Briefly:

(August 5, 2005) Vancouver-based investment dealer Canaccord Capital has announced its best-ever quarter, earning $11 million on revenues of $99 million.

Profits were up 32% and revenues rose 23% compared to the same three-month period last year.

“We continued to successfully execute on our long-term growth strategy this quarter, demonstrating strategic focus and entrepreneurial spirit,” said Canaccord chair Peter Brown.

Canaccord completed an initial public offering in June and currently has more than two-million shares available for trade on the TSX.

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FCAC issues handbook on understanding credit

(August 5, 2005) The Financial Consumer Agency of Canada today released a new booklet to help clients understand credit scores and credit reporting, and released the latest update of its guide, Credit Cards and You.

The new handbook, entitled “Understanding Your Credit Report and Credit Score,” explains how consumers can receive their personal credit reports and how to understand them. The booklet also contains tips on how to establish a positive credit history, or improve a negative one and outlines how consumers can obtain their credit reports for free by mail, how to understand the coded information found in a credit report and how to correct any errors that may show up in their report.

“Consumers who have not had an opportunity to establish a credit history, such as recent immigrants and students, may find themselves at a disadvantage when applying for credit products,” says FCAC commissioner Bill Knight. “It can be very beneficial to establish a solid credit track record by using credit wisely.”

The FCAC also released the latest version of Credit Cards and You, containing general information on credit cards and a side-by-side feature comparison of more than 200 credit cards available in Canada.

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Unemployment numbers move higher

(August 5, 2005) Canadian unemployment rates moved up slightly in July to 6.8%, from 6.7% in June. Statistics Canada says the jobless rate was essentially unchanged among adult men and women. Weaker summer and youth employment numbers were largely to blame for the marginally higher numbers. The Canadian economy added 5,900 jobs in July, fewer than expected.

TD Bank economist Carl Gomez says although unemployment inched up in July, it is still one of the lowest rates in almost three decades. “To that end, we firmly believe that this report should not alter the view that the Bank of Canada will begin its tightening campaign next month since there is conceivably little slack left in the labour market, or other estimates of economic capacity.”

“One month of disappointing employment does not make a trend,” added BMO Nesbitt Burns chief economist Sherry Cooper. “We continue to stick to our view that the Bank of Canada will still raise rates next month, and most likely again in October.”

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CI stonewalled by Amvescap

(August 4, 2005) CI Financial has called off its bid for British fund company, and parent of Canada’s AIM Trimark, Amvescap, saying the target firm was uncooperative. But CI also said they have reserved the right to take another run at the company within the next six months.

“CI Financial remains disappointed at the continuing refusal of Amvescap and its advisors to engage in any constructive discussions to explore the merits of such a transaction, which CI Financial is confident would enhance the interests of Amvescap’s shareholders, clients and staff,” read a CI press release.

The release went on to suggest CI would immediately dump its Amvescap stock, which has been riding high lately as speculators rushed to cash in on any possible takeover. Amvescap stock has fallen more than 10% in New York and 8% in London on the news.

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Manulife posts record profit

(August 4, 2005) Manulife Financial has announced quarterly earnings of $839 million, an increase of 28% over last year and a record for the company.

“This quarter marked the one-year anniversary of the John Hancock transaction,” said Dominic D’Alessandro, president and CEO of Manulife Financial. “We are very pleased with the enhanced scale, strong product portfolio and diversified distribution that the organization has realized through this acquisition. The anticipated synergies are evident in the impressive sales results, particularly those recorded in U.S. Individual Insurance and Annuities segments, and our record level of shareholders’ earnings.”

CFO Peter Rubenovitch says the integration of Hancock is “on-track” and that earnings from the division have exceeded expectations.

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Bank of England cuts rates

(August 4, 2005) The Bank of England has cut interest rates by 25 basis points, to 4.5%, in an effort to stimulate growth. The move came on the heels of sluggish household spending report and slow business investment.

The BoE did express concern that the high price of crude oil could lead to more widespread inflation. Today’s cut is the first change in U.K. interest rates in 12 months.

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S&P downgrades CIBC

(August 3, 2005) Standard & Poor’s has lowered its outlook on CIBC to negative from stable after the bank agreed to pay a $2.8 billion charge to settle legal claims related to the Enron case.

At the same time, S&P affirmed all of its short- and long-term ratings on the bank, including the A+ long-term counterparty credit rating.

