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Governments must continue with pension reforms to ensure the solvency of the plans, the Organization of the Economic Co-operation and Development (OECD) declared in a report issued Wednesday.

Concerns have arisen about governments becoming too preoccupied with rebuilding the economy, while ignoring the longer-term issues facing pension plans. The report encouraged countries to remain committed to developing corporate and private pensions to complement public schemes.

There are fears, too, that savers spooked by market losses might retrench to state-sponsored pension arrangements, creating huge funding problems as life expectancy steadily increases.

“Rolling back reforms and trying to rely on public pay-as-you-go financed pensions alone is the wrong way to go,” the report noted. The warning comes in the wake of 30 OECD governments facing average budget deficits of nearly 9% of national income.

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RBC, PH&N alter expense structure

Beginning November 1, 2009, RBC Asset Management and PH&N will pay the majority of the operating expenses for each of the RBC Private Pools and PH&N Funds in return for a new fixed administrative fee, which will be paid by the funds to RBC AM and PH&N.

“We always aim to be a leader in delivering value to investors and these changes provide unitholders with greater certainty about the cost of investing,” said John Montalbano, head of RBC global asset management.

The change in the way operating expenses are charged is anticipated to improve the predictability of the MER for each series of units.

Montalbano added, “In 2007, RBC AM implemented fixed administration fees for all RBC funds, which resulted in more stable and predictable MERs. We remain committed to industry leadership when it comes to low fund management fees.”

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BMO announce changes to 3 portfolios

BMO Harris Investment Management has decided to amend select investment strategies for three of its funds by merging them with existing funds.

• BMO Harris Canadian Dividend Income Portfolio will be merged into the BMO Harris Canadian Income Equity Portfolio; • BMO Harris Opportunity Bond Portfolio into the BMO Harris Total Return Bond Portfolio; and •BMO Harris Income Opportunity Bond Portfolio into the BMO Harris Canadian Bond Income Portfolio

All mergers are subject to regulatory approval. In the event investor approval is required for the proposed mergers, it will be sought at special meetings to be held on or about September 24, 2009.

All three mergers are anticipated to be complete on or about September 25, 2009. Once implemented, investors will receive units of the new portfolios.

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iShares Canada launches 2 new ETFs

The iShares Exchange Traded Funds (ETFs) business has added two international funds to its line-up, the iShares Canadian MSCI World Index Fund and the iShares Canadian MSCI Emerging Markets Index Fund. Both funds began trading in Toronto today.

“These funds stand above and apart from others because they enable investors to access foreign markets while avoiding the currency and estate tax considerations usually associated with U.S.-listed ETFs,” says Heather Pelant, head of iShares at BGI Canada.

The iShares Canadian MSCI World Index Fund provides long-term capital growth by replicating, as closely as possible, the performance of the MSCI World Index, net of expenses. The fund has a MER of 0.45%.

The iShares Canadian MSCI Emerging Markets Index also strives to provide long-term capital growth by replicating, as closely as possible, the performance of the MSCI Emerging Markets index, net of expenses. The fund has a MER of 0.82%.

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Lawrence India Fund to be re-launched

Lawrence Asset Management will provide another opportunity for investors to purchase the Lawrence India Fund, when the open-ended mutual fund is made available for purchase in July 2009.

Speaking at its re-launch, president Ravi Sood said, “The Indian equity market suffered serious declines in the global meltdown of 2008, but given India’s current economic trajectory and favourable political climate, it is projected to be at the forefront of the global economic recovery. While most of the developed economies struggle with significant slowdowns and even recession, India’s economy is projected to grow at a robust 6% in 2009.”

Lawrence India Fund is a long-short equity fund that invests directly into the Indian equity market. It allows Canadians to gain exposure to wider known Indian companies, such as Jindal Steel & Power, Hindustan Petroleum Corporation, Reliance Industries Ltd., Piramal Healthcare, Tata Motors and Punjab National Bank Ltd.

Lawrence Asset Management partnered with Reliance Asset Management in Singapore to provide the Lawrence India Fund with research, investment strategy advice and recommendations.

Units of the Fund will be offered at net asset value per unit and will be available for purchase on the last business day of each week.

(06/24/09)