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Can a Mutual Fund Get Better With Age?

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The following content is sponsored by TD Asset Management

Can a Mutual Fund Get Better With Age?

Can a Mutual Fund Get Better With Age?

The average age of a mutual fund is just 8.6 years, which makes it quite a rare achievement for a fund to cross the 30 year mark.

However, after making it through two major recessions and countless global events, the TD Dividend Growth Fund has done just that.

In late 2017, the fund celebrated its 30th anniversary.

The Fund’s Purpose

Formed in 1987, the TD Dividend Growth Fund has the objective of providing high level of after-tax income for medium and long term focused investors and steady growth. It does this by investing in dividend stocks.

Key Reasons to Own:

  • Aims to combine strong performance with less volatility
  • Primarily invests in the stocks of high-quality companies
  • Focusing on Canadian dividends may gain favourable tax treatment
  • Dividends can provide income during retirement
  • Dividends accelerate through the power of compounding
  • If your dividends grow, it’s like getting a raise each year

For any investor that put $100,000 in the TD Dividend Growth Fund in 1987, they would have over $1.5 million today – beating the S&P/TSX Total Return by over $400,000.

This puts the fund in the top quartile of funds for performance over the last 30 years (as of Dec 31, 2017), as per Morningstar.

Why The Fund Could Last Another 30 Years

The fund’s portfolio managers understand the importance of collaboration, and work closely with the Fundamental Equity Research team to find and invest in dividend-growth companies. Further, they also work closely with the fixed income and asset allocation teams to create secured, well-diversified portfolios.

The portfolio managers also follow a disciplined investment process and conduct detailed fundamental research to identify high quality companies that feature consistent, growing dividends.

The outcome?

This approach offers growth potential plus a stream of dividends, which can help to provide both income and portfolio stability.

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How Decentralized Finance Makes Investing Universally Accessible

Investing has historically been expensive, cumbersome, and inaccessible for most people. Decentralized finance and Abra aims to change that for everyone.

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How Decentralized Finance Makes Investing Accessible

Historically, global financial markets have been restricted to those with exactly the right contacts, in the right locations, and with vast amounts of wealth already at their disposal. Investing for the general population, however, was typically expensive, cumbersome, and inaccessible.

Fortunately, today’s infographic from Abra demonstrates how the decentralized financial market has brought about solutions to these hurdles.

Why Investing Should be More Accessible

Many factors such as theft, inflation, and political or economic shifts can erode personal wealth over time.

Being able to invest in the global financial market offers a hedge against these risks, and yet for those with modest resources and limited connections, investing has typically been out of reach.

Consider several well-known platforms or funds:

  • Etrade ─ $500
  • T. Rowe Price ─ $2,500
  • Vanguard S&P Mid-Cap 400 Index Fund ─ $5,000,000

Investment minimums range from several hundred to several million dollars—making any hope of investing impossible for most.

This is especially urgent for the global middle class, which is expected to swell 180% by 2040. Having access to more avenues to build and protect wealth will be key to sustainable economic growth for a growing majority worldwide.

But how can people actually start investing if much of the current market is still too expensive?

Fractional Investing Offers Better Access

In the past, brokers were limited to buying and selling stocks as whole units.

Fractional investing, however, allows investors with a lower net worth to access valuable, expensive stocks. It also attracts investors that are less likely to buy and sell on a whim and instead focus on long-term growth.

Blockchain technology has been a key component in this democratization of global wealth—much like fractional investing—because people are no longer restricted by their resources, location, or lack of connections.

A New Wave of Investing

Decentralized finance is:

  • Permissionless
    Users no longer need a third-party to verify their transactions.
  • Global
    Users can access decentralized financial markets from anywhere using their smart devices.
  • Transparent
    Every transaction is made publically viewable.
  • Censorship-resistant
    No one can make arbitrary changes or cause system-wide shutdowns.
  • Programmable
    Anyone can customize smart contracts based on regional and technical requirements.

