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(September 22, 2006) Institutional investors have soured somewhat on emerging markets, shifting their asset allocation in favour of defensive sectors of the stock market, such as consumer staples and pharmaceuticals, according to State Street Global Markets.

That shift took place between the final week of April and the first week of May, when the MSCI World Index peaked. Institutional money managers also favoured food and beverage stocks, along with tobacco companies, all of which tend to offer stability in times of slower growth.

A commentary note issued by State Street points out that institutions are not waiting for the long-anticipated slowdown of the U.S. economy to occur, and are taking a defensive position ahead of the expected lull.

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Trusteed pension fund assets rise

(September 22, 2006) The value of employer-trusteed pension funds continued to rise in the first three months of this year, making it the seventh straight quarter of increases, according to StatsCan. Fund assets were up 4.7% from Q4 of 2005, reaching $836.8 billion.

Pension funds benefited from rising equity values on most of the world’s stock exchanges. In Q1, nearly 40% of the total value of these pensions was invested in equities. Foreign plays paid off the best, with returns of 11.4% over the previous quarter. Canadian stock gains were limited to just 4.4% over the same period.

Contributions to pension funds rose to a new record of $9.9 billion, as employer contributions rose 20.8%, offsetting an 8.8% decrease in employee contributions.

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Saxon names new CFO

(September 22, 2006) Saxon Financial has announced the appointment of John (Mel) Gabel to the position of chief financial officer. Gabel comes to Saxon after serving as CFO at TD Capital.

“Mel’s multifaceted experience in finance, risk management and related areas will be valuable in helping Saxon execute our growth strategy through expanded distribution and product development,” said Allan Smith, President and CEO of Saxon Financial.

Gabel will assume the new posting on September 29..

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IDA to hearing Calgary case

(September 22, 2006) The IDA has announced it will hold a disciplinary hearing into allegations against Simon Schillaci, the former branch manager of the Calgary office of Union Securities Ltd.

Schillaci is alleged to have failed to maintain adequate supervision records and establish appropriate procedures and controls for effective supervision of his branch’s registered options representative, as well as other registered employees, between May 2002 and September 2003. Such an infraction would run afoul of IDA Regulation 1300.2 and Policy No .2.

(09/22/06)