Briefly:

(April 29, 2005) Board members at the Investment Funds Institute of Canada have discussed and approved a search process to find a suitable replacement for the association’s retiring president and CEO.

Tom Hockin announced his October retirement earlier this week. The search committee, chosen to represent the different industry constituencies served by the association, includes IFIC chairman Michel Fragasso, Blake Goldring, president and CEO of AGF Management, Glenn Butt, president of FundTrade Financial, Karen Fisher, president and CEO of Scotia Securities and Murray Taylor, president and CEO of Investors Group.

The committee is charged with developing a profile for the position, hiring a search consultant and ultimately recommending candidates to the board.

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Manulife renames portfolios, launches new wrap product

(April 29, 2005) Manulife Investments has added an asset allocation wrap program to its line-up and renamed several existing portfolios in the process. The company launched its wrap program, known as Simplicity, on Thursday for investors with at least $25,000 to invest. The program is available in either a mutual fund or segregated fund option.

In launching the program, the company unveiled three new portfolios and renamed several others. The Manulife-branded Conservative, Moderate, Balanced, Growth and Aggressive Asset Allocation Guaranteed Investment funds along with the E&P Manulife Balanced and Maximum Growth Asset Allocation portfolios will all be rebranded to the Manulife Simplicity program. The company also added an additional conservative and moderate portfolio to the lineup.

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ScotiaMcLeod launches new wrap program

(April 29, 2005) ScotiaMcLeod also jumped into the wrap investment arena with the launch of the Pinnacle Portfolios. The company says the product is designed “to provide instant diversification with a single purchase.”

The portfolios were created by Northern Trust Global Advisors. The company will remain responsible for monitoring the portfolios. Minimum investment is $25,000.

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Sun Life reports quarterly earnings

(April 29, 2005) Sun Life Financial earned $458 million in the first quarter of 2005, a 9% gain for common shareholders over the first quarter of 2004. Earnings for the quarter ended March 31 were $0.77 per share, up $0.16 from $0.61 last year.

The company says the numbers are a result of strength in sales production, supported by increased net sales at MFS Investment Management and a 45% increase in market-based RRSP product sales in Canada.

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ASC offers conditional support to Auditor General investigation

(April 29, 2005) The Alberta Securities Commission (ASC) issued a statement saying it would cooperate with the Alberta Auditor General, as long as the investigators agreed to certain conditions. Among them, the ASC says it will appoint a representative to work with the Auditor General when dealing with ASC personnel, the ASC would not divulge information related to enforcement matters, complainants must present themselves, provide sworn testimony and submit to cross examination and the Auditor General must agree “to conduct himself in accordance with his duties under the Auditor General Act.”

“We are required by the Securities Act to hold confidential all information acquired pursuant to investigations,” said Rob McLeod in a statement, speaking on behalf of the commission’s independent directors. “To the extent that the Auditor’s examination does not intrude on that legislated requirement and agrees to other conditions, we will be pleased to work with him.”

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RBC expands in California

(April 27, 2005) RBC has opened a Global Private Banking branch in San Francisco, to lead business development efforts across California.

“Our strength is in serving the international trust and wealth management needs of high-net-worth individuals and estates, drawing on the strength of our global capabilities,” said Michael Lagopoulos, president and CEO, RBC Global Private Banking. “Our private banking services are a good fit for the diverse mix of individuals and families from all over the world who live and conduct business in California.”

The office will be lead by Pamela Woodburn, a 17-year industry veteran with experience in brokerage, insurance, financial counselling and domestic estate planning in Canada.

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Open Sky launches commodity note

(April 27, 2005) With commodity indexes on a roll for the past couple of years, a structured product manufacturer is providing a means for Canadians to invest without risking their principal.

The offering is a principal-protected noted issued and guaranteed at maturity by Société Générale.

“Investors who believe the current growth rate for commodities in emerging markets such as China and India is going to continue for some time will be very interested by this new note,” says OpenSky Capital president Steven Marshall, whose company is promoting the offering. “It’s the best of both worlds really: on the one hand you buy into a portfolio which is not normally available to the average investor and the capital is guaranteed at maturity in a category which is normally more volatile.”

The note will have an equal weighting of crude oil, natural gas, copper and aluminum futures with a potential return at maturity of 200% of the upside, if there is any. The term is 5.5 years.

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Mackenzie tops website rankings

(April 26, 2005) The websites of Canada’s mutual fund companies are effective, but could be much better, according to a report entitled WebMonitor from DALBAR, an independent financial services research firm.

