Briefly: “RBC portfolio targets risk-averse clients” and more news

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RBC Asset Management has launched the RBC Select Very Conservative Portfolio, which is aimed at risk-averse investors who are not content to settle for the low returns offered on cash investments.

The fund description admits that it will seek only “modest capital growth” while focusing on capital preservation. The portfolio has a target asset mix of 80% bonds and 20% stocks, which are included largely as a hedge against inflation.

“Given the market declines of the past year and the uncertain economic environment, many investors today are sitting on the sidelines in GICs or other near-cash investments,” said Doug Coulter, president, RBC Asset Management.

“The RBC Select Very Conservative Portfolio offers a low-risk solution for investors who are concerned about market volatility but also understand the need for some exposure to growth investments in order to reach their goals.”

This is the first RBC Select Portfolio offering to include Phillips, Hager & North funds, following RBC’s acquisition of the boutique fundcos in February 2008.

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HSBC offers direct investors access to E.U.

The online trading division of HSBC Securities (Canada) has announced it will provide investors with direct access to the London Stock Exchange, Euronext Paris and the Frankfurt Stock Exchange.

This poses something of a threat to the investment fund industry, which until now may have lost business on the domestic investment front but had a virtual lock on global investment opportunities even among DIY investors.

The move makes HSBC InvestDirect the first online brokerage to offer such a service. The firm was already the only online brokerage to offer Canadians access to the Hong Kong Stock Exchange and over-the-phone access to 30 international markets.

“We are living up to our promise as part of ‘the world’s local bank’ to bring the world to Canadian investors,” said Richard Kelln, head of HSBC InvestDirect.

To facilitate international trading, the firm offers settlement in 10 different currencies.

In the coming months, HSBC InvestDirect will be rolling out an international exchange overview, a discussion of trading benefits and risks and answers to the most common questions investors have when they begin trading internationally.

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Barclays offers guide to third-party ETF managers

Barclays Global Investors, manager of iShares ETFs, has published an advisor guide to third-party managers offering model ETF portfolios. The ETF Managed Solutions Guide will be published quarterly.

“The role of the financial advisor is more important than ever. There’s a great need for closer communication with clients to help them navigate these turbulent markets,” says Susan Thompson, managing director, iShares ETF business at BGI. “Some advisors would prefer to spend more time with clients and utilize others’ ETF portfolios, but learning who had those model portfolios was difficult. We decided that one way we could help financial advisors was to gather this information for them.”

The inaugural guide includes more than 30 third-party managers, although iShares expects more will be added in subsequent editions. The guide provides information on investment philosophy, the portfolio management team, portfolio objectives, performance history, top holdings and asset class and sector weights.

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Kelowna advisor to pay $25,000 in fines, costs

The Investment Industry Regulatory Organization of Canada has agreed to a settlement with Dwight Allen Stirrett, assessing a fine of $20,000 against the Kelowna man, plus $5,000 in costs.

Under the settlement, Stirrett admitted he engaged in business conduct or practice that is unbecoming or detrimental to the public interest, by misrepresenting facts to clients and employees of his firm, Prodigy Wealth Management. The allegation stemmed from a May 2007 letter, which gave a false reason for his impending two-month absence from the office over the summer.

He also failed to adequately fulfill his duties as president, CEO and ultimate designated person for the firm between October 2008 and December 2008, due to his use of prescribed medication.

(03/09/09)