Reversing Mutual Fund Purchases

TD’s Mutual Fund group proved yet again why I really don’t like dealing with them. Some might ask, “Why do I have so many TD Mutual Fund accounts?”. Surprisingly because I had a group of CT Mutual Fund Accounts, that changed over to TD Mutual Fund accounts (I should have just closed them and gone with TD Waterhouse accounts, but hindsight is 20/20).

One of the accounts is my “Emergency Fund“, and  I decided that I should maybe move funds from a T-Bill Fund to a Bond Fund (E-series) just for a little bit of growth. A Bond Fund is a little riskier than a T-Bill account, but it was not like I wanted to buy the TD North African Sahara Sand Fund or something risky like that (keep that in mind).

Transacation Cancelled

Transaction DENIED!!

The transaction went through (it actually showed up in my list of funds in my account) and then a day later, the transaction was reversed and I received the following e-mail:

Dear Investor,

We appreciate your business and thank you for your request.

For security reasons, we have not included your name and account number in this communication.  Please do not reply to this e-mail.  It is our policy not to send, nor to ask our customers to send account and trade-related information by e-mail.

After further review of your trade, we are required to reverse your trade request because it may not be suited to your current investor profile.  We have based this assessment on the information you provided us regarding your personal circumstances, investment knowledge, objectives, time horizon and risk tolerance.  Not only do we want to help you make the best investment decisions, we are required to assess the suitability of all mutual fund account transactions.  Please contact a Mutual Funds Representative1 to review and update the information we have regarding your Investor Profile.  

Part of me is glad to see this being done, thus stopping Grandmothers from taking their funds and dumping it into a Chinese Hay Bailing Mutual Fund, but seriously how is moving from a Money Market account to a Bond Fund that risky?

The other thing that really upset me was that the transaction went through, the Mutual Fund transfer appeared and then it was reversed! Wonder if anyone got a commission on that?

I dutifully called up to talk to a very pleasant young man, and he informed me that my Investing profile hadn’t been updated for a while (1997 to be exact), so maybe we could change things a little. We went through each question and at the end of it, I was still not an aggressive enough investor to buy the TD E-Series Bond Fund (TDB909 ) (not the first time I have been told I am Too Conservative in My Investing )

At that point we entered into a hypothetical situation where I might have asked the young man what I needed to do to allow me to invest in whatever I wanted in the Mutual Fund account, and the very helpful young man may have suggested we review a few of my answers. In this hypothetical situation, I might have changed my answers a little to reflect a more aggressive investing stance (after someone might have explained what each response might mean), and at the end of it, I might have been allowed to transfer my T-Bill Index Fund holdings into the TD E-series Bond Fund.

I really should just transfer these accounts into TD Waterhouse accounts, but maybe TD Mutual Funds needs a, “I Understand the Risks and Wish to Do It Myself” declaration, absolving them of any wrong doing, should I decide to buy the “Buggy Whip and Bumpers Mutual Fund”, or the like?


As predicted a market correction is happening (where predicted means, 8 out of the last 2 market corrections have been correctly predicted), and the world is excited. We have the crazed old sages saying, “See I told you!“, others saying, “Nothing to worry about“, and still others saying “this is why you should have an actively traded portfolio“, naturally my philosophy is, “I am an indexer, I don’t care what the Index did this past week“. I buy my Index Funds, I re-balance every 6 months or so (need to get my robo-balancer up) and that is about it. I lived through the great crashes of ’87, ’93, ’00, ’08 and hopefully I’ll live through this as well.


Fall Financial Haiku

Ebola is here on the North American continent and it has killed as many people this week, as were murdered in Toronto this week, but luckily it is filling every media outlet, all looking for new angles on how to scare the public more. I believe the odds of you getting hit by a car are a little higher than getting Ebola (currently), but those odds may shorten should Ebola become air-borne (cue dramatic music). Yes, it is an important problem, but right now, there is far too much being said about something that isn’t understood (much like money, these days). You are also more likely to die from the Flu this year (than Ebola), but will hospitals be full to the gunnels with folks with the flu thinking they have Ebola? I think so.

The Loonie is at a 5 year low being about 88 cents to the Mighty American Buck, but that will help Canadian exporters (not folks wanting to buy American deals for Christmas though).

Gas is dropping in price again, which will mean screwed up Inflation numbers next month, where I am sure even though food costs 10% more than last year at this time, we will actually be in a state of DEflation. I love how data can be jumbled around to reflect any message you want.

Good news on the Hockey front, neither the Leafs, Sens or Habs are already eliminated from the playoffs (but it is early yet).

My Writings for Week Ending October 17th

The turkey genocide of 2014 happened, with very little fan fair, but there is talk of more atrocities against our avian friends in the coming months in the name of American Thanksgiving and worse still Christmas! My writings were pretty thin this week, I guess I made a bit too merry for Thanksgiving?

Scotia Bank Value Visa

[click to continue…]


Old becomes New

After a lovely Thanksgiving weekend, as we dropped one of my daughters off at school, my son saw one of my daughter’s university buddies playing Guitar Hero on a PS/2 (evidently at University, the kids “rough it” by using 1 generation back technology), and my son was enthralled by the site of this game. His hand eye co-ordination was such that he couldn’t get the hang of the guitar, however, he remembered that we had a PS/2 in our basement, collecting dust, and I was ordered to set it up for him (well, it sounded like an order, I think he said please).

