Briefly:

(November 19, 2004) The makers of a popular software application for the life insurance industry has announced the release of its latest version. CoVirt’s VirtGate 6.0 includes the ability to toggle between English and French, extended underlying data models which accommodate new product types and an option to import CANNEX data.

“VirtGate users are able to import daily investment fund (including seg fund) prices as well as current interest rate information for GICs, Term Deposits, GIAs, RRSPs and RRIFs, mortgages and various loan products,” said Alex Melvin, president, CANNEX Financial Exchanges. “VirtGate clients use this information to advise clients as well as update and prepare summaries of client holdings.”

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GrowthWorks head “down the road”

(November 19, 2004) GrowthWorks WV Canadian Fund Inc. has announced it will cease offering its Class A shares to purchasers resident in Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador.

The fund is withdrawing from the Atlantic market after the government of Nova Scotia changed the Equity Tax Credit Act’s regulations, mandating that labour funds offering a provincial tax credit must have the majority of its principal decision makers reside in Atlantic Canada.

“As the Fund is a national labour-sponsored investment fund, the Fund believes it is impractical for it to comply with the new requirements of the regulations under the Equity Tax Credit Act,” the company said in a press release. “As a result, the Fund will cease offering its Class A shares to purchasers resident in Nova Scotia effective at the time of renewing its prospectus.”

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September active month for securities transactions

(November 18, 2004) Foreign investors bought $7.4 billion worth of Canadian securities in September, while Canadian investors were also busy, sinking $4.1 billion into foreign securities. For details and to read other financial services industry updates, news flashes and tidbits, click the “full story” button below.

(November 18, 2004) Foreign investors bought $7.4 billion worth of Canadian securities in September, while Canadian investors were also busy, sinking $4.1 billion into foreign securities.

Foreign holdings of Canadian stocks surged by $5.2 billion in September, Statistics Canada reported today. “The single largest share offering in Canadian history and a corporate restructuring helped push foreign investment in Canadian stocks to its highest level since April of this year,” the agency said. Ottawa sold its share of Petro-Canada in September in a deal valued at $3.2 billion.

Non-residents purchased $1.9 billion in Canadian bonds in September, substantially unchanged from August.

Canadians were attracted by foreign bonds, buying $3.2 billion in September, mostly in U.S. treasuries. Purchases of foreign stocks totalled $905 million. The $4.1 billion total by Canadians marked the biggest securities investment in two years, the agency noted.

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Clarington lists income ETF

(November 17, 2004) Clarington Investments has completed the initial public offering of its exchange-traded Clarington Diversified Income + Growth Fund. Units of the fund landed on the market at $10, with 6.5 million units being offered.

Trading on the Toronto Stock Exchange under the ticker symbol “DIF.un,” the fund aims to distribute 7.0% per annum to unitholders, based on the IPO price. Investment manager KBSH Capital Management Inc. will invest in a widely diversified portfolio of income trusts, high-yield bonds, investment-grade bonds, growth-oriented and dividend-paying equities.

The fund was taken to market by a syndicate of agents co-led by CIBC World Markets and RBC Capital Markets and included BMO Nesbitt Burns, National Bank Financial, Scotia Capital, TD Securities, Dundee Securities, HSBC Securities (Canada), Wellington West Capital, Canaccord Capital, Desjardins Securities, First Associates Investments and Raymond James.

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Doctors say Canadians want tobacco out of CPP

(November 17, 2004) The Canadian Medical Association (CMA) is once again calling on the federal government to ban tobacco investments from the Canadian Pension Plan Investment Board’s portfolio. This time they’re citing a new poll which they say shows the Canadian public agrees.

“Canada’s national pension plan must get out of the death business,” said Dr. Albert Schumacher, president of the CMA. “It is simply the right thing to do and Canadians see the hypocrisy of our national pension plan profiting from the prosperity of tobacco companies.”

The poll, conducted by Ipsos-Reid for the CMA, found 52% of respondents wanted tobacco out of the portfolio, while 26% disagreed. Fifty-eight per cent agreed it was “hypocritical” for the government to allow such investments, while funding anti-smoking strategies.

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Manitoba fund dealers face deadline

(November 17, 2004) The Manitoba Securities Commission has issued an advisory to mutual fund dealers, pointing out that there will be no extension to blanket order 4322, dated November 14, 2003. The order expires December 31, 2004.

This order allows dealers to sell “certain deposit note securities, which are guaranteed (either directly or indirectly) by a government or by certain financial institutions such as banks” without amendment to their registration.

Notice 2004-50, Trades of Certain Deposit Note Securities by Mutual Fund Dealers, provides guidance to mutual fund dealers for requesting an amendment to their registration and the expectations MSC staff will have concerning the sales of these products.