The report placed Mackenzie Financial at the top of the industry, scoring 73.63 out of possible 100, for offering sales and marketing tools for advisors and for the breadth of its client account statements. Placing second and third were Fidelity Investments and AIM Trimark Investments, respectively.

“Many companies are gradually using the Internet to arm financial advisors with more and more electronic assistance in expanding their businesses, which can only help advisors looking to make more efficient use of their time,” said DALBAR’s Mark McDonald. “Mackenzie deserves congratulations both for being an innovator and for raising the standard of Internet services in the Canadian mutual fund industry.”

The report found that top-scoring companies generally allowed advisors online access to their client accounts, but that some firms had yet to invest in the needed technology.

Despite the largely positive findings, DALBAR suggests companies can improve on how they empower advisors to execute service inquiries that would normally require contact by phone.

Only one site allows advisors to securely e-mail the company with account inquiries. DALBAR also recommends fund companies offer downloadable presentations and customized account forms, which it calls “rare.”

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Energy prices seen dragging on economy

(April 26, 2005) Despite the obvious benefit to the massive energy sector, high oil prices will hamper Canadian growth over the next two years, according to CIBC World Markets.

“The expected rise in oil prices to $61 [US] per barrel next year will likely be a preclude to an even tighter supply picture emerging over the balance of the decade,” says Jeff Rubin, CIBC World Markets’ chief economist.

Rubin is predicting GDP growth of 2.6% in 2005 and 2.7% in 2006, as energy costs weigh on the overall economy, leading the Bank of Canada to abandon any planned interest rate hikes. At the same time, the U.S. Federal Reserve is seen further tightening credit, leaving Canadian rates as much as 1% lower than in the U.S.

“Modest economic growth should not only keep the Bank of Canada from raising interest rates, but also pave the way for a monetary policy ease through a falling exchange rate,” Rubin says.

The Canadian dollar is seen dropping to about the 75 cent mark, but Rubin does not expect inflation to exceed 2% over the next 18 months.

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TD Waterhouse hails foundation program

(April 26, 2005) TD Waterhouse is calling its Private Giving Foundation a “huge success” as the foundation prepares to disburse $735,000 to charities this year. The foundation was started in October 2004, allowing private donors to take advantage of the benefits of a private foundation, without the complications or cost of setting up their own personal foundation.

“We’re very pleased that the Foundation is off to such a great start. Not only is it a simple, flexible, tax-efficient option for clients who want to leave a lasting legacy, but it’s an additional source of revenue for charities,” said Jo-Anne Ryan, executive director, Private Giving Foundation. “Our goal is to build a fund that will provide a long-term and increasing source of funding to the charitable sector.”

The minimum donation for the Private Giving Foundation is $10,000, compared to the millions involved in a typical private foundation. The donor-advised structure allows the client to direct the proceeds of their portion of the foundation’s assets to the charity of their choice.

“Many of the donations we’ve received have been in the form of appreciated public securities,” says Ryan. “When publicly traded securities are donated to a public foundation such as the Private Giving Foundation, not only does the client receive a tax receipt for the market value, but any taxable capital gain is cut in half. Only 25% of the gain is reported as income.”

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AIMA names executive staff

(April 25, 2005) The Canadian chapter of the Alternative Investment Management Association (AIMA Canada) has named its executive committee for 2005-2006, with Arrow Hedge Partners’ Jim McGovern continuing as chairman.

New members of the committee include Tris Lett of Norshield Asset Management, who will serve as deputy chairman; and Andrew Doman of Abria Financial Group, who will serve as secretary.

Legal counsel Gary Ostoich and treasurer Jow Lee will continue in their present positions for a second two-year term.

“We are very grateful to both our members and our volunteer leadership for the many notable achievements of AIMA Canada during its first two years, which include the development of professional seminars and meetings, the launch of the AIMA Canada Guide to Sound Practices for Canadian Hedge Fund Managers and the AIMA Canada Hedge Fund Primer, as well as the introduction of the AIMA Canada Research Award,” McGovern said.

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RBC Insurance names new director

(April 25, 2005) RBC Insurance today announced its appointment of Herb Huck to the position of director, Professional Advisory Services, for its third party group, life and living benefits insurance businesses.

Huck’s mandate is to build and manage “a national strategy to deliver tax and estate planning solutions to key third party distributors and their clients in regions across Canada,” according to a release from the company.

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