As Greater Toronto Area is becoming more and more multicultural with every passing day, the diverse communities all across the region are taking strong initiatives to interact with each other. Toronto Board of Trade organized one such networking event for casual networking and business development. Among other participants were TiEToronto, promoting TieQuest 2010, Association of Canadian Chinese Entrepreneurs (ACCE), Taiwan Entrepreneur Society Taipei/Toronto (TESTT), Hispanic Business Association, Toronto Hispanic Chamber of Commerce and other multicultural communities. Participants from all organizations exchanged contacts over light refreshments to grow their business contacts and expand their clientele. It was an evening that reflected the diversity of Toronto in the business community as well.

Speakers at the event.

Sukuk (Sharia-compliant) Bonds

The global market for sukuk (Sharia-compliant bonds) has grown in recent years. Total outstanding sukuk rose from $8 billion in 2003 to around $100 billion in 2008. Sukuk provides companies and governments with access to financing while also offering a much needed Sharia-compliant instrument to investors.

Background

Sukuk (plural of sakk, “legal instrument, deed, check”) is the Arabic name for a financial certificate, but commonly refers to the Islamic equivalent of bond.  Sukuk securities are structured to comply with the Islamic law and its investment principles, which prohibits the charging, or paying of interest.  This is a good alternative to fixed income products, since interest bearing bonds are not permissible in Islam.  The main difference between sukuk and bonds is that sukuk holders take direct ownership of an underlying asset or pool of assets, whereas a bond is purely the financial debt of the issuer. Sukuk do not pay interest; rather they generate a return through actual economic transactions in the form of sharing or leasing the underlying assets.

Conservative estimates by the Ten-Year Framework and Strategies suggest that over $1.2 trillion of assets are being managed according to Islamic investment principles. Such principles form part of Shari’ah, which is often understood to be ‘Islamic Law’, but it is actually broader than this in that it also encompasses the general body of spiritual and moral obligations and duties in Islam. In the Persian Gulf and Asia, Standard & Poor’s estimates that 20 per cent of banking customers would now spontaneously choose an Islamic financial product over a conventional one with a similar risk-return profile.   Malaysia accounts for around 47 percent of global sukuk issuance by market value, followed by the GCC (Gulf Cooperation Council), which is the source of a further 46 percent. Other Sukuk issuers include institutions in Singapore, Sri Lanka, Thailand, the UK and US.

The Canadian market has been slow to market Sukuk.  However the recent issuance of a North American corporate Sukuk bond should help improve visibility.  In November 2009 GE (General Electric) Capital Sukuk’s were issued.  They mature Nov. 26, 2014, offer a 3.875% coupon, US$, and are rated AA.  The actual yield may be higher than the 3.875% coupon if they can be bought slightly below the $100 unit price.

If you are interested in buying Sukuk bonds Brent Hourd, Senior Wealth Advisor, ScotiaMcLeod can help you further.  His minimum account size is $300k, but this amount can also include other investments (stocks, bonds, funds, etc) offered by ScotiaMcLeod.

Most Sukuk bonds are $100,000 minimum investment per issue, with the most easily accessible ones in US$.

Mr. Hourd can be contacted at brent_hourd@scotiamcleod.com. You can also visit http://www.advisors.scotiamcleod.com/sukukbonds. This article is only intended only to convey information. It is not to be construed as an investment guide or as an offer or solicitation of an offer to buy or sell any investment mentioned. Speak with a Wealth Advisor before acting upon any information.

Entrepreneurship is often a difficult undertaking, as a vast majority of new businesses fail. Entrepreneurs also generally start solo, sometimes working part-time. When it comes to raising financing, many entrepreneurs today don’t know where to start. Most are interested in receiving funds from venture capital or angel investors but not know how and what stage they should approach these. Fortunately there are some government agencies and organizations like TiE are working to support the would be entrepreneur. TiE started TiEQuest in 2005 with the purpose of spawning businesses. TiEQuest helps bridge the gap between up-and-coming business people and the investment industry. This competition helps generate new ventures and gives entrepreneurs the encouragement and the support to turn their dreams into reality.

