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(December 14, 2006) Soaring home values have boosted consumer confidence over the past few years in what has come to be known as the wealth effect. Those good times could continue through 2007, as prices will climb by 6.5%, according to a forecast by Royal LePage Real Estate Services.

“Canadians’ passion for real estate remained steadfast throughout the year with home ownership reaching record levels during 2006,” said Phil Soper, president and CEO, Royal LePage. “Looking ahead to 2007, our plucky housing market should soldier on, with prices rising comfortably, as key economic fundamentals underpin positive consumer confidence.”

The report predicts sales volume will decline 3% to 468,000 units, with the average house price climbing to $293,000.

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Scotia drops U.S. sub-advisor

(December 14, 2006) Scotia Securities has announced several changes to the Scotia Mutual Funds lineup, dropping a highly regarded American sub-advisor, merging funds and seeking changes in investment objectives.

Capital International Asset Management, one of the largest fund managers in the U.S. but a relative unknown north of the border, has been dropped as manager of several funds.

Effective April 23, 2007, GlobeFlex Capital will take over the Capital Global Small Companies Fund (to be renamed Scotia Global Small Cap Fund); Metropolitan West Capital Management will take over the Capital U.S. Large Companies Fund (to be renamed Scotia U.S. Value Fund); Pzena Investment Management will take over the Capital International Large Companies Fund (to be renamed Scotia International Value Fund); and Thornburg Investment Management will replace the company managing the Capital Global Discovery Fund (to be renamed Scotia Global Opportunities Fund).

“The proposed changes have been developed to improve our mutual fund products and services and will result in a more streamlined and diversified fund family for our investors,” said Glen Gowland, managing director, wealth management, business development, Scotiabank.

Effective February 19, 2007, Baillie Gifford Overseas Limited will become portfolio advisor to the Scotia Global Growth Fund, replacing Capital International Asset Management (Canada), Inc.

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Scotia buys Jamaican dealer

(December 14, 2006) Scotiabank has announced the acquisition of 68% of shares in Jamaica-based Dehring Bunting & Golding Ltd., completing the bank’s takeover bid.

“Scotiabank has deep roots and a long history in the Caribbean and Central America, and we are proud to grow our operations in this region, where we have been embraced as the leading bank,” said Rob Pitfield, Scotia’s executive vice-president, international banking. “This region is an integral part of Scotiabank’s international strategy, and we have built a strong franchise by delivering superior service and by providing financial stability.”

DB&G is the fourth-largest securities dealer in the Jamaican financial market in terms of assets, profits and market capitalization, with assets of about $530 million CDN. DB&G has eight offices in Jamaica and an office in Trinidad, offering a full range of investment products and services.

DB&G will operate as a separate subsidiary of Scotiabank, and the bank says it has no plans to combine branch networks or change the name of the company in the short term.

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Covington wins advisory contract

(December 14, 2006) Covington Capital has been named the new investment advisor for the Financial Industry Opportunities Fund Inc., replacing First Asset Investment Management.

The fund was launched in 2003, focusing on investment opportunities within the Ontario financial services industry. The fund invests primarily in a diversified portfolio of small- to medium-sized private enterprises operating in and servicing Canada’s financial services sector.

Covington manages its own group of four funds, which, including the Financial Industry Opportunities Fund, have a combined asset base of about $500 million.

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(12/14/06)