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American consumer confidence has taken another hit, according to the RBC CASH (Consumer Attitudes and Spending by Household) Index, but expectations for the future are starting to improve.

A six-year low was reached for the January 2009 reading of the index, following dismal retail and employment data for the final quarter of 2008. The January reading stands at 13.3, down from 15.3 in December.

“Despite this downcast mood, the tick higher in expectations suggests hope for the future under the new administration, although the outlook is clearly cautious,” said T.J. Marta, economic and fixed income strategist for RBC Capital Markets.

The “expectations” segment of the index improved from -21.2 to -11.3 month over month, reflecting hope that much-talked-about government stimulus will soon improve the lives of the average American. Still, just 30% thought their local economy would be better in six months.

“Many consumers appear to be holding their breath to see what the new administration will do to address the struggling economy,” added Marta. “A lack of decisive action or some quick results could negatively affect the economic confidence of the American public, causing it to sink yet further.”

Opinions on investing, however, marked an all-time low, with 66% saying they are less confident in their ability to make investments now than they were six months ago.

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Counsel offers Portfolio Component Funds

Counsel Wealth Management has unveiled Counsel Portfolio Component Funds, which are designed to complement the firm’s existing range of portfolios.

The new suite consists of eight funds, including growth and value mandates for Canada, the U.S., and international markets, rounded out with Canadian dividend and global real estate offerings.

“This marks the next chapter for Counsel as a portfolio service provider,” says Sam Febbraro, Counsel’s president and chief executive officer. “Our expanded range of solutions will give our advisor partners greater flexibility, greater transparency and a wider choice of investment strategies when recommending a portfolio solution to their clients.”

Counsel also announced three new additions to its roster of sub-advisors: Sionna Investment Managers; Picton Mahoney Investment Management; and Montrusco Bolton Investments.

“Counsel’s ability to provide an unbiased selection of investment specialists along with stringent monitoring, and, when necessary, the replacement of investment specialists, is a significant value-added proposition to advisors,” said Febbraro. “By providing this crucial, but cumbersome, service to advisors, Counsel enables them to concentrate on managing the needs of their clients more effectively.”

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BMO expands New York M&A office

BMO Capital Markets has announced the expansion of its mergers and acquisitions practice in the U.S., hiring David L. Sawyer as managing director and head of U.S. restructuring. He will be based in New York City.

“Given the current economic climate, we anticipate increased activity in the corporate restructuring marketplace and are pleased that David, with his depth of knowledge and experience in restructuring distressed companies, has joined BMO to help grow our presence in this arena,” said Scott W. Humphrey, executive managing director, head of U.S. mergers and acquisitions.

Sawyer comes to BMO from Silver Point Capital, which specializes in distressed debt investments.

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Acuity seeks consent to merge funds

Acuity Funds is seeking unitholder approval to merge the Acuity Global Equity Fund into the Acuity Global Dividend Fund.

At the same time, unitholders of the Acuity Pure Canadian Equity Fund are being asked to approve a merger with the Acuity Canadian Equity Fund.

If approved at a March 12, 2009, meeting, the aforementioned changes are anticipated to become effective by the end of March 2009.

(01/15/09)