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Standard Life has said in a recent report that investors need to reassess their medium-term asset allocation in response to changing demographic trends and government policies.

The interplay of the current economic situation and demography will create opportunities in certain areas while dampening others. Investors should consider investments that will benefit from an aging population, such as pharmaceuticals and leisure stock.

An increasing post-retirement population will also bring on a change in investment menu and risk appetite. Confidence that inflation will stay low is diminishing. As a result, there is a shift from nominal to real assets as government deficit grow due to increase spending on pensions and healthcare.

According to Frances Hudson, global thematic strategist with Standard Life Investments, “Investors taking a medium- to long-term view would do well to look beyond the end of the current business cycle and consider the likely characteristics of the next”.

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RBC appoints co-heads of its global energy research

As one of the top five global research platforms, RBC Global Energy Research has expanded its team to include Kurt Hallead and Greg Pardy as co-heads.

In these positions, Hallead and Pardy will oversee the firm’s growing global energy research platform. They will coordinate research on macro themes, oversee expansion of the firm’s coverage universe and direct overall research strategy, in addition to continuing their current publishing and research roles with the firm.

Under the leadership of Hallead and Pardy, RBC will broaden its research platform to include integrated oil and international energy services sectors and increase its focus on commodities.

Currently, the firm’s energy research platform includes traditional exploration and production companies and energy services, as well as energy infrastructure, master limited partnerships, power and utilities.

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Mackenzie makes changes to funds

At a special meeting today, security holders of select Mackenzie funds approved resolution to merge several Mackenzie funds with others in its lineup. The changes are as follows:

• Mackenzie Universal Canadian Value Fund will be merged into Mackenzie Universal Canadian Value Class; • Keystone Saxon Smaller Companies Fund will be merged into the Mackenzie Saxon Small Cap Fund; •Keystone Bisett Canadian Equity Fund will be merged into the Mackenzie Saxon Stock Fund; • Mackenzie Universal Global Property Income Fund will be merged into Mackenzie Universal World Real Estate Class.

Also, security holders of the Mackenzie Universal Canadian Value Class approved amendment to the fund’s investment objective.

The Mackenzie Universal Emerging Technologies Class fund will also undergo a change in name and investment objective. The fund will be renamed Mackenzie Universal Technology Class and its mandate will include a wider range of science and technology related sub-sectors.

All of the mentioned changes are expected to be effective on or about June 5, 2009.

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Sprott completes internal reorganization of business

Sprott Asset Management (SAM) announced today that it has completed the reorganization of its operation into three distinct business lines: discretionary portfolio management by Sprott Asset Management LP, broker-dealer services by Sprott Private Wealth LP and consulting services by Sprott Consulting LP.

The reorganization is expected to provide separate marketing opportunities for each business line and is anticipated to create tax efficiencies.

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Gen-X boost demand for recreational properties

Thirty-something buyers are replacing baby boomers as the major purchases of recreational property, according to report by RE/MAX.

The demand from Gen Xers for affordably priced recreational properties such as water-front cottages to resort condominiums has almost doubled compared to a year ago.

“Gen X is ideally positioned to pick up any slack in recreational property markets caused by softer demand from baby boomers and retirees,” says Michael Polzler, executive vice-president, regional director, RE/MAX Ontario-Atlantic Canada. “They represent the next wave of recreational property owners in Canada and they know it.”

With a few exceptions, prices have softened in most major markets this year, making now a good time to buy. Only on the Newfoundland coast and certain areas in central Ontario has there been an increase in the value.

But despite this buyers’ market, not many people are having success with lowball offers. The report found that sellers are serious and are willing to wait for a better offer.

(06/01/09)