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Alberta reduces paperwork for MFDA members

(November 17, 2004) The Alberta Securities Commission (“ASC”) has advised the MFDA that members registered in Alberta will no longer be required to file monthly financial statements with the ASC in addition to the monthly, unaudited Financial Questionnaire and Report required by the MFDA pursuant to Rule 3.5.1(a).

The ASC will permit monthly financial statements to be filed only with the MFDA for the month ended October 31, 2004 and subsequent months. The ASC will still require MFDA-registered dealers to file annual audited financial statements with the ASC as well as with the MFDA pursuant to MFDA Rule 3.5.1(b).

“Please note that any mutual fund dealer that has entered into a subordination agreement at the request of the ASC (separate and apart from the Uniform Subordinated Loan which a MFDA Member may have entered into for the purpose of meeting the MFDA risk-adjusted capital requirement) is still required to file monthly financial statements with the ASC,” the advisory reads. “The ASC also retains the right to request monthly financial filings at a later date if deemed necessary.”

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CI names Synergy sub-advisors

(November 16, 2004) CI Mutual Funds has appointed Picton Mahoney Asset Management as sub-advisors to its Synergy line of funds, operating under the name Synergy Asset Management. Picton Mahoney is led by David Picton and Michael Mahoney, former CI employees who managed Synergy Funds in the past.

“We are proud to be founding Synergy Asset Management, a new employee-owned portfolio management firm with over $1.5 billion of assets under management and a proven, close-knit team of investment professionals,” said Mr. Picton, president of Synergy Asset Management. “We look forward to working closely with CI Funds and our firm will benefit from CI’s resources and strong distribution capabilities.”

CI also announced the renaming of several funds, dropping the term “momentum” from its Synergy, calling it redundant due to Picton Mahoney’s investment style. The firm is also reviewing the risk classification system for its lineup of funds, dropping such terms as “medium to high” in favour of either “medium” or “high” depending on the risk profile.

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Pension indexing “alive and well”

(November 16, 2004) Despite high-profile funding crises in some corporate pension plans, many defined benefit (DB) plans continue to index benefits to cost-of-living increases, according to human resource consultancy Morneau Sobeco.

According to a survey by the group, 35% of funds provide automatic indexing. Seventy-nine per cent of companies with over 5000 employees covered at least 40% of CPI increases. Of the plans that had discretionary indexing, 22% said they do not expect to grant an increase for many years to come, while just 10% said they have not granted indexing in the past ten years.

“The reasons we have heard for this possible shift in thinking is a greater focus on DC [defined contribution] benefits versus DB and a reaction to the funding crisis that has arisen in the past few years,” said Fred Vettese, executive vice-president and chief actuary at Morneau Sobeco.

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CSI, Dalhousie launch new MBA

(November 16, 2004) The Canadian Securities Institute (CSI) has teamed up with Dalhousie University to offer an MBA (Financial Services) Program.

“Other MBAs may offer courses in accounting and corporate finance, but no other Canadian MBA currently offers this education along with courses specifically targeted at enhancing the competency and proficiency of investment professionals within the financial services industry,” says Roberta Wilton, president and CEO of CSI. “When students have immediately applicable skills, it means less time training them in the workplace and, by extension, greater productivity.”

The program is offered on a part-time basis, allowing students to hold down jobs and study at the same time. The majority of the MBA is offered through online learning, so students can set their own pace.

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VenGrowth capping lead fund

(November 15, 2004) VenGrowth Capital Partners has announced it will cap its VenGrowth II Investment Fund as of Friday November 19, 2004.

“VenGrowth II has been one of the most active Canadian venture funds during the best buying opportunity we’ve seen in over a decade, investing over $411 million in Canada’s leading small and medium-sized businesses since 2001,” said David Ferguson, managing general partner of VenGrowth. “The downturn in public stock markets pushed private company valuations down significantly during that period, creating an excellent opportunity for well-capitalized venture capitalists. VenGrowth II’s portfolio of existing companies will now mature towards liquidity events in unison.”

The Fund is invested in a diversified portfolio of 64 companies with a focus on later-stage venture capital opportunities.

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Barclays seeks changes to bond fund

(November 15, 2004) Barclays Global Investors Canada Limited has called a special unitholder meeting for the iUnits Government of Canada 10-Year Bond Fund for December 15, 2004 to approve a change to the investment objective.

The Barclays proposal would change the fund objective to replicate the return of the Scotia Capital Universe Bond Index, rather than the current benchmark 10-year Government of Canada bond.

“This change will give the Fund a more diversified exposure to the broad Canadian investment grade bond market. We believe that this approach will reduce the degree of fluctuations of the Fund’s returns over time and provide the potential for more favourable performance during periods of rising interest rates,” said Howard Atkinson, head of public funds, Barclays Canada. “Additionally, under the new investment objective, we expect that the Fund will be able to make quarterly rather than semi-annual distributions.”

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