TiEQuest is an annual business venture competition held in Toronto to encourage entrepreneurship, engage emerging entrepreneurial talent and to foster the entrepreneurial ecosystem. Founded in 2005, the mission of TiEQuest is to connect entrepreneurs with angel investors, venture capitalists and fund managers.

TiEQuest attracts over 200 entrepreneurs every year. The contestants include existing and emerging entrepreneurs, patent holders and/or applicants, university students and alumni across North America. TiEQuest offers over $150,000 in prizes to the winners. To encourage participation of youth, TiEQuest offers the New Entrepreneur Prize to the best student team. In addition the top teams also have an opportunity to win up to $1,000,000 investment from sponsors.

TiEQuest has over 25 success stories, where the contestants were able to take their business idea to successful enterprises, which have obtained financing, signed partnerships, acquired customers and generated revenues. The contestants see value in participating in the competition as it offers networking opportunities with leading entrepreneurs and investors, recognition with investment, legal and accounting firms, opportunity to practice the process of pitching their venture to investors, and opportunity to turn an innovative idea into a real businesses.

“We were connected with an advisor who challenged us and helped us refine our business plan.” says Cognovision Solutions Inc., TiEQuest alumni and winner of Most Innovative Company at the 2009 Canadian Innovation Exchange.

“TiEQuest promotes an entrepreneurial climate that stimulates new ideas and collaboration, which are key contributors to the development of groundbreaking products and services” says Hon. Harinder Takhar, Minister of Government Services

TiEQuest is different from other business plan competitions as it offers mentoring to the contestants. We connect contestants with industry experts, successful entrepreneurs and professional advisors. As mentors, TiE charter members introduce contacts and insights on where to go. TiEQuest enhances the opportunity for obtaining financing. We have 30+ venture capitalists, angel investors, fund managers and other business leaders acts as judges. The participants get an opportunity to present to the investors. In addition, the sponsoring funds offer expression of interest to the top teams. The competition is designed to go through multiple stages to help polish business idea and promote networking opportunities. The judging criteria include value proposition, marketability, viability, management strengths and investibility.

“Various prizes received in TiEQuest have helped us to raise new money and guide us through numerous hurdles during our commercialization efforts.” says Liquid Fiber Displays Inc. Winner of TiEQuest 2008

“TiEQuest provided us a great platform to explore venture financing. It has given us the interest of some of the big players and a visibility to secure better terms.” says Echologics Engineering Inc., Winner of TiEQuest 2007

TiEQuest is organized by TiE Toronto, a chapter of global, not-for-profit network of entrepreneurs and professionals dedicated to the advancement of entrepreneurship. TiE provides a platform for mentoring, networking and education. TiE’s mission is to foster and advance entrepreneurship across the globe. Its principle objective is to provide a platform on which people with entrepreneurial spirit and those interested in economic value creation can come together to share ideas. TiE endeavors to cultivate and nurture the ecosystems of entrepreneurship as it sees this to be the single most powerful instrument of prosperity.

TiE was founded in 1992 in Silicon Valley by a group of successful entrepreneurs, corporate executives, and senior professionals with roots in the Indus region. There are currently more than 16,000 members and over 2,500 charter members in 53 chapters across the globe. TiE charter members comprise of leading entrepreneurs, venture capitalists, fund managers, CXOs and professionals advisors. TiE regular members are aspiring entrepreneurs and professionals. Dedicated to the virtuous cycle of wealth creation and giving back to the community, TiE’s focus is on generating and nurturing the next generation of entrepreneurs.

TiEQuest 2010 is now accepting applications. Visit www.tiequest.org for details.

