Briefly:

Previous Brieflies this week: | MON | TUE | WED | THU |

(June 27, 2007) Russell Investments Canada has found a new partner. The company is teaming up with Cornerstone Capital Management, which will now be responsible for a portion of the Russell US Equity Fund and Sovereign US Equity Pool.

“After extensive manager research and evaluation, Russell determined Cornerstone to be a highly ranked manager with significant out-performance potential,” says Sadiq S. Adatia, the new man in charge of the Canadian Equity Fund and the Sovereign Canadian Equity Pool. “Cornerstone represents one of the highest forecasted alpha managers in the growth universe.”

Cornerstone was chosen because of its investment philosophy, which is based on buying long-term quality growth stocks.

The manager shift — which saw Ark Asset Management get the boot — was part of the company’s “multiple-manager process,” which puts a stronger emphasis on stock selection skill at the same time as providing broad diversification in its pools and funds.

• • •

Raymond James launches new business

(June 27, 2007) If Canadian wealth management firms need help with their business solutions, they can now turn to Raymond James.

The full-service independent investment dealer announced Wednesday that it is launching Raymond James Streamline, a new business focused on providing custody and business solutions to wealth management companies north of the border.

“We take a fully integrated approach to assessing, facilitating and delivering the key business support functions that Canadian wealth management firms require to deliver quality services to their clients,” says Daniella Dimitrov, senior vice-president, strategic initiatives, for Raymond James. “We believe that Canadian wealth management firms will benefit in countless ways from having access to a strong, independent alternative and one that has the depth of knowledge and expertise, on both sides of the border, to provide best-in-class solutions.”

Raymond James Streamline will integrate business support functions with its custody platform. To facilitate that, the company has partnered with HighView Financial Group, an Oakville, Ont-based company that provides advisory and outsource business services to Canadian wealth management firms.

The two companies will offer services such as custody, compliance, governance, asset management, technology strategy and capital.

• • •

RBC unveils new dividend deposit notes

(June 27, 2007) RBC has announced a new series of dividend deposit notes. The RBC IA Clarington U.S. Dividend Deposit Notes Series 1, 2 and 3 are meant for risk-averse retail investors who want more diversity.

The new notes are principal protected and linked to the Clarington U.S. Dividend Fund, which invests in American dividend-producing companies.

The Series 1 notes will provide monthly coupons equivalent to an annualized yield of 5.04%, while the Series 2 notes will provide a similar yield, but distributions are treated as return of capital. The Series 3 notes are the U.S. dollar–denominated return of capital series.

The notes are available for self-directed investors until July 27 and have a maturity date of February 2, 2015.

• • •

Canadians find ways to save energy

(June 27, 2007) Drastic times call for drastic measures, and for many Canadians that means turning down the air conditioner to save money.

A new survey from Investors Group found that increasing energy costs have forced Canadians to rethink how they consume power. The study found that 69% of Canadian adults are turning down their air conditioners and thermostats.

The report also says that 64% of those surveyed say rising energy costs will reduce the amount of money people have for investments and savings.

“Costs for shelter and transportation are two of the largest parts of total household spending … and Canadians appear to be responding to increased energy costs by adjusting their lifestyle and spending patterns,” says Jack Courtney, assistant vice-president of Advanced Financial Planning at Investors Group. “The challenge this presents to families is how to balance tighter household budgets without losing sight of longer term financial plans for important things like children’s education, their family’s financial security and their own retirement.”

When it comes to gasoline usage, 73% say they’ll change how they use their car because of the high prices. About 80% said they’d buy or lease a vehicle that uses less gas, while 46% said they’d change their car use when gas prices hit $1.50 a litre.

One thing Canadians don’t plan on doing is moving into a smaller house in order to save energy. Sixty per cent said they’ve got no plans to downsize their living conditions.

(06/27/07)