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(October 19, 2007) Canada’s soaring dollar hurt pension funds in the third quarter, according to a survey released by RBC Dexia Investor Services.

Within the $340 billion RBC Dexia universe, Canadian pensions lost 0.7% in the quarter ended September 30, 2007, trimming year-to-date growth at just 1.8%.

The currency losses offset healthy global equity returns. Year-to-date, the MSCI World index climbed 8.0% in local currency terms, but this translates into a -4.1% drop in value when converted into Canadian dollars.

“Particularly with the loonie’s steep rise against the US dollar &#151: up 17.0 % this year alone — foreign exchange exposure has jumped back into the spotlight,” says Don McDougall, director advisory services at RBC Dexia. “Given that foreign stocks constitute about half the equity allocation of a typical pension fund, Canadian plan sponsors are sharpening their focus on currency management.”

Canadian equities returned only 0.6% to pension funds in the latest quarter, trailing the S&P TSX Composite index by 1.4%. Despite the credit freeze, bonds were the top-performing asset class in the quarter: Canadian pensions earned a modest 1.7%, mirroring the Scotia Capital Universe Bond Index.

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Canada Trust Income Investments terminated

(October 19, 2007) Canada Trust Income Investments (Trust) will be terminated, The Canada Trust Company, a subsidiary of The Toronto-Dominion Bank, announced on Friday.

The Canada Trust Income Investments is a closed-end income investment trust that was established in 1973 and was trades on the Toronto Stock Exchange under the symbol CNN.un.

At the special meeting in Toronto, unitholders voted in favour of terminating the Trust as soon as reasonably practicable in 2007. The Canada Trust Company intends to terminate the trust on or about October 31, 2007.

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TSX Venture boss applauds free-trade in securities talk

(October 19, 2007) In remarks to the National Centre for Business Law at UBC in Vancouver, Kevan Cowan, president of the TSX Venture Exchange said he supports the current global support for free trade in securities.

Cowan is particularly encouraged by recent commitments by G-7 finance ministers and central bank governors to explore the issue further. Cowan argued the technology is available to offer a free and instantaneous flow of securities across borders, and it is outdated regulation and policy that is hindering the process.

“It only stands to follow that Canadians and Americans should not be impeded from investing freely in companies whose products trade freely across the border,” Cowan said.

Cowan added he and TSX Group CEO Richard Nesbitt have been outspoken advocates of free trade in securities for some time.

“We intend to work collaboratively with all interested parties — governments, investor groups, and indeed, even our competitors, to achieve these improvements to the investment climate on both sides of the border,” he said.

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Xceed arranges mortgage securitization centre

(October 19, 2007) Non-traditional mortgage lender, Xceed Mortgage Corporation, has successfully arranged a new bank-sponsored $300 million committed mortgage securitization facility.

The facility will be provided through a trust that will issue commercial paper rated by an international rating agency and supported by a global-style liquidity arrangement.

“We are very pleased to have succeeded in arranging this new securitization facility, particularly in view of the turbulence that has continued to undermine the commercial paper market,” says Ivan Wahl, the company’s CEO.

He added, “Although it is not possible to predict how long the current capital market turbulence will last and the costs associated with this facility are higher than our historical funding costs, we believe that this facility when combined with our existing warehouse facility will be sufficient to meet Xceed’s funding requirements.”

Wahl says the securitization centre will be up and running during the company’s fourth fiscal quarter.

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ROI changes fund names

(October 19, 2007) Return On Innovation Capital has changed the names of three mutual funds.

ROI Sceptre Canadian Pension Fund will become the ROI Canadian Retirement Fund. The ROI Global Pension Fund will be known as ROI Global Retirement Fund, while the Sceptre Income & High Growth Trust is now the ROI Sceptre Retirement Growth Fund.

The name changes result from the conversion of the Sceptre Income & High Growth Trust from Sceptre Investment Counsel to ROI Capital.

The investment objectives and investment philosophy will remain the same, ROI says. The funds will still try to provide investors with a diversified asset mix that includes private placements, which are uncorrelated to public markets, and a choice of flexible cash flow solutions geared towards tax efficiency that meets the changing cash flow needs of investors.

(10/19/07)