Briefly:

(April 28, 2006) Return on Innovation (ROI) Capital has teamed up with Sceptre Mutual Funds on the new ROI Sceptre Monthly Income Fund. The fund packages five separate investments into one, leveraging ROI’s experience in mezzanine financing and four Sceptre funds.

“By combining Sceptre with ROI’s mezzanine financing, we offer an interesting combination of debt and equity investment strategies that can produce capital preservation, stable monthly income and growth,” said Fernando Cipriano, president of ROI.

The new fund will include the Sceptre Canadian Equity Fund; Sceptre Bond Fund; the Sceptre Income Trust Fund; and the Sceptre Equity Growth Fund.

The fund is available in four load options: initial sales charge, deferred sales charge, low load and super low load. Excluding ISC, the load options deliver an escalating trailer that reaches 1.2% after 7 years.

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New ETF gives Mexicans access to TSX

(April 28, 2006) Barclays Canada has launched a new exchange traded fund to give Mexican investors access to the hot Canadian market.

The iShares Canadian S&P/TSX 60 Index Fund began trading on the Global Market BMV in Mexico on April 18.

According to Mexican Exchange officials, pension funds in the country were interested in Canadian market exposure and have diversified their portfolios in foreign equity and other international securities.

TSX Group said in a release that it meets with the Mexican Exchange frequently to discuss new initiatives that are beneficial to both markets.

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Sun Life CFO to retire

(April 28, 2006) Sun Life Financial’s chief financial officer and executive vice president, Paul W. Derksen, has announced that he will retire in early 2007, following the filing of 2006 financial statements.

“Paul played a key role in taking us from a policy-holder owned company to a public company with an initial market capitalization of $5 billion, to our strong position today with a worth approaching $30 billion,” said Donald A. Stewart, chief executive officer. “He will continue to be an important member of the executive team until his departure next year.”

Derksen joined Sun Life in February, 2000, and was instrumental in the company’s initial public offering. He transformed the finance function, overseeing numerous important transactions and broad-based finance initiatives. He has not announced any plans for retirement, other than spending time with his family.

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GE Money goes long on mortgages

(April 28, 2006) For homebuyers hoping to minimize the impact that buying a house will have on their cash-flow, there’s a new mortgage option available. GE Money, the mortgage financing wing of General Electric, has launched a 40-year amortization option in Canada.

“A 40-year amortization follows our goal of providing mortgage products to those for whom the rising cost of real estate or their credit situation is a barrier to entering the market,” says Rick Lunny, president of GE Money Mortgages.

The firm says it is offering the ultra-long-term amortization to help consumers combat soaring prices in the residential real estate market. GE Money mortgages are currently available through brokers in Ontario, Alberta and British Columbia, but the company plans to go nationwide by the end of 2006.

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Business owners ask for help on GST cut

(April 27, 2006) Small business owners say they support Ottawa’s pledge to reduce the GST by one percentage point, but caution they will need a time and money to make the adjustment.

Federal Finance Minister Jim Flaherty is expected to include the GST cut in next week’s federal budget, and has promised it would take effect immediately. That may not be realistic, according to the Canadian Federation of Independent Business.

“This isn’t just a matter of changing the settings on a cash register — that can be done fairly quickly,” explains CFIB’s vice-president Garth Whyte. “Our members need a grace period to implement accounting changes for input tax credits, plus some assistance to offset the costs of making the changes.”

Approximately one in five of the 8,000 businesses surveyed by the CFIB said the would need a minimum of one month to make the necessary changes to cash registers, accounting software, tax-inclusive pricing, published materials, online payment software, taxable benefit calculations, input tax credit calculations and adjusting pre-authorized payment transactions.

“Certainly, no-one wants to drag out the transition process,” Whyte says. “But we have to consider that 40% of the respondents say they’ll need some level of outside help to make the necessary changes. That means a backlog of requests for the companies that provide these services.”

The survey also found that implementing the changes to GST will cost Canadian small- and medium-sized businesses, on average, more than $500.

As well as a period of transition, CFIB is asking Ottawa for some kind of compensation, such as a tax credit, to assist firms in dealing with costs associated with the adjustment.