 Author: Suresh Madan is the President of TiE Toronto and Chair of  TiEQuest Business Venture Competition

Through a discussion with friends about what to do during the holidays; the event that most girls love- Boxing Day came up!  Thoughts and memories were shared about previous boxing days came up. Horrible turn outs of too- small sizes;to great prices on ‘that awesome dress’ were our memories of that day.So inspired by thatconversation- I decided to share with you some great tips that me and my friends came up with to help you and your buddies find the best of the best in the ‘unbeatable’ prices!Top of Form 1

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1. Make a shopping list and go out only for those items. Try not to browse or you’ll most likely grab items that you really don’t need and don’t want. Just because an item is on sale doesn’t mean that it’s a “must have”!

2. Get an early start! It’s not uncommon for shoppers to line up at the store an hour or two before the store opens. While I don’t necessarily recommend getting in that early you will probably want to get there very close to when the store opens. Much of the good stuff is taken a few hours after opening, so if you’re looking for a “hot” item be prepared to get up with the  early birdies!

3. Wear comfy shoes and clothes that breathe!! The lines will be long and you may even have to sprint once or twice. Sneakers, UGGs or any kind of flat shoe will keep totsies relaxed. I know it’s cold here but wearing a big, bunchy winter coat will have you sweating the small stuff in no time. Either a vest or medium weight sweater should be warm enough to walk to your car while keeping you snug in the store or mall. Keep it casual and you’ll be keeping your cool while others are hot under the collar.

3. Good deals can often be found on electronic goods but beware of bait and switch tactics. This is when merchants draw you in with bright & shiny sales ads but then don’t have the advertised goods in stock. Instead, they try to convince you to buy a similar, higher priced item and poof your saving are all gone! If the store is out of the item that you want wait until another good sale comes along.

4. Check the retailer’s website before you go. Many retailers’ websites allow for in-store pickup for items purchased online and almost all offer free shipping. Skip the check-out and shop online if at all possible!

5 Take advantage of price matching! Most large retailers and department stores will match or beat the lowest advertised price. Make sure that you have the current store flyer with the sale price listed and make sure that you’re looking at the exact same item (model number, size, description etc.). Stores will only match the price if the item is identical (ask me how I know, lol) so avoid confusion by going over both items thoroughly.

6 If buying something on impulse, be careful, remember chances are you won’t be able to return it because it was on sale. If you’re buying clothing make sure that you try the item on first. Especially shoes! Do not be taken in by the sales-clerk telling you that the shoes will stretch! I can assure you that if they’re not comfortable in the store they won’t magically stretch and form to fit your feet when you get them home.

7 Apres-shopping take some time to relax! Grab a coffee, soak in the bath or munch on some yummy holiday left-overs. You did good…now enjoy your new treats and your much deserved time off!op of Form 2

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Well then- those are some of my general tips for boxing day! However- the most important tip of all the we should all abide by should be that we need to use our intution with sales and remember to always have fun! This is really important because if we are not satisfied with what we buy- when we wear it or use the item we will never be happy and  always find a flaw within it.

So here is to wishing good shopping, fun and a lot of good sales!

Author: Nida Shamsi

Derek Bo once said, ‘Whoever said money can’t buy happiness, simply didn’t know where to go shopping.”

Well, the shoppers in GTA knew really well where to go shopping this Boxing Day, and retailers promised sales for not only the Boxing Day but the ENTIRE Boxing week and this mere promise made the shoppers really happy.

Be that the outlets at Square One, Eaton Center, Yorkdale, Shoppers World or Heartland, the lineups were long and sales associates really busy ( I hope the bonus they get for working the boxing day was worth the pain.)

The Boxing Day mania started early as the malls opened at 8 a.m. in the morning and it was a challenge to find parking space. While people were busy celebrating Christmas, the rest of Canada was anxiously waiting to go shopping the next day. The banks were busy making transactions for their worthy clients, depositing, transferring and withdrawing money from their accounts.  The day for shoppers started early, but the day for retailers started even earlier (some went to work as early as 4 a.m. in the morning)

But shopping at the mall outlets was not the only option shoppers had. In an effort to avoid the headaches often associated with boxing-day shopping,  a poll conducted by Ipsos-Reid on behalf of PayPal  reported that among the shoppers who will shop on Boxing Day this year, 41% (4 in 10) will do a portion of their Boxing Day shopping online (up from 34% last year.)  Among those that will, 5% will make all of their purchase online, while 42% will make some online, and 52% hardly any, perhaps just making one or two purchases. Three quarter of Canadians (73%) didn’t rule out shopping on the Boxing Day this year.

