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(October 4, 2006) Howard Atkinson, well-known for his work promoting exchange-traded funds for Barclays Global Investors Canada, is moving on, taking an executive position with BetaPro.

BetaPro, a division of Jovian Capital, runs 14 “bull and bear” mutual funds, designed to profit when the market is rising or falling.

“We are very proud to welcome Howard to our executive team,” says BetaPro president Adam Felesky. “We believe that his credibility and his wealth of knowledge of the exchange-traded funds industry will be integral to the future growth our company.”

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BMO Nesbitt Burns launches retirement income account

(October 4, 2006) BMO Nesbitt Burns has introduced a new product aimed at retirees who want to generate a monthly income from their retirement savings and investments.

The Retirement Income Management Account includes all sources of retirement income — CPP, RRIFs, company pension plans, annuities and earned income — automatically deposited into a single account, from which clients can draw a monthly paycheque.

“With so many different sources of retirement income, investments and expenses to manage, transitioning to retirement can be overwhelming for many people,” said BMO Nesbitt Burns senior vice-president Sarah Widmeyer. “Yet planning for regular income in retirement is as important to financial success as it is to accumulate your retirement nest egg.”

Since most people are used to having a steady stream of income during their working years, having a single account that automatically consolidates all sources of retirement income and provides a regular paycheque will help clients bridge the gap between their working life and retirement, Widmeyer added.

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Income trusts drag down IPO offerings

(October 4, 2006) The value of initial public offerings fell to $650 million in the Q3, largely due to a decline in new income trust issues, according to a PricewaterhouseCoopers survey.

IPO activity averaged about $2 billion in the previous two quarters, the report stated, noting that the decline likely does not signify the beginning of an overall downward trend.

“When the market for new income trust issues declined, it took the whole IPO market with it,” says Ross Sinclair, national leader for PwC’s IPO and income trust services.

Numerous factors conspired to constrain new issues in the quarter, Sinclair says, but the general market decline combined with higher interest rates particularly weighed down the market for new income trusts. “The income trust market might withstand either market volatility or higher interest rates, but not both,” Sinclair said.

With significant new offerings in the pipeline, Sinclair believes the lull in activity will be short-lived. “The market for income trusts has matured a great deal in the past two years,” Sinclair adds. “With the initial rush over and the credibility of new players like Telus arriving, we should start to see a certain amount of stability.”

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frontierAlt appoints new investment manager

(October 4, 2006) frontierAlt Investment Management has announced the appointment of Avenue Investment Management as manager of the frontierAlt All Terrain World Fund and the frontierAlt All Terrain Canada Fund.

The frontierAlt All Terrain World Fund was formerly the Orbit World Fund and the frontierAlt All Terrain Canada Fund was called the Orbit Canadian Equity Fund. The names of the funds, their managers and mandates were changed following the acquisition of Orbit Funds Management by frontierAlt Investment Management.

The world fund will invest in a concentrated portfolio of global securities across all market capitalizations, while the Canada fund will use a similar mandate to invest in primarily Canadian securities.

“More importantly, the managers will use a contrarian philosophy and will not follow the herd,” says Kurankye Sekyi-Otu, president of frontierAlt Funds Management. “Essentially they will be free to roam in finding undervalued companies that offer solid growth potential, paying attention to downside protection.”

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