Briefly:

(May 7, 2007) One of TSX Group’s directors, Doug McGregor, has resigned. McGregor is co-president and managing director, head of global investment banking and equity markets, at RBC Capital Markets.

TSX didn’t explicitly state that McGregor resigned because of a conflict of interest, but it did mention his departure in the context of RBC Capital Markets as part of a group with other Canadian banks that intends to launch an alternative trading system.

“We thank Doug for his contributions to the board and the company over the last year. Doug was an active participant and always acted in an exemplary fashion in the conduct of his duties as a director,” said Wayne Fox, chair, TSX Group Inc.

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Jovian launches pair of PPNs

(May 1, 2007) JovFunds Management, a subsidiary of Jovian Capital Corporation, has launched two new principal protected notes, the Gibraltar Enhanced Commodities Deposit Notes, Series 1, and the Gibraltar Global Twin Win Deposit Notes, Series 1. The notes will be issued by Société Générale (Canada).

Gibraltar Enhanced Commodities Deposit Notes, Series 1, is marketing itself on its “boost” feature, which means that if at maturity the notes’ return is above zero and less than 62.5%, investors will receive a 62.5% return on their investments. The underlying basket of commodities that the note invests in includes aluminum, crude oil, nickel, copper and zinc. The note has a five-year term and is available to June 8.

Gibraltar Global Twin Win Deposit Notes, Series 1, is weighted on a basket of 20 publicly traded global stocks. The note has a reverse participation feature that enables investors to receive a maximum 20% return if the basket loses up to 20%, Jovian says. The principal is guaranteed by Société Générale if held for its entire six-year term. It is available to June 8.

“These two investment products complement our growing suite of principal protected notes, mutual funds and alternative investment products,” says Raj Lala, managing partner of JovFunds. “We feel that both of these notes will appeal to investors who are bullish or even unsure of the direction of both commodities as well as blue chip global equities.”

The minimum investment for the notes is $5,000.

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Dynamic Funds launches value balanced fund

(May 7, 2007) Goodman & Company Investment Counsel’s subsidiary, Dynamic Funds, is launching the Dynamic Global Value Balanced Fund, which, as its name suggests, is a globally diversified balanced fund.

The fund will have two managers. Goodman & Company’s global equity specialist David Fingold will manage the fund’s value-style equities, and Barry Allan, founder of Marret Asset Management, will manage the high-yield bond portion of the portfolio.

With no fixed asset mix, Dynamic says the fund’s managers have complete flexibility to invest in whatever they believe will yield high returns. Dynamic says that despite the flexible management practice, the fund is well diversified by region and sector.

“With this fund, investors can participate as stock markets rise while bonds help to safeguard their portfolio against stock market downturns,” David Fingold says. “What’s most unique about this fund is the complete flexibility we have to go wherever there is value on both the equity and the fixed-income side. We are not constrained by any index and we have all the tools we need to control risk.”

The fund will be available in Series T units to meet the cash flow needs of retirees.

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Manning and Harris seek deregulated economy

(May 7, 2007) Two of the country’s most notable right-wing politicians, Preston Manning and Mike Harris, have come out in strong support of an unregulated free market economy, says conservative think tank The Fraser Institute.

Both Manning, the former leader of the Reform Party and official opposition, and Harris, the former Conservative premier of Ontario, would like to see a number of changes in economic regulation, including eliminating Canada’s supply boards and agricultural subsidies, establishing a customs union and common external tariff with the United States, and reforming Canada’s approach to foreign aid.

“If Canadians want this country to have a leadership role on the international stage, we need to be champions of free trade and a role model for the benefits of open markets and wealth creation. We must drop investment restrictions, build on our relationship with the U.S. and change the way we define and deliver foreign aid,” Manning says in the Fraser Institute position paper, entitled International Leadership by a Canada Strong and Free.

Harris says there is no better regulator than the market itself. “The market does a much better job of picking winners than government. To allow the market to do its job, governments should stop protecting the losers and eliminate business subsidies, ownership restrictions and supply management programs. That will encourage investments to shift to areas of greater promise, leading to a more productive and wealthier Canada,” he says.

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(05/07/07)