Moving Forward On Foreign Exchange

Forward, outright, hedge…sounds like a bunch of jargon, right? Maybe. But, a little jargon is necessary and getting to know these industry terms can help you talk to your members about foreign exchange trading.

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A Forward contract, also known as an Outright contract, is an agreement to exchange one currency for another at a future date.

To demonstrate how this process works, here is an example scenario:

On August 1, 2014 a member books a forward contract to sell USD $250,000 on value date December 31, 2014 at a locked in forward rate of 1.0945. Regardless of the spot rate on December 31, 2014 the member will sell the USD funds and consequently buy the CAD funds at the rate of 1.0945 valued at $273,625.00. If on December 31, 2014 CAD appreciated/strengthened against USD to 1.0850 and the forward contract hadn’t been utilized, the member would have only received CAD funds of $271,250.00.

Business owners who are buying and selling products in the U.S. require foreign exchange services such as Forward contracts. These are great tools to mitigate foreign exchange risk by locking in a competitive rate today for a future transaction.

Would your credit union like to add foreign exchange services to your menu of offerings? With our industry-leading foreign exchange services and experts, we can make that easy and profitable for your credit union. Find out how by contacting the Concentra FX team or 1-306-566-1747.

Tax Perils of Joint Accounts

Special thanks to Murray Paszko, CFP, FCSI, TEP, Manager, Trust & Estate Services at Servus Credit Union in Edmonton for contributing this article, originally published in a Concentra Trust bulletin on April 11, 2014.

Many people have concerns regarding their estate having to go through probate. As a result, they reregister their assets in joint names, usually with their children as an estate planning strategy. In solving one issue, they may have unintentionally created other consequences, such as tax issues. In some cases, the tax liability on both the original owner and intended joint owner may be more costly than probate itself.

In certain circumstances, CRA views the transferring or re-registering of capital assets, e.g. real estate, securities, etc., from sole ownership to joint ownership, as a deemed disposition by the original owner at the asset’s fair market value at the time of transfer. This is considered to be a sale even though no cash or consideration was exchanged. This could result in an immediate and unexpected taxable event back to the original owner on any accrued gains on the asset. Another concern is not having the cash available to pay the tax.

The person to whom you transfer capital property will also be liable for capital gains tax upon the future disposition of the capital property based on the value of the asset on the date of transfer.   Continue reading “Tax Perils of Joint Accounts”

Spot On With Your Member Needs

481457829Spot, T+1, swap …sounds like a bunch of jargon, right? Maybe. But, a little jargon is necessary and getting to know industry terms such as Spot transactions can help you talk to your members about foreign exchange trading.

A Spot transaction is the exchange of one currency for another and is the most common transaction in the foreign exchange market. For example, if a member executes a Spot trade to sell USD 100,000.00 at 1.1000 she is consequently buying CAD 110,000.00.

Business owners who are buying and selling products in the U.S. require foreign exchanges services such as Spot trading.

Watch this demo video and see how easy it is to execute a spot transaction using the Concentra FX trading system.

Would your credit union like to add foreign exchange services to your menu of offerings? With our industry-leading foreign exchange services and experts, we can make that easy and profitable for your credit union. Find out how by contacting the Concentra FX team or 1-306-566-1747.

UPDATE – Concentra staff fundraising to build home in Kenya

In our blog post on March 4, 2014, we shared news of our project to support Mission:180, an organization committed to make a difference in Kenya by building homes for orphans and widows and in working with them to create a future with education and employment opportunities.

In early 2013, we set a fundraising goal of $50,000 to build a Concentra ‘Forever Home’ with the hope to have it fully funded by end of December 2014. Through the support from payroll pledges, jeans days, 50/50 draws, e-bingos, a turkey dinner, and many other activities, so far we have raised $50,735!

Continue reading “UPDATE – Concentra staff fundraising to build home in Kenya”

Harness the Power of Innovation

As the Innovation Manager at Concentra Financial, I am always looking at ways to foster and grow our corporate innovation program. So this past May, I was grateful to attend the Business Innovation Summit in Toronto, hosted by the Conference Board of Canada. I experienced two days of high-profile keynote speakers and smaller interactive presentations focused on accelerating corporate innovation and commercialization in Canada.

I came away renewed, excited, and motivated with what I learned and I want to pass that on to you. Here are some of my key takeaways. Maybe you’ll find something of value that you can share in your credit union.

Continue reading “Harness the Power of Innovation”

Seek tailored solutions with your equipment financing partner

I want to share an article written for Canadian Treasurer Magazine by Hugh Swandel, a prominent expert in the Canadian leasing industry.

Hugh provides an excellent context of the business:

“The right equipment finance company has specialized knowledge of both the equipment used by a company and the financing structure that can address the useful life of the equipment and provide terms of financing that are practical and economical for the client.”

This is the value our commercial equipment leasing services bring to your credit union. Our professionals work with you in meeting the needs of your commercial members seeking tailored solutions for specific equipment-related issues.

You can find the article on page 22. Enjoy.

Terry Wensley, General Manager, Commercial Equipment Leasing

Case Studies in Handling Estates: New eClass using a five-step approach to handling estates

We are pleased to announce a new partnership with CUSOURCE Credit Union Knowledge Network to offer a personal trust-related eClass, a first for Concentra. Our Concentra Trust leading estate expert Joan McAulay has worked closely with the CUSOURCE team to create Case Studies in Handling Estates, specifically designed for credit union professionals seeking to enhance their knowledge and skills in handling estates.
Continue reading “Case Studies in Handling Estates: New eClass using a five-step approach to handling estates”

Expand financing options for your members

At Concentra Commercial Leasing Services, our focus for the past 16 years has remained unchanged. We are not in business to compete with credit unions, but rather to help position credit unions in the marketplace as a full-service financial service provider that offers a competitive lease product.

Our leasing product allows credit unions to offer their members a menu of equipment financing options as well as the greater financial capacity that comes along with sharing the load. Credit union staff and members enjoy a face-to-face relationship, which has long been the hallmark of credit unions, while our leasing staff assist behind the scenes to ensure the “i’s” are dotted and the “t’s” are crossed. It’s a win-win situation.
Continue reading “Expand financing options for your members”

Balance Sheet Management Workshops

The Cross-Country Tour

The Concentra cross-country balance sheet management workshops have begun! On April 23rd, our Concentra team of experts was fortunate to have the attention of a terrific group of credit union professionals in Vancouver. The discussions that occurred throughout the day were empowering and reinforced to us that Concentra brings value to our credit union partners across the country.

The topics of the day focused on market updates and optimizing balance sheet strategies. Bruce Klassen, VP, Financial Markets started the day with an engaging economic update that stirred great debate about macroeconomic trends in Canada, US and Europe and what that means in the context of credit unions. He also discussed trends that Concentra sees among our credit union partners related to margin compression, interest rate risk and diversifying funding channels. I think this is all something that as a system we are dealing with collectively, so the debate was lively!
Continue reading “Balance Sheet Management Workshops”