Briefly:

(August 14, 2003) The CPP Investment Board (CPPIB), the body that oversees equity investments for the CPP, has committed $550 million to new and existing private equity partnerships.

The CPPIB has $5.6 billion committed to 37 limited partnerships, with $1.6 billion of that already invested in private equity. The latest commitment of funds are to Ares Corporate Opportunities Fund, Credit Suisse First Boston (CSFB) Private Equity Customized Fund Investment Group and Lehman Brothers Venture Partners 2003.

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Assante reports slightly higher profits on lower revenue

(August 14, 2003) Assante today reported a 6% rise in second-quarter profits to $6 million. However, revenues at the Winnipeg-based financial planning firm slipped 11% to $84.7 million.

“The decline in distribution revenues is attributed to several factors including the lingering impact of the recent bear market and the transition of advisor practices from commission-based to fee-based compensation,” Assante said in a statement.

“We are pleased with these results,” added Assante CEO Martin Weinberg. “They confirm our strong performance, even during challenging times.”

Weinberg also noted that the board of directors is continuing to consider a number of strategic alternatives, including pursuing several acquisitions. However, he said no details will be released until there is definitive news to report.

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Personal finance magazine shuts down

(August 13, 2003) IE:Money magazine is closing. The personal finance publication, which was largely distributed through advisors to their clients, will end its run with the October/November edition.

Publisher Transcontinental Media has yet to issue a formal release, but an internal company memo dated August 11, 2003, states the decision was driven by “weak demand in the marketplace.”

The memo also states that Transcontinental remains “fully committed to Investment Executive, Finance et investissement, and their Web sites.”

There’s no word on whether the closure will result in any job losses.

Calls to IE:Money publisher Pierre Duhamel were not returned. A spokesperson for Transcontinental would not comment on the magazine’s demise.

Transcontinental, based in Montreal, publishes consumer and trade magazines, as well as community newspapers.

The closure has already affected some advisors — join a conversation about IE:Money already underway in the Talvest Town Hall.

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Fed stands pat on rates

(August 12, 2003) Surprising no one, the U.S. Federal Reserve announced today that it will leave its trend setting interest rate unchanged.

But anyone expecting the Fed to tighten rates in the near future might have been surprised, after it pointed out the risks of inflation still outweighed the fear of deflation, saying interest rates would remain low for “a considerable period.”

Bonds moved higher on the news, as investors recognized current yields as attractive, at least for the near term.

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RBC adds new load funds

(August 12, 2003) RBC Asset Management has added load versions of 10 funds currently offered with no-load and fee-based pricing options.

“We continue to broaden our load fund offering through the Advisor Series to support the growing interest in this channel,” said Jonathan Hartman, vice-president of RBC Asset Management Inc. “The funds we have added will appeal to investors looking for diversification through global- and sector-focused investment solutions.”

The new funds include RBC’s Global Balanced Fund, U.S. Equity Fund, Global Titans Fund, Global Communications and Media Sector Fund, Global Consumer Trends Sector Fund, Global Financial Services Sector Fund, Global Health Sciences Sector Fund, Global Industrials Sector Fund, Global Resources Sector Fund and Global Technology Sector Fund.

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Russell/Mellon Canada names board

(August 11, 2003) Russell/Mellon Canada, a new subsidiary of Russell/Mellon Analytical Services, LLC, has named six members to its board of directors.

The board is made up of Tom MacMillan, president and CEO of CIBC Mellon, who will serve as board chair; Shawn Menard, managing director of Russell/Mellon Canada; Raj Vijh, director of finance and administration of Frank Russell Canada Limited; Vince Sands, senior vice-president of Mellon Financial Corporation; Bill Pryor, president and CEO of Russell/Mellon; and Eve Kingsley, director of global business development and client service for Russell/Mellon.

CIBC Mellon will transfer 12 employees to Russell/Mellon Canada. Russell/Mellon provides performance measurement and analytical services to CIBC Mellon.

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Fed to announce rates decision tomorrow

(August 11, 2003) The U.S. Federal Reserve will announce its decision on interest rates tomorrow afternoon. With rates already sitting at 1%, it is widely expected there will be no change, but Fed watchers will be interested in learning the trend-setter’s take on the U.S.’s economic future.

Bond traders are expected to react, depending on the wording of the press release. Too much optimism could send bonds plummeting, sending yields higher, a move the Fed would not likely relish.

“A sustained jump in rates would bring the sustainability of consumer spending into question. Look for the Fed to keep an easing bias with regard to the price outlook and a neutral bias with regard to the growth outlook,” says John Anania, assistant chief economist at RBC Financial.

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(08/11/03)