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(July 9, 2007) The Investment Dealers Association has issued a fine of $80,000 against investment dealer Canaccord Capital, over failure to supervise.

The IDA announced recently that Canaccord admitted that it failed to properly supervise a pro account between November 2001 and 2002, and it engaged in business conduct that was detrimental to the public interest.

Canaccord failed to restrict a trading strategy, which it should have known was unfair to other market participants and contrary to the public interest. The company also failed to create procedures that would enable it to determine if trading in the account was fair to other market participants.

Above its fine, the company is required to pay $5,000 in additional costs.

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Mackenzie launches new global funds

(July 9, 2007) Mackenzie Financial announced Monday that it is launching two new funds, the Mackenzie Universal Global Property Income Fund and the Mackenzie Universal Global Infrastructure Fund.

Investors can expect a monthly income distribution and growth potential through participation in asset classes that, until now, have been difficult for retail investors to access.

“The launch of these funds reflects the growing number of investors seeking income, growth and global diversification. These new funds meet all three objectives, providing steady monthly income and a stake in the growth of global property and infrastructure markets,” said David Feather, president of Mackenzie Financial Services. “Historically, both these asset classes have provided strong returns with low correlation to traditional stock and bond markets.”

The Universal Global Property Income Fund is aimed toward investors looking for income. The company says interested companies should have a sustainable dividend payout of 4% or greater at the time of initial investment. Currency hedges will protect the income characteristics of the fund.

The Universal Global Infrastructure Fund’s main responsibility is investing in strategic infrastructure assets around the globe, including stable assets in developed markets as well as high-growth infrastructure sectors in emerging markets.

The new funds are available in T-Series units that distribute a monthly income of 8% annually or Series A units that pay a monthly income of 5% a year. Both funds are available in Canadian or U.S. versions.

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State Street Global Advisors offers new “edge” product

(July 9, 2007) State Street Global Advisors has announced the launch of a new 130/30 product. The investment arm of State Street Corp. is offering the Canadian Index Plus Edge strategy, which was created to bridge the gap between low-risk/low-value-added passive portfolios and high-risk/high-value-added active strategies.

The product uses the company’s “Edge” or 130/30 extension strategy, which attempts to provide the best of long-only and long/short approaches.

The Canadian Index Plus Edge strategy takes short positions up to 10%, which then fund another 10% of long positions, keeping the net market exposure at 100%. Its goal is to outperform the S&P/TSX Composite Index’s annual return by 2%.

“The creation of Edge strategies is a global strategic initiative, and we are excited to add this new Canadian strategy to our existing offerings,” said Gregory Chrispin, president and managing director of SSgA in Canada. “Canadian Index Plus Edge capitalizes on two of the things that we do best at SSgA — build successful stock-selection models and control risk.”

(07/09/07)