CIBC established a $300 million reserve last year for Enron-related matters, and, factoring in the bank’s existing insurance coverage, appears to be adequately covered for any remaining Enron-related cases, S&P says. “Nevertheless, the settlement is surprisingly large. It appears that plaintiffs are exacting ever-increasing amounts for settlement, as the Citigroup and JPMorgan Chase settlements were for less than CIBC’s.”

“CIBC’s settlement amounted to a year’s worth of pretax earnings, whereas for the previous settlements, the amounts were less than one quarter’s worth,” explained Standard & Poor’s credit analyst Donald Chu. “Fortunately, CIBC had maintained excess capital to cover a substantial portion of the charges. Nevertheless, its Tier 1 capital ratios will decline to levels below Canadian peers, and its financial flexibility will be diminished with respect to any strategic initiatives,” he said, adding that it remains unclear how the charge affect the bank’s willingness to invest for future growth.

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Unitholders approve CI fund mergers

(August 3, 2005) CI Investments today announced that unitholders have approved the mergers of 16 mutual funds with similar mandates.

The change will have little impact on CI’s overall fund family, since all the terminated funds have the same managers as their continuing funds. The move effectively removes the Clarica name from CI’s mutual fund lineup, although the firm still offers a large number of Clarica-branded segregated funds.

“With the mergers and the winding up of the RSP funds, we have dramatically streamlined our lineup and reduced costs for investors, while continuing to offer them a comprehensive selection of investment options,” said CI president Peter Anderson in a statement.

CI terminated its RSP funds last month in the wake of Ottawa’s decision to scrap the foreign content limit.

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CFA review program to be offered in Toronto

(August 3, 2005) Schweser Study Program, a division of Kaplan Financial, and Canadian Academics, a provider of financial industry exam preparation, are teaming up to offer a classroom review for the December Level 1 CFA exam.

The 14-week course will be held at the University of Toronto starting August 24.

“We are excited to bring a weekly review product to the Toronto market. Joining forces with Canadian Academics represents the ideal balance of excellence in materials and instruction,” said Dr. Andrew Temte, president of Schweser Study Program.

Beginning next spring, Canadian Academics and Schweser will offer weekly review programs for all three levels of the June 2006 CFA exam.

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RBC launches new series of commodity-linked notes

(August 3, 2005) RBC Financial Group today issued Series 2 of its principal protected commodity-linked note, aimed at risk-averse retail investors looking to expand their portfolio.

The notes offer investors access to a select group of commodities, including aluminum, crude oil, copper, lead, natural gas, nickel and platinum and are available through advisors and investors up to September 12. They mature in 2010.

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Manulife to offer group insurance in China

(August 2, 2005) Manulife Financial is introducing group insurance in China, through its subsidiary, Manulife-Sinochem. Manulife has been preparing to enter the business since the Chinese government recently lifted product restrictions on foreign insurers.

“We are very pleased to be in a position to now offer our portfolio of innovative financial and protection products to companies,” said Marc Sterling, Executive Vice President, Regional Operations, Asia, Manulife Financial. “Our long-term goal is to become the employee benefit provider of choice in the mainland for joint-ventures and small-to-medium sized companies.”

Manulife-Sinochem is first launching group insurance to employers in Shanghai, Guangzhou, Beijing and Ningbo and will roll out at a later time into other Chinese cities, including Foshan, Dongguan, Hangzhou and Nanjing.

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Hub to expand U.S. operations

(August 2, 2005) Chicago-based Hub International has announced a deal to acquire Chubb’s personal lines insurance brokerage business. Financial terms were not released. Hub expects the agreement to close within 60 days.

The acquisition will increase Hub’s personal lines business to approximately 20% of consolidated revenue and make Hub one of the largest personal lines brokers in the U.S., the company said in a statement. Hub is also one of the largest MGAs in Canada.

Chubb’s personal lines insurance business generated revenue of about $27 million US from its 18 U.S. offices in 2004. In the same year, Hub generated approximately $25 million US in personal lines revenue in the United States and $70 million US on a consolidated basis, including Canada.

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Industrial Alliance announces executive appointments

(August 2, 2005) Industrial Alliance has named Gerry Bouwers as head of the firm’s Pacific division. Bouwers, who previously served as vice-president at Industrial Alliance Pacific, replaces John Gill, who retired in May.

As the new president, Bouwers’ mandate will be to pursue the growth of individual insurance and wealth management activities in Western Canada, the company said in a statement.

Industrial Alliance also announced the promotion of Mike Stickney as Executive Vice-President, U.S. Development. In his new position, Stickney will be responsible for managing and developing Industrial Alliance Pacific’s U.S. operations, which are primarily concentrated in target markets in the northwest.

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