Briefly:

(July 16, 2004) Jovian Capital — the parent company of Rice Financial and T.E. Financial — has closed a deal to acquire Leon Frazer & Associates, one of the country’s oldest investment firms.

Jovian’s subsidiary, Jovian Asset Management, purchased 76% of Leon Frazer’s outstanding common shares. The initial cash consideration for the acquisition is approximately $2.3 million. The final purchase price will be determined using a formula based on Leon Frazer’s assets as of March 31, 2005.

“The completion of this transaction is an important step in the evolution of Jovian,” says Jovian Asset Management president Mark Arthur. “With this acquisition, we will strengthen our asset management platform, and become a significant force in the personal wealth management business.”

Leon Frazer, established in 1939, currently has $735 million in assets under management.

(Click here to read an Advisor’s Edge feature article with Jovian Capital’s president and CEO Philip Armstrong.)

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Commodity prices ease in June

(July 15, 2004) Commodity prices softened in June, thanks largely to the decline in energy costs which ran up substantially in May, according to the BMO Financial Group Commodity Price Index.

“Commodity markets have benefited from a powerful rally that began in mid-2002, during which the all-commodity index surged by almost 65%, before giving some of this back in June,” said Robert Hogue, senior economist at BMO Financial Group. “The rally has reflected strengthening economic prospects in North America and abroad, booming residential construction, and declining commodity inventories.”

The commodity index reached its all-time high in May, but fell 3.6% in June to a reading of 158.7, or 58.7% higher than the base year of 1993.

“Going forward, however, commodity markets are expected to cool off further from their recent boiling point,” said Mr. Hogue.

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Acquisitions help boost CI’s profits

(July 14, 2004) CI Fund Management today reported sharply higher fourth-quarter and year-end profits, crediting rising stocks and the firm’s recent run of acquisitions.

The Toronto-based fund company earned $75 million in the three months ending May 31, up from $10 million in the same period in 2003.

For the fiscal year, profits swelled to $221 million from $71 million.

“In addition to favourable market conditions in fiscal 2004, the successful acquisitions of Assante, Synergy Asset Management and Skylon Capital contributed significantly to CI’s growth,” the company said in a news release.

CI’s net sales totalled $920 million in fiscal 2004, compared to net redemptions of $596 million last year. “Strong sales of structured products, Assante funds and a successful RSP season for CI’s funds contributed to the turnaround,” CI said.

Current projects at CI include the establishment of a new dealership platform for Assante advisors and the consolidation of asset management administrative systems onto one central platform.

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CPP announces new U.S. private equity investments

(July 14, 2004) The Canada Pension Plan Investment Board (CPPIB) is investing $175 million US in two American private equity funds.

The board has committed $100 million US to a fund managed by Silver Lake Partners and $75 million to a fund managed by Hellman & Friedman.

CPPIB’s private equity commitments now total $6.3 billion, divided among 46 limited partnerships managed by 38 firms.

“Private equity fits well with our broadly diversified portfolio. It is an attractive alternative to publicly traded stocks and has the potential to generate greater returns,” said CPPIB President John McNaughton in a statement.

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OSC names new advisory committee members

(July 14, 2004) The Ontario Securities Committee (OSC) today announced new members for its continuous disclosure advisory committee (CDAC). The committee meets an average of five times a year and members serve two-year terms.

“We believe that effective communications with the stakeholders who are affected by our actions is an essential part of the regulatory process,” said John Hughes, CDAC chair. “We’re particularly pleased to announce a CDAC membership reflecting a strong group of investor representatives, both individual and institutional.”

The 17-member committee includes Fairvest president Bill Mackenzie, Gil Yaron of the Shareholder Association for Research and Education and Ken Kivenko of the Small Investor Protection Association.

The CDAC advises OSC staff on such matters as the planning, implementation and communication of its continuous disclosure review program, the impact of policy and rule-making initiatives, emerging issues, and the OSC’s procedures.

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Power Financial splits stock

(July 13, 2004) Power Financial has announced a two-for-one stock split on its common shares, effective July 23, 2004. Trading on a post-split basis will begin on July 21.

Power Financial is the parent company of some of Canada’s biggest names in financial service, including Great-West Lifeco, Canada Life, London Life, Investors Group and Mackenzie Financial. Power Corp., parent of Power Financial, also announced a two-for-one split for its subordinate voting shares and participating preferred shares.

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(07/13/04)