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(August 12, 2008) While the high cost of energy has retreated from earlier peaks, it still weighs heavily on the minds of business leaders, driving a stake through the heart of corporate confidence, according to the Canadian Institute of Chartered Accountants.

Optimism toward the economy plunged to just 23% of respondents in the latest CICA/RBC Business Monitor. Only 6% of executives said they were more confident now than they were last year. Energy prices were of concern to 53% of respondents, up from just 39% in 2007.

“A year ago, oil was selling for an average of $71.00 US a barrel … and the Canadian dollar was perched at 94 cents US. It’s been a tumultuous 12 months, and that is reflected in the drop in confidence and optimism levels of this latest report,” says Shauneen Bruder, executive vice-president, RBC Business and Commercial Banking.

Nearly half of respondents said their companies were absorbing some of the costs of higher energy prices, while 25% said they absorbed it all. Even still, just 40% had made operational adjustments to reduce their energy usage.

“With the upward trend in energy costs, sustained energy-cost management is a key focus for all companies,” said Kevin Dancey, FCA, CICA president and CEO. “Well-run enterprises that both recognize the changing environment and control these expenses can achieve a competitive advantage.”

Bruder points out that rising export prices and strong domestic demand are supporting the economy and that conditions south of the border should improve by the end of the year.

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SSQ Financial names new CEO

(August 12, 2008) The board of SSQ Financial has announced the appointment of René Hamel as the new CEO of the company, effective September 12, 2008, succeeding Richard Bell in the role.

Bell is retiring after 21 years with the firm, with seven of those years at the helm.

“He leaves behind him a solid, financially robust company that is more and more widely recognized,” said Pierre Genest, chairman of the board. “Under his tenure, SSQ has achieved strong growth and earned a place among Canada’s top insurance and financial services companies.”

The incoming CEO is an associate of the Canadian Institute of Actuaries and the Society of Actuaries, a member of the Intelligence Committee of the International Cooperative and Mutual Insurance Federation (ICMIF), and a representative of Quebec on the Life and Health Insurance Association’s (CLHIA) national committee on health.

“Over the years, Mr. Hamel’s vast experience has been a significant factor contributing to our company’s growth,” said Genest. “His leadership and management skills make him the ideal person to take over as the new CEO for our group. We are convinced that Mr. Hamel will continue to be instrumental in ensuring SSQ’s success in the years to come.”

Hamel will be replaced by Johanne Goulet as senior vice-president of the SSQ group insurance business line. She, in turn, will be replaced by Bernard Tanguay as senior vice-president of SSQ’s investment and retirement business line.

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CIBC replaces U.S. small-cap manager

(August 12, 2008) CIBC Asset Management has appointed Federated MDTA LLC (MDT Advisers) as portfolio sub-advisor of the CIBC U.S. Small Companies Fund, effective September 1, 2008. MDT Advisers replaces Wellington Management Company, LLP.

“CIBC Asset Management continues to focus on partnering with portfolio managers who can help maximize returns and manage risk for our clients,” said Steve Geist, president of CIBC Asset Management.

Boston-based MDT Advisers is owned by U.S. investment giant Federated Investors, Inc. The firm’s small-cap investment strategy uses a quantitative model to select securities from a universe of smaller, emerging, primarily U.S. stocks within the Russell 2000 index.

(08/12/08)