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Re: what does the lowered rating for NCB mean for us
This is an example of what can happen when you copy another investers investment strategy instead of studying th eprinciples and beinag able to analyse ti personally. The time when i realize that Mr Lee Chin will be having economic hard times, is the day I read his exhortation that it was impossible for any investment to pay what Smith and his foreignn exchange outfit was doing, in the market. It is not wise to do it, all the while but it is possible to do it . especially in economic conditions as the world is presently in. <div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: RichD</div><div class="ubbcode-body">and in related news:
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Manulife rides to AIC's rescue
Barry Critchley, Financial Post Published: Thursday, August 13, 2009
The slogan Buy, Hold and Prosper will, in a Canadian sense, be always associated with AIC, the fund management company started in 1987 and sold to Manulife yesterday. "AIC buys into excellent businesses, the "best-of-the-best," in strong long-term growth industries and holds these investments for the long term. We sell only when these companies no longer demonstrate excellence," said AIC in one of its marketing publications.
Implementation of that philosophy was something different both for those who invested in AIC's mutual funds -- and for those who invested in the company that owned the funds' management rights. Redemptions by fund investors, combined with declines in the stock market, meant AIC's funds under management declined substantially. At the end of July, assets were down to $3.8-billion. At the peak, more than eight years earlier, they were almost four times larger.
That decline affects the sale price, the terms of which were not disclosed. Manulife said the cost was "not material," which some sources interpreted as being less than $200-million, only part of which would be allocated to equity. The rest will be used to repay debt at the management company.
"Timing is important and AIC's timing is pretty bad," said one analyst, who added that if AIC had sold when its assets were at their peak, it would have commanded a higher multiple -- in terms of percentage of assets -- than it could expect with a lower base of assets.
This analyst argues Manulife was the only potential buyer given that AIC's preference not to sell to a nonbank-owned fund company, even though such a buyer may have paid more. "AIC would never sell to CI, who would have paid top dollar," argued the analyst on the grounds that while the two firms have been competitors over the years, AIC pride would rule out such a sale. "AIC wouldn't sell to its old nemeses," he said, which meant a sale to either Investors Group or AGF Management also wouldn't be on the cards.
But even with a limited group of buyers, this analyst was "surprised" AIC accepted Manulife's offer, given the low value placed on the company. "Why not keep it?" he argued. "It's like a free auction."</div></div>
went real cheap </div></div>
This is an example of what can happen when you copy another investers investment strategy instead of studying th eprinciples and beinag able to analyse ti personally. The time when i realize that Mr Lee Chin will be having economic hard times, is the day I read his exhortation that it was impossible for any investment to pay what Smith and his foreignn exchange outfit was doing, in the market. It is not wise to do it, all the while but it is possible to do it . especially in economic conditions as the world is presently in. <div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: RichD</div><div class="ubbcode-body">and in related news:
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Manulife rides to AIC's rescue
Barry Critchley, Financial Post Published: Thursday, August 13, 2009
The slogan Buy, Hold and Prosper will, in a Canadian sense, be always associated with AIC, the fund management company started in 1987 and sold to Manulife yesterday. "AIC buys into excellent businesses, the "best-of-the-best," in strong long-term growth industries and holds these investments for the long term. We sell only when these companies no longer demonstrate excellence," said AIC in one of its marketing publications.
Implementation of that philosophy was something different both for those who invested in AIC's mutual funds -- and for those who invested in the company that owned the funds' management rights. Redemptions by fund investors, combined with declines in the stock market, meant AIC's funds under management declined substantially. At the end of July, assets were down to $3.8-billion. At the peak, more than eight years earlier, they were almost four times larger.
That decline affects the sale price, the terms of which were not disclosed. Manulife said the cost was "not material," which some sources interpreted as being less than $200-million, only part of which would be allocated to equity. The rest will be used to repay debt at the management company.
"Timing is important and AIC's timing is pretty bad," said one analyst, who added that if AIC had sold when its assets were at their peak, it would have commanded a higher multiple -- in terms of percentage of assets -- than it could expect with a lower base of assets.
This analyst argues Manulife was the only potential buyer given that AIC's preference not to sell to a nonbank-owned fund company, even though such a buyer may have paid more. "AIC would never sell to CI, who would have paid top dollar," argued the analyst on the grounds that while the two firms have been competitors over the years, AIC pride would rule out such a sale. "AIC wouldn't sell to its old nemeses," he said, which meant a sale to either Investors Group or AGF Management also wouldn't be on the cards.
But even with a limited group of buyers, this analyst was "surprised" AIC accepted Manulife's offer, given the low value placed on the company. "Why not keep it?" he argued. "It's like a free auction."</div></div>
went real cheap </div></div>
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