The 3 Ds of investing

By John Nicola | June 7, 2010 | Last updated on June 7, 2010
5 min read
  • Preferred shares with adjustable medium-term rates; significant tax benefits on income received for non-registered and corporate accounts; Mortgages on income-producing assets; especially subordinated debt-to-low-loan-to-value first mortgages;
  • Distressed debt in publicly traded companies (this we have done through our private equity LP with Maxam);
  • Other private equity pools that are able to acquire assets at far better pricing than might exist in public markets;
  • Income-producing real estate where the spread between cap rates (income yield) and mortgage rates is at least 2%;
  • Diversification out of the Canadian dollar to take advantage of its increasing purchasing power of foreign assets. (Specifically, we are looking at U.S. income-producing real estate and global bonds).

    We remain in a challenging environment where the two main factors will be the deleveraging of both consumers and governments, and the political and lifestyle changes society will make as a result of aging populations. This does not mean that good investment opportunities will not exist. As usual it will take significant effort to find value.


  • John Nicola is partner and financial advisor at Nicola Wealth Management.


    John Nicola

  • Life annuities (with or without life insurance) as an alternative to other fixed-income vehicles. Yields are excellent and for non-registered capital, as much as 60-80% of the income is tax-free;
  • Preferred shares with adjustable medium-term rates; significant tax benefits on income received for non-registered and corporate accounts; Mortgages on income-producing assets; especially subordinated debt-to-low-loan-to-value first mortgages;
  • Distressed debt in publicly traded companies (this we have done through our private equity LP with Maxam);
  • Other private equity pools that are able to acquire assets at far better pricing than might exist in public markets;
  • Income-producing real estate where the spread between cap rates (income yield) and mortgage rates is at least 2%;
  • Diversification out of the Canadian dollar to take advantage of its increasing purchasing power of foreign assets. (Specifically, we are looking at U.S. income-producing real estate and global bonds).

    We remain in a challenging environment where the two main factors will be the deleveraging of both consumers and governments, and the political and lifestyle changes society will make as a result of aging populations. This does not mean that good investment opportunities will not exist. As usual it will take significant effort to find value.


  • John Nicola is partner and financial advisor at Nicola Wealth Management.