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(December 4, 2007) It was probably the most unpredictable policy meeting of the year, but in the end the Bank of Canada decided to lower its overnight rate by 25 basis points to 4.25%.

Up until this morning, economists across the country were divided on whether or not the BoC would cut rates now or wait until January.

In a release, the Bank explains that it acted now because CPI inflation and core inflation were below expectations. The BoC says that over the next few months, inflation will be lower than previously expected.

Market instability also led to the cut, with the Bank saying that “the valuation of structured products and anticipated losses on U.S. sub-prime mortgages have worsened since mid-October and are expected to persist for a longer period of time.”

As a result, funding costs across the globe have increased and credit conditions are becoming increasingly tighter.

With all these worries, the BoC explains that there has been a “shift to the downside in the balance of risks around its October projection for inflation through 2009.”

After the announcement, the Canadian dollar dropped more than a cent from yesterday’s close to 98.88 cents US, its lowest level in about two and a half months.

As well, prime lending rates from all the banks were reduced by 1% to 6%.

The BoC’s next Monetary Policy Report will be on January 24.

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Invesco begins trading on the NYSE

(December 4, 2007) Invesco, one of the largest independent global investment managers, began trading on the New York Stock Exchange Tuesday.

The company moved its primary stock listing from the London Stock Exchange to the NYSE in order to “enhance our visibility in this critical market by providing direct comparability with our peer global investment management firms,” says Martin Flanagan, Invesco’s CEO.

That’s not the only recent change to the company’s operation. In May the company changed its name from AMVESCAP to Invesco. Flanagan says the new moniker and the jump to the NYSE allow the company to become more of an “integrated, global investment management organization.”

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Mackenzie launches new fund

(December 4, 2007) Mackenzie is launching another new fund. The Mackenzie Founders Income & Growth Fund is a balanced fund that offers a fixed monthly distribution and invests in a portfolio of Mackenzie-sponsored equity and fixed income funds.

David Feather, president of Mackenzie Financial, says Canadians want more global exposure and reliable monthly income. He says the “Mackenzie Founders Income & Growth Fund meets both these objectives and more. With a single purchase of this fund, investors receive a professionally managed investment that provides exposure to various regions, asset classes and investment styles, as well as steady income and automatic rebalancing.”

The fund includes 60% equity and 40% fixed income investments and invests in the Mackenzie Growth Fund, the Mackenzie Cundill Value Fund, the Mackenzie Maxxum Dividend Fund and the Mackenzie Ivy Foreign Equity Fund. The fixed income component is split equally between the Mackenzie Sentinel Bond Fund and the Mackenzie Sentinel Corporate Bond Fund.

(12/04/07)