Facebook LinkedIn Twitter Energy resources will continue to drive the economies of Saskatchewan, Alberta and Newfoundland and Labrador forward next year, as the oil and gas sector powers Canadian economic growth, according to the latest provincial forecast from the Royal Bank of Canada. In a report released early Monday, Canada’s largest bank said “the biggest differentiating factor” for provincial growth in 2012 will continue to be a dynamic natural resource sector. Economy lost 68,000 jobs in May Canadian Press Related news OECD raises outlook for Canadian economic growth this year Keywords Provinces,  Economic forecasts All three provinces are oil and natural gas producers, with Newfoundland’s big offshore operations, Alberta’s growing oilsands production and new fields in Saskatchewan’s Bakken zone. The bank predicts Saskatchewan will experience the greatest provincial growth, at 4.2%, compared to 4.5 per this year. Royal Bank pegs Alberta’s growth at 3.9% and Newfoundland and Labrador’s at 2.8% — just above the predicted national average of 2.5%. The banks expects Manitoba’s economy to grow by 3.2%, by 2.3% in both Ontario and British Columbia, by 1.9% in P.E.I., 1.8% in Quebec and New Brunswick and 1.6% in Nova Scotia. “The biggest differentiating factor for provincial growth next year will continue to be the dynamism of the natural resource sector,” said Craig Wright, Royal Bank’s senior vice-president and chief economist. “Resources will continue to be a catalyst for increased capital investment and production in resource-heavy provinces like Saskatchewan, Alberta, and Newfoundland and Labrador.” In Quebec, the Royal notes that job losses this fall totalling 44,000 jobs in October and November resulted in the worst two-month job loss in nearly 30 years in Quebec, a slump that could dampen consumer confidence in the province in 2012. “In retrospect, we may have been overly optimistic about growth in the province,” added Wright. “While we remain confident that Quebec’s economy will improve, the fact remains that it is carrying very little momentum going into 2012.” In Ontario, the province is showing signs that it is on track for modest growth — with two per cent growth this year and 2.3% in 2012. The auto industry is also recovering, after production shutdowns caused by the Japanese earthquake and tsunami last spring and the more recent flooding in Thailand, which affected parts supplies to Japanese carmakers Toyota and Honda, which have major assembly plants in Ontario. “Barring any major slippage in the European sovereign debt crisis, Ontario’s economy is now on a path of modest growth that will extend into next year,” said Wright. “Recently, we have seen further recovery in the manufacturing sector, thanks in large part to rising vehicle production where we see plenty of room for further gains going forward.” Share this article and your comments with peers on social media Stagflation is U.S. economists’ biggest fear, SIFMA says read more

Dynamic Funds announced on Thursday the addition of two new portfolios to its lineup of Marquis Portfolio Solutions. The new managed portfolios include Marquis Balanced Class Portfolio and Marquis Balanced Growth Class Portfolio. Share this article and your comments with peers on social media IE Staff Companies Dynamic Funds Each portfolio is structured as a class of Dynamic Global Fund Corporation, which allows investors to switch between any of the vast number of other Dynamic class funds within the corporation on a tax-deferred basis. The portfolios are also structured to provide tax-efficient distributions to investors. The assets in Marquis Balanced Class Portfolio are evenly split between equities and fixed income. Marquis Balanced Growth Class Portfolio is comprised of 65% equities and 35% fixed income. Marquis Portfolio Solutions offer investors portfolios of assets that are diversified by asset class, geographic region, investment style, and market capitalization. Each portfolio generally invests in funds with complementary investment styles to seek to control volatility while enhancing returns. The portfolios are reviewed quarterly by an oversight committee at GCIC Ltd., which manages Dynamic Funds. The lineup of Marquis Portfolio Solutions now includes six core portfolios, with two offered in corporate class versions, and one income-oriented portfolio. Facebook LinkedIn Twitter read more

