Briefly:

(February 3, 2006) Altamira Investment Services is increasing the interest rate of its High-Interest CashPerformer savings account to 3.25%, effective immediately.

It’s the second time this year Altamira has raised rates on the popular product. On January 16, the CashPerformer rate was bumped up to 3.15%.

The firm’s U.S. High-Interest CashPerformer will remain at its current rate of 3.75%.

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Investors Group fined by New Brunswick regulator

(February 3, 2006) The New Brunswick Securities Commission has ordered Investors Group to pay an administrative penalty of $63,220 plus $5,000 in costs for trading in securities in the province without being registered, and for permitting its sales staff to trade without being registered.

The Winnipeg-based fund company agreed to the penalty earlier this month after an investigation determined that IG employed 17 salespersons who were not registered in New Brunswick but traded on behalf of 54 residents of the province during a period spanning nine years.

Under New Brunswick’s Securities Act, proceeds from such penalties are placed in a separate fund to be used for education and other capital market initiatives.

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TD Waterhouse lowers rates for active traders

(February 3, 2006) Discount brokerage TD Waterhouse has announced plans to launch a new active trader platform along with new commission rates for active investors.

The customizable TD Waterhouse Active Trader platform includes streaming real-time quotes and news, fast point-and-click order entry and direct-to-market access for Canadian and U.S. equities and options, as well as customizable streaming technical charts to monitor trends.

Those who trade equities or options at least 30 times per quarter will receive a new flat rate of $14.99 flat on U.S. equities. Canadian equity orders will be charged $14.99 up to 1500 shares and 1 cent per share thereafter. Option trades for these clients will be $14.99 plus $1.25 per contract.

For investors who trade at least 150 times per quarter, a flat rate $9.99 flat will apply for U.S. equities and that same price will be charged for Canadian orders up to 1,000 shares and 1 cent per share thereafter. Option trades for these clients will be $9.99 plus $1.25 per contract.

The new rate structure takes effect March 20.

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Meritas adds dividend and income fund

(February 2, 2006) Meritas Mutual Funds has launched the new Meritas Monthly Dividend and Income Fund for clients interested in socially responsible investing.

The fund, the firm’s seventh SRI offering, uses financial and social screens and invests substantially all of its assets in equity securities to provide a combination of income from dividends, interest income and capital gains.

Managed by Jarislowsky, Fraser Limited, and using the social, environmental and governance research of Jantzi Research Associates, the medium risk fund is designed for long-term investors looking for a regular stream of monthly income from their portfolio.

“This is a significant milestone for investors and advisors in Canada,” said Meritas CEO Gary Hawton. “Jarislowsky, Fraser Limited is one of Canada’s most respected investment management firms and one of the leading advocates for good corporate governance.”

Commission are 0-5%, negotiable with the client for front end sales or 2% and 4.9% paid by the company for deferred and low load shares. Trailing commissions range between 1% for front end shares, and 0.75% and 0.5% for shares sold under the shortened and regular deferred sales schedules. Client redemption fees range from 2.5% in the first year and 2% in year three or 6% in the first year and 2% in year six of the standard DSC schedule. Management fees are 2.45%. Minimum investment is $250.

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BMO survey challenges retirement assumptions

(February 2, 2006) A survey released on Thursday by BMO Financial suggests that many Canadians think about retirement income from a monthly point of view, not the annual figure or lump sum amount commonly used by advisors.

“Financial planners have traditionally worked with investors towards a yearly income stream goal,” says Tina Di Vito, vice president and managing director of retirement planning at BMO Nesbitt Burns. “Our survey results question this approach, showing that the average investor looks at income streams from a monthly perspective.”

According to the survey of 5,325 Canadians, more than half of those over the age of 45 think they know how much money they’ll need in retirement. And of those, 66% say they think about their retirement income needs from a monthly perspective.

Only a quarter of those who have a dollar figure in mind for retirement needs consider retirement funding from an annual income stream perspective, with $54,700 a year as the average. Only 8% had a lump sum in mind, with $649,500 as the average amount.

“Breaking retirement income down into monthly bundles is ultimately a much more practical and tangible way for pre-retirees and retirees to conceptualize how they’re going to fund their lifestyle in retirement,” Di Vito says.

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MFDA bans, fines former IG rep

(February 2, 2006) The MFDA has permanently banned former Investors Group broker Robin Andersen and issued a $200,000 fine.

Between July 1998 and November 2003, Andersen misappropriated approximately $362,000 in his dealings with seven different clients and failed to repay or otherwise account for the funds. The broker also processed four redemptions for clients without obtaining instructions or authorization.

Investors Group paid more than $400,000 to the clients in compensation for losses attributable to Andersen’s conduct. The MFDA says Andersen cooperated fully with the investigation and arranged to pay IG part of the amount the firm had paid out to clients. The SRO has no legal power to collect fines from those no longer working in the industry.

