwide pandemics and natural disasters, limited supply of raw materials, and positive global growth trends that have pulled many emerging economies out of recession. It is likely that inflation will continue to rise in the coming months, and another interest rate hike for is expected again in late October as inflation remains above the two percent target.

Economic pressures are certainly closing in and while we should be bracing for a bumpy ride, it is a storm that can be weathered.

Statistics Canada recently released July data showing that manufacturing and wholesale trade posted declines, however the mining, quarrying, oil and gas sector grew by 1.9% after following slight declines two months prior. Forestry, fishing, hunting and agricultural sectors also grew as overall crop production increased.

In an outlook released this past July, Royal Bank of Canada cited “This recession will be moderate and short-lived by historical standards—and can be reversed once inflation settles enough for central banks to lower rates.”

Technically, a recession is defined by two financial quarters of decline in economic activity. There are varying levels to recession, such as the “great recession” of 2008 where the economy contracted by 4 to 5% across several quarters and unemployment rates remained between 5 and 10%.

It is expected that, while growth worldwide will be minimal, the economy itself will continue to expand, just not strongly enough at a pace required to maintain pre-pandemic levels of stability. As financial pressures are felt throughout our households and the surge in consumer demand begins to level out, it is expected that inflation will begin to cool off.

Aside from the European war continuing to disrupt natural gas prices, supply chain relief has been seen and global shipping indicators are showing continuous improvement for time and cost for transporting of goods. These trends are well-received throughout several sectors that have been navigating tumultuous pricing changes and unprecedented delays in delivering their own goods and services to consumers.

As the world recovers from pandemic-related supply constraints and demand rises, policymakers will have to take strong steps to boost global supply. These include lowering trade barriers, investing in infrastructure projects, and promoting free trade agreements with developing nations.

Policymakers should also accelerate the transition to low-carbon energy sources and introduce measures to reduce energy consumption. Increased demand for oil in Asia will lead, on the supply side, to more investment in new fields, greater exploration of shale gas and tight oil, and a faster rate of depletion of existing fields. On the demand side, this will lead to increased trade flows with Europe and India as well as competition for resources.

With respect to strains on workforce, reduced cost of work-related expenses and increasing the availability of public or subsidized jobs is something the government is focused on. More consideration needs to be placed on labor-market policies that will ease constraints in the labor market, increase labor-force participation and reduce price pressures, such as easing constraints on employment arrangements, introducing tax incentives for work, and promoting education opportunities and training programs.

In summary, while a recession is imminent, we will persevere. Being prepared for difficult times has always been advice well worth taking and today’s climate suggests that advice is exceptionally relevant now. The country's debt-to-GDP ratio is one of the highest in the world and its vulnerability to a housing correction is far higher than other developed countries. Do not let this be the case for your household. Make every effort to avoid over-extending yourself. This is an excellent time to review your portfolio; most importantly make sure you have enough cash on hand to weather any potential storm and understand how long you can last without taking new risks or investments. Keep your eye on the news, especially with regards to the country's economy and central bank policies. As always, diversification is key when protecting against risk so keep this in mind when building up your portfolio. If anything seems too risky, think twice about investing. Lastly, make sure to remain in contact with your financial advisor on all matters related to your portfolio.

Resources: https://www.bankofcanada.ca/2022/06/financial-system-survey-highlights-spring-2022/ | https://www.imf.org/en/Blogs/Articles/2022/07/26/blog-weo-update-july-2022 | https://www150.statcan.gc.ca/n1/daily-quotidien/220929/dq220929a-eng.htm?HPA=1 | https://thoughtleadership.rbc.com/canadas-economy-is-headed-for-a-recession/ | https://www.britannica.com/topic/great-recession | https://www.bankofcanada.ca/2022/01/assessing-climate-change-risks-to-our-financial-system/

Is it 2022 or 1982? Investors' confidence rose last year as the pandemic and lockdowns seemed to be ending. There was positive conviction even with pauses due to outbreaks from new COVID-19 variants. Just as it seemed like there was light at the end of the tunnel, investors began to worry about new threats in 2022’s first quarter—rising inflation, interest rates, and geopolitical risks. The annual inflation rate in the United States increased to 7.9% in February, the highest since January 1982, according to the Bureau of Labor Statistics. Energy remained the most significant contributor as gasoline prices surged by 38%. Prices for housing, food, new and used vehicles also spiked. Another worrisome development was Russia’s invasion of Ukraine, causing loss of life, the destruction of many cities and a refugee crisis. It has also ratcheted up the risk of higher inflation, especially in energy and other commodity-related products.