Economy lost 68,000 jobs in May Share this article and your comments with peers on social media Stagflation is U.S. economists’ biggest fear, SIFMA says Related news James Langton Moody’s notes that yesterday’s package does not address the federal government’s statutory debt limit, which was reached on December 31. “The need to raise the debt limit may affect the outcome of future budget negotiations,” it notes. While the fiscal package raises some revenue through higher tax rates on high earners, Moody’s says “the estimated amount of increased revenue over the next decade is far outweighed by the amount of revenue foregone through the extension of lower tax rates for those with incomes below $400,000, the indexation of the alternative minimum tax, and other measures.” Moody’s estimates that the ratio of government debt to GDP would peak at about 80% in 2014 and then remain in the upper 70% range for the remaining years of the coming decade. “Stabilization at this level would leave the government less able to deal with future pressures from entitlement spending or from unforeseen shocks. Thus, further measures that bring about a downward debt trajectory over the medium term are likely to be needed to support the Aaa rating,” it says. Additionally, the rating agency notes that the macroeconomic effects of the package are positive, “since it averts the recession that would likely have occurred had personal income taxes gone up for all income levels”. However, it adds that the increase in the Social Security payroll tax will likely be a constraint on growth in coming quarters. And, spending cuts that may be decided in coming months could also affect the rate of GDP growth in the near term, it says. “Overall, therefore, the recent package mitigates part of the fiscal drag on the economy associated with the fiscal cliff but does not eliminate it,” it concludes. Moreover, the debt limit will have to be raised in February or early March, it says, adding, “… it seems likely that new measures addressing the expenditure side of the budget will be negotiated at around the time the debt limit will need to be raised.” Although Moody’s says it believes that the debt limit will eventually be raised and that the risk of default on Treasury bonds is extremely low, “this confluence of events adds uncertainty to the outcome of negotiations,” it adds. “The debt trajectory resulting from this process is likely to determine whether the Aaa rating is returned to a stable outlook or downgraded to Aa1,” Moody’s says. While U.S. lawmakers managed to avoid going over the fiscal cliff, Moody’s Investors Service says that the agreement still doesn’t provide a basis for a meaningful improvement in the government’s debt ratios over the medium term. The rating agency said Wendesday it expects that further fiscal measures are likely to be taken in coming months that would result in lower future budget deficits, which are necessary if the negative outlook on the government’s bond rating is to be returned to stable. “On the other hand, lack of further deficit reduction measures could affect the rating negatively,” it says. OECD raises outlook for Canadian economic growth this year Keywords Economic forecasts Facebook LinkedIn Twitter read more

Digital Consumer Dividend Fund files IPO Related news Share this article and your comments with peers on social media Faircourt migrates two closed-end funds to NEO IE Staff Details of the approved changes to the fund are contained in the management information circular of the fund dated Feb, 8, 2013. The fund is a closed-end investment fund established to provide unitholders with investment exposure to a diversified portfolio of Canadian high yield fixed income securities actively managed by High Rock Capital Management Inc. Toronto-based Scotia Managed Companies Administration Inc., the manager of Advantaged Canadian High Yield Bond Fund (TSX: AHY.UN), announced Friday that the fund’s unitholders approved amendments that will permit the fund to continue as a closed-end fund after March 29. In addition, the amendments provide unitholders with a right to redeem their units at their respective net asset value per unit on December 15 of each year commencing in 2013. Europe Blue-Chip Dividend & Growth Fund confirms termination date Keywords Closed-end funds Facebook LinkedIn Twitter read more

McIntosh told clients that the money would be invested in alternative mutual funds, pooled funds and gold, however no such investments were made. The MFDA’s notice of hearing details that McIntosh created and sent out account statements and quarterly reports to clients about their supposed investments on Dundee letterhead. Dundee became aware of McIntosh’s behavior in September 2010 when a client inquired as to why a gold investment made via a bank draft was not on an account statement prepared by the firm. MFDA documents state that when approached by Dundee about the investment McIntosh denied receiving the bank draft. McIntosh later met with the client to further mislead her as to the investment and had her sign a document stating that the matter was caused by confusion on her part. McIntosh was suspended from Dundee in November 2010 and then fired in December of the same year. During his suspension, McIntosh contacted several clients to see if they had been contacted by the firm as well as to try and mislead them as to the nature of the investigation, according to the MFDA. Furthermore, when an MFDA investigation was launched in 2011, McIntosh refused to co-operate and to this date has not given a statement to the regulator. Dundee repaid $1.8 million to 10 of the 11 clients in 2010. While McIntosh did repay one client a little more than $6,000 (from the $50,000 originally invested) in 2010 using funds from other clients, the MFDA states that he has failed to repay or to account for the misappropriated funds. In addition to the fine, the MFDA hearing panel also permanently banned McIntosh from conducting securities related business with an MFDA member. McIntosh was also fined an additional fine of $50,000 for failing to co-operate with the regulator’s investigation and ordered to pay $10,000 in costs. The Mutual Fund Dealers Association of Canada [MFDA] has fined Leslie McIntosh of Calgary $1.6 million for the misappropriation of funds from 11 clients. The fraud occurred between May 2008 and November 2010, according to MFDA documents, when McIntosh was a mutual fund salesman for Dundee Private Investors Inc. The clients ordered bank drafts or wrote cheques to one of two trade names registered to McIntosh, which were deposited into an account held by the former salesperson. Share this article and your comments with peers on social media Fiona Collie BFI investors plead for firm’s sale PwC alleges deleted emails, unusual transactions in Bridging Finance case Mouth mechanic turned market manipulator Related news Keywords Enforcement Facebook LinkedIn Twitter read more

