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(February 25, 2008) Commodity prices continued to climb in January, contrary to fears that the American economy has already entered a recession, according to the latest reading of Scotiabank’s Commodity Price Index.

The index, which tracks key commodities produced in Canada, jumped 4.5% to a new record high in January. Prices notched a 20.2% increase over January 2007.

“Though the sub-prime mortgage–related slowdown in the United States continues to take a toll on building material prices, global supply-and-demand conditions remain very tight for many commodities,” says Patricia Mohr, vice-president, economics, and commodity market specialist at Scotiabank. “This partly reflects the ongoing strength of ’emerging-market’ demand as well as supply disruptions.”

Drawing the index higher was strong demand for oil, gold, potash and wheat. Agricultural prices actually led the way, gaining 56.7% year over year, tracing what the bank called “a classic spike” in prices for wheat and canola. The Canadian Wheat Board was recently able to price its top grade of wheat at “an extraordinary” $798 per tonne.

Meanwhile, the most closely watched commodity of all, oil, remained buoyant in January, briefly topping $100 a barrel for West Texas Intermediate.

“Our forecast for WTI remains on the high side of consensus expectations at $90 US in 2008 and at least $85 US, if not $90 US, in 2009,” says Mohr. “The latest surge in oil prices reflects the likelihood that OPEC would cut production at its March 5 meeting, should prices or demand ease substantially as a result of the U.S. slowdown. The cartel typically nudges output down in the seasonally slow spring quarter.”

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Marmer joins Hillsdale

(February 25, 2008) Hillsdale Investment Management has announced that Harry Marmer has joined the firm as executive vice-president, institutional investment services, and partner.

Marmer is a 20-year veteran of the institutional investment industry, and most recently served as senior vice-president, institutional investment services, with Franklin Templeton Investment Canada.

“We are thrilled to have Harry on the Hillsdale team,” says Chris Guthrie, president and CEO of Hillsdale. “Harry has the knowledge, experience and thoughtful leadership that our institutional investors have asked for, and his hiring significantly increases our commitment to this channel.”

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Manulife Mutual Funds tops list for client service

(February 25, 2008) Manulife Mutual Funds has been recognized as the best in Canada for client service by Environics Research Group. This is the seventh year that Manulife has topped the table.

The study was based on audits of customer service calls rating representatives at 15 mutual fund companies for their professionalism, knowledge and overall value-added service.

“I am extremely proud of our Manulife Mutual Funds client service team,” says Cathy Beck, manager, client service, Manulife Mutual Funds. “Our commitment to service starts with hiring the best talent. Our people make the difference. Everyone on the operations team is committed to providing the best possible service to our advisors.”

(02/25/08)