As in the United States, inflation is at a multi-decade high in Canada. Canada's inflation rate rose to 5.7% in February according to Statistics Canada, as prices for a wide variety of goods such as gasoline and housing climbed. Statistics Canada stated that the inflation rate was the highest since August 1991. Inflation soared over January's 5.1% rate and was above the 5.5% predicted by economists.

Higher Interest Rates
In mid-March, the U.S. Federal Reserve raised interest rates for the first time since 2018 due to the dramatic rise in inflation. The U.S. central bank lifted its benchmark rate by 0.25 percentage points and signaled plans for further rate hikes this year. When announcing the rate hike, Federal Reserve Chairman Jerome Powell stated that "The plan is to restore price stability while also maintaining a strong labor market." He added that the central bank does not want high inflation to become entrenched because "the costs of that would be too high." 
The Bank of Canada made a similar move in early March, increasing its target for the overnight
interest rate by 25 basis points to 0.5%, the first hike since October 2018. Bank officials emphasized that they would continue to use monetary policy tools to tame inflation. Their goal is to lower it to the bank’s 2% target and keep inflation expectations well-anchored.

As interest rates rise, bond prices, which move in the opposite direction, have fallen. For example, the U.S. 2-year Treasury yield is now 2.33%, up from 0.786% on January 3. Meanwhile the 10-year Treasury yield is now 2.41% (March 30) vs. 1.637% on January 3.

The danger with higher interest rates for ordinary citizens and businesses is that borrowing costs could rise, which, in turn, could slow economic growth. In addition, higher bond yields cause future profits to be less valuable, forcing stock valuations to decline.

Improving your Portfolio for Rising Inflation and Interest Rates
With the macroeconomy changing so quickly, the average investor is quite concerned if their portfolio can cope with the new environment. Investors may be searching for trusted advice on to properly adjust their portfolio as inflation and interest rates rise. One financial advisor, Brandon Currie, CLU, CFP, CHS, RRC, offers the following advice to investors. His firm is licensed in British Columbia, Ontario, Nova Scotia, Newfoundland, and Labrador. First, he cautions that there is no "one size fits all" investing approach. He explains that each investor is different with unique goals, dreams, and time horizons. “Then, when you couple that with all the different risk profiles depending on those objectives, you cannot approach every client with the same solution," Currie says.

Currie’s advice follows these points:

Step One. Begin with finding a financial advisor or planner professional. One thing to remember is that their designations matter. If someone is willing to invest in their education—enabling them to increase their knowledge and skills constantly—they will take the time to invest in your future and your money.

Step Two. Ignore all the industry acronyms/jargon; they merely confuse you. Take the time to research what the terms mean so that you are armed with the knowledge to conduct a conversation with your professional advisor. For example, he emphasizes that learning terms such as the difference between monetary and fiscal policy, macro and microeconomics, a stock’s market cap, stock split, etc., can be overwhelming. If you do not know, then don’t be shy to ask. 

Step Three. Since there is no "one size fits all" strategy, it's crucial to have a robust conversation with your professional. Currie emphasizes that you need to think about how you would react if the market corrected by 20%; what would you do? Your answer to that question will help guide your professional in advising you on solutions that meet your needs and risk profile. 

Advisor Nicolle Lalonde of Edward Jones in Fonthill, Ontario, shared similar advice: “We work to understand each client's situation, their individual goals, and then provide a roadmap to achieve those goals. Lalonde explains that her firm has always taken inflation into account when planning those future goals. Her best advice is to start by defining your own goals and then ensure that you review and revise those goals annually. “Setting appropriate expectations and understanding the risks that can affect your goals is very important,” she said.
 
As for the different vehicles in Canada for investing for retirement/small goals,  there is the Tax-free savings account (TFSA), Currie explains. All TFSA contributions are made with after-tax dollars and all growth is 100% tax-free. The annual limit is set by the Canada Revenue Agency (CRA) and the current Government through budgets. In addition, Canada also has the Registered Retirement Savings Plan (RRSP). The account’s contribution limit is more complicated to compute, so Currie encourages readers to click the hyperlink to read more. 