Share this article and your comments with peers on social media It says that investors have responded by reducing allocations to commodities and emerging markets and upping allocations to bonds. As a result, a net 29% of global asset allocators are underweight commodities, it reports, up from 11% in March. And, a net 17% of asset allocators remain underweight energy stocks, it adds. Additionally, the proportion of global investors that are overweight emerging market equities has plummeted to a net 3% from 34% in March, it says. And, a net 38% is underweight bonds, down from 50% in April. “May’s fund manager survey demonstrates a clear exit from China and assets connected to China – in the shape of commodities and emerging market equities. But it’s worth noting that investors are keeping faith in global growth,” said Michael Hartnett, chief investment strategist at BofA Merrill Lynch Global Research. Conversely, the firm says that the survey shows fledgling signs of optimism towards Europe. “Global investors are starting to see the eurozone as less of a problem and more of an opportunity,” it notes, adding that the percentage of the panel naming EU sovereigns and banks as number one ‘tail risk’ has dropped to 29% from 42%. And, a net 38% now takes the view that eurozone equities are undervalued, up from 23% in April. Belief in the bull run in Japanese equities also remains strong, it says, noting that allocations to Japanese equities are at their highest since May 2006, with a net 31% of global asset allocators overweight Japanese equities, up from 20% in April. The survey also found that investors want to see companies pay out more cash. A net 27% says that payout ratios (including share buybacks and dividends) are too low, it says; and, 38% say that their preferred use of cash flow would be to return cash to shareholders via buybacks, dividends or acquisitions, 47% would like companies to increase capital spending, only 9% are prioritizing debt repayment. An overall total of 231 panelists, with US$661 billion of assets under management, participated in the survey from May 3 to 9. Keywords Investment strategies,  Institutional investorsCompanies Banc of America Securities-Merrill Lynch Research Related news James Langton Will exuberant market sentiment last? How to talk to clients about GameStop Commodities allocations have dropped to a four-year low, as investors anticipate slower growth in China and prolonged low inflation, according to the latest BofA Merrill Lynch Fund Manager Survey. The survey found that a quarter of respondents say that a hard landing in China and a commodity collapse is their number one ‘tail risk’, up from 18% in April. At the same time, investors see little threat of inflation, it notes, with a net 30% expecting global core inflation to rise over the coming year, down from 45% last month. And, the proportion of investors expecting short-term interest rates to rise is down to a net 14% from 32% in April. Geographical diversification is harder to come by, report says Facebook LinkedIn Twitter read more

