Briefly: “Scotia launches new emerging markets fund” and more news

Scotia Asset Management has announced the launch of Pinnacle Emerging Markets Equity Fund, which is managed by Pablo Salas, managing director and senior portfolio manager of New York-based Trilogy Global Advisors.

“We believe that identifying both early stage and traditional growth profiles among globally dominant and domestically competitive emerging market companies helps provide the best investment results,” says Salas. “Our stock selection process emphasizes primarily bottom-up company research supported by extensive quantitative screening and is complemented by top-down macroeconomic risk analysis.”

The Pinnacle Funds are a family of investment pools offered and managed by Scotia Asset Management L.P. and available exclusively through ScotiaMcLeod, a division of Scotia Capital Inc., a wholly-owned subsidiary of, and separate entity from, The Bank of Nova Scotia.

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RBC to book loss on Liberty Life sale

RBC Insurance has sold its U.S. life insurance business, Liberty Life Insurance Company, to Athene Holding Ltd. for US$628.1 million, subject to regulatory approval.

RBC expects the transaction will result in a loss of approximately US$115 million under Canadian generally accepted accounting principles on both a pre- and after-tax basis. Under U.S. GAAP, RBC expects to show a loss of about US$405 million on both a pre and after tax basis.

Immediately following the closing of the acquisition, Liberty Life will reinsure its life and health insurance business to Birmingham, Alabama-based Protective Life Insurance Company and a portion of its annuities to Athene Life Re Ltd., a Bermuda based subsidiary of Athene Holding Ltd.

The deal is expected to close in early 2011.

– Steven Lamb

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Inflation edges higher

The most closely watched measure of inflation crept higher in September, as the Consumer Price Index (CPI) rose to an annualized rate of 1.9%, according to the latest data from Statistics Canada. That’s up from 1.7% for the 12 months ended August 31.

“The Bank of Canada’s change of stance this week was vindicated by yet another soft inflation report,” wrote Krishen Rangasamy, economist with CIBC World Markets. “The series of mild inflation reports in recent months is indicative of the large negative output gap in Canada, and suggests the BoC may be on hold for an extended period.”

Higher energy prices were the driver of the increase, advancing 5.6% in the 12 months ending in September, compared to 5% for the 12 months ending in August. Excluding energy, the CPI was up 1.5% in September.

Homeowner replacement costs were also up 5.6%, while prices for passenger vehicles rose 5%.

On a seasonally adjusted monthly basis, consumer prices rose 0.3% in September following a 0.1% increase in August. The food index increased 0.2%, while the recreation, education and reading index rose 0.1%. The health and personal care component fell 0.3%.

– Steven Lamb

(10/22/10)