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(September 3, 2008) The Bank of Canada has held the line on interest rates, keeping the key overnight rate at 3% and the Bank Rate at 3.25%. In making its decision, the Bank cited three global developments.

So far, two of them are unfolding as the Bank expected, with the U.S. economic slowdown and the global credit crisis providing few surprises. The Bank did point out, however, that both could still pose a threat to Canadian growth.

The third development the Bank is watching is the rise in commodity prices. In July, the Bank had predicted that prices may weaken, which has since been the case. But prices have only fallen in line with the slowing global economy, and supply remains tight, leaving the door open for volatility to return.

Meanwhile, domestic demand “remains strong,” the Bank says, with economic activity close to capacity.

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AGF pool gets new manager

(September 3, 2008) AGF Funds has announced that it has replaced Mulvihill Capital Management as portfolio managers of the Harmony Canadian Equity Pool, effective immediately.

Replacing Mulvihill is Ridgewood Capital Asset Management, which has acquired Mulvihill’s institutional and wealth management divisions. Ridgewood is a new company, controlled by Mulvihill’s former senior vice-president, John H. Simpson and its vice-president, equities, Paul Meyer.

AGF has assured investors that the pool’s investment management philosophy remains consistent.

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Goodman to merge wrap programs

(September 3, 2008) Goodman & Company, Investment Counsel Ltd. has announced plans to combine its Marquis Investment Program and Radiant Strategic Portfolios into a single streamlined wrap program.

The plan would include the merger of similar investment mandates that are in the two programs, and should reduce the management fees for many securityholders. These mergers may require changes to the investment objectives of the continuing portfolios, and may result in the appointment of new institutional sub-advisors.

The continuing portfolios will be renamed and grouped into two differentiated product families: Marquis Institutional Solutions will feature global institutional investment managers, while Marquis Portfolio Solutions will feature underlying mutual funds from five leading Canadian companies.

The reorganization is expected to be completed by November 14, 2008, assuming all required approvals are received. Investors will be asked to approve the plan at a special meeting on or about November 4, 2008.

(09/03/08)