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(August 18, 2006) Canadians continued to seek out foreign investments in June, according to StatsCan, possibly a sign they are heeding the advice to diversify beyond the highly concentrated domestic market.

Acquisitions of foreign securities totalled $4.0 billion in June, making it the 17th consecutive month for the foreign shopping spree. Bond purchases dominated the market, with $5.6 billion-worth bought in the month. Foreign-money market paper, on the other hand, saw net redemptions of $864 million. Foreign equities were also hit by a sell-off, totalling $702 million.

On the other side of the balance sheet, foreign investors scaled back their own purchases of Canadian securities, investing just $343 million in the true north strong and free — down from a whopping $5.9 billion in May.

Foreign investors sold off $846 million in Canadian equities, while buying a record amount of short-term paper — $4.5 billion worth. Foreign investors sold off $3.7 billion in federal government bonds, while buying $1.6 billion in federal enterprise bonds, which was largely offset by the selling of provincial and corporate issues.

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RBC closes one pooled fund

(August 18, 2006) RBC Asset Management has announced the closing of the RBC Private Canadian Growth and Income Pool to new purchases, effective September 1, 2006.

” The investment strategy applied to the pool has been very successful, resulting in rapid growth in assets over the past three years,” RBC said. “Closing the pool to new investments provides the best opportunity for continued success for current investors.”

The closure of the pool does not affect the reinvestment of distribution for existing pool investors. The pool is sub-advised by Greystone Managed Investments Inc.

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Mavrix seeks approval for fund, trust merger

(August 18, 2006) Mavrix Fund Management has proposed the merger of its Mavrix Balanced Income and Growth Trust with the Mavrix Canadian Income Trust Fund. The company has now mailed out a notice of a meeting and a management information circular to unitholders.

“The merger is intended to promote improved operational efficiencies and enhance economic viability for the trust and the mutual fund,” the company said. “A merger of these funds will increase the assets of the mutual fund to approximately $56.8 million, enabling unitholders to hold an investment in an entity that has a significantly larger portfolio.”

If approved, the trust will transfer all of its assets to the mutual fund for consideration equal to the net asset value of these assets on the day prior to the effective date. The merger would likely be completed on or about October 2, 2006.

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(08/18/06)