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(August 24, 2007) In a sign that the money market liquidity crisis may already be abating, French bank BNP Paribas has announced that it will resume trading in the three funds it suspended from redemptions on August 7.

Valuations, sales and redemption will resume on August 28 for ABS Euribor and ABS Eonia, while Parvest Dynamic ABS will reopen on August 30.

“BNP Paribas Investment Partners has developed a pricing mechanism which would allow subscriptions and redemptions to resume, as it promised since the outset,” the company said in a press release. “This mechanism combines several valuation methods, in particular using pertinent market indices when they are available and taking into account illiquidity factors by issuer category.”

Using the new valuation mechanism, the BNP estimates a loss of net asset value of between 2% and 3% for the ABS Euribor fund. The NAV for ABS Eonia is estimated to have fallen 2.5% to 3.5%, while Parvest Dynamic ABS is down 4% to 5%.

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Northwest joins list of ABCP buybacks

(August 24, 2007) Northwest Mutual Funds has announced that it will assume the third-party asset-backed commercial paper currently held in the Northwest Money Market Fund.

While the company says its funds have not been adversely affected by recent illiquidity in the asset, it said in a release that it was “reconfirming its commitment to providing its investors with rigorous risk control management and sheltering them from the uncertainty currently prevailing in the ABCP market.”

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Broker guilty of unknowingly facilitating fraud

(August 24, 2007) The IDA has found Chak (Jason) Ng guilty of unknowingly facilitating market manipulation by permitting the frequent and exclusive trading of a single stock in seven accounts held by people all introduced by the same individual.

Between October 20 and November 22, 2004, Ng did not question the suspicious trading activity until he was instructed to do so by his compliance department. The trading instructions came from Michael Mitton, who was not authorized to trade in the accounts and was subsequently charged with fraud and money laundering.

The IDA hearing panel found that while Ng did not know of the manipulation, his conduct amounted to gross negligence, which is clearly conduct unbecoming. Penalties will be determined at a later date.

At the time of the manipulation, Ng was employed by HSBC Securities (Canada) in Toronto. He is currently employed at Research Capital Corporation.

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BMO boosts mining desk

(August 24, 2007) BMO Capital Markets has hired four new equity analysts, in an effort to expand its research coverage of global metals and mining companies. BMO has one of the world’s largest dedicated mining research teams, at 23 members.

“This is a major acquisition of intellectual talent,” said Yvan Bourdeau, CEO of BMO Capital Markets. “We are committed to building our capabilities beyond what we already offer. It is our goal to continue to solidify our position in the resources sector and to widen the gap between BMO Capital Markets and our worldwide competitors.”

Senior analysts Tony Robson and David Haughton join BMO from Australia’s Global Mining Research, and will be based in Toronto. Two additional and yet to be named analysts will be based in BMO’s office in London, England, starting in September.

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VenGrowth expands national sales force

(August 24, 2007) VenGrowth Asset Management has announced it is adding to its sales force in British Columbia, Quebec and Atlantic Canada. The hiring of two new sales executives expands the firm’s reach beyond its traditional Ontario base.

“We have established a track record of exceptional service to investment advisors in the Ontario marketplace for over 12 years now,” said Craig Keates, VenGrowth executive vice-president, sales and marketing. “The recent overwhelming demand for innovative solutions from our retail structured investment product arm, Criterion Investments, has enabled us to expand VenGrowth’s advisor partnerships across Canada.”

Scott Miller has joined the firm as regional vice-president exclusively covering British Columbia, and will be based in Vancouver. France Laliberté has joined VenGrowth as regional vice-president covering Quebec and Atlantic Canada, and will be based in Montreal.

(08/24/07)