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(April 30, 2007) RBC announced Monday that it has acquired Seasongood & Mayer, Ohio’s top public finance firm and underwriter of municipal debt.

RBC Capital Markets says the proposed merger bolsters its position in the U.S. municipal investment banking market while enhancing its overall presence in Ohio. Based on 2006 rankings, RBC says the combined company would be the number-one-ranked municipal bank nationally in both U.S. middle market issues and the K-12 school finance sector.

“As one of the top states for municipal issuance in the country, Ohio represents a key strategic growth area for us,” said Larry Holtz, head of municipal markets for RBC Capital Markets. “We are the only top-10 firm in the U.S. to have a physical presence in the state of Ohio, and this deal will bring the number of people we have on the ground there to over 100.

Also included in the deal is Seasongood’s subsidiary, Seasongood Asset Management, which is an investment advisor to public funds clients. Seasongood Asset Management currently manages $1.5 billion in assets for public funds clients in the Ohio region. The business will operate as a joint venture between RBC Capital Markets and Voyageur Asset Management, and be known as RBC Public Fund Services.

Completion of the transaction remains subject to regulatory approvals and is expected to close in the second quarter of 2007. Terms of the transaction were not disclosed.

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Economy heating up: StatsCan

(April 30, 2007) In its monthly GDP by industry study, Statistics Canada reports that overall the Canadian economy more than doubled its growth pace from January to February. After growing 0.1% in January, the Canadian economy increased by 0.4% in February as energy production returned to a more normal level. Excluding oil and gas extraction and utilities, economic activity grew 0.2%. Both goods and services production rose.

Energy production and extraction were the main drivers of the economy. Electric power generation grew by 3.4%, and oil and natural gas extraction grew by 3.6%. StatsCan attributes much of this increase to a return to more seasonal temperatures after two months of mild weather conditions.

The manufacturing sector rose 0.3% in February. Motor vehicle and associated parts rebounded from declines in January. Motor vehicle manufacturing increased 4.9%, while parts production gained 2.6%. However, StatsCan points out that manufacturing activities, excluding motor vehicle and parts production, decreased 0.2%.

Output in the financial sector grew 0.4%. This gain was fuelled by modest increases in lending activities and mutual fund sales, StatsCan reports.

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Pure Trading system set for final test

(April 30, 2007) Pure Trading, an electronic alternative that provides a new trading venue for Canadian Exchange–listed securities will perform a fourth test of its electronic trading system on Saturday, May 5, 2007, in advance of the launch of its continuous auction market.

“This represents the culmination of more than a year’s collective work by the key stakeholders and promises to be an historic moment and opportunity for all of us in the securities trading community,” said Ian Bandeen, CEO of Pure Trading. “We have built the first alternative visible auction market in Canada for exchange-listed securities, and we will bring real competition to the Canadian market for the first time.”

Canadian Trading and Quotation System, which operates Pure Trading, says the platform was successfully tested industry-wide on Jan. 13 and Feb. 3. In addition, there have been ongoing rigorous daily individual dealer and vendor testing routines under way since June 2006.

To ease the community’s transition to a multi-market environment, the company says it has already signed up 57 dealers, representing over 95% of the historic Canadian equity trading volume. Trading rules on the Pure Trading marketplace will be almost identical to those of other Canadian stock exchanges.

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Underwriting consultant joins Worldsource

(April 30, 2007) Worldsource Insurance Network (WIN) has hired underwriting expert Leo Penney as a consultant who will be available to the company’s network of agents to give insight on complex underwriting issues.

Penney has more than 30 years of experience in the underwriting community. His experience includes working for a major reinsurance company, where he was responsible for underwriting operations in Canada, the United States and the Caribbean. Penney also worked directly with producers, their clients and advisors to resolve complex underwriting challenges.

WIN advisors will have the opportunity to access Penney’s expertise; he will consult on larger, more complex personal- and corporate-life and living-benefits cases. His role at WIN will be limited to life and living-benefits situations where the mortality cost is $10,000 a year or more.

“A partnership with Leo puts our advisors on a new playing field,” said Bob Morden, WIN’s executive vice-president. “Leo’s background and tenure within the industry has earned him the reputation of being an underwriting expert, and we are excited that he has agreed to support our advisors in this challenging arena.”

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Northwood Stephens replaces fund lineup

(April 30, 2007) Northwood Stephens Private Counsel announced that it is in the process of setting up a new family of pooled funds to replace its existing family of mutual funds, the NSC Group of Funds, which will be terminated on or before September 30, 2007.

“These new pooled funds will build on the basic core of the existing Northwood Stephens investment management for the NSC Group of Funds and further broaden the scope of services offered to our clients in the future,” said Ian Dalrymple, chairman and chief investment officer of Northwood Stephens.

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(04/30/07)