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VenGrowth expanding Ottawa office

(February 2, 2006) VenGrowth Private Equity Partners has added two new tech specialists to its Ottawa-based investment operations. Paul Smelters joins the venture cap firm as Investment Director while Andrew Vignuzzi is the firm’s new Investment Associate

Smelters has worked in the technology sector for over 25 years, with roles in advanced technology design, research & development and business management. Vignuzzi comes to VenGrowth from Nortel, where he designed and developed a range of communication products.

VenGrowth has nearly $300 million invested in 28 Ottawa area companies.

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Sentry Select to offer more corporate class mutual funds

(February 2, 2006) Sentry Select Canadian Resource Fund unit holders have approved changes to the corporation that will permit the company to offer additional corporate class mutual funds in the future.

To that end, Sentry Select is in the process of creating five additional corporate class funds. Once approved, the company says investors will be able to convert shares of one corporate class fund into another on a tax deferred basis. The company says the new funds will likely be available starting in March 2006.

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Bernake takes over as Fed chair

(February 1, 2006) Ben Bernake took an oath of office on Wednesday, making him the 14th chair of the board of governors of the U.S. Federal Reserve and the chair of the Federal Open Market Committee, succeeding Alan Greenspan.

The U.S. Senate confirmed the former economics professor on January 31, following a hearing in November. The president announced his intention to nominate Bernake last October.

Between 1990 and 2005 the new chair served the Fed in various roles, as a member of the board of governors, a visiting scholar at the Federal Reserve Banks of Philadelphia, Boston and New York, and a member of the Academic Advisor Panel at the Fed’s Bank of New York.

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Reed named head of Dundee Wealth Bank

(February 1, 2006) Dundee Wealth Bank has hired former Altamira president Greg Reed as its new president and CEO. Reed has also served as a senior executive at the National Bank of Canada and spent 20 years with international consulting firm, McKinsey & Company.

In his new role, Reed is expected to focus on delivering the bank’s solutions to Canadian clients, through several company channels. Dundee Wealth Bank received its order to commence and carry on business from the Superintendent of Financial Institutions back in July 2005 after being granted its Charter as a Schedule I bank from the Minister of Finance.

The company says it plans to start offering a full range of banking services, including internet and telephone accessible deposit and checking accounts, along with savings and GIC products, followed by residential mortgages, lines of credit, personal loans, credit and debit cards.

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Canadian pension plans continue to deteriorate

(February 1, 2006) Mercer Human Resource Consulting says the financial health of pension plans in Canada continues to deteriorate, due to an ongoing decrease in long-term interest rates that are causing the value of pension promises to grow faster than actual pension funds.

The Mercer Pension Health Index shows plan funding ratios dropped off in the first half of 2005 and drifted sideways for the rest of the year.

“Over the last 18 months, while the Bank of Canada has increased its key policy rate by 1.25%, long term bonds yields have gone down by almost the same amount,” says Paul Purcell, global retirement professional leader at Mercer Human Resource Consulting. “Another hit was the introduction of new rules last February requiring pension plans to recognize longer life spans when paying departing plan members a lump sum value in lieu of their monthly pensions.”

He says organizations with pension plans should expect their cash funding requirements to go up again this year.

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Sentry Select launches Dividend Fund

(February 1, 2006) Sentry Select Capital has announced the launch of the Sentry Select Dividend Fund, which will invest in preferred shares, dividend-paying equities and convertible securities of issuers located in North America.

The fund aims to provide quarterly distributions of dividends and realized capital gains. The fund will be managed in-house by Gordon Higgins, vice-president of equities and is available in both A Class and F Class.

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Man acquires Refco Canada

(February 1, 2006) Man Financial, the futures and options brokerage division of London-based Man Group, has completed a transaction to acquire the share capital of Refco Canada. Refco’s name has been changed to Man Financial Canada.

The Canadian commodity futures broker and clearinghouse went up for sale after its parent company filed for bankruptcy protection in October. Pierre Gloutney, former chair and CEO of Refco Canada, will continue as chair of Man Financial.

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CLUs running successful practices, survey suggests

(January 31, 2006) Advisors holding the Chartered Life Underwriter (CLU) designation enjoy a high degree of success, according to a survey by the CLU Institute.

More than 79% of CLUs serve at least 100 clients, with more than 37% advising more than 400 individual and/or corporate clients. Nearly 60% of survey respondents said they managed more than $10 million of assets in their practice.

“Consumers vote with their money,” said CLU Institute chair Kris Birchard. “That so many choose to entrust so much to CLU advisors speaks to the confidence consumers place in CLU designated advisors.”

The survey also suggests the designation can prove quite lucrative to its holders, with 81.2 % earning a six-figure gross annual income, while more than 46% gross more than $200,000 per annum.

More than 90% of the nearly 800 CLUs questioned for the survey have worked at least 10 years in the business, while 24% have more than 30 years experience.

“Long experience, coupled with the highest professional standards and specialty education ensures that the CLU designation continues to set the mark for excellence in advanced life insurance, tax and estate planning,” said Birchard. “Judging from the results of our survey, Canadians agree.”

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Fed delivers Greenspan’s final rate hike

(January 31, 2006) Federal Reserve chairman Alan Greenspan presented the markets with a parting gift today before heading into retirement — a 25 basis point interest rate hike. The hike was widely expected and takes the trend-setting Fed funds rate to 4.5%, its highest level in nearly five years.

