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(July 4, 2006) The IDA has permanently banned Robertson Rodger Dow, formerly of Octagon Capital in Toronto, for a number of trading infractions, including accepting orders from an individual apparently associated with organized crime.

Following a disciplinary hearing held last week, an IDA panel ruled that Dow accepted orders to trade from an individual he knew or should have known to have had a history of securities violations and/or association with organized crime; concealed from Octagon the fact that he was taking trading instructions from persons not authorized in writing and that the true identity of beneficial owners of accounts was different than as identified in account documentation; and accepted trading instructions from persons who were not the owners of the accounts and were not authorized to give instructions.

Dow’s trading involved short selling over-the-counter bulletin board stocks through market makers in the United States. As well as the ban, Dow was fined $300,000 and must disgorge $361,972 in commissions and pay $110,000 in costs. He has not been registered since September 2005. The IDA has no legal authority to collect fines from those no longer in the industry.

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U.S. growth set to slow in second half

(July 4, 2006) American economic growth will weaken in the second half of this year, thanks to tighter credit and the high cost of energy, according to one think tank. In fact, the economic drag of these two anchors could extend into 2007.

“High energy prices and the rising cost of borrowing mean that households will have less disposable income to spend,” said Kip Beckman, principal research associate at the Conference Board of Canada. “Consumer spending in the United States barely flinched as energy prices tripled in recent years, but the party is expected to wind down.”

As consumer fatigue sets in, the Conference Board predicts business investment will support the economy. Overall growth for 2006 will be boosted by a strong first half, with an annual growth rate of 3.4% forecast. That will likely tail off in 2007, though, to 2.7%.

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Sarbit trims MERs following GST cut

(July 4, 2006) Following the reduction of the GST to 6%, effective July 1, Sarbit Asset Management has announced a reduction in management expense ratios to reflect the tax cut.

The company has capped the MER on the Sarbit US Equity Trust (A Class) at 2.72%, down from 2.75% before the tax-cut, while the F class version will now have a capped MER of 1.66%, down from 1.68%.

The MER on the Sarbit US Equity Trust (A Class) and the Sarbit US Equity Trust (F Class) will be unchanged at 2.75% and 1.25%, respectively.

Sarbit will also reduce the capped expense ratio on the Sarbit Total Performance Trust to 0.59%, down 1bp from 0.6%.

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CC&L expands managed accounts sales team

(July 4, 2006) Connor, Clark & Lunn Managed Portfolios has announced the appointment of Derek Perritt as senior vice president, national sales manager.

Perritt brings more than 14 years of financial services experience to his new role of leading the sales and service efforts for the managed portfolio programs as well as the separately managed accounts for Connor Clark & Lunn Financial Group.

“Derek’s expertise, commitment and passion will play an important role in building our SMA and managed portfolio programs,” said Bruce Shewfelt, head of institutional sales for CC&L Financial Group.

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AIM Trimark extends LL4 offering

(July 4, 2006) AIM Trimark has announced it is offering its Lower Load 4 purchase option to all retail investors, effective immediately.

This purchase option differs from the usual DSC option as it is based on a four-year schedule, instead of the typical six or seven year plan. This shorter schedule is intended to assist advisors in transitioning from transaction-based business models to recurring revenue-based models.

The LL4 purchase option is available for all AIM and Trimark mutual funds (excluding AIM Trimark Core Bundles), as well as on AIM Trimark Private Pools.

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Seniors benefits rise in Q3

(July 4, 2006) The federal government has announced the latest revision of Old Age Security benefits, effective July 1. The basic benefit, which is paid out to those aged 65 and older, is set at $487.54 per month, an increase of 0.6% over the second quarter.

The maximum Guaranteed Income Supplement and Allowance payments, which provide additional benefits to eligible low-income seniors and their spouses, will also increase by 0.6%.

OAS and GIS rates are adjusted every quarter to account for inflation.

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Mavrix merges two funds

(July 4, 2006) Mavrix Fund Management has announced the merger of the Mavrix American Growth Fund with the Mavrix Enterprise Fund, which took effect June 30, 2006.

“This merger combines two funds that had similar mandates and the same portfolio manager (Ray Steele),” said David Balsdon, vice president of operations and secretary-treasurer of Mavrix. “The merger increases our portfolio management efficiency to the benefit of the unitholders while maintaining the continuity of our niche mutual fund line-up.”

Unitholders approved the merger at a meeting in Toronto on June 23, 2006.

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