Briefly: “Dynamic offers new bond fund” and more news

Dynamic Funds has launched a new fixed income mandate aimed at providing income and stability with growth potential. The Dynamic Aurion Total Return Bond Fund will consist of an actively managed diversified portfolio of primarily Canadian fixed income securities.

The lead manager on the fund is Christine Horoyski, senior vice-president and portfolio manager, fixed income at Aurion Capital Management. She will employ a combination of top-down and bottom-up analysis.

Horoyski will focus primarily on investment grade corporate bonds, but may also invest in federal and provincial issues, inflation-protected bonds, and high yield bonds. The fund may also invest in income trusts, REITs, convertible bonds and hybrid securities.

The trust version of the fund will start off paying a monthly distribution with an initial yield of 5%, which is fixed but not guaranteed and may change at any time at the Manager’s discretion. A tax-efficient corporate class version of the Fund is also available for non-registered accounts.

Horoyski already co-manages Dynamic Aurion Tactical Balanced Class portfolio, and Aurion also subadvises on Dynamic Aurion Canadian Equity Class. DundeeWealth owns a 60% stake in Aurion.

– Steven Lamb

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OSC announces advisory panel

The Ontario Securities Commission (OSC) has named seven members to its Investor Advisory Panel.

The panel includes Nancy Averill (member of the board of directors of the First Nations Statistical Institute), Paul Bates (dean and industry professor in financial management services at the DeGroote School of Business, McMaster University), Stan Buell (founder, president of the Small Investor Protection Association), Lincoln Caylor (commercial litigator with Bennett Jones LLP), Steven Garmaise (former associate director of the Canadian Foundation for Advancement of Investor Rights) and Michael Wissell (senior vice-president, Ontario Teachers’ Pension Plan).

Anita Anand has also agreed to act as chair of the Panel. Anand is a leading academic in the area of securities law and an Associate Professor and past Associate Dean at the University of Toronto Faculty of Law where she teaches securities regulation and corporate law.

The members will serve a term of two years and the first meeting will be held in September. The OSC received applications from 119 individuals. The members were selected based on their experience with investor issues and public policy development.

The panel’s role will be to provide input on the work of the commission, including rules, policies and the annual statement of priorities, as well as specific issues that are requested.

“We believe that investor input is very important to the OSC’s initiatives. The panel will provide a voice for Ontario investors to assist the Commission in its work,” said OSC chair David Wilson.

– John Powell

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Housing activity stabilizing

Canadian housing starts are expected to moderate in the second half of 2010, following a rebound in the second half of 2009 and early 2010, according to Canada Mortgage and Housing Corporation’s (CMHC) second quarter Housing Market Outlook.

For the full year, starts are expected to range from 170,200 to 198,400. Next year, however, is expected to see between 146,900 to 210,500 units started.

“Housing starts will moderate in the coming months as activity becomes more in-line with long term demographic fundamentals,” said Bob Dugan, chief economist for CMHC.

Existing home sales will be in the range of 450,000 to 485,700 units in 2010, but could decline in 2011 to between 425,000 and 490,700 units. The average price is expected to edge lower through the end of 2010 and then rise modestly in 2011.

– Steven Lamb

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Excel completes merger of India Fund, India Trust

Excel Funds Management has announced the successful completion of the previously announced merger of the Excel India Fund with the Excel India Trust, an open-ended mutual fund.

Excel says the merger provides enhanced liquidity for India Trust holders, as they now have the continuous right to purchase and redeem units of the India Fund on a daily basis at NAV.

Unitholders of the India Trust can determine their India Fund holdings by multiplying the number of units they held in the India Trust by 0.365848. The ACB for India Trust holders is $23.9485 per unit.

– Steven Lamb

(08/31/10)