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Ethical appoints new manager for Dividend Fund

(April 27, 2006) Highstreet Asset Management will manage Ethical’s Canadian Dividend Fund, starting June 6, the Vancouver-based socially responsible investment firm has announced.

Located in London, Ontario, Highstreet has a proven strategy for managing Canadian dividend portfolios, and an objective, time-tested investment process, Ethical said in a release. “As well, their track record of managing Canadian equities is excellent.”

“We were looking for a top quality, independent investment management firm to manage our high-performing Ethical Canadian Dividend Fund,” said Ethical Funds president Don Rolfe. “And we believe we have found it in Highstreet Asset Management. They have a well developed team approach to management, similar to other Ethical Funds portfolio managers and have experience with the already successful investment strategy of the fund.”

The dividend fund, rated five stars by Morningstar Canada has a three-year return of 28%. It has been managed by Greystone Managed Investments since 2002.

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CPP, Caisse sign UN principles for responsible investing

(April 27, 2006) The CPP Investment Board and Quebec’s Caisse have both signed on to a global set of principles for responsible investing created by the United Nations.

The principles provide a best practice framework to help integrate consideration of environmental, social and governance factors into investor decision-making and ownership practices, thereby improving long-term returns to beneficiaries, the CPPIB said in a release. The board was one of 20 institutional investors with combined assets under management of $1.8 trillion invited by UN Secretary General Kofi Annan to address the issue of responsible investing from an investment fiduciary perspective.

“The principles for responsible investing provide a clear framework to address the impact environmental, social and governance factors can have on long-term financial performance,” said CPPIB president David Denison. “The publication of a common set of principles for responsible investing is an important step forward. We hope more investors embrace these and help develop the research, tools and methodologies needed to incorporate ESG factors into the investment process.”

“For the entire financial community, socially responsible investment goes hand in hand with the pursuit of sustainable economic development,” added Caisse president Henri-Paul Rousseau. “By bringing together major institutions that endorse these principles, the UN is increasing the overall scope of what these institutions can do individually.”

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IPO markets remain hot

(April 26, 2006) Income trusts dominated the IPO market in 2005, driving total new issuance to $6.4 billion, according to a report issued on Wednesday by Ernst & Young. Just three months into 2006, the trend shows no sign of slowing down.

“We’ve seen a successful year of IPO activity in Canada that we expect to continue through 2006,” says Joe Telebar, partner and strategic growth markets leader for Ernst & Young. “By the end of March this year, the total capital raised through IPOs in Canada already exceeded $1.9 billion, of which over 60% represented income trust IPOs.

There were 65 IPOs in Canada last year, with oil and gas being the most active sector, both in terms number of offerings and the value they represented.

In global terms, the top five IPOs came from the privatization of state-owned businesses in China and France. Meanwhile, Russian companies raised $4.9 billion US in 11 IPOs, quadrupling the cash raised in 2004.

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Rogers Associate Financial Partners comes to Toronto

(April 26, 2006) Rogers Associate Financial Partners is opening its first office in Toronto, as of May 1. The Bay Street office will mark the beginning of a greater expansion into the Ontario market.

“I am very pleased with the progress our team has made in the preparations to establish an entry into the lucrative Ontario market. Our expansion plans are on track and we will begin to see the results of our efforts paying off in a very tangible way,” said John D. Rogers, president and CEO of the Calgary-based company. “As the growth of personal household debt continues to increase at historical rates, the demand for our services becomes even greater.”

The company currently operates offices in B.C., Alberta, and Manitoba and says it has “aggressive” plans to develop new product lines and to enter into new markets across the country.

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GGOF proposes fund mergers

(April 26, 2006) Guardian Group of Funds has proposed the merger of a handful of funds, which, if approved, will be followed by name changes. If approved, the changes will be effective June 23, 2006.

Under the proposal, the GGOF American Growth Fund would be merged into GGOF American Value Fund, with the new name of GGOF American Equity Fund. The GGOF Global Growth Fund would be merged with GGOF Global Value Fund, taking the new name, GGOF Global Equity Fund.

The company is also seeking unitholder approval for the merger of the GGOF Global Health Sciences Fund with GGOF Global Technology Fund, and the merger of GGOF RSP International Balanced Fund into GGOF Global Diversified Fund.