The account enables investors to contribute with pre-tax dollars or after-tax dollars. If you contribute after-tax dollars, you obtain a tax deduction. There are many variances with the RRSP whether it is personal or group. However, these are the two main vehicles available to everyone over the age of 18, Currie says.

What you put into these vehicles needs to be a mix. To conclude, Currie emphasizes that having a mix of GICs (Guaranteed Investment Certificates) stock/bonds, and mutual funds helps investors “ensure that they are well diversified, but also you are within your risk profile  to meet your longer-term objectives.”

U.S.-based investors have the option of purchasing Treasury Inflation-Protected Securities (TIPS) to help their portfolio keep pace with inflation. These are bonds, whose principal and interest rate payments climb along with inflation, are available in 5-year, 10-year, and 30-year maturities. The inflation protection offered by TIPS adds to their price. TIPS are more expensive than conventional treasury bonds to purchase, but they offer diversification during higher inflation. There is a similar bond called the Treasury Series I Savings Bonds. These bonds currently pay 7.12% because the rates climb as inflation rises. The rate is adjusted twice a year—in May and November. The government limits total purchase of these to $10,000 per year. They can be purchased at Treasury Direct. 

For investors who are either concerned about the increased risk of inflation or whose financial plans would be more damaged by higher-than-expected inflation, there is an alternative to traditional safe bonds (like Treasury securities, certificates of deposit (CDs) and high-quality municipals) that is worth considering, says Larry Swedroe, Chief Research Officer for Buckingham Strategic Wealth, and Buckingham Strategic Partners.

Swedroe emphasizes that there are no free lunches in investing. However, “for investors who do not need liquidity for at least some of their portfolio (which is likely true for almost all investors), a way to reduce the risk of inflation while also increasing expected returns significantly is to shift some of their allocation to the safest bonds to interval funds of private debt, such as Cliffwater’s Corporate Lending Fund (CCLFX). The fund is an interval fund and invests in the senior secured floating rate private debt of middle-market companies, the vast majority of which are backed by private equity firms. As an interval fund, CCLFX must provide a minimum of 5% liquidity per quarter but typically not more than 25%. Repurchase offers may be suspended or postponed per regulatory requirements. Depending on the demand for redemptions, it is theoretically possible that an investor could redeem all their assets, Swedroe explains. 

For additional detail about interval funds, they are non-diversified, closed-end management investment companies and involve substantial risk, including lack of liquidity and restrictions on withdrawals. Individuals should carefully consider the fund's risks and investment objectives, as an investment in the fund may not be appropriate for all investors and is not designed to be a complete investment program. An investment in the fund involves varying degrees of risk, and an investor should refer to the applicable prospectus for complete information on risk factors and risk of loss. Shares are an illiquid investment, and investors will not have access to the money invested for an indefinite period of time, Swedroe says.

Conclusion
Interest rates remained low for several years; two years ago, the Federal Reserve lowered rates to near zero and provided additional stimulus to help the country recover from the pandemic. As the U.S. economy continues to recover in 2022, interest rates are climbing. The Federal Reserve raised rates by a quarter-point and has indicated it will hike rates six more times this year. As interest rates and inflation continue to rise, investors should look to diversify part of their portfolios into assets that will climb along with inflation such as TIPs. Choosing assets that are appropriate to your risk level, time horizon, and investment goals can be complex. 

Expert Contributions By: 

Brandon Currie, Advisor, C.R. Smith Financial Services Inc

Brandon is a trusted advisor and inspiring community leader. Always seeking opportunities to strengthen his craft, he currently holds his CLU®, CFP®, CHS™ and RRC® designations.

Nicolle A Lalonde, Advisor, Edward Jones

Nicolle prides herself on helping her clients feel in control of their financial matters and to clarify their life goals by asking questions they may not have considered before.

Larry Swedroe, Chief Research Officer, Buckingham Strategic Wealth

A published author and sought-after national speaker, Larry has spent his time, talent and energy educating investors on the benefits of evidence-based investing with enthusiasm few can match.