Briefly:

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National Bank Securities has announced plans for a massive overhaul of its mutual fund lineup, which would result in the merger of 29 National Bank and Altamira Funds with similar investment objectives.

The plan calls for the modification of three funds’ investment objectives, and includes renaming 15 funds to better reflect their investment objectives and brand attributes.

“This is the final phase of the process of integrating Altamira into National Bank Securities, a process that began last November”, declared Charles Guay, president and CEO of National Bank Securities.

Upon completion of the reorganization, National Bank Securities will include four distinct fund families.

National Bank Mutual Funds will consist of “core” funds managed by Natcan Investment Management. The Altamira Funds brand will be made up of specialized funds, also managed by Natcan Investment Management.

Funds that are managed by external firms will fall under the Omega Funds brand, while Meritage Portfolios will be comprised of 100% third-party funds.

A special meeting has been scheduled for June 4 to 11, 2009, where unitholders of the relevant funds will consider the changes.

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Investors focus on emerging markets private equity

Institutional investors believe emerging markets will continue to present attractive investment opportunities this year and plan to maintain or expand their exposure to emerging markets private equity (EM PE) over the medium term, according to a recent survey.

The Emerging Markets Private Equity Association (EMPEA)/Coller Capital Emerging Markets Survey found that 78% of limited partners (LPs) invested in EM PE intend to commit to additional EM PE managers and geographies over the next five years. Almost half (49%) plan to do this within the next two years.

Sixty-two percent of LPs invested in EM PE plan to maintain or increase their new commitments in 2009. Those who expect to reduce these commitments (38%) cite cash constraints and over-allocation to private equity as the main reasons.

“Investors recognize that emerging economies are the only ones still growing. They also know that, since private equity deals in emerging markets don’t rely on debt, the collapse of the global leveraged finance markets won’t impede deal flow,” said Sarah Alexander, president of the EMPEA.

The survey also found that 77% of LPs expect net annual returns of 16% or more from their EM PE funds over the next three to five years, compared to 43% of LPs who expect the same from their entire private equity portfolio.

The EMPEA/Coller Capital survey studied the plans and opinions of 156 institutional investors based in North America, western Europe, central and eastern Europe, Asia, Africa, the Middle East and Latin America.

(04/06/09)