GGOF is also seeking approval to remove the RSP references in the stated fund objectives of the GGOF RSP U.S. Money Market Fund and GGOF RSP Global Bond Fund. The GGOF Canadian High Yield Bond Fund will have its objectives changed to remove references to Canadian issuers. These funds will be renamed accordingly.

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Mackenzie seeks fund mergers, objective changes

(April 26, 2006) Mackenzie Financial has announced it is seeking unitholder approval for mergers and changes to the investment objectives of its Folio Funds and GWLIM Ethics Fund, which are distributed exclusively through Quadrus Investment Services. A meeting will be held June 22, 2006 to consider the proposals.

The company would like to remove weighting restrictions on the Conservative Folio Fund, Moderate Folio Fund, Balanced Folio Fund, Advanced Folio Fund and Aggressive Folio Fund.

Mackenzie is also seeking approval for the merger of the Fixed Income Folio Fund into LLIM Canadian Bond Fund; Canadian Equity Folio Fund into Quadrus Canadian Equity Corporate Class; Global Equity Folio Fund into Quadrus US and International Equity Corporate Class; and GWLIM Ethics Fund into GWLIM Canadian Growth Fund.

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Fixed income manager leaves AGF

(April 26, 2006) AGF Funds has announced the departure of Scott Colbourne, saying he will “pursue an entrepreneurial opportunity outside of the mutual fund industry.” His resignation is effective April 28, 2006.

Colbourne is the lead portfolio manager for AGF Canadian Bond Fund, AGF Global Government Bond Fund, AGF Global High Yield Bond Fund, AGF RSP Global Bond Fund and the AGF-managed portion of Harmony Canadian Fixed Income Pool.

Colbourne’s role as lead manager will be filled by Tristan Sones and Tom Nakamura of the AGF fixed income team, as the company conducts a search for a new manager.

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Goodman joins Woodruff board

(April 26, 2006) Woodruff Capital Management has appointed Ned Goodman, CEO of Dundee Wealth Management, to its board of directors, effective April 24.

Goodman, who has nearly four decades of investment experience, will also serve on the company’s technical advisory committee.

“Mr. Goodman’s wealth of experience in the investment and mining communities fits perfectly with the company’s strategic focus,” said Woodruff president Gérald Riverin in a statement.

Woodruff focuses on base metal exploration in Quebec, Ontario and Newfoundland.

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Slowing U.S. economy will have ripple effect

(April 25, 2006) The U.S. economy is beginning to slow down, setting in motion a domino effect that will influence the rest of the world, tempering growth through this year and next, according to Export Development Canada.

“The globalization of economies means that when the U.S. sneezes, everybody catches cold these days,” said Stephen Poloz, chief economist at EDC. “The economic dominoes have begun to fall, led by moderations in the U.K., Australia and now the U.S. When combined with persistently high oil prices and a strong Canadian dollar, this will prove challenging for the Canadian exporter.”

EDC is forecasting 4.3% global economic growth in 2006 and 4.1% in 2007, down from 4.5% in 2005. In Canada, economic growth was 2.9% in 2005, and is forecast to remain steady at 3% this year, before tapering off to 2.7% in 2007.

With inflation largely under control and expectations of slower growth later in 2006, central banks are nearing the end of their tightening cycles, EDC notes, adding that is also expects the soaring loonie to lose ground over the next couple of years, dropping to around 80 cents US by the end of 2007 as oil prices decline.

EDC predicts a decrease in the price of oil to $60 per barrel this year and a further drop to $56 in 2007.

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Trade barriers making Canada less competitive

(April 25, 2006) Trade barriers, both within Canada and internationally, are hurting Canadian businesses, according to a survey released on Tuesday by the Conference Board.

The board questioned 198 Canadian firms, and found that the majority believed that federal and provincial trade barriers increased costs and lowered productivity. Standards and regulations were most commonly cited as barriers, but government procurement policies and restrictions on labour mobility were also seen affecting business performance. In addition to compliance costs, respondents said they must also allocate resources to develop strategies to deal with trade barriers.