Well, when three-quarter of Canadians are out shopping, you can well imagine the conditions of the mall. And this makes you really think whether the sales are really worth spending an entire day at the mall.

A simple stroll through Square One, took us more than 2 hours. The big posters at every window promised up to 80% discounts and shops like Costa Blanca had even closed the doors because of space issues. Store managers had sale target starting at $13,000 for the day, which I am sure no one had difficulty to meet.

Most of the shoppers had already chosen their favorite brand stores to shop at while others were browsing the mall to come across a ‘good enough’ deal. While some sales were genuinely good (such as 50% off at the entire store at Espirit) others were attracting customers because of a single good deal (American Eagle selling a hoodie at only $20) whereas nothing else in the store was on sale.  When the shoppers make a tedious trip to such outlets, they do end up buying things at regular price and spending more on Boxing Day.

Talking to a few customers, we found out that the usual complain was the long line-ups and most things on regular prices. Some stores (such as Suzy Shier) had even closed the fitting rooms to save themselves the trouble. While women were busy purchasing shoes (as low as $10), bags, accessories, clothes and make-up, men were also busy lining-up outside Best Buy and Future Shop. Many agree that it is a good time to buy electronics, be that a Dell laptop (that is offering up to $200 off) or the kitchen appliances where you save by making use of the ‘no tax Boxing Day sale.’

Many smart shoppers had reviewed the flyers, done their homework and saved up for the exciting day from a long time.  While the malls were busy as a bee-hive, many seniors had just decided to spend the day at the nearest coffee shop in the mall. The experience to watch people go crazy over a discount deal is even better than standing in the line for an hour to pay for that single item on sale.

Whether you shopped this weekend, or just enjoyed your meal in the food court, or spent the day with your friend going from one shop to the next, the warm weather added to the happiness of shopping.

This weekend, we also discovered the true meaning of ‘shopping therapy.’ The continuous swipes of credit cards, the excited shrieks and broad smile, indicated that it does work, well just sometimes. I hope those smiles long last and credit card bills paid on time!

But after the shopping trip, I did ask my friend what she would prefer next, a Spa treatment or another shopping trip? Well, go ahead and make a guess…

Plan your spending according to your income

1. Keep track of spending and make a budget

One of the smartest things you can do to get control of your finances is to start keeping track of what you spend so that you can see exactly where your money is going each month. This is the first step in creating a budget that shows your income and expenses.

Having a budget and learning to stick to it will help you free up money to reduce your debt. For more information on budgeting, see FCAC’s tip sheet called Making a Budget and Sticking to It, which explains how to make and keep a budget and includes a budget worksheet.

2. Put needs before wants

Buy what you need first. Eliminate unnecessary expenses and look for things you can live without.

Don’t get into more debt

3. Keep your credit card in your wallet

To avoid getting into more debt, use cash or your debit card instead of your credit card. That way, you’ll be spending money you already have.

4. Avoid ‘Buy Now, Pay Later’ offers

When you’re having problems making ends meet, the administrative fees tied to such offers and high interest rates if you don’t pay on time will only add to your existing debt load.

5. Reduce small, recurring expenses

Saving a little every day can go a long way. Good examples of ways you can save on costs include taking public transit instead of your car, bringing your lunch to work and reducing your coffee consumption. Eliminating that extra $1.50 coffee each workday can mean over $400 a year in savings.

6. Reduce your banking fees

Use automated banking machines (ABMs) from your own financial institution. Review your banking package every now and then to make sure that it is still the best one for you. For more information, see FCAC’s Cost of Banking Guide interactive tool, which lists ABM fees and helps you compare and choose the best banking package for your needs.

