Enbridge’s Q4/17 results were slightly better than expected with free cash flow per share (FCFPS or DCF as the company defines it) of $1.05 ahead of us and consensus at $1.01. On a full year basis Enbridge’s FCFPS of $3.68 met the company’s guidance range of $3.60-3.90. This would be despite a number of headwinds in 2018 including a late Spectra close, warmer than normal weather and upstream production outages. As such, we view Q4 as the only “clean” quarter in 2017 and looking forward we expect strong growth from the company. We believe Enbridge’s shares are set to outperform in 2018 as the regulatory process regarding Line 3 unfolds (Administrative Law Judge recommendation in April, decision in June), the company executes its funding plan including assets sales, and the growth of the business is shown through improved quarterly results.
Our team works with high-achieving executives, medical professionals, business owners and families to reach their goals. This often involves comprehensive financial planning, business succession and retirement planning, plus additional support from our extended team of specialists at Scotia Wealth Management. A lot goes into one financial plan to obtain the desired results, and every element is uniquely important. That said, one part of your wealth management plan that cannot be ignored is something we’ve long been passionate about: investment management that preserves and grows your wealth.
Emerging markets have long played a key role in the global economy while creating opportunity for investors. There are many reasons to actively invest in emerging markets (often referred to as EM), including elements of risk management, growth potential and performance numbers. It’s an important asset class that cannot and should not be ignored. Today, we’ll examine several elements of EM investing, including why and how we do this for our clients.
Following a strong start to the year, global equity markets have experienced a sharp bout of volatility in recent days that wiped out much of January’s gains. While investor concern is normal during episodes of extreme market movements, we believe this latest bout of selling was overdue given the last market decline of just 5% or more occurred more than 18 months ago and the recent run-up in markets left market positioning unbalanced and thus vulnerable to a short-term correction. However, the medium-term outlook for markets remains constructive, in our view, underpinned by solid economic fundamentals and still-supportive policy settings. In particular, global economic growth remains at multi-year highs with recent data releases pointing to further forecast upgrades for 2018 in coming months.