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(May 9, 2008) The Alberta Securities Commission (ASC) is urging Albertans to exercise caution before they make a decision about where to invest their refunds..

During the month after the tax filing deadline, many companies start to promote investment opportunities, encouraging investors to use income tax refunds to “start early this year.” The ASC urges investors to research any opportunity before making a financial decision.

The ASC says investors should be wary of unsolicited investment recommendations. Investment opportunities presented over the phone, by e-mail or through a friend, co-worker or family member may not be suitable, the ASC says.

The commission points out that those making the pitches may not know your financial goals, knowledge or level of risk tolerance. If investors are interested in an unsolicited investment, they should ask for a written description of what is being offered.

The ASC also suggests investors conduct a background check on salespeople. Ask if they are registered with the applicable provincial regulator, or selling the investment opportunity under a regulatory exemption.

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U.S. consumer confidence inches up: RBC

(May 9, 2008) Americans’ economic enthusiasm rallied slightly this month, increasing nearly 10 points and reversing six straight months of declining confidence, according to the most recent results of the RBC CASH (Consumer Attitudes and Spending by Household) Index.

The RBC CASH Index stands at 39.0 for May, up from its all-time low of 29.5 in April. The survey, which measured the attitudes of 1,000 consumers earlier this week, found respondents are slightly more positive about their future economic prospects, but still worried about job security.

“Consumers are beginning to look beyond the current economic downturn, as evidenced by the increase in their expectations for the future,” says T.J. Marta, economic and fixed income strategist for RBC Capital Markets. “The fact that Americans’ perception of the jobs environment weakened is not inconsistent with the rebound in the overall index, as the job market tends to lag the economic cycle.”

The CASH Index also found consumers’ economic outlook brightened this month, as evidenced by the “expectations index,” which increased more than 24 points in May, but remains in negative territory for the fifth consecutive month at -24.1. Just one-third (32%) of Americans believe their local economy will be weaker in the near future, down from 38% last month.

Americans’ attitudes toward investing improved slightly in May, increasing the “investments index” to 60.7, up more than four points from the 56.4 level recorded last month. RBC says consumers reporting that the next month will be a good time to invest in the stock market held steady at 27% compared to 28% in April.

At 93.7, the “jobs index” dropped to the lowest level since the index began in January 2002. Anxiety over future job loss increased in May, with one in four (26%) Americans reporting job loss is likely in the next six months, a 6 percentage-point increase from April (20%).

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GMP Capital announces management changes

(May 9, 2008) GMP Capital Trust announced that Thomas A. Budd, president and vice-chairman, head of investment banking, and one of the co-founders of GMP Securities, will be retiring effective June 13, 2008.

While Budd is retiring, he’s not entirely leaving. The company says he’s entered into a consultancy service agreement and will continue to support GMP Securities in an advisory capacity until at least mid-2009, to ensure a smooth transition and to continue to promote the interests of GMP.

“GMP has benefited from Tom’s valued leadership and vision over the last 13 years and he has been instrumental in shaping our position as a leading independent Canadian investment dealer. While we will miss Tom’s leadership role at GMP, we are pleased to continue to work with him in this new advisory capacity,” says Kevin Sullivan, GMP’s CEO.

Budd joined GMP in 1996, and the company says he will be remembered for being instrumental in its Calgary office, and for his extensive knowledge and expertise, which earned him the reputation as one of Canada’s top M&A advisors.

“We have been working on a succession plan for some time and I am confident that the deep and rich pool of talented individuals at GMP are more than able to continue the fund’s growth momentum,” Budd said. “I will continue to provide this next generation with guidance in order to continue to grow GMP’s investment banking business in Calgary.”

Harris A. Fricker, vice-chairman of investment banking, GMP Securities, will assume the role of head of investment banking, in charge of all investment banking operations of GMP Securities, in addition to his existing role in investment banking and his role as co-chairman of GMP Europe.

Sullivan says the company is currently taking steps to find a successor as president of GMP Capital Trust.

“The fund is taking the necessary steps to appoint a successor as president,” he says. “One of our primary focuses will be to ensure a seamless transition for all of our clients.”

(05/09/08)