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(October 15, 2007) The loonie will trade at a 50-year high of a $1.05 US by the end of 2008, according to the latest CIBC World Markets economic forecast. But even at this level, it will not cool the scorching Canadian economy, which will outperform the U.S. economy in 2008.

“The loonie’s flight is far from over,” says Jeff Rubin, chief economist and chief strategist at CIBC World Markets. “By the end of next year, you’ll get as much as a nickel back when you trade your loonies for greenbacks, the biggest premium since 1960.”

Pointing to rising Canadian housing prices, while American housing prices fall, and the fact that the TSX is set to outperform the S&P 500 for the fourth straight year, Rubin says Canada’s real economic growth is outpacing that of the U.S.

With the developing world now driving global resource demand, there is a decreasing reliance on the American economy to buy Canadian resource commodities, he adds, making Canada less dependent on U.S. growth.

“Canadians are getting richer, compared to their American neighbours, after having fallen so far behind during the IT-driven economy of the 1990s,” says Rubin. “At the heart of this reversal of fortune is the huge shift in the global terms of trade over the last decade, which has seen economic value-added [activity] migrate from information technology back to resource rents under the ground.”

Rising resource prices are continuing to swell corporate earnings, personal income and government tax revenue in Canada. This in turn is increasing consumer spending, business investment and government spending, which will drive the strength of the domestic economy, the report finds.

In the U.S., the story is much different. The report suggests that tumbling construction, business caution on inventories and a consumer sector hit by credit concerns threaten to take GDP growth to near zero in the fourth quarter with not much better projected in the first quarter of 2008.

“A much stronger domestic economy north of the border will in turn translate into divergent monetary policies in the two countries, with the Federal Reserve Board following through with another 50 basis points of easing while the Bank of Canada remains on the sidelines,” Rubin says.

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Mackenzie hires new CIO

(October 15, 2007) Mackenzie Financial Corporation announced that Norman Raschkowan has been hired as the company’s executive vice-president and chief investment officer.

Raschkowan joins Mackenzie from Standard Life Investments, where he also served as CIO. He will begin his role as Mackenzie’s CIO effective October 22, 2007.

“Norman is a proven leader who will play a key role in the investment division at Mackenzie Investments,” says Charles R. Sims, Mackenzie Investments’ CEO. “His demonstrated track record in long-term investment performance, client service and managing a team of investment professionals make him a strong addition to our management team.”

Raschkowan has experience in both fixed income and equity investing. Before being appointed Standard Life’s CIO, he was the head of the company’s U.S. equity investment teams.

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AGF adds fund managers

(October 15, 2007) AGF Funds has added portfolio managers Jamie Horvat and Caterina Prato to five funds’ management teams.

Horvat will join Bob Farquharson and Charles Oliver as portfolio manager for the AGF Canadian Resources Fund Limited, AGF Global Resources Class and AGF Precious Metals Fund. Horvat currently co-manages the AGF Canadian Small Cap Fund and is associate portfolio manager of the AGF Canadian Growth Equity Fund.

Prato, an analyst for AGF’s North American Equities team, has been added to the AGF Canadian Stock Fund and AGF Canada Class, managed by Martin Hubbes.

As well, one of AGF’s third-party subadvisors, Driehaus Capital Management, has added Dan Rea to the team managing the AGF Aggressive Global Stock Fund, consisting of Lynette Schroeder and Meighan Harahan.

“At AGF, we believe it is important to build strong investment management teams to help us deliver long-term continuity in performance and promote an environment which encourages innovative thinking, ingenuity and information sharing,” says Martin Hubbes, AGF’s executive vice-president and chief investment officer. “The addition of Jamie, Caterina and Dan as portfolio managers to these funds shows AGF’s ongoing commitment to excellence, continuity and long-term performance.”

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Standard Life beefs up seg fund lineup

(October 15, 2007) The Standard Life Assurance Company of Canada has launched a number of new segregated funds, as well as a reduced fee option for affluent investors who invest a minimum of $250,000.

Standard Life has reorganized its seg fund offering into six fund families and has completed its lineup by launching eight new mandates for its Ideal Segregated Funds. These include a Global Monthly Income Fund, Dividend Income Fund, U.S. Dividend Growth Fund, European Equity Fund, U.S. Mid Cap Fund, Canadian Equity Focus Fund, U.S. Equity Focus Fund and Global Equity Focus Fund.

Standard Life has also created Ideal Segregated Funds — Platinum Option for those who invest a minimum of $250,000. Standard says the option is for clients approaching retirement who are looking to consolidate their assets and benefit from reduced fees.

“We are committed to helping advisors make their clients’ retirement better,” says Michel Fortin, vice-president, marketing, for retail markets of Standard Life. “Advisors can help their clients consolidate assets and benefit from the many advantages of segregated funds for a fee that competes directly with mutual funds.”

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CI offers T-Class funds

(October 15, 2007) CI Investments has launched a T-class option on some of its mutual funds, which allows investors to draw a tax-efficient monthly distribution from their non-registered investments.

CI’s T-Class is available on 25 funds within CI Corporate Class. A combination of the T-Class and Corporate Class structure should minimize annual dividends and allow investors to switch between funds without triggering taxable capital gains.

“This structure means that investors can enjoy the tax advantages and the broad selection of top mutual funds within CI Corporate Class while saving for retirement and then, at retirement, create an income stream by switching tax-free to T-Class,” says Peter W. Anderson, CI’s chief executive officer.

The T-Class will also be available on four funds from CI’s Portfolio Series, which are mutual fund trusts. Investors will have the choice of annual payouts of 5% or 8%, or they can create a customized payout through a combination of T-Class and non-T-Class shares.

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Mavrix launches Asia Pacific Fund

(October 15, 2007) Mavrix Fund Management has announced the launch of the Mavrix Asia Pacific Fund.

The fund will be actively managed to provide investors with access to equity growth opportunities in the Asia Pacific Rim region. The fund will be overseen by recent hire Eric Yan, who is vice-president and associate portfolio manager for Mavrix. Yan has more than 11 years’ experience in Asian equities.

The fund is available for sale across Canada through licensed investment advisors.

(10/15/07)