Briefly:

(May 23, 2003) Peak Financial has introduced new back office systems to ease the transition of independent advisors from one dealer to another. It has added Winfund to its Integra back office platform, which includes RPM Technology (RPM) and CTA Systemsource (MPS).

“It is important for planners to reduce the non-productive time during the transition from the actual dealer to the new one,” said Robert Frances, president and CEO of Peak Financial Group. “By adding Winfund to Integra, this eliminates the need to convert data and facilitates the transition to Peak for a new planner.”

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Bullion fund gets regulatory approval

(May 23, 2003) The Millennium BullionFund, which invests directly in gold, silver and platinum, has been approved for sale in all provinces. The fund’s marketing literature suggests a 5% allocation to precious metals would generally reduce portfolio volatility and enhance longer term performance.

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Real estate dips, but still beats equities

(May 22, 2003) A new index launched by the Canadian Institute of Real Estate Investment Managers and the Investment Property Databank suggests that real estate is outperforming other asset classes.

While the total return on direct property investments declined in 2002, from 9.3% to 8.8% in 2001, and 12.1% in 2000, the three-year return comes in at 10.1%, beating bonds at 7.8% and stocks at -7.1%. Retail and industrial properties performed better than office properties. The index replaced the Russell Canadian Property Index, which was discontinued in 2002.

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BluMont launches new guaranteed note series

(May 22, 2003) BluMont Capital is introducing a second series of principal-protected notes. They are 100% eligible for RRSPs and require a $5,000 subscription. Returns above the guarantee are based on the performance of the Man-AHL Diversified Program, a managed futures fund, and the Man-Glenwood Portfolio, a hedge fund of funds. The subscription period ends July 3.

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Horizons hires New York fixed income manager

(May 22, 2003) Horizons Funds has added Cornerstone Trading Company as one of the managers of the Horizons Tactical Hedge Fund. Cornerstone uses a systematic strategy that seeks value in short-term global fixed income instruments.

Horizons said that complements the style of the existing manager, IIU Asset Strategies, which trades long-term debt instruments. Both managers use derivatives along with securities. The Tactical Hedge Fund is a low-minimum hedge fund available by prospectus.

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AIM Trimark to close high-yield fund

(May 21, 2003) One of the top-selling funds since the beginning of the year, the AIM Trimark Advantage Bond Fund will be closed to new investors May 30. AIM Trimark chief investment officer and executive vice-president Patrick Farmer said the $1.3 billion fund has become large enough that it may have difficulty finding suitable investments.

“Rather than compromise our high standards of creditworthiness and other critical measures applied to holdings in the fund, we chose to put investment discipline first,” Farmer said. Current investors, however, will be able to add to their holdings in the fund.

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Mutual fund veteran O’Donnell launches guaranteed hedge fund note

(May 21, 2003) Veteran mutual fund executive James O’Donnell, now chair of the advisory board at Pro-Hedge Funds, announced the launch of a principal-protected note whose returns will be based on hedge fund investments.

The notes, guaranteed by Société Générale, provide a 100% guarantee. The underlying fund is the Univest fund managed by Norshield, which is also the engine for one of National Life’s seg funds.

“The Pro-Hedge Fund seeks to achieve long-term growth while reducing the broad swings the markets continue to experience,” said O’Donnell. “In addition, the fund offers a safe haven for investors because their principal is guaranteed.”

The Pro-Hedge Principal Protected Notes are available until July 10.

In a similar launch earlier this month, Arrow Hedge Partners introduced a principal-protected note guaranteed by BNP Paribas. That note, structured around a fund of funds managed by Arrow, is available until June 10.

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Canadian hedge fund takes top international ranking

(May 21, 2003) Abria Diversified Arbitrage Trust, a market-neutral fund of hedge funds based in Toronto, climbed to the top of the rankings compiled by MARHedge, a global monitor of hedge fund managers, in April.

Based on data to the end of March, the fund’s three-year risk-adjusted performance surpasses that of every other fund of funds worldwide, while the fund’s one-year record places it 10th. MARHedge tracks the performance of 1,300 hedge funds.

“It is a proud and rare day that a Canadian money management firm can boast true global leadership in any area, let alone one as essential as [hedge funds] for the future,” said James Wanstall, vice-president of business development at Abria.

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Canaccord links with CBID

(May 21, 2003) Canaccord Capital is joining the retail online bond world. It’s adding 500 licences to use CBID Markets’ ixBroker system, now employed by 35 members of IDA.

“Canaccord becomes another major Canadian securities firm to provide its national team of investment advisors with access to Canada’s only multi-dealer electronic fixed income marketplace in which dealers compete for the retail business,” said CollectivBid president and CEO Laurence Rose. CollectivBid is the parent company of CBID Markets.

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(05/21/03)