Briefly:

(March 12, 2004) Canadian consumers are were less optimistic in February, according to an Investors Group survey conducted by Decima Research. The Decima-Investors Group Index of Canadian Consumer Confidence dropped to 86.6, off 6.8 index points from November’s reading.

“A number of smaller factors such as residual holiday bills, cold weather, higher heating bills and increased gas costs are eating away at consumers’ good mood,” said Bill Chornous of IG Investment Management. “While there is some concern about a jobless recovery — particularly in the U.S. — we’re seeing some real strength in the economy and the markets that bodes well for continued growth.”

The reading shows Canada lagging behind the U.S. in consumer confidence, as it is almost eight points lower than the directly comparable University of Michigan Index of Consumer Sentiment, which stands at 94.4.

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Mackenzie merging funds

(March 11, 2004) Mackenzie Financial has announced it will merge four Keystone Premier mutual funds into two existing Keystone Premier Capital Class versions of the same funds.

Keystone Premier Global Elite 100 Fund and Keystone Premier Global RSP Elite 100 Fund will be folded into the Keystone Premier Global Elite 100 Capital Class. Keystone Premier Euro Elite 100 Fund and Keystone Premier Euro RSP Elite 100 Fund will be merged into Keystone Premier Euro Elite 100 Capital Class.

The mergers are to be finalized May 7, 2004, pending investor approval.

Loonie roller-coaster ride not a disaster: TD

(March 11, 2004) Economists at TD Bank say the Canadian dollar might dent but won’t derail the economy, and that the loonie has not finished its roller-coaster ride.

“It is now obvious that the stronger Canadian dollar has not been the disaster that some had come to fear,” said Don Drummond, senior vice-president and chief economist at TD Bank Financial Group. “While exporters and companies that compete with U.S. imports have been adversely affected by the move in the exchange rate, key offsets — including impressive growth in the U.S. economy and higher commodity prices — have dampened the negative fallout.”

The bank’s economists are predicting stable economic growth of 2.6% for 2004, after averaging 1.7% in 2003.

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Mackenzie merging funds

(March 11, 2004) Mackenzie Financial has announced it will merge four Keystone Premier mutual funds into two existing Keystone Premier Capital Class versions of the same funds.

Keystone Premier Global Elite 100 Fund and Keystone Premier Global RSP Elite 100 Fund will be folded into the Keystone Premier Global Elite 100 Capital Class. Keystone Premier Euro Elite 100 Fund and Keystone Premier Euro RSP Elite 100 Fund will be merged into Keystone Premier Euro Elite 100 Capital Class.

The mergers are to be finalized May 7, 2004, pending investor approval.

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Laurentian to fully acquire B2B Trust

(March 10, 2004) Laurentian Bank of Canada has offered to acquire the remaining shares of subsidiary B2B Trust for $52 million. Laurentian already owns 77% of B2B’s outstanding common shares.

B2B’s board of directors has approved the deal, which still requires shareholder approval.

Laurentian says it will also take B2B Trust private, based on expected savings of up to $2 million a year through the elimination of public company compliance and reporting requirements.

The deal is expected to close in the third quarter of this year.

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Ethical Funds releases new proxy voting guidelines

(March 10, 2004) Ethical Funds has released the 2004 version of its proxy voting guidelines, which contain more aggressive measures to combat corporate governance scandals, the Vancouver-based company says.

The 46-page document includes detailed information outlining Ethical’s position on corporate governance, board independence and compensation, stock options, as well as social and environmental issues.

“It’s time that Canadian mutual funds were clear with investors about how they use proxy voting power to influence corporate direction,” said Ethical CEO Don Rolfe in a statement.

Last year, U.S. regulators adopted a new rule requiring mutual funds to disclose the policies and procedures they use to vote proxies.

Ethical Funds says it applauds the U.S. rule and has written securities regulators in Canada to push for the adoption of similar rules for Canadian mutual funds.

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Meritas moves forward on community investing

(March 10, 2004) Meritas Mutual Funds says it expects to commit $2 million of unitholder investments to community development initiatives by the end of 2004.

Each Meritas fund places 2% of its assets in community development investments (CDIs), both in Canada and around the world.

The investments provide capital where it is most needed, Meritas says, such as inner cities, sensitive or spoiled natural environments, poor rural areas and impoverished international communities.

“We currently own over a half million dollars in CDIs on behalf of our unitholders,” says Meritas CEO Gary Hawton.

“We believe that the impact on investors’ financial rates of return will be insignificant but there can be a very significant impact on the lives of individuals and communities which finally have the dignity and respect that can flow out of having access to capital,” adds Hawton.

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AIMA releases new guide for hedge fund managers

(March 10, 2004) The Alternative Investment Management Association (AIMA) today released a new “sound practices” guide for Canadian hedge fund managers.

The guide — the Canadian version of a similar publication produced in Europe two years ago — covers various practical aspects of establishing and managing a hedge fund business in Canada, AIMA says.

“Publication of this new guide marks a major milestone for the over $10 billion Canadian hedge fund industry,” said AIMA Canada founding chair Jim McGovern.

“With the rapid growth of the hedge fund industry in recent years, it’s important for new entrants to establish their organizations as viable business entities.”

As well as helping newcomers to the hedge fund industry, the guide is also intended as a reference tool for established hedge fund managers, McGovern added.

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Ontario regulator appoints new vice-chair

(March 9, 2004) The Ontario Securities Commission (OSC) has appointed Susan Wolburgh Jenah to a five-year term as vice-chair. The appointment was effective last month.

Jenah joined the OSC more than 20 years ago after receiving a law degree from Osgoode Hall in Toronto. She has held a number of positions at the Ontario regulator, most recently as general counsel and director of international affairs.

Jenah has also worked a number of regulatory and legislative projects, including Ontario’s five-year review committee.

“[Jenah] brings a unique blend of highly specific knowledge of securities law and broad-ranging analytical thinking to the commission,” said chair David Brown in a statement.

“Her involvement in regulatory reform, both nationally and internationally, will be especially important to the commission as we continue to work with our colleagues to improve, and hopefully to simplify, the securities regulatory system that serves Canada’s capital markets,” Brown added.

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(03/09/04)