Tim Prescott appreciates Canada’s finance and investing sector for its strength, innovation and global outlook
By Tim Prescott
Canada’s finance and investing sector, I would argue, is underappreciated for its strength, innovation and global outlook and deserves more recognition than it typically receives.
Resilience when it counts
Canada’s financial system is strong and stable thanks to a regulatory framework that balances oversight with enough flexibility to allow for growth and innovation. The resilience of our system was tested by the global financial crisis in 2008 and weathered the storm better than any other G7 country.
Continuous transformation
Canadians have enthusiastically adopted fintech and wealthtech innovations that have transformed the way people shop, bank and invest, from mobile payments and contactless technology to digital banking and investing platforms. This expertise positions the industry to continue leveraging emerging technologies like blockchain and AI.
Pioneers in innovation
Canada has been at the forefront of investing innovation. For example, the world’s first ETF (exchange-traded fund) was launched in Canada in 1990. Canadians have also led the way in responsible investing (RI), with NEI Investments tracing its roots back to the 1980s. Within NEI’s rigorous investment analysis and decision-making process, the RI lens helps identify risks and opportunities.
A healthy global perspective
Canada benefits from a global outlook thanks to our culturally diverse population. While we’re deservedly proud of our values and our unique form of federalism, we’re open to ideas and opportunities from beyond our borders.
This mindset applies to investing: Canadians back our domestic industries – which thrive on natural resources as well as ingenuity and innovation – but they’re also open to international opportunities.
NEI Investments takes the same approach. We collaborate with a global network of third-party sub-advisors to identify and validate promising opportunities from Canada and around the world. By incorporating a broader set of inputs and perspectives, NEI builds portfolios that align with Canadian values while focusing on delivering competitive long-term performance.
Taking a balanced approach to your portfolio
For Canadian investors, this is a good moment to assess your portfolio with your advisor, in relation to your personal goals, timeline and risk tolerance. Are you balancing domestic investments with global opportunities, including non-U.S.-based ones? While the U.S. market plays a key role in many portfolios, and for good reason, the valuations of some U.S. growth stocks may be driven more by media hype than fundamentals and intrinsic value.
Within a strong and innovative Canadian financial services environment, that kind of thoughtful, prudent approach goes a long way towards ensuring you remain on track to achieve your long-term financial goals.
