Briefly:

Previous Brieflies this week: | MON | TUE | WED | THU |

Russell Investments has released new research in an attempt to broaden the active versus passive investing debate, outlining five key factors investors should consider when deciding which approach to take.

“We take issue with the conduct of the active versus passive debate, which has made the mistake of framing the issue exclusively in terms of whether active management can outperform an index,” says Don Ezra, Russell’s co-chairman of global consulting and chairman of the Russell Global Knowledge Management Group.

“Ultimately, the question of whether to choose some alternative to passive investing should not be approached as a single, all-encompassing decision,” he says. “The choice is likely to vary across asset classes, investors and even time.”

According to the company’s research, there are five factors that might cause an investor to seek an alternative to a passive approach. These include:

• no readily replicable index being available; • the passive index being at odds with the investor’s objectives; • the standard of the passive index being inefficiently constructed; • the investment environment favouring active management in general; and • whether or not a skilled manager could be identified.

Russell chief investment officer Pete Gunning said the new research offers an excellent framework for the investment community to consider. “Active versus passive is a constant topic of debate, and investors need to understand how their unique objectives and circumstances figure into determining the optimal investment approach.”

• • •

PH&N service embraces DIY investors

Phillips, Hager & North has announced the launch PH&N Investment Services, a direct-to-investor business based on low-fee funds, personalized service and advice, and online tools.

“Canadian investors have typically chosen between a discount brokerage and a full service advice offering, but for some these options may not best suit their needs,” said Mark Neill, head of PH&N Investment Services. “We bring something different to the marketplace – our service is ideally suited for fee-conscious investors who are looking to manage and maintain their own investments but also want the comfort of professional advice when they need it.”

DIY investors have access to the full range of funds offered by PH&N and its corporate parent RBC, including Series D units, which carry no loads and no transaction fees, and have a trailer-free MER, comparable to an F class unit.

“We believe that investors who manage their own investment portfolios should pay lower fees as a result,” said Neill. “With the launch of the PH&N Investment Services brand and enhanced service offering, we will continue to provide the exemplary services our clients have come to expect and invite new investors to experience the same.”

• • •

Acuity seeks fund objective changes

Acuity Funds has announced it will seek shareholder approval to make changes to the investment objective of its Acuity Global Dividend Class fund.

The changes would allow the fund to seek “a high level of current income and long-term growth of capital primarily through investments in units of the Acuity Diversified Income Fund.”

If the change is approved, Global Dividend Class will be renamed as “Acuity Diversified Income Class.”

Notice of the shareholder meeting and information circular will be mailed to applicable shareholders for a meeting to be held on or about March 24, 2010.

• • •

GrowthWorks revises Commercialization Fund rules

GrowthWorks Commercialization Fund has implemented revised investment allocation rules, which were previously announced and approved by shareholders.

“These changes will result in greater diversification for the Commercialization Fund’s investors and further enhance their opportunity for capital appreciation,” said David Levi, president and CEO of GrowthWorks.

Under the new rules, all previously offered Series participate in a single, pooled venture investment portfolio. The currently offered 10 Series will participate in the pooled venture investment portfolio commencing on a date in March 2010 after the end of the RSP season.

(02/11/10)