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(November 3, 2008) The volume of mergers and acquisitions taking place has tapered off dramatically over the past couple of years, slowing to a trickle before the credit markets froze up in September. But those deals that are still being made are happening more quickly than ever, according to a report from Towers Perrin.

“Market turmoil has conjured up the concept of Express M&A, a high-speed deal process affecting all sectors, including Canada’s commodity and energy industries, where multinationals are looking to acquire assets at bargain basement prices. But increased speed brings increased risk to these deals,” said Eric D’Amours, head of M&A and restructuring at Towers Perrin in Canada.

The average lag time between an announced deal and the completion of that transaction has been nearly cut in half, falling from 142 days in 2007 to just 80 days in 2008. That average is expected to fall even further before the end of the year.

“We are seeing significant elements of due diligence effectively being postponed until after completion,” says D’Amours. “The concept of ‘seize the day’ is changing conventional M&A processes as the threat of future potential surprises pales in comparison to the scale of savings or strategic value that might be achieved.”

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Wellington West hires behavioural finance expert

(November 3, 2008) Wellington West has announced the appointment of a behavioural finance researcher to its investment committee. Meir Statman is the Glenn Klimek professor of finance at the Leavey School of Business at Santa Clara University in California.

Statman will work with Wellington West Asset Management’s chief investment officer, Sam Pellettieri, to provide investment analysis for and education to the firm’s advisors and clients.

“Investors are looking for thought-leadership during these trying economic times,” said Pellettieri. “Meir’s award-winning research combines the sciences of finance and psychology to understand the cognitive errors of normal investors, their emotions and their goals. Our aim is to educate our clients, guide them toward achievement of their goals and promote both wealth and well-being.”

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Feds set 2009 limit for CPP

(November 3, 2008) The Canada Revenue Agency has announced the maximum pensionable earnings under the Canada Pension Plan for 2009, setting the limit at $46,300, up from $44,900 in 2008.

The basic exemption amount for 2009 remains $3,500, with Canadians earning less than that not paying into CPP.

Contribution rates remain unchanged, with employee and employer rates at 4.95%, to a maximum of $2,118.60. The self-employed contribution rate remains at 9.9%, to a maximum of $4,237.20.

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Bissett Canadian Core Plus Bond to close

(November 3, 2008) Franklin Templeton Investments announced late Friday that it would terminate the Bissett Canadian Core Plus Bond Fund, effective December 30, 2008. Sales of fund units were closed effective October 31.

The company cited the small number of unitholders in the fund, which totalled just $740,000 in assets under management, according to Morningstar Canada.

The company points out that advisors can replicate the fund on their own, since it was largely invested in the Bissett Bond Fund and Franklin Templeton Global Aggregate Bond Fund.

Unitholders may switch or redeem their investment up to December 29 without incurring a redemption fee. Any assets still held in the fund at the end of business on December 29 will be transferred into the Franklin Templeton Money Market Fund.

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Sprott fund wins global award

(November 3, 2008) Sprott Asset Management has been recognized for its Sprott Offshore Fund Ltd., which was named Best Long/Short Hedge Fund by alternative investments journal, HFM Week.

The Sprott Opportunities Hedge Fund L.P. was nominated for the same award. The award was announced at a ceremony in New York City on October 30, 2008.

“We are incredibly pleased to receive this high-profile award from HFM Week and to be nominated in two categories of the Hedge Fund Intelligence Absolute Return Awards, all of which reflect our long-term performance track record,” said Eric Sprott, CEO of Sprott Asset Management. “We believe our investment strategies position our portfolios well to weather this challenging market environment and to achieve sustained growth in the long term.”

(11/03/08)