“Canada would benefit from a fresh dose of competition,” said Conference Board chief economist Paul Darby. “Although tariffs on goods are declining, the list of non-tariff barriers is daunting. The primary impact of these barriers is to raise costs, which reduces the competitiveness of Canadian firms. This is not a federal versus provincial issue — all governments are responsible for maintaining barriers.”

Darby says the most challenging task is reforming provincial trade barriers, recommending that free trade be established as the standard for inter-provincial trade.

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Morneau Sobeco takes over Heath Benefits Consulting

(April 25, 2006) The Morneau Sobeco Income Fund has announced plans to purchase all issued and outstanding shares of Heath Benefits Consulting in a deal estimated to be worth $15.5 million.

“With this acquisition, Morneau Sobeco will solidify its position as the largest Canadian-owned pension and benefits consulting and outsourcing firm in the country,” the firm said in a release.

Heath, which also provides employee benefit services, has approximately 90 employees in five offices across Canada, mostly serving small and medium-sized businesses.

Morneau Sobeco intends to merge its own operations with Heath’s in Vancouver, Calgary, Toronto and Ottawa, and will add a new office in Winnipeg.

The transaction is expected to close at the end of the May, pending due diligence by Morneau Sobeco and regulatory approval.

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IDA dismisses charges against former rep

(April 24, 2006) The IDA has dismissed charges against a former Vancouver registered representative accused of submitting inaccurate industry application forms.

In 2003, the IDA’s enforcement staff alleged that Tiffany Yen Siam Mu, who worked for RBC Dominion Securities, submitted a false registration transfer information application and a false national registration database form.

However, a hearing panel concluded that although Mu’s responses to certain questions on the forms were technically false, she did not know how to properly answer the questions. The panel also found that Mu, who is no longer working in the industry, believed her answers were accurate and, subsequent to completing the forms, attempted to determine whether she had taken the proper course of action.

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Jovian subsidiary introduces new gold funds

(April 24, 2006) BetaPro Management, a subsidiary of Jovian Capital and the manager of the Horizon Beta ProFunds, is launching a pair of gold funds, which the company says will offer investors the opportunity to profit from, or protect against, any rise or fall in bullion prices.

The Horizons BetaPro Gold Bull Plus and Gold Bear Plus Funds will provide investors with 200% exposure to gold for every dollar invested, the company said in a release. The funds’ underlying benchmark index is the GSCI Gold Excess Return Index, which tracks the nearby futures contract price of refined gold on the COMEX division of the New York Mercantile Exchange. The funds are denominated in U.S. dollars but can be purchased with either Canadian or U.S. funds.

“We look forward to the response from advisors across the country, knowing that we have introduced these unique products in response to repeated statements of need,” says Adam Felesky, president of BetaPro. “We are also excited that Canadians will be the first to have access to this type of portfolio tool for physical gold.”

In addition to the gold bull and bear Funds, BetaPro is also launching similar products for the S&P 500, bringing the Horizons BetaPro fund family up to 14. BetaPro also offers bull and bear fund options for the S&P TSX 60, the NASDAQ 100, the 10-year Government of Canada Bond, the U.S. Dollar versus the Canadian Dollar, and crude oil.

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AXA Rosenberg appoints CIBC Mellon

(April 24, 2006) CIBC Mellon Global Securities Services will take over as asset services provider for the institutional pooled fund products managed by AXA Rosenberg Group LLC in Canada. The global equity manager appointed CIBC Mellon to provide global custody, fund accounting, unit holder record keeping, securities lending and foreign exchange capabilities for the firm’s institutional products.

“We are pleased to be AXA Rosenberg Group’s asset service provider of choice,” said Thomas MacMillan, president and CEO of CIBC Mellon. “We look forward to working with AXA Rosenberg Group as they expand their presence in the Canadian market.” The group currently has approximately $90 billion in assets under management.

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Saskatchewan Teachers appoints State Street

(April 24, 2006) State Street Corporation has been appointed to provide custody, accounting, securities lending and compliance services to the provincially sponsored Saskatchewan Teachers’ Superannuation Commission.

The fund, established under the Teachers’ Superannuation and Disability Benefits Act, administers pension, long-term disability, dental and group life benefits for Saskatchewan teachers. The fund currently has $1.7 billion in assets.

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