Briefly:

(November 6, 2006) BMO Harris Investment Management is adding to its lineup of equity funds, announcing two new products designed to take advantage of global investing opportunities.

The BMO Harris Emerging Markets Equity Portfolio, sub-advised by Comgest SA, focuses on the growth opportunities in developing countries, while the BMO Harris International Special Equity Portfolio, sub-advised by GlobeFlex Capital, invests in the equities of small and mid-cap companies around the world.

“Although most Canadian investors have a domestic bias when it comes to investing, they should consider crossing borders and going global to enhance the return potential and level of asset class diversification in their investment portfolios” said Paul Taylor, CIO of BMO Harris Private Banking.

The new funds are also intended to complement BMO Harris Private Banking’s existing large cap fund, the BMO Harris International Equity Portfolio, sub-advised by The Boston Company Asset Management.

Taylor says his company expects decent returns in both bond and equity markets over the upcoming twelve months, particularly outside of North America.

“At the end of the day, these three sectors of the international markets have unique characteristics that complement each other, and when combined in an investment portfolio, typically serve to reduce a client’s risk if, for example, a particular market experiences some volatility,” he added.

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Desjardins offers new retirement solution

(November 6, 2006) Desjardins Group has introduced a product aimed at retirees and those approaching retirement, in an effort to deal with the often-complex retirement-related challenges for that market segment.

According to the Quebec-based firm, Desjardins Vision-Retirement goes beyond simple portfolio management, taking into account the major risks involved in retirement planning and income management.

The program combines the Diapason Retirement Program, offered to those who would like to include mutual funds in their portfolio, along with Retirement Portfolio Models, for people who are more comfortable with guaranteed capital investments.

Also included is an annuity that assures retirees sufficient income to cover their basic needs throughout life, a complete line of insurance products, along with access to experts who can help make succession liquidation easier and ensure proper planning for key factors involved in the transfer of wealth.

“Desjardins Vision-Retirement is the perfect solution for members who are looking for a stable income and who want to keep the same quality of life, minimize their tax impact, maintain their lifestyle, protect their assets in order to be able to pass them on to their heirs and, finally, be supported when making financial decisions,” said Desjardins vice-president Eric Lemieux.

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Women see investing as path to financial independence

(November 6, 2006) Three out of five women surveyed by TD Waterhouse Canada say that achieving financial independence was their main reason for investing, a 10 percentage point increase from last year.

“More Canadian women are realizing that having their own financial nest-egg is essential to achieve independence, a comfortable retirement and peace of mind,” said Patricia Lovett-Reid, senior vice-president at TD Waterhouse Canada. “This is good news when you consider trends such as high divorce rates, the fact that one in five families with children is headed by a single woman and that single parent families now have more children than married couples.”

The survey also suggests that women believe they will need 55% of their current annual household income in order to retire comfortably. However 36% admitted they didn’t know how much they would need.

“That clearly indicates they haven’t tried to calculate their retirement needs or haven’t sought professional advice,” says Lovett-Reid. “Even with the best intentions, if you don’t have a goal, you can’t have a plan.”

The survey also found that those who manage a smaller investment portfolio (under $50,000) are far less likely to have a financial plan or use the services of a financial professional.

However, that doesn’t mean all women who are well off are using the services of a professional. In fact, just under two-thirds (63%) of those who manage a larger portfolio report working with a financial planner.

More than four in ten (42%) poll respondents indicated that financial advisors are their main source of financial information, followed by the Internet (11%), media (10%), and family or friends (10%).

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Fraud seen as major risk to corporate Canada

(November 6, 2006) Although many Canadian firms have measures in place to prevent corporate fraud, they remain vulnerable to the fallout from such misconduct, according to a report released Monday by KPMG.

“Instances of corporate fraud and misconduct remain a constant threat to public trust and confidence in the capital markets,” says KPMG senior vice president Derek Rostant. “By implementing a comprehensive program of prevention, detection and response, companies can greatly reduce this threat. They will realize other benefits too, as those known for their integrity and honourable practices will draw customers and the best employees.”

KPMG has released a white part on developing a strategy for prevention, detection and response to fraud.

In the paper, the advisory firm suggests that companies assess fraud and misconduct risk, introduce codes of conduct and use diligence in the hiring, retention and promotion of employees.

Hotlines are also suggested as a way for employees to report possible fraud and misconduct and to seek advice when the appropriate course of action is unclear. In addition, KPMG says a comprehensive audit and monitoring system would be useful to identify high risk issues.

Possible instances of fraud should be followed by a comprehensive internal investigation, the paper states, and a meaningful enforcement process should be introduced to send a signal that the firm considers fraud and misconduct risk a top priority.

“Faced with an increasing array of frameworks and standards governing business conduct, many worldwide organizations continue to struggle with how to mitigate the innumerable risks posed by fraud and misconduct,” KPMG says. “The development of an integrated fraud risk management program will not only help support compliance with regulatory mandates but also may assist an organization protect its assets, including its reputation.”

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RBC Insurance makes executive appointment

(November 6, 2006) RBC Insurance has named Stephen Miziolek as regional vice-president, western region for the life and health division of RBC Insurance.

In his new position, Miziolek will manage and develop customer relationships, sales associates and business growth across the life, living benefits, group and wealth management product lines in B.C. He will be based in Vancouver

Miziolek has more than 20 years of experience in financial services and most recently, was a director of national accounts for RBC Insurance, responsible for the firm’s wealth products distribution strategy.

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