Manage your existing debt

7. Pay down your highest interest rate debts first

If you carry a balance on your credit card, then this is likely the debt with the highest interest rate. Use cash or a debit card while you pay off this debt to avoid accumulating more.

While you pay off the credit card debt, don’t forget to make the minimum payments on other debts with lower interest rates. If you set aside the main part of your income towards bringing the balance down on your most expensive loan, you’ll be surprised at how much you save. For tips on how to reduce costs with your credit card, see FCAC’s Getting the Most from Your Credit Card.

8. Contact your creditors

As soon as you realize that you are having trouble making ends meet, call your creditors and explain the situation. In most cases, they will work out a modified payment plan that will make it easier for you to pay off your debt.

9. Get a consolidation loan with your financial institution

This means getting one single loan to pay off all your existing debts so that you have just one payment to make. For this new loan to save you money, it must have a lower interest rate and a lower monthly payment than all the other loans put together. It is also important to stop using any credit cards that you consolidated into the new loan. For more information on a consolidation loan, talk to your bank or financial professional.

10. Talk to trusted financial professionals

These may include your bank representative, your financial planner or a credit counselling agency. With their help, you will be able to evaluate your current debt situation, determine your present and future needs, make a budget and find ways to pay off the debt. For more information on credit counselling agencies, see FCAC’s Tips for Dealing with Credit Counselling Agencies.

Know Your Rights with New Credit Card Regulations

New regulations on credit cards and other financial products, such as fixed- and variable-rate loans and lines of credit, will come into force on January 1, 2010. This means a number of important changes  particularly better communication of information for consumers of financial products and services offered by federally regulated financial institutions.

These new regulations tie in with one of our major objectives: helping consumers gain a better understanding of financial products and services, explained Ursula Menke, Commissioner of the Financial Consumer Agency of Canada (FCAC).

The new regulations will come into force in two phases: January 1, 2010, and September 1, 2010.

Entering into force on January 1, 2010

• Summary box containing all prescribed information
  Federally regulated financial institutions will have to include a summary box at the top of their credit card application forms and agreements. The information should clearly indicate key features, such as interest rates, grace periods and fees.
• Consent for credit limit increases
  Federally regulated financial institutions will have to obtain your consent before increasing your credit card limit.
• No over-the-limit fees due to holds
  Federally regulated financial institutions may not charge over-the-limit fees due to a temporary hold of funds on your credit card. However, this restriction does not apply when you make a purchase that would bring you over your limit in any case during the time the hold is in effect.
• Debt collection practices
  New federal regulations will apply to debt collection practices of federally regulated financial institutions.
• Joint borrowers
  If you, together with another person (s), apply for a loan from a federally regulated financial institution, all borrowers must receive the information documents, except in the two following cases:

1.      when all the borrowers agree, orally or in writing (on paper or electronically), that only one borrower will receive the information documents

2.      when at least two borrowers agree, orally or in writing (on paper or electronically), that one borrower will receive the information documents on the other’s behalf; in this case, the borrowers who did not give their consent must also receive the information documents.

Entering into force on September 1, 2010

• Minimum 21-day grace period on credit card purchases
  You will not pay interest on new purchases for 21 days after the statement date if you pay your balance in full by the current month’s due date. This provision will apply even if you have an outstanding balance from the month before.
• Allocation of credit card payments
  If you pay more than the required minimum on your credit card, federally regulated financial institutions have to apply any payments made in excess of the required minimum using one of the two following methods: to the balance with the highest interest rate and to other balances in decreasing order of interest rate; or on the relative proportion of each.
• Credit card statements
  Credit card statements issued by federally regulated financial institutions must indicate how much time it will take you to pay the current balance in full if you pay only the required minimum each month.

  If you have a fixed-rate credit card and the interest rate might increase over the next period, the financial institution must notify you in advance about the increase on the statement it sends you, and it must specify the new rate.

FCAC encourages you to learn more about the new regulations by visiting its website: fcac-acfc.gc.ca.

