Briefly:

(July 4, 2003) IFIC is predicting that June will prove to have been another month of investor exodus from mutual funds, with early estimates seeing net redemptions hitting between $450 million and $850 million.

Larger firms were the hardest hit, with AGF seeing $229 million in net redemptions. Some smaller firms posted positive net sales, with Phillips, Hager & North posting net sales of $136 million.

But total assets under management may actually increase up to 0.8% to between $388 billion and $393 billion, as improved stock market conditions picked up some of the slack in sales.

IFIC will announce June’s final figures by mid-month.

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Brandes launches new global fund

(July 4, 2003) Brandes Investment Partners has launched its Global Balanced Fund, which offers exposure to the worldwide equity market as well as investing in high grade corporate and Government of Canada bonds.

The fund will aim for a fixed income allocation of 30% to 40%. Equity investments will be primarily large caps, with values over $1 billion at the time of purchase. The fund will invest in virtually every geographic region.

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Ontario Savings Bonds a hit

(July 4, 2003) The government of Ontario has announced the sale of $3.9 billion in Ontario Savings Bonds (OSBs), up 50% over last year’s sales. Queen’s Park estimates that about 1 million residents have purchased $22 billion in OSBs over the past nine years.

“People are looking for investment security and they want the option of keeping their money in their own province,” said Ontario’s finance minister Janet Ecker.

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Conference Board warns on economy

(July 3, 2003) The Conference Board of Canada has joined the federal finance minister and various bank economists in warning that the economy is slowing down, from a growth rate of 2.7% to 1.9%.

The think-tank says the high value of the Canadian dollar is exacerbating the problems caused by the prolonged downturn in our biggest trading partner, the U.S. The Conference Board is calling on the Bank of Canada to cut interest rates to bring the loonie back down to earth.

“The economy is in for a very rough ride over the summer months,” said Paul Darby, vice-president and chief economist with the board. “Exports are now expected to decline this year, primarily because of the surge in the Canadian dollar.”

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AGF gets tough on fund speculators

(July 3, 2003) AGF will begin enforcing its short-term trading fee to discourage active trading of its funds. Funds redeemed within 90 days of purchase will be subject to a fee of up to 2%.

The company says that the active trading of funds drives up costs, which must then be passed on to investors as increased fees. AGF says the move will protect investors who buy and hold their funds.

AGF reported net redemptions of $229 million in June, with about $103 million of that attributed to active trading of large quantities of fund units. Most heavily hit was the AGF Canadian Money Market Fund.

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CI Funds assets grow for third straight month

(July 3, 2003) CI Fund Management has reported June growth of 2.3% in fee-generating assets, topping $33.9 billion.

Of that, $28.8 billion in assets were in mutual and segregated funds, up 0.8%. Institutional assets accounted for $4.0 billion, showing growth of 15.6%.

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ING merging insurance units

(July 3, 2003) ING Canada has announced the merger of ING Western Union into ING Insurance Company of Canada, in a move to consolidate its brand names into a more recognizable entity.

“Regrouping a number of our operating companies under the same brand will allow us to increase the awareness of ING as a financial services provider,” said Claude Dussault, president and CEO of ING Canada.

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Hallett starts up independent research firm

(July 2, 2003) Mutual fund industry analyst Dan Hallett is leaving Windsor, Ont.-based dealer Sterling Mutuals to start up his own independent investment research firm. Dan Hallett & Associates will specialize in managed money products, the company announced today.

The firm’s research will be produced on a freelance basis and will be made available for sale to investment brokers and dealers in support of financial advisors across Canada, Hallett says.

Hallett is a well-known media commentator on issues related to the fund industry and has also contributed articles to Advisor.ca.

“I’m thrilled about the opportunity to make our research available to a wider audience while helping dealers add value to their advisors in a cost-effective manner,” he said in a statement.

Hallett held the position of senior investment analyst at Sterling. Before that, he was a senior analyst at FundMonitor.com.

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Manulife Bank joins ATM network

(July 2, 2003) Manulife Bank has joined Ficanex Services Limited Partnership’s The Exchange network, allowing customers access to their accounts at the roughly 1,350 automated teller machines operated by Ficanex across Canada.

Manulife Bank says joining The Exchange network will allow its customers to access their money without facing surcharges.

“With more and more ABMs charging user fees, now is the right time for us to join an ABM network,” says J. Roman Fedchyshyn, president and CEO of Manulife Bank of Canada. “By using The Exchange machines, our customers can save $1.25 to $2.50 per ABM transaction.”

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Astra Funds under new management

(July 2, 2003) SSQ Groupe financier has announced changes in management for two of its Astra funds, effective June 27.

The Astra AGF U.S. Equity has been renamed the Astra Jarislowsky Fraser Ltd. U.S. Value Equity to reflect the transfer of the fund’s management from AGF to Jarislowsky Fraser. On June 16, Astra launched its International Equity Fund, also managed by Jarislowsky Fraser.

The Astra International Equity retains its name, but will no longer be managed by Franklin Templeton. Natcan Investment Management will take over the fund.

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(07/02/03)