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(January 22, 2007) A recent retirement survey by Desjardins Financial Security indicates that 72% of couples will not be able to retire in the same year.

Polling more than 1,600 Canadian adults, Desjardins found that only 28% of workers 40 or older expect to retire at the same time as their spouses.

The primary reason for the timeline discrepancy is an age difference between spouses, Desjardins said, but some financial considerations are cited as well. In fact, 36% expect to continue working after their spouses have retired in order to financially support their children.

“For couples with children, 67% indicated that their children still require their financial help to pay for their basic expenses, such as lodging, food, education and transportation,” said Monique Tremblay, senior vice-president of savings and segregated funds for Desjardins. “With a younger spouse continuing to work, there is a better chance the couple can still support adult children where needed, without prematurely using their retirement savings.”

Apart from age and financial concerns, the survey also revealed a growing trend among those over 40 to want to continue working well past retirement age, regardless of their financial or personal situations. Twenty per cent of respondents said they liked their jobs, and another 12% felt they would be bored in retirement and said working was “something to do.”

“The results indicate that there is willingness on the part of pre-retirees to continue working beyond their spouse’s retirement, but there are several challenges in the ways it can be done,” says Tremblay. “Although our benchmarking data shows that partial retirement is slowly trending downward, from 61% in 2005 to 56% in 2006, it still reveals more than half of those surveyed in the 40-plus age group are willing to continue employment, so it is definitely worthwhile looking for win–win solutions for employers and workers.”

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AGF drops ING but keeps its fund manager

(January 22, 2007) AGF Funds announced Monday that it has made a decision to end its sub-advisory relationship with ING Investment Management and that effective immediately AGF chief investment officer Martin Hubbes is taking over the management of the AGF Dividend Income Fund.

Marc-André Robitaille, the former fund manager, has left ING and agreed to join forces with AGF in a strategic alliance. AGF will be taking steps in the weeks ahead to allow him to resume management of the fund.

AGF president Randy Ambrosie feels that adding Robitaille to its roster will ensure the fund’s smooth transition from ING to AGF.

“AGF was pleased with Mr. Robitaille’s leadership and approached him about the opportunity to enter into an alliance with us,” Ambrosie said. “The fund will be effectively managed by one of our most senior investment managers, and this alliance with Mr. Robitaille will add another skilled manager to our lineup of investment managers. AGF is proud to attract and retain great fund managers and believes that this alliance with Mr. Robitaille will strengthen our team even further.”

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Manulife expands Chinese operations

(January 22, 2007) Manulife Financial’s East-Asian subsidiary, Manulife-Sinochem Life Insurance, has received approval from the China Insurance Regulatory Commission to open sales offices in two rapidly growing Chinese cities, Changzhou and Deyang.

The office in Changzhou will be Manulife’s third city licence in Jiangsu province, while the office in Deyang will mark its second city licence in Sichuan province.

Canadian Finance Minister Jim Flaherty visited the company’s Shanghai headquarters, where he trumpeted Manulife’s continued Chinese expansion as a win–win for Canada and China.

“It is in the interest of both countries to see Canadian and Chinese expertise coming together to offer innovative financial products and services to the Chinese people,” Flaherty said.

“The Canadian and Chinese governments have been very helpful to Manulife as we’ve developed our business in China over the past ten years,” said Marc Sterling, chairman of Manulife-Sinochem. “Manulife-Sinochem’s success is a true testament to the strong relations between Canada and China, as well as between Manulife and our Chinese joint-venture partner, Sinochem Corporation.”

Manulife said Changzhou and Deyang are both economically prosperous cities in China and are markets that offer tremendous potential for Manulife-Sinochem. The company is now licensed in 19 cities across China, with plans for further national expansion throughout the year.

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RBC offers range of new products

(January 22, 2007) On Monday, RBC Asset Management announced the launch of a number of new products, including two new equity funds, O’Shaughnessy Global Equity Fund and the RBC O’Shaughnessy All-Canadian Equity Fund, as well as the RBC Select Aggressive Growth Portfolio.

The RBC O’Shaughnessy Global Equity Fund is a “go anywhere” fund, with both growth and value holdings in North America, Europe, Asia and emerging markets. The RBC O’Shaughnessy All-Canadian Equity Fund will offer investors a “100% Canadian” portfolio, incorporating both growth and value securities.

The funds will be issued in partnership with Jim O’Shaughnessy, the senior managing director at Bear Stearns Asset Management, based in New York, and will be added to the RBC O’Shaughnessy Fund series, joining the RBC O’Shaughnessy Canadian Equity Fund and RBC O’Shaughnessy U.S. Growth Fund — both closed to new investors — as well as RBC O’Shaughnessy International Equity Fund and RBC O’Shaughnessy U.S. Value Fund.

The RBC Select Aggressive Growth Portfolio will invest in a diversified mix of approximately 35% Canadian and North American equities, 35% U.S. equities and another 30% in international equities.

RBC said the new portfolio rounds out the RBC Select Portfolios suite of solutions that already caters to conservative, balanced and growth investors.

The RBC Select Portfolios suite of solutions is managed by veteran RBC Asset Management fund managers Jennifer McClelland, vice-president and senior portfolio manager, and John Varao, senior vice-president.

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Liquidnet acquires Miletus

(January 22, 2007) Liquidnet, a global leader for block trading, announced today that it has signed a definitive agreement to acquire Miletus Trading, an agency-only brokerage firm that provides advanced, quantitative execution strategies and analytics to institutional investors.

Liquidnet CEO Seth Merrin said acquiring Miletus will increase its presence in institutional trading.

“Liquidnet’s acquisition of Miletus is an integral part of our strategy to build a more efficient global institutional marketplace for the buy side,” said Merrin. “Miletus and Liquidnet are like-minded firms. Both companies are focused on how innovation and technology can empower buy-side traders and improve their trading results. Together, Liquidnet and Miletus will introduce the next-generation institutional trading model.”

The transaction is expected to close by the end of March, pending regulatory approval.

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(01/22/07)