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(May 8, 2007) The C.D. Howe Institute is concerned that labour organizations exercise too much power in the venture capital market.

York University’s Schulich School of Business professor Doug Cumming has written a study for C.D. Howe entitled Financing Entrepreneurs: Better Canadian Policy for Venture Capital. Cumming argues that better venture capital policy in Canada is needed to promote investment in innovation and entrepreneurship.

Cumming says that one of the first things that this policy needs to address is the prevalence of labour-sponsored venture capital corporations. Cumming claims LSVCCs are inefficient investment vehicles. They charge high fees, yield disappointing results (very few funds generate positive returns) and have an unfair market advantage through government tax subsidies.

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IA Clarington launches guaranteed income funds

(May 8, 2007) IA Clarington Investments has introduced the IA Clarington Guaranteed Investment Funds, a group of segregated funds with principal protection features.

The funds will be available in two guarantee types. The Guarantee A option provides a 100% death benefit and a 100% maturity benefit; the Guarantee B option provides a 100% death benefit and a 75% maturity benefit. Industrial Alliance Insurance is providing the guarantee.

“These new funds bring together the investment fund management expertise of IA Clarington with the financial strength of Industrial Alliance,” said David Scandiffio, president of IA Clarington. “With IA Clarington GIFs, our clients have an opportunity to gain from the exceptional investment skills of our sub-advisors while benefiting from the many advantages of segregated funds.”

Each of the IA Clarington GIFs invests in units of a lineup of 10 IA Clarington mutual funds. The funds will be available for sale beginning May 7, 2007.

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BullionFund touts appeal of precious metals

(May 8, 2007) Bullion Marketing Services is flaunting the success of its Millennium BullionFund to underline the healthy returns to be had in precious metal investments.

Over a five-year period, the BullionFund, which invests in an equal-weighted portfolio of gold, silver and platinum bullion, generated an average annual compounded rate of return of 6.9% in Canadian dollars and 15.5% in U.S. dollars.

“The real bull market in precious metals began in August 2005, and prices started to rise in all currencies. Until then, it was more of a U.S. dollar bear market rather than a global precious metals bull market,” says Nick Barisheff, president of Bullion Marketing Services. “As the bull market in gold, silver and platinum progresses, more and more investors and financial advisors are realizing the importance of including precious metals as part of every portfolio.”

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BMO Capital Markets adds new managing director

(May 8, 2007) BMO Capital Markets has appointed Elizabeth Marin as managing director of the firm’s financial institutions group. Marin will focus primarily on identifying and providing strategic and financial solutions for a range of specialty finance companies.

Marin was most recently with Wachovia Securities, where she was a director in its Financial Institutions Group, focusing on the specialty finance sector. Prior to that, she spent four years at Bank of America Securities, LLC as a principal and vice-president in its financial institutions group.

“Liz brings more than 12 years of industry experience, and she will be a tremendous partner as we continue to expand our efforts in this important sector,” said Erik van Nispen, the head of BMO Capital Markets’ Financial Institutions Group in the U.S.

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(05/08/07)