Decentralized financial tools, using blockchain and cryptocurrencies, are providing excellent alternatives to building wealth by offering smaller investment minimums, lower fees, and faster transaction times.

The rise of Bitcoin and other cryptocurrencies introduced the world to the simple concept of fractional investing—owning extremely small fractions of digital currencies.

Now, investors can also own fractions of high-priced stocks, ETFs, fiat currencies, cryptocurrencies, and stable coins, through Abra’s novel platform.

Abra: the Blockchain-based Investment App

Abra is the world’s first global investment app that uses the Bitcoin blockchain to make investing more accessible. Abra makes it fast and easy to manage your investments—all from one app.

  1. Simple: Easy to use and globally available, Abra’s app makes investing a breeze.
  2. Secure: Abra is secure and private—backed by blockchain and smart-contract technology—giving investors full control of their funds through non-custodial wallets.
  3. Fractionalized: Invest in partial shares of traditional and digital assets, starting at $5.
  4. Global: Trade, store value, and invest in a range of fiat currencies, cryptocurrencies, ETFs, and stocks from 154 countries.

The Future of Investing

Historically, investing in equities has been a key to building personal wealth, and Abra’s technology allows more people around the world to access the same types of investments, no matter their location or income.

A survey of Abra users shows the democratization of investing in action:

Affordability: Most Abra users have roughly US$50 in their portfolios.

Security: Abra users enjoy privacy of information and full control of their assets.

Accessibility: A top priority for Abra users, they are able to invest in financial markets and expensive equities worldwide.

With its intuitive, global platform, Abra has introduced the future of investing for everyone.

“For the first time, we can truly democratize access to investment opportunities at global scale.”

—Bill Barhydt, CEO of Abra

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Everything You Need to Know About In-Situ Mining

There is a little know method of mining that does not move a rock, In-Situ Mining. Visual Capitalist outlines the process of mining in this unique way.

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Everything You Need to Know About In-Situ Mining

How do you mine without moving a rock?

When most people think of mining they think of massive open pits or deep and winding underground tunnels. But there is one mining method that does not move a rock and leaves the landscape as is.

Today’s infographic from Excelsior Mining Corp. outlines a unique mining method, In-Situ Recovery “ISR”, also known as In-Situ Mining.

An Intro to In-Situ Mining

ISR is not a recent innovation in the mining sector. In fact, ISR has been used for the past 50 years in uranium mining, and 48% of the world’s uranium gets mined this way. Uranium is not the only mineral it can extract; there is also silver, copper, and sometimes gold.

ISR involves dissolving a mineral deposit in the ground and then processing it at surface, all without moving any rock. It is cost effective and environmentally friendly.

But if this method is so great, how come more companies do not mine this way?

The Right Geology

ISR is not widely used because the geological conditions have to be just right. There are few locations around the world that meet the following criteria:

  1. Highly permeable ore body. In the case of copper, the ore body must be naturally broken, fractured and permeable.
  2. Mineable. The target mineral must be soluble with the right fluid, typically a weak acid.
  3. Under the water table. The mineral deposit must be below the water table to allow for the movement of fluids throughout the ore body.

If geologists can find these conditions and it is a large enough mineral deposit, it is time to mine.

The ISR Process

Once the right conditions are met and drill holes are sunk into the ore body, mining can begin.

  1. Leaching solution is pumped through injection wells
  2. The solution moves through the naturally fractured rock and leaches the copper
  3. Recovery wells extract the copper-rich solution
  4. Solution is pumped to the surface to the plant for processing
  5. Copper is extracted from the solution to create pure copper sheets
  6. Mining solution is recycled back to the well field

Once an area is mined, the wells are flushed with water to clean out any remaining leaching solution. Meanwhile, the surface is returned back to pre-mining conditions, allowing it to be used for any purpose in the future.

Advantages of In-Situ Mining

The environmental advantages are clear, including: minimal noise, dust, or greenhouse gas emissions, along with minimal visual disturbance. In addition, it also lowers capital and operating costs while creating a safer environment for mine workers.

Too bad not all mines can operate without moving a rock.

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