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(September 23, 2008) Largely driven by higher prices for gasoline, the Consumer Price Index (CPI) rose 3.5% between August 2007 and August 2008. It was the largest 12-month increase in CPI inflation since March 2003, according to Statistics Canada.

On a monthly basis, consumer prices after seasonal adjustment rose 0.2% from July to August 2008. Gasoline prices were a key driver of this increase. Prices at the pumps were 26.3% higher in August 2008 than they were in the same month a year earlier. Other energy prices, such as those for natural gas and fuel oil, also saw a rise. StatsCan says overall, energy prices rose 20.2% over the 12 months to August 2008.

Excluding energy, the CPI rose 1.8% over the 12 months to August, up from the 1.6% 12-month rate of growth posted for July. StatsCan notes this was primarily driven by increases in food prices.

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Van Arbor acquired by ZLC

(September 23, 2008) Van Arbor Asset Management has announced that its shareholders have entered into a definitive agreement to sell a 70% interest in the company to ZLC Private Investment Management, a division of ZLC Financial Group.

Vancouver-based Van Arbor is a wealth management firm that offers its own investment funds. These include the Van Arbor Canadian Advantage Fund, the Van Arbor US Advantage Fund, the Van Arbor Euro Advantage Fund and the Van Arbor World Advantage Fund.

“Building on our strong alliance established last year, Van Arbor and ZLC interests are now aligned with a commitment to provide quality investment fund solutions to shareholders, clients, advisors and institutions,” says Andrew Parkinson, managing director and portfolio manager. “Combining our strengths will allow Van Arbor to expand its potential across Canada as a premier fund management firm.”

Garry Zlotnik, president of ZLC Private Investment Management, says the acquisition will greatly increase his company’s asset management capabilities.

“We believe that the acquisition of Van Arbor strengthens our position and greatly increases the asset management services and resources offered to our retail, institutional and high-net-worth client segments,” he says.

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Mutual fund industry serving investors well: IFIC

(September 23, 2008) The mutual fund industry is responsive to the changing needs of Canadians and must ensure that the current level of investor trust is maintained, says the Investment Funds Institute of Canada (IFIC).

Oliver Murray, president & CEO of Brandes Investment Partners, told delegates to IFIC’s annual conference in Toronto that the industry has encouraged Canadians to save for their long-term security, to the extent that about half of adult Canadians own mutual funds.

“Mutual funds provide a very significant, if not crucial, service to a great many Canadians,” Murray says. “As our population ages, saving for retirement is put into an especially sharp focus, particularly as we see defined benefit pension plans slowly disappearing. In this environment, Canadians must have access to a competitive range of products that will assist them in building their wealth.”

Murray said the industry has a “moral obligation” to honour the trust Canadian investors have in mutual funds.

According to IFIC’s president and CEO, Joanne De Laurentiis, flexibility is key to meeting changing investor requirements, and the industry is continuing its proactive relationship with regulators, working on a number of subjects, including updating key regulatory rules that will benefit the long-term needs of investors.

“As investor needs change, so have fund structures and investment management techniques,” De Laurentiis says. “But right now, further innovation and competition is being limited by a regulatory framework that does not fully recognize investment trends and developments.”

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CIPF, Chinese counterpart join forces

(September 23, 2008) The Canadian Investor Protection Fund (CIPF) and the China Securities Investor Protection Fund Co., Ltd. (SIPF) have entered into a memorandum of understanding (MOU) that will address cross-border cases involving brokerage firm insolvencies within their respective countries.

According to the CIPF, Canada is the first country to enter into this type of alliance with the SIPF.

“The CIPF and the SIPF recognize the potential for cross-border insolvencies of their respective member firms and the prospect of cross-border claims from investors,” says Rozanne Reszel, president and CEO of CIPF. “Through this memorandum of understanding, both parties acknowledge their willingness to cooperate with each other to ensure that investors receive compensation promptly. Given the global nature of the investment industry, we believe that working collaboratively with our counterparts around the world contributes to the security and confidence of the investing public.”

CIPF has now entered into three such MOUs with securities protection funds around the world, including the Securities Investor Protection Corporation in the United States and the Financial Services Compensation Scheme in the United Kingdom.

“This first MOU of SIPF witnesses the great significance attached to promoting international cooperation and exchange work for SIPF,” says Zhang Yafen, vice-chair of the SIPF. “Under this MOU, both CIPF and SIPF will form a long-term and stable cooperative relationship, which will create a framework and platform for information sharing, personnel exchange and related consultation. Moreover, this MOU will also lay a foundation for both institutions’ further cooperation and thus promote each other’s investor protection work.”

(09/23/08)