On The Shelf: Scotia portfolios increase equity exposure and more of Monday’s product news

(June 2, 2008) Scotia Securities has revamped its Scotia Partners Portfolios, with a slightly larger allocation to equities and global markets. The portfolios will also introduce specialized asset classes and also hold more funds.

“It is important that we continually revisit and reassess our investment offerings and look for ways to improve them,” said Glen Gowland, managing director and head of mutual funds, and president and CEO of Scotia Securities. “This new approach will allow us to improve the risk and return potential for investors.”

Scotia Partners Portfolios currently consist of four portfolios made up of funds from seven of the top investment management firms in the country. The program manages about $3.7 billion in assets.

Acuity launches 130/30 fund

(June 2, 2008) Acuity Funds has launched a new pooled fund offering that will employ a 130/30 strategy, saying that the 30% exposure to short positions will help smooth out returns through rough market conditions.

“We want to help investors diversify not only by asset class, sector and region, but also by removing the biggest constraint that most portfolio managers have, which is an inability to add value in names that they don’t like,” says Hugh McCauley, managing director and lead portfolio manager.

The 130/30 strategy was initially developed for institutional clients, but has been growing in popularity over the past couple of years. Such a portfolio invests 100% of assets into long positions, then takes a short position in stocks the manager believes will decline. The proceeds from the short-sale are then reinvested in the long position.

“Investors effectively receive 160% exposure to our very best buy and sell ideas,” says McCauley. “Unlike a long-only fund, our investment management team is able to act on both upside and downside expectations, giving us a much broader set of opportunities.”

(06/02/08)

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.