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Could be the early impact of the eggnog, but American consumers are feeling more confident heading into the holiday season, according to the latest RBC CASH (Consumer Attitudes and Spending by Household) Index survey.

Consumer confidence has been declining throughout the fall, but the December reading of the CASH Index is up nearly 8 points from November, to 39. At the start of December 2008, the reading was just 15.3.

“Despite continuing high unemployment and weak assessments of personal finances, the RBC Index shows that American consumers are optimistic that the economy will soon begin to improve,” said RBC Capital Markets U.S. economist Tom Porcelli. “However, overall consumer confidence remains low and susceptible to negative news, which could create more pointed fluctuations in consumer confidence in the near- to medium-term period.”

Roughly one third of consumers still rate their personal financial situation as “weak” compared to 21% who say it is “strong.” Expectations for near-term economic prospects improved, with this sub-index seeing its score rising 18 points to 40.4.

The Investment Index rose 10 points from November’s reading, to 46.9. On the jobs front, however, confidence was virtually unchanged, at 51.4. The survey found 62% of respondents are less confident about their job security, while 71% said they personally know someone who has lost a job, up from 66% in November.

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AGF appoints new board director

AGF Management Limited has announced the appointment of G. Wayne Squibb as director on its corporate board, as well as that of AGF Trust Company.

“As a seasoned business executive, Wayne brings a diverse, broad-based set of skills and entrepreneurial experience that will further strengthen our boards at AGF,” said Blake C. Goldring, chairman and CEO of AGF Management. “His background in real estate and banking, as well as his expertise in the international arena and his commitment to the community are all traits we respect.”

Squibb is president and CEO of Realstar Group, a private Toronto-based company with about $6 billion in real estate assets, including Canada’s largest multi-family and residential land lease portfolios, and the Canadian master franchises for Days Inn and Motel 6.

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BetaPro offers options on leveraged gas ETFs

“Having options available on two of the biggest ETFs in Canada provides investors with additional tools and flexibility to manage their portfolios,” said Howard J. Atkinson, president of BetaPro. “Horizons BetaPro ETFs are intelligent solutions that now offer investors further choice with the benefits of options trading.”

The options will begin trading on the Montréal Exchange on December 14, 2009.

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RBC begins 2010 target date fund wind-up

RBC Asset Management has announced the wind-down of its RBC Target 2010 Education Fund, effective January 1, 2010. As of New Year’s Day, the fund will be fully invested in money market instruments.

The fund will not reach its actual maturity date until March 19, 2010, at which point it will be terminated, with the proceeds returned to investors in the form of RBC Canadian Money Market Fund units.

“These Funds are simple solutions that offer investors enhanced growth potential in the early years of saving for their children’s education while looking to protect that investment in later years,” said Doug Coulter, president of RBC AM. “The RBC Target 2010 Education Fund has delivered positive returns in 2008 and 2009. That’s been a welcome result for investors with children about to enroll in post-secondary studies.”

The 2010 fund has posted a compound annual growth rate of 4.27% since inception in 2004, according to GlobeFund. As the fund transitions to a money market-only portfolio, the MER will be reduced to a maximum of 75 basis points.

RBC also announced reductions of the MER on its education target date funds, to reflect the more conservative asset allocation they will take on in 2010. The Target 2015 Education Fund will trim its MER by 20 bps to 1.55%, while the 2020 and 2025 funds will cut 10 bps to 1.75% and 1.85%, respectively.

(12/10/09)