Good Fun

Previously Enjoyed Toys

Setting up the game was easier than I remember, as the TV we use for my son had a spare AVI port (you know that old Red White and Yellow cable we used to use on tube tvs?) and for the rest of the day my son was enjoying Simpson’s Road Rage (although he likes to play Air Guitar Hero (you walk around with the “guitar” acting like you are playing the game).

This all got me thinking that with my son, and how he has had many regifted toys over his life (he has  Teletubbies, Tickle Me Elmo and a Tutter from his sisters and many other older toys) and seems no worse for wear for me not spending many dollars on toys. I remember the amount of pain my wife went through to get those toys new (the Tickle Me Elmo craze was a scary time), and I am happy that they can actually be enjoyed again.

You do realize that Christmas is coming in a while, are you going to buy your kids or grandkids a bunch of toys, that may end up locked in a closet one day? What if you put some money in an RESP for them, or in trust for when they get older? Does old money get locked in a closet ?



Good Job Picture for September in Canada

Friday before the Long Weekend our friends at Stats Canada published some relatively good news for the Canadian Economy, with 74000 more folks employed in September (2014). Coincidently the unemployment rate dropped 2/10 of a percent as well, so all in all a rosier picture, with unemployment the lowest it has been since December 2008 (nearly the beginning of the economic collapse).


Chart 1 Employment for past while

The graph seems to look more optimistic. The areas where employment increased the most was youths aged 15 to 24 and women aged 25 to 54. The more youth employment is a very good thing for the economy, as this is the area where employment has lagged badly since the great collapse.

The sectors where there were increases in employment were in accommodation and food services; health care and social assistance; construction; natural resources; also in finance, insurance, real estate and leasing. There was some bad employment news was  numbers were down in educational services.

For me, a really good piece of news is that the number of private sector employees increased in September, which means the economy is creating jobs (not just the government).

Adjusted to the concepts used in the United States, the unemployment rate in Canada was 5.9% in September, the same as the US rate.

Good to see we are keeping up with our American cousins in terms of job creation.


Unemployment Graph for the Past Little While

The Big Table

As usual I include some data from the Big Data tables from Stats Canada so you can see the data yourself and make your own conclusions:

Employment by class of worker and industry (based on NAICS1) – Seasonally adjusted

August 2014 September 2014 Std error2 August to
Sept 2014
Sept 2013
to Sept 2014
August to Sept
Sept 2013
to Sept 2014
thousands change in thousands % change
Class of worker
Employees 15,096.8 15,226.4 35.6 129.6 150.2 0.9 1.0
Self-employed 2,754.7 2,699.1 25.9 -55.6 0.2 -2.0 0.0
Public/private sector employees
Public 3,676.0 3,682.0 25.0 6.0 88.1 0.2 2.5
Private 11,420.8 11,544.4 38.2 123.6 62.0 1.1 0.5
All industries 17,851.4 17,925.5 28.5 74.1 150.4 0.4 0.8
Goods-producing sector 3,835.9 3,896.1 26.0 60.2 -12.8 1.6 -0.3
Agriculture 298.4 295.2 7.8 -3.2 -19.3 -1.1 -6.1
Natural resources3 352.2 379.9 7.9 27.7 -1.1 7.9 -0.3
Utilities 150.2 148.9 5.3 -1.3 -2.9 -0.9 -1.9
Construction 1,322.7 1,352.6 17.6 29.9 13.3 2.3 1.0
Manufacturing 1,712.4 1,719.5 18.9 7.1 -2.9 0.4 -0.2
Services-producing sector 14,015.6 14,029.4 34.4 13.8 163.2 0.1 1.2
Trade 2,713.3 2,700.4 24.3 -12.9 -20.9 -0.5 -0.8
Transportation and warehousing 887.4 878.6 14.6 -8.8 18.9 -1.0 2.2
Finance, insurance, real estate and leasing 1,087.7 1,108.6 16.7 20.9 -31.1 1.9 -2.7
Professional, scientific and technical services 1,391.2 1,376.2 18.7 -15.0 25.8 -1.1 1.9
Business, building and other support services 693.6 694.7 14.2 1.1 -33.5 0.2 -4.6
Educational services 1,331.1 1,286.9 16.2 -44.2 10.6 -3.3 0.8
Health care and social assistance 2,216.8 2,248.5 19.4 31.7 69.3 1.4 3.2
Information, culture and recreation 796.6 788.9 14.8 -7.7 -0.8 -1.0 -0.1
Accommodation and food services 1,149.3 1,196.9 17.1 47.6 64.2 4.1 5.7
Other services 770.3 775.6 13.5 5.3 -0.1 0.7 0.0
Public administration 978.5 974.2 12.4 -4.3 60.9 -0.4 6.7
1.North American Industry Classification System.
2.Average standard error for change in two consecutive months. See “Sampling variability of estimates” in the section “About the Labour Force Survey” at the end of the publication Labour Force Information (Catalogue number71-001-X) for further explanations.
3.Also referred to as forestry, fishing, mining, quarrying, oil and gas.
Related CANSIM tables 282-0088 and 282-0089. The sum of individual categories may not always add up to the total as a result of rounding.



Happy Thanksgiving

Happy Thanksgiving to you and your family. Hopefully you are enjoying this long weekend, and are enjoying the Feast of the Harvest.

For those wonder about how we celebrate it in the Big Caj family, this picture sums it up nicely:


New Age Thanksgiving

Stick that in your pipe and smoke it! This is how my son described Thanksgiving to his sister, and she drew it for him, you can’t tell me the mind of a child in the Autism Spectrum isn’t wonderfully different.

Happy Thanksgiving!!

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