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(November 6, 2008) Manulife Financial has turned to Canada’s six largest banks for $3 billion in financing, after posting its biggest profit decline in seven years.

The five-year term loan will be fully drawn down by November 20 and will be deployed as necessary, to provide additional regulatory capital.

“We are very pleased to have concluded such an important transaction, which will serve to enhance our overall capital position,” says Dominic D’Alessandro, chief executive of Manulife.

He explains that Canada’s largest insurer is the victim of struggling global equity markets, which reduced reported earnings in the third quarter by $574 million.

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Canadians committed to retirement savings

(November 6, 2008) While the global economic crisis may be cause for concern for Canadians, it has not affected their fundamental commitment to retirement and savings plans, according to research.

Two recent polls of more than 3,100 Canadians conducted by Investors Group suggest that 39% of respondents are most apprehensive about property and income taxes, while a further 39% identified currency fluctuations, and 38% poor stock market returns.

“Retirement security doesn’t depend on one single factor, like stock market ups and downs,” says Debbie Ammeter, vice-president of advanced financial planning at Investors Group.

According to the survey, 67% of Canadians who already have an RRSP or are planning to start one intend to contribute the same amount or more than they did last year.

When polled in October, only 28% of respondents said they will now retire later than originally planned. Forty-four percent of those between 60 and 64 years of age are more likely to say that they will retire later, while 30% of women and 25% of men said they now plan to retire later.

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ETF inflows on the rise

(November 6, 2008) Are mutual funds a thing of the past? iShares would like to think so, as their exchange-traded funds experienced record inflows — $2.1 billion — in September and October, while mutual funds saw record sell-offs.

The company says during the last couple of months, $12.95 billion worth of mutual funds were sold.

“What we’ve seen in the past few months is a very different attitude towards risk,” said Heather Pelant, head of iShares, Barclays Canada. “One thing that investors and advisors are recognizing is that complexity is not always a good thing — simplicity is — and that means knowing what you own. We have always been advocates for better investing and we know that iShares ETFs are going to withstand the level of scrutiny that all financial products will be going through.”

Over the last two months, iShares ETF inflows were concentrated in XIU, the iShares Canadian Large-Cap 60; XSP, the company’s S&P 500 Index fund; and XEG, the Canadian Energy Sector Index.

It’s not just the Canadian market that’s seeing an upsurge in the interest in ETFs. The U.S. saw ETF inflows of $41 billion, while outflows of American mutual funds topped $47 billion.

“With all the fear that is characterizing the current market, it’s very important for people to look towards the broader horizon,” said Pelant. “Advisors and investors are recognizing that now is the time for transparency, diversification and agility. Now is the time for ETFs to be a part of every investor’s portfolio.”

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Quebec exports to rise in 2009: EDC

(November 6, 2008) A new report by Export Development Canada says Quebec’s international exports will rise 1% in 2009, after they fell 4% this year.

Peter Hall, the EDC’s vice-president and chief economist, says the increase is related to a 10% depreciation of the Canadian dollar.

“Remove the exchange rate impact, and the province’s export outlook is considerably weaker,” he says.

The biggest sector is industrial goods, which accounts for about 37% of Quebec’s international exports. EDC says the outlook for the sector is “defined by volatile, and generally negative, commodity price movements and highly cyclical chemicals exports.”

The report also reveals that global demand for the province’s aluminum exports is expected to ease, while iron ore exports should rise “after a massive, price-driven, export surge in 2008.”

Overall, Canadian exports are expected to increase by 2% in 2008, but decline 1% next year. Economic growth should expand by 0.9% this year and 1.4% next year.

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ScotiaMcLeod changes portfolio advisors

(November 6, 2008) Changes are afoot at ScotiaMcLeod. The company announced that it was hiring two new portfolio advisors to take over a couple of its funds.

Starting January 6, Thronburg Investment Management will take over the Pinnacle International Equity Fund, replacing Wellington Management Company.

On February 5, Scheer, Rowlett & Associates Investment Management will advise the Pinnacle Canadian Value Equity Fund, taking over from BonaVista Asset Management Ltd.

(11/06/08)