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(October 11, 2006) Goodman & Company, the investment management division of Dundee Wealth Management, will be converted into an income trust. Dundee’s board of directors announced the proposal late Tuesday.

“Management and the board of directors believe that an income trust structure would create benefits for shareholders of Dundee Wealth and offer a capital structure that is better suited to attract capital for future growth,” the company said in a release.

Goodman & Company manages more than $20 billion in retail and institutional assets, including the Dynamic family of mutual funds. The conversion will be subject to the usual regulatory and stock exchange approvals.

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Mackenzie announces pool merger

(October 11, 2006) Mackenzie Investment says it plans to merge four Symmetry equity pools, representing the company’s customized pooled-wrap program, into a single equity pool, to be called Symmetry Equity Class.

The availability of a single equity pool will simplify the investment process and reporting, resulting in more clear and concise investment statements, Mackenzie said in a news release.

The pools to be merged are Symmetry Canadian Stock Capital Class, Symmetry US Stock Capital Class, Symmetry EAFE Stock Capital Class, and Symmetry Specialty Stock Capital Class.

The objectives of the Symmetry Equity Class pool will include geographic mandates similar to the four existing equity pools.

Investors in the pools will vote on the proposed changes at special meetings scheduled for December 6.

Following the merger, Symmetry portfolios will be constructed using two pools, the new Symmetry Equity Class, and a fixed income pool, Symmetry Managed Return Capital Class.

Symmetry is available through independent financial advisors across Canada at a minimum investment of $25,000. Assets as of September 29 were $571 million.

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Sub-prime mortgage market surging, report says

(October 11, 2006) Though still a relatively small portion of Canada’s overall mortgage market, sub-prime mortgages are growing at a “meteoric” rate, according to CIBC World Markets.

The sub-prime market involves lending at relatively high interest rates to credit-impaired or high-risk borrowers, CIBC explained in a report released this week. The near-prime market includes lenders who also do not usually meet bank guidelines and, together, the two are referred to as the non-conforming mortgage market.

“While the non-conforming market accounts for only 5% of new mortgages, it is growing rapidly,” the report notes. “During the first half of 2006, sub-prime [mortgages] rose a dazzling 50% versus the same period in 2005.”

That translates to roughly 85,000 Canadian households in the non-conforming mortgage market, CIBC says.

New players have entered the market, transferring their business models from the U.S, says CIBC economist Benjamin Tal. “We do not suggest that the current fantastic pace of growth in the non-conforming market is sustainable, not do we expect its share to reach the level seen south of the border [around 22%]. However, it appears that in the foreseeable future these non-conforming mortgages will remain by far the fastest growing segment of the mortgage market.”

CIBC expects the sub-prime and near-prime markets to rise 20% annually over the next five years, more than double the pace of prime mortgage lending.

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Scotiabank acquires $900 million US in precious metals loans

(October 11, 2006) ScotiaMocatta, the precious metals division of Scotiabank, has completed the acquisition of $900 million US in precious metals loans from Bank of America. The deal closed on Tuesday.

The purchase strengthens ScotiaMocatta’s position as a global bullion leader, the company said in a release.

“This agreement fits well with Scotiabank’s strategy to seek growth opportunities in selected areas where we have recognized global strength, expertise and product capabilities,” said Rick Waugh, president and CEO, Scotiabank. “It will further enhance our position as a market leader in dealing with industrial manufacturers that have precious metal requirements.

“We are very pleased to welcome these clients to ScotiaMocatta, a name that has been synonymous with bullion for over three centuries,” added Scotia Capital vice-chair Barry Wainstein. “As one of the world’s top bullion dealers, our clients can access a full range of precious metals trading, financing, and physical products and services.”

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