Every business has a risk factor. Ideas might be bright, project feasible, but finding investment and taking risk are one of the most difficult parts of starting a venture. In age of changing technology and emerging ideas venture capitalist firms form a considerate part of market. In nonprofessional terms, venture capitalist firms are firms that start with leveraged financed by risk taking individuals who at later stages reap the benefits of their investment.

Tie Toronto organized a forum on venture capitalist investment in Toronto. The discussion was focused on raising investment for new start ups. Kamal Hassan the CEO of Skymeter Corporation and Sunny Kumar of Ontario accelerated fund started the presentation.

Sunny Kumar highlighted the investment priorities of Ontario accelerated fund and its success in funding new start ups.  Kumar elaborated the whole procedure of raising money from a financially tight and uncertain market. Hassan as an entrepreneur described his experience in raising money for new start-ups.

Skymeter is an investee company of Ontario accelerated fund. The discussion took an interesting turn when both investor and the entrepreneur described their individual experience in raising funds and working together.

TIE Toronto promises an amazing networking experience for new entrepreneurs. Right up from learning new set of business skills, Tie is giving an opportunity to South Asian entrepreneurs to find right investors, who are willing to take the risk associated with new companies.

Author:Sarah Zahid

TiE Toronto in collaboration with Consul General of India has been organizing breakfast seminar on ‘Doing Business in India’ for the past two years.  CXOs of Canadian companies that has operation in India or CXOs of reputed Indian companies visiting Toronto have been invited to share their perspectives viz, opportunities, challenges, cross-cultural issues, partnership intricacies etc., about doing Business in India, a fastest growing economy.

Marvin Hough, Executive-In-Residence, Telfer School of Management, University of Ottawa, was the key note speaker during our Dec 8th seminar.  As Senior Trade Commissioner in New Delhi, Hough has been instrumental in supporting Canadian companies dealing in India.

I welcomed the gathering and Preeti Saran, Consul General of India addressed  the gathering about Indian  economy  and business opportunities. Hough had presented about growth opportunities for Canadian companies in India, opportunities for trade promotion and the challenges faced by Canadian companies in India. He also detailed about the priority sectors viz, Agriculture, Food and Beverage, Service Industries and Capital Projects, Information and Communications Technologies, Electric Power Equipment and Services, Aerospace and Defence and Oil and Gas Equipment & Services  for Canadian companies to  focus on Indian markets.

The event was well attended by entrepreneurs interested in establishing business  in India, professionals from companies involved in doing business in India, Partners in legal & accounting firms, Indian consulate officials, TiE members and academicians. Hough also stressed on the importance of cultural sensitivity issues that Canadian companies should be aware of,  understanding  the softer issues of their partners, what works and what doesn’t  work in the Indian context. We believe that TiE presents a unique opportunity for entrepreneurs of leveraging relationships with its India based chapters.  TiE has 12 chapters in major cities in India whose membership comprises of entrepreneurs, investors and professionals in different industries.

The breakfast seminar was organized by TiE Toronto, a chapter of global, not-for-profit network of entrepreneurs and professionals dedicated to the advancement of entrepreneurship. TiE provides a platform for mentoring, networking and education. TiE’s mission is to foster and advance entrepreneurship across the globe. Its principle objective is to provide a platform on which people with entrepreneurial spirit and those interested in economic value creation can come together to share ideas. TiE endeavours to cultivate and nurture the ecosystems of entrepreneurship as it sees this to be the single most powerful instrument of prosperity.

TiE was founded in 1992 in Silicon Valley by a group of successful entrepreneurs, corporate executives, and senior professionals with roots in the Indus region. There are currently more than 16,000 members and over 2,500 charter members in 53 chapters across the globe. TiE charter members comprise of leading entrepreneurs, venture capitalists, fund managers, CXOs and professionals advisors. TiE regular members are aspiring entrepreneurs and professionals. Dedicated to the virtuous cycle of wealth creation and giving back to the community, TiE’s focus is on generating and nurturing the next generation of entrepreneurs.

 Author: Suresh Madan is the President of TiE Toronto