Briefly: “IA’s Charest honoured in Quebec” and more of Wednesday’s news

The president and CEO of Industrial Alliance, Yvon Charest, has been named the 2008 Quebec Financial Person of the Year by the Finance et Investissement newspaper. It is the second time he has received this honour, with the first time coming in 2004.

Charest guided the company through several acquisitions last year, shoring up its position in the life and health insurance industry, as well as asset management and distribution.

In May, IA bought National Financial Corporation in a transaction that added 350 financial advisors and $2.8 billion in assets. In November, it bought Dundee Wealth’s Quebec-based mutual fund advisory and insurance network of financial advisors, merging the 410 advisors and $2.6 billion in assets with IA subsidiary Investia.

The firm also picked up Sarbit Asset Management and integrated it into its existing IA Clarington fund company.

Industrial Alliance is now one of the five biggest non-bank mutual funds distributors.

Read More: • DundeeWealth sells Quebec dealerships • Industrial Alliance buys National Financial

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Mackenzie offers advisor series on Saxon funds

Mackenzie Financial has launched a new series of Saxon Mutual Funds, managed by Howson Tattersall Investment Counsel. The new A-series is available for nine funds in the existing Saxon line, including:

• Saxon High Income • Saxon Stock • Saxon Small Cap • Saxon Microcap • Saxon U.S. Equity • Saxon U.S. Small Cap • Saxon International Equity • Saxon World Growth • Saxon Global Small Cap

“Mackenzie looks forward to working with independent advisors across Canada to bring Howson Tattersall’s unique talent to their clients,” says David Feather, president of Mackenzie Financial Services. “The introduction of the new series of these funds provides investors with access to Howson Tattersall’s strong value investment style as well as the superior support that advisors and their clients are accustomed to from Mackenzie.”

The firm also named Howson Tattersall as sub-advisor on the Mackenzie Balanced Fund, effective February 11, 2009. Because the fund would be managed in the same way as the Saxon Balanced Fund, the Saxon portfolio will be merged with the Mackenzie offering, pending unit-holder approval. The merger is expected to be completed in Q2 of this year.

Mackenzie bought Saxon Financial and its related subsidiaries, including Howson Tattersall, on September 25, 2008.

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First Asset names preferred share manager

Catapult Financial Management, a subsidiary of asset manager Aston Hill Financial has inked a deal to actively manage the Preferred Share Investment Trust portfolio for First Asset Investment Management.

The trust, which has just filed its preliminary prospectus, will be an actively managed portfolio of investment grade preferred shares, with a smaller portion of the fund invested in investment grade corporate debt and convertible bonds to provide added stability.

The lead portfolio manager on the trust will be Ben Cheng. The fund should provide investors with a quarterly distribution, with a target yield of 7% based on the initial issue price.

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Britain’s fortunes to fade

It seems like only yesterday that London was declared the new global financial capital, supplanting New York’s long-held title. Real estate prices across the U.K. were rising at a pace that rivalled California and Florida. But Britain now appears set to fall from the top ranks of global economic powerhouses, according to a report from Business Monitor International.

In terms of per capita GDP, Britain is expected to fall from its 2007 perch in 12th place to 21st in 2010. At the height of Britain’s economic resurgence, GDP was $45,961 U.S. a head, but BMI’s forecast for 2010 sees that plummeting to just $34,306 next year.

Part of the blame for Britain’s plight can be placed on the falling pound, which is expected to continue its weakening trend against the U.S. dollar. Despite 11 years of strong economic growth, Britain has run a budget deficit of 1.7% of GDP over the same period. That will swell to 9.3% in 2009.

But output is also in decline, according to the BMI report, with GDP contracting 3.5% in 2009. The much-anticipated recovery of 2010 will largely bypass Old Blighty, which will see growth of just 0.2%.

Joblessness is expected to become a problem, with 3.2 million Britons looking for work, at an unemployment rate of 11.2%. The financial services sector alone will shed 570,000 jobs.

And as for those high property values, real estate prices are expected to tumble 41% from peak to trough, dampening consumer sentiment.

Canada, on the other hand, is expected to rise two places from 17th in the 2007 ranking, to 15th in 2010. That’s not entirely good news, however. In 2007, Canada’s per capita GDP was $43,243 U.S., but that’s expected to fall to $41,837 U.S. in 2010. Business Monitor International predicts a rebound in 2013, though, to $46,673, which should leave Canada in 15th place.

The U.S., enjoying the advantage of having all other countries measured in American dollars, will rise from 13th place to 10th in 2010, with per capita GDP growing from $45,829 to $47,269. That will rise by 2013, according to BMI, to $50,385, but by then that will only be good enough to earn the 13th spot.

What countries will be the winner over the coming years? BMI expects Norway to surpass Luxembourg for the top spot in 2010, with its GDP growing to $87,041 per capita, from $82,589. Norway will maintain its position in 2013 with per capita GDP of $90,629. By then, Qatar will also pass Luxembourg to take second place, with GDP of $89,289 per capita.

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Caisse fends off rumours of government intervention

The Board of Directors of the Caisse de dépôt et placement du Québec is denying media reports that the Quebec government is poised to fire seven of the pension fund’s managers and has expressed confidence in its executive team.

The board unanimously adopted a resolution Tuesday reiterating its confidence in the senior management team.

“The board of directors unanimously and unequivocally reaffirms its confidence in the president and chief executive officer, Fernand Perreault, and the senior management team of the Caisse,” said the board in a statement. “The board of directors reiterates its support for the work plan prepared and implemented by the president and chief executive officer and the senior management team in response to the global financial crisis.”

The board adds that it “deplores” media reports of the Charest government’s plan to replace seven of the Caisse’s top 11 managers due to an alleged $38 billion loss in 2008 — the worst in the fund’s history.

(02/11/09)