“The committee judges that some further policy firming may be needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance,” read a statement from the Federal Open Market Committee (FOMC).

While inflation remains relatively low, the Fed warned that much of the slack had been taken out of the U.S. economy, saying that further rate hikes would continue at a “measured” pace, should they be required. The carefully watched language of the Fed report said such hikes “may be needed,” dropping the term “likely.”

Ben Bernanke take over as Fed chair February 1.

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Goodman gets regulatory approval for short-selling

(January 31, 2006) Goodman & Company, Investment Counsel has reassured investors that it will provide notice before acting on regulatory relief which allows limited short selling in some of the firm’s mutual funds.

The funds in question include Dynamic Focus+ Diversified Income Trust Fund, Dynamic Focus+ Energy Income Trust Fund, Dynamic Dividend Income Fund and Dynamic Dividend Fund.

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BMO announces Montreal appointments

(January 31, 2006) BMO Financial Group has appointed Luc Bachand as vice-chair, BMO Nesbitt Burns, investment banking group; and Darryl White as executive managing director and head of investment and corporate banking in its Montreal office. The appointments are effective February 1, 2006.

Bachand’s has spent more than 23 years at BMO Financial and has led the firm’s investment and corporate banking services in Montreal for the past 10 years. “Luc’s highly successful track record, client focus and extensive experience will be an invaluable asset in his new position as we continue to focus on achieving industry-leading performance and creating shareholder value,” said L. Jacques Menard, chair of BMO Nesbitt Burns.

Originally from Montreal, White has worked out of BMO Nesbitt Burns’ Toronto office for the last 12 years.

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MFDA announces second round of compliance examinations

The organization says “members are reminded of their obligation to employ the necessary staff and resources in order to ensure that deficiencies identified during their first compliance examination are resolved.”

The organization began expanding its financial examinations department last year at the end of its first round of compliance examinations. Going forward, it says any deficiencies that were reported in initial exam reports which have not been rectified, will be considered for referral to the enforcement department of the MFDA.

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New investor education resource available for Chinese immigrants

(January 30, 2006) A new online resource, was launched today for Chinese immigrants interested in learning about investing in Canadian capital markets. The project is jointly funded by the Alberta Capital Market Foundation, the British Columbia Securities Commission and the Investor Education Fund of Ontario,

The video program is available for download in English, Mandarin and Cantonese. Six different segments focus on understanding Canadian capital markets, the basics of investing, how to choose a financial advisor and how to avoid investment fraud. The website also includes downloadable print material and key internet links.

“We believe that this program will be especially effective at helping to prevent investment fraud among Chinese immigrants to Canada,” says Dr. K.W. Chang, president of the Calgary Chinese Cultural Society. The material is available for download at www.ciop.ca.

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BluMont, Man expand distribution arrangement

(January 30, 2006) BluMont Capital today announced it has updated its distribution arrangements with Man Investments.

BluMont will continue to service the existing structured products offered by Man, including two offerings that are currently being marketed, and plans to expand its offering of similar products in the future.

“Man Investments has been extremely pleased with the strategic alliance we have with BluMont, which has been very successful,” says John Kelly, president of Man Investments, the U.S. member of London-based alternative asset manager, Man Group plc. “We believe that this is the right time to introduce new products in Canada.”

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BDC weighs in on business ownership transition planning

(January 30, 2006) The Business Development Bank of Canada is the latest institution to add its voice to the growing number of professionals encouraging business owners to consider their succession plans.

Jean-René Halde, BDC president says many entrepreneurs do not plan their business ownership transition. As a result, some will sell their businesses, gradually reduce their operations or even close their businesses, willingly or unwillingly, without any assurance of continuity. He says a poorly prepared or non-existent business ownership transition process can harm the economy with a drop in productivity, job losses and an increase in the business bankruptcy rate.

“It is important for the main financial and political stakeholders to make entrepreneurs aware of the fact that they will have to hand over the reigns sooner or later,” Halde told a group of financial specialists at a lunch meeting organized by the Cercle finance et placement du Québec. He also stressed the importance of conveying to entrepreneurs the advantages of planning the transition process, pointing out the role that outside consultants can play in managing the financial, tax and legal implications.

“Business ownership transitions can be considered successful if the sellers achieve the financial security they are looking for and believe that thy obtained a fair price and found the right person to take over who will ensure the survival of the business,” he says. “As for the buyers, they will want to make sure that the conditions for the sale increase their chances of success.”

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RBC voted most respected corporation

(January 30, 2006) For the fourth year in a row, RBC Financial Group was voted the most respected corporation in a survey of 250 Canadian CEOs. The Ipsos-Reid survey, sponsored by KPMG, asks leading chief executives to indicate which corporations they most respect in eight categories, including best long term investment, human resources management, financial performance, corporate social responsibility and corporate governance.

The 11th annual survey also found that 89% of Canadian CEOs say companies that are more respected by the public enjoy a premium in their share price. Around 65% say building respect for their companies among the general public is quickly becoming a greater part of the CEO’s job.

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