Briefly:

(September 4, 2003) Rockwater Capital has announced it has signed a letter of intent that will lead to the takeover of Toronto-based Brawley Cathers. The firm will be folded into Rockwater’s First Associates Investments.

“When completed, the acquisition will add a team of high-quality investment advisors to the expanding First Associates Private Client Group, enhancing our presence in the Toronto market and increasing our total client assets under administration to over $4.75 billion,” said Bill Fulton, COO of both Rockwater and First Associates.

The deal is expected to close October 31, pending the usual regulatory approval.

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Bank of Canada cuts key rate

(September 3, 2003) The Bank of Canada has lowered its trend-setting overnight rate by 25 basis points to 2.75%, with the bank rate now standing at 3%.

The bank said that declining inflation rates since the July 15 rate announcement had eased fears of the economy running out of control. The bank also said that due to the various hits the economy had taken over the summer, the danger of runaway inflation was low enough to merit the rate cut.

But the bank also said as the effects of severe acute respiratory syndrome, mad cow disease, the Ontario blackout and B.C. forest fires faded, the economy would return to a robust, sustainable growth rate.

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CI eliminates 45 funds through mergers

(September 3, 2003) CI Funds has completed the merger of 45 funds — mergers that were approved by unitholders on August 27, just days after CI’s announcement it was taking over Assante Asset Management and Synergy Mutual Funds.

“These mergers are part of our ongoing process of streamlining our overall lineup and making our funds more efficient to operate, creating savings for their unitholders,” said Peter W. Anderson, CI president and CEO.

Most of the eliminated funds were under the Insight and Clarica brands. There has been much talk of CI merging the majority of the Synergy funds into its current stable of offerings as well.

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AIM Trimark PD series stresses advisor value

(September 3, 2003) AIM Trimark is asking advisors if they are worrying too much about events beyond their control as the theme of this year’s professional development sessions. The fund company says advisors must demonstrate the value of the advice they offer their clients.

“Client-advisor relationships should not be built, revolve around or solely depend on the fortunes of the market. Investors and their advisors should be focusing their efforts on areas that are in their control. That’s the message we’re trying to convey this year,” says AIM Trimark president and CEO Philip Taylor.

The cross-country AIM Trimark PD 2003 series will begin on September 3 in Victoria, B.C., and finishes November 12 in Kelowna, B.C.

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AIMR names CIBC exec as vice-chair

(September 3, 2003) The Association for Investment Management and Research (AIMR) has announced the appointment of a Canadian to the position of vice-chair of its board of governors. Monique E. M. Gravel is first vice-president, portfolio manager and branch manager at CIBC in Montreal.

“As a professional investor, I have seen and directly benefited from AIMR’s many initiatives to build integrity and investor protection into the financial markets,” said Gravel. “I am therefore delighted to take on additional responsibilities and to contribute in any way I can to fulfilling its mandate.”

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Franklin Templeton targets HNWs with new pooled portfolios

(September 2, 2003) Franklin Templeton Investments has launched a new family of pooled portfolios, branded as Tapestry, aimed at Canadian high net worth investors.

There are 11 Tapestry portfolios made up of various funds from Franklin Templeton including hedge-fund-based investments. The portfolios are actively managed to allow the fund managers to adjust the blend of asset classes and investment styles.

“In the overall asset mix of each portfolio, they have the discretion to adjust asset class weighting as much as 5% from its benchmark,” said Don Reed, president and CEO of Franklin Templeton Investments. “As well, within each individual asset class, the manager has the flexibility to change fund selection and weighting as much as necessary, up to 100%, to take full advantage of market opportunities.”

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(09/02/03)