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(June 2, 2006) The sharp drop in energy and material stocks last month was likely only a blip, predicts CIBC World Markets chief strategist Jeff Rubin, who maintains that resources will push the S&P/TSX Composite Index to 15,000 by the end of 2007.

“The 460-point decline in the TSX in May presents an ideal buying opportunity for investors who wish to leverage off further strength in global energy and base metals markets,” Rubin says in his latest portfolio strategy outlook report.

“Both sectors now look cheap relative to the current level of commodity prices, and more importantly, relative to the earnings stream that those prices will facilitate.”

In addition, Rubin notes that the energy sector is only up 7% year-to-date, largely due to a warmer than usual winter. But a hot summer could boost natural gas prices and Rubin expects the energy sector as a whole to gain 30%.

As a result, his portfolio remains overweight in energy stocks, at nearly 35%. Rubin’s portfolio also stays double-weighted in income trusts, which continue to lead asset classes in returns. The strategist is also increasing his overweighting in energy trusts this month on expectations of higher natural gas and oil prices.

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Aegon launches four new imaxx branded funds

(June 2, 2006) Aegon Fund Management has added for new funds to it imax family: imaxx Canadian Balanced Fund, imaxx Canadian Dividend, imaxx Canadian Small Cap, imaxx TOP Income Portfolio.

The new funds will be managed in-house, by Aegon Capital Management, which already manages several other imaxx funds and Transamerica Life Canada’s segregated funds.

The funds are available in ISC, DSC or LSC versions, through financial advisors and discount brokers across Canada.

“We are very excited to offer these new funds to Canadian investors,” says Geraldo Ferreira, vice-president, investment product development and marketing. “We believe that with the aging population and the re-evaluation of risk by investors over the last several years, income producing investments remain top of mind for investors and advisors. At the same time, investors want and need a growth component to their portfolio. These new funds allow us to continue to meet both of those desires”.

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Quebec regulator issues e-mail warning

(June 2, 2006) Quebec’s securities regulator has issued a warning about a phony e-mail circulating on the Internet that uses the logo and letterhead of the Autorité des marchés financiers.

Few details were released, but the AMF says it wants to warn insurance companies of a consulting firm called Expert-Conseils CEP.

“The AMF is not all associated the contents of the fake e-mail,” the regulator said in a release. “As well, it is no way involved in the distribution of the e-mail and the person referred to are not AMF employees.”

The regulator says it is attempting to trace the e-mail and take appropriate measures.

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Former IDA rep suspended for 12 years

(June 2, 2006) The IDA has suspended and fined Quebec-based rep Sylvie Brunet for 12 years in a series of violations dating back eight years. Brunet worked for both Merrill Lynch and RBC Dominion Securities.

In a settlement agreement, Bruent admitted that in 1998, she engaged in a conflict of interest when she allowed a client to entrust $130,000 to a registered rep with another firm without completing proper documentation.

In 2001, she engaged in what the IDA called “careless banking” by allowing her account to be used to effect questionable transactions without checking to make sure those transactions were for lawful purposes, nor did she check the source or destination of the funds cashed through her account.

In 2002, Brunet placed herself in another conflict by obtaining $40,000 from a client for the purpose of an off-book investment to be completed by another rep. She also provided false information to an IDA investigator in 2003 in response to a question related to client complaints. Along with the suspension, Brunet was fined $5,000.

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OSC appoints new executive director

(June 2, 2006) The Ontario Securities Regulator has named banker Peggy Dowdall-Logie as its new executive director.

Dowdall-Logie is global head of retail securities compliance and personal trust at RBC. She will join the regulator on June 26, replacing Charlie McFarlane, who is retiring from the commission today. Dowdall-Logie has prior OSC experience, working in the capital markets group. She left to join RBC in 2002.

“I am confident that Peggy will bring her considerable regulatory and operations experience to the role of executive director to support the successful implementation of our strategic priorities,” said OSC chair David Wilson in a statement.

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Saxon CFO resigns

(June 2, 2006) Saxon Financial chief financial officer Kevin Feeney has resigned from the investment management firm effective June 15.

In a release, the company said Feeney left amicably to take on a new opportunity. Saxon says it will begin a search for a new CFO immediately.

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