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AlphaPro Management has announced the listing an ETF that will track the recently created S&P/TSX 60 Equal Weight Index. The Horizons AlphaPro S&P/TSX 60 Equal Weight Index ETF begins trading today on the TSX under the symbol HEW.

The Equal Weight Index is comprised of 60 of the largest and most liquid stocks listed on the TSX, selected by Standard & Poor’s using its industrial classifications and guidelines for evaluating issuer capitalization, liquidity and fundamentals.

“Using an equal weight methodology versus a cap-weighted methodology can result in some subtle but meaningful differences in the composition of an index,” said Ken McCord, president of AlphaPro. “Using an equal weight methodology tends to lower the sector concentration of an index and assigns greater exposure to smaller companies in the index.”

The traditional cap-weighted S&P/TSX 60 Index tends to concentrate assets in a handful of stocks. For example, as of June 21, the last rebalancing date, the 10 largest companies made up 45.4% of the cap-weighted index. The same stocks make up just under 17% of the equal-weight index.

“An equal weight methodology reduces industry sector concentration. It allocates greater weighting to sectors such as industrials, healthcare, and consumer staples, which can offer greater diversification within an investor’s portfolio,” McCord said. “At each quarterly rebalancing, the index reduces positions in stocks that have gone up the most and reallocates those proceeds to stocks that have lagged. In effect, the equal weight index sells high and buys low.”

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Empire Life offers two new funds in GMWB

Empire Life has introduced two new segregated funds available in Class Plus GMWB product. The two new offerings are balanced funds combining an Empire Life flagship equity fund with core fixed income exposure.

The Empire Life Dividend Balanced Fund is comprised of 80% Empire Life Dividend Growth Fund and 20% Empire Life Bond Fund. The Empire Life Elite Balanced Fund is comprised of 80% Empire Life Elite Equity Fund and 20% Empire Life Bond Fund.

Both funds will be managed by the Empire Life investment team, led by CIO Gaelen Morphet, using a value-oriented, disciplined investment approach.

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TDAM assumes management of two funds

TD Asset Management has announced portfolio adviser changes for two of its funds, bringing the management in-house.

As of July 21, 2010, TDAM will take over the $1.1 billion TD Balanced Growth Fund from McLean Budden Limited. It will be managed by TDAM managing directors, John Smolinski and Les Grober.

“Combining John Smolinski’s Canadian equity expertise with the capabilities of our award winning fixed-income team provides investors with best-in-class fund management,” said Thomas Dyck, president, TD Mutual Funds.

Effective on or about September 30, 2010, TDAM will also take over management of the $1.1 billion TD Canadian Blue Chip Equity Fund from Jarislowsky, Fraser Limited. The fund will be managed by Michael O’Brien, vice-president and director, TDAM.

“We are pleased to extend our blue-chip investing capabilities to more of our clients,” said Dyck. “TDAM has a long-standing track record of providing blue chip investing to discretionary high net worth investors, and with this change, we will be bringing this expertise to our retail and advisor channel investors.”

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Sprott hands off CEO post

Peter Grosskopf, a 23-year veteran of the Canadian financial services industry, will be succeeding Eric Sprott as CEO at Sprott Inc. as of September 7. As CEO, Grosskopf will be responsible for overall strategy development and implementation.

Kevin Bambrough will continue in his role of president, focusing on new investment strategies, while Sprott himself will assume the position of chairman of Sprott Inc. and chief investment officer of Sprott Asset Management LP.

In addition, Grosskopf will take the helm, as president and CEO, of a rebranded Quest Capital Corp. Upon approval of Quest shareholders, the company is to be renamed Sprott Resource Lending Corp. and focus on natural resource lending.

Prior to his most recent stint as president of Cormark Securities Inc., Grosskopf was one of the co-founders of Newcrest Capital Inc., which was acquired by the TD Bank Financial Group in 2000. He has extensive experience as an advisor and underwriter to companies in a wide variety of sectors.

In recognition of his past experience and future contributions to Sprott Inc., a deferred share incentive program for Grosskopf, consisting of five-million common shares of Sprott Inc. over the next three years, will be personally funded Sprott’s founder.

(07/14/10)