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GMP Private Client has established a partnership with Benefaction, a charitable public foundation, to provide clients and investment advisors with access to customized charitable giving program.

GMP Private Client’s Charitable Giving Program provides clients with two options for their philanthropic donations: direct giving or donor advised funds. Benefaction handles the administration of funds, fulfills the donor’s granting wishes and manages a process of due diligence for four Charity Portfolios.

“High-net-worth Canadians are becoming more philanthropic,” says James Werry, CEO of GMP Private Client. “While they’re giving more every year, they want to maximize the impact of their donations. Through our partnership with Benefaction, we’re offering our clients innovative, cost-effective solutions to charitable giving, enabling them to integrate philanthropy into their overall wealth management strategies.”

Benefaction CEO, Nicola Elkins, says affluent Canadians also want to be able “assess philanthropic value” of their donations.

“Affluent Canadians want to make a difference and create a meaningful legacy for future generations. However, they’re becoming far more discerning in assessing philanthropic value for their hard-earned money. That’s where Benefaction plays a key role — we work with Canadians and their advisors to provide powerful, cost-effective strategies for maximizing their charitable giving.”

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Hedge fund assets to double by 2013: study

Hedge fund assets will bottom out at roughly $1 trillion in 2009, after which capital appreciation and $800 billion in net inflows over the next four years will push global levels to $2.6 trillion by 2013, according to a new study released today by The Bank of New York Mellon and Casey, Quirk & Associates.

The study, entitled The Hedge Fund of Tomorrow: Building an Enduring Firm, finds institutional investors firmly committed to hedge fund investing. Despite being amongst the largest pool of asset for hedge funds, institutional investors comprised less than 20% of hedge fund redemptions in 2008-2009.

The study expects North American pension plans to represent the single largest source of new capital between 2010 and 2013, followed by British and Northern European institutions.

Depending on market conditions, global high net worth investors could account for as much as 60% of new net flows between 2010 and 2013. Their return to hedge fund strategies will rely on capital market conditions and hedge fund performance.

The study expects funds of hedge funds to become the primary distribution channel, capturing almost 60% of net inflows between 2010 and 2013. The study says these products offer services most investors will find difficult to replicate on their own, such as manager-sourcing and ongoing due diligence.

“The events of 2008 have changed the old dynamic. Investor and regulatory demands for new levels of transparency mean the legacy operating model no longer works,” said Brian Ruane, executive vice president of alternative investment services at The Bank of New York Mellon. “Hedge funds increasingly will turn to independent third parties for middle- and back-office functions such as portfolio accounting and reconciliation, custody of non-collateral assets, pricing and valuation, cash management, and counter-party risk-mitigation.

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Earth Day highlights SRI: TD

It’s becoming easier than ever to realize investment returns while nurturing the “green” side of the economy, according to Bob Gorman, chief portfolio strategist with TD Waterhouse.

Despite the recent difficulty sustainable investments have encountered, Gorman says there are some sectors — particularly wind power — that currently present good value.

“If one looks at the rise of crude prices from their cyclical lows coupled with the U.S. government’s support of green energy, including the wind production tax credit through to 2012, we see an opportunity for green-minded investors,” he says. “While long-range forecasts for any technology should be viewed with caution, wind’s increasing cost-competitiveness augurs well.”

He says solar power — particularly the photovoltaic variety — should also be on investors’ radar screens [should you use the word screen? Typically the term that is used for deciding what SRI to include/exclude from portfolio] as the cost of high-grade polysilicon, which is used in photovoltaic cells, has declined sharply in price.

Gorman feels that the renewable energy sector has been oversold in recent months, due to falling crude oil prices and costlier credit, but says this sector may now represent a good buying opportunity.

“Many Canadians use Earth Day as an opportunity to take stock of their carbon footprint and make resolutions to help the environment by using public transportation and recycling,” says Gorman. “Investors who value sustainability can use this opportunity, as well, to consider their green investment strategy.”

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AGF refines fund line up

AGF Funds has announced a series of changes to its products and fund management processes.

Effective April 20, the investment strategy of AGF Canadian Conservative Income Fund will be known as the AGF Canadian Conservative Inflation Managed Income Fund.

At least half of the fund’s assets will be invested in aggregate floating rate and inflation-linked bonds to help manage inflation when interest rates rise. AGF Funds will remain as the portfolio manager.

The investment strategy of AGF World Balanced Fund will move from 90% equities and 10% bonds to a more conservative 70%/30% weighting. The strategic mix of 70%/30% for the fund will remain static. AGF Funds will remain portfolio manager with AGF International Advisors Co. Ltd. as the portfolio advisor.

Other changes include:

• Highstreet Asset Management will replace INTECH Investment Management LLC to manage AGF U.S. Risk Managed Class and AGF U.S. Risk Managed Fund.

• Nomura Asset Management will no longer be a portfolio advisor for AGF China Focus Class, AGF Japan Class or AGF Japan Fund. AGF Asset Management Asia Ltd. will be portfolio advisor on AGF China Focus Class.

• AGF is capping the AGF Elements Advantage feature on its Elements products to new purchases, effective June 22, 2009. Eligible units purchased prior to June 22, 2009 will be grandfathered.

&#8226 The closing of AGF World Opportunities Fund, originally scheduled to take place April 20, has been postponed until further notice.

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Standard Life announces appointment

Standard Life Assurance Company of Canada has appointed Anita Lieberman as vice-president, business development, group savings and retirement.

“We are pleased to welcome a professional who is renowned for her strong customer focus, insightful strategic vision and entrepreneurial approach,” says Claude Leblanc, senior vice-president, group savings and retirement with Standard Life. “In addition to strengthening current relationships with customers, consultants and brokers, Mrs. Lieberman will develop new sources of business for us. She will play a pivotal role in enhancing customer satisfaction and adding value to our members and sponsors experience.”

With 30 years of experience in the pension and retirement market, Lieberman has occupied several management positions at some of Canada’s leading insurance companies. She will be based in Toronto.

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AIC announces new preferred income fund

AIC Limited has launched the new AIC Preferred Income Fund, aimed at reducing risk and volatility.

“At AIC, we recognize that many financial advisors and investors would like to ease their way back into the markets while still protecting their current portfolios against additional risk and volatility,” says Jonathan Wellum, AIC’s CEO and CIO. “With its focus on reducing risk and volatility and also generating a predictable income stream, we believe the new AIC Preferred Income is an ideal fund to help investors begin to take steps to earning the returns they’ll need in order to achieve their long term investment and retirement goals.”

AIC says the new fund offers investors less volatility, reduced risk and a high and predictable income stream of 5% annualized distribution. The fund’s investment objective is to generate steady income and achieve capital preservation by investing primarily in preferred shares of Canadian companies, royalty and income trusts and fixed income securities.

“Preferred shares are safer than common shares because they rank higher up the capital structure,” says Randy LeClair, senior vice-president and lead manager of the fund. “Traditionally, only Canada’s largest, most credit-worthy public companies can earn access to the preferred share market. AIC is very familiar with all of the issuers in this space. And as a result, we are confident that the new AIC Preferred Income Fund will come to own the best of those issuers.”

(04/20/09)