Briefly: “Boomers research online, trade little” and more news

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While their grandchildren may be growing up online, boomers are becoming increasingly comfortable with the Internet as well, according to a survey by Yahoo! Canada and Leger Marketing.

Canadian boomers have embraced the Internet in many ways, including social networking and reading the news, but they are especially keen on managing their finances online. The survey found that 86% of boomers are reading financial information online, with 28% researching investments.

While 22% said they manage their investments online, boomers are not flocking to the Internet for trade execution — only 12% are engaged in online trading.

Boomers are also turning to the Internet to manage their health, with 78% of those online using it to research specific health concerns, and 55% searching for information on diet, exercise and nutrition. Twenty-five percent research alternative therapies like acupuncture and chiropractic care.

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AIC trims money market MER

AIC has announced it is temporarily cutting the MER on its money market funds, citing record-low interest rates in both Canada and the U.S.

“This has had an effect on investments in money market funds as returns fell with each cut in short-term interest rates,” said Randy LeClair, senior vice-president and portfolio manager of AIC Investment Services Inc. “In response to these market conditions, AIC has implemented a temporary fee reduction. This measure is intended to prevent our money market funds from providing negative returns to investors.”

The affected funds include AIC Money Market Fund, AIC U.S. Money Market Fund, and AIC Money Market Corporate Class. The MER on these funds will drop from 1% to 0.75%. Trailer fees will also be proportionately reduced on a temporary basis.

The company says it will monitor the interest rate environment closely and restore the full MER and trailer “at any time and without prior notice.”

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Aston Hill director resigns

Aston Hill Financial has announced the resignation of Bruce Fiell as director of the company and its related committees, following his accepting a position with a competing financial firm. That firm has not been named.

Fiell was elected to the board at the company’s AGM in 2008, and served on the company’s audit, governance and nomination committees.

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Legg Mason unloads SIVs

Baltimore-based investment manager Legg Mason has announced that it has eliminated all structured investment vehicles (SIVs) and other similar conduits from its money market funds.

The company and its funds have sold off $1.8 billion U.S. in par value SIVs, of which $1.4 billion was held by four of its money market funds. Legg Mason incurred a “net cash outflow” of $1.2 billion by selling off the assets. As a result, the firm will incur gross charges of $610 million in its upcoming quarterly operating results.

“With the sales announced today, our money market funds are now completely SIV-free,” said Mark R. Fetting, chairman and CEO of Legg Mason. “We are pleased that our business teams were able to resolve this issue and protect our money market franchise while our investment teams have focused on its goal of providing principal stability, credit quality, and current income.”

Legg Mason manages five investment mandates for Industrial Alliance, none of which are affected by the sale of these SIVs.

(03/05/09)