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(January 19, 2007) Buoyant equity markets in 2006’s final quarter lifted Canadian pension fund returns into double digits for the fourth consecutive year, an RBC Dexia Investor Services study reports.

RBC Dexia monitors $340 billion in pension fund assets and reports the funds earned 7.2% in the quarter ended December 31, boosting year-end performance to 12.9%. The study notes that almost all the annual gains were concentrated in the final six months.

Don McDougall, director of advisory services at RBC Dexia, attributes a great deal of the success to increased investment in foreign equity. “With many of the world’s major stock markets finishing the year at or near record highs, global equities were the star performers of 2006,” McDougall said.

“Since the Canada Revenue Agency lifted foreign content restrictions in 2005, global stock market performance matters more than ever,” added McDougall. “RBC Dexia statistics reveal a growing exposure to foreign equities. At year end, 29.6% of Canadian pension assets were invested in global stocks — an all-time high.”

RBC Dexia highlights market gains and the euro’s 10% rise against the loonie helped fuel a 21.6 % annual increase in Canadian pension plans’ foreign performance results.

Domestic stocks were no slouches either, the study points out. In spite of the weakened energy sector, Canadian pensions beat the S&P TSX Composite benchmark by a full percentage point, gaining 18.3% over the year.

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Brandes announces new corporate bond fund

(January 19, 2007) Brandes Investment Partners announced on Friday the launch of the Brandes Corporate Focus Bond Fund.

The fund will be advised by Brandes Investment Partners, L.P., and will invest primarily in U.S.-dollar denominated fixed income securities and is available in both hedged and unhedged purchase classes. The hedged class units are intended for investors who wish to invest in U.S.-dollar denominated securities but also want to minimize exposure to fluctuations in foreign currency. The unhedged class will allow investors to maximize exposure to currency fluctuations. The fund will be advisor sold.

“U.S. corporate bonds have low correlation to many other asset classes and, in particular, to a typical Canadian government fixed-income portfolio,” said Alasdair Hayes, Brandes’ executive vice-president of sales. “With the ability to invest up to 75% in securities rated below investment grade, this fund provides excellent diversification to almost any portfolio.”

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CSA launches XBRL filing program

(January 19, 2007) The Canadian Securities Administrators has launched a voluntary filing program that will allow users to use XBRL, a business reporting language whose popularity is growing quickly.

XBRL, short for eXtensible Business Reporting Language, is a relatively new business reporting language that is emerging as an international standard for communicating business and financial data. The basic concept of XBRL is that it attaches standardized electronic “tags” to elements of data that provide insight about what the item represents.

In 2006, the CSA conducted a survey to assess marketplace awareness of XBRL and found that many in the industry are becoming adept in its usage.

“The feedback we received from the marketplace indicated that about half of the respondents have some understanding of XBRL and a significant number are in favour of an XBRL filing program,” said CSA chair Jean St-Gelais. “With this voluntary filing program, we hope to increase the level of practical knowledge in the Canadian marketplace of this new technology and gain a greater understanding of the potential of XBRL.”

The CSA said the XBRL filing will not replace the official PDF filing that is required by securities regulators but will provide additional information that will be made public through the SEDAR website.

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GGOF offers new series of deposit notes

(January 19, 2007) Guardian Group of Funds Ltd. announced Friday the launch of the Bank of Montreal GGOF C.O.R.E. Protected Deposit Notes High Yield Bond R.O.C. Class, Series 2. The second in this series of notes, the product is based on the performance of the GGOF High Yield Bond Fund, which is managed by Steve Kearns of Guardian Capital LP.

GGOF said it will offer investors the opportunity to participate in the returns of this fund while ensuring that 100% of their principal is protected, if the note is held to maturity. The Bank of Montreal provides the guarantee on the principal.

The notes are intended to make potential monthly distributions in the form of return of capital (R.O.C.), which GGOF believes is a more tax-efficient form of distribution than interest income. Seventy-five per cent of the distribution rate of the GGOF High Yield Bond Fund will take this form, with the remaining 25% of the distributions notionally invested in the fund for growth.

“The strong track record of GGOF High Yield Bond Fund makes it an excellent holding for income-oriented investors,” said Gavin Graham, chief investment officer, GGOF. “High yield bonds have low correlations not merely with investment grade bonds but with other income-generating assets, such as income trusts and dividend-paying stocks.”

The deposit notes will be available until March 2, 2007.

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(01/19/07)