first_img Keywords Energy stocks Nevertheless, it says that the new set of price assumptions reflects its sense of “firm demand for crude, even as supplies increase as a response to historically high prices.” On the supply side, it notes that “New violence in Iraq coupled with political turmoil in that general region in mid-2014 have led to supply constraints in the Middle East and North Africa.” For North American natural gas, Moody’s says that prices will get a continued boost from a slow refill of underground storage following a severe winter. “The urgency of refilling natural gas storage will prop up spot prices for the rest of 2014. Still, abundant natural gas supplies will keep a cap on prices,” it says. It now sees Brent crude at $105/barrel (bbl) for the remainder of 2014 and $95/bbl in 2015. For WTI crude, it sees prices at $100/bbl for the rest of 2014, and to $90/bbl in 2015. The new assumptions are $10 higher for both benchmarks in 2014 and up $5 for 2015. It also increased the price assumption it uses for North American natural gas to $4.50 per million British thermal units (MMBtu) for the rest of 2014 and $4.25/MMBtu in 2015; which is up by 50¢/MMBtu in 2014 and 25¢/MMBtu in 2015. It left its assumptions for crude prices and natural gas unchanged after 2015, at $90/bbl for Brent, $85/bbl for WTI and $4.00/MMBtu for North American natural gas. Related news Share this article and your comments with peers on social media Climate tide turns against oil companies: Moody’s One year after price collapse, expectations are high for oil company earningscenter_img Facebook LinkedIn Twitter James Langton Moody’s Investors Service has raised its assumptions for oil and gas prices in 2014 and 2015, based on continued strong demand, rising political turmoil in the Middle East, and the impact of the severe winter in North America. The rating agency said Thursday that it has raised its assumptions for average spot prices for the two benchmark barrels of crude oil, European Brent and West Texas Intermediate (WTI), and for North American natural gas. Moody’s notes that it uses price assumptions for rating purposes, they do not represent forecasts. Energy sector outlook turns positivelast_img read more

first_img Facebook LinkedIn Twitter Keywords Closed-end funds Faircourt migrates two closed-end funds to NEO Europe Blue-Chip Dividend & Growth Fund confirms termination date Moneda LatAm Fixed Income Fund (TSX:MLF.UN) announced on Tuesday that an administrative error caused fund’s published net asset value (NAV) per unit to be overstated for the period between July 3 and Sept. 30., with the maximum difference for any day being $0.23 per unit, or approximately 2.75-3.0%. The error was corrected in the closed-end fund’s NAV per unit published on Oct.1, the funds says in a statement. Related newscenter_img Share this article and your comments with peers on social media During the affected time period there were no offerings of or subscriptions for units of the fund at the originally published NAV per unit, the fund says, while 1,000 units of the fund were redeemed on Aug. 28. The manager of the fund, Scotia Managed Companies Administration Inc. (SMCAI), intends to reimburse the fund for the overpayment of redeemed units and overpayment of management fees resulting from the error and to compensate affected unitholders who traded units during the relevant period in accordance with the fund’s policies and procedures. The class A units of the fund are listed for trading on the Toronto Stock Exchange under the symbol MLF.UN. Digital Consumer Dividend Fund files IPO IE Staff last_img read more

first_img Share this article and your comments with peers on social media Related news Keywords No-contest settlementsCompanies Ontario Securities Commission The Ontario Securities Commission (OSC) announced on Friday it will hold a hearing on Nov. 10 to consider whether to approve a no-contest settlement agreement with Quadrus Investment Services Ltd., after the firm discovered the certain clients were overcharged in its funds. The OSC recently began to use these sorts of deals to expedite enforcement action in order to settle cases more quickly by not requiring firms to admit to wrongdoing. The actual terms of the settlement will only be revealed if the commission approves the deal. OSC to consider no-contest settlement with IPC dealers ASC gives green light to no-contest settlementscenter_img According to the statement of allegations published by the OSC, Quadrus self-reported in February that its funds indirectly overcharged certain clients. Specifically, certain clients were not told that they qualified for its “L series” funds, which have higher minimum investment levels, and charge lower MERs. As a result, the clients “indirectly paid excess fees when they invested in the higher MER retail series of securities of the same Quadrus fund,” the statement of allegations says. The OSC alleges that there were inadequacies in Quadrus’ compliance controls and supervision that resulted in the clients paying excess fees; and, that these deficiencies amount to breach of its registration requirements, and are “contrary to the public interest.” The allegations also note that the firm planned to pay compensation to clients that were affected by the issue, and to implement additional controls to prevent similar issues in the future. Any regulatory penalties stemming from the issue will be set out in the settlement. Facebook LinkedIn Twitter James Langton OSC approves no-contest settlement with IPC dealerslast_img read more

first_imgJames Langton The Canadian Securities Administrators (CSA) is introducing new requirements for clearing agencies and formalizing their oversight arrangements in an effort to bolster the integrity and oversight of financial market infrastructure. The CSA published rules on Thursday that aim to adopt international standards for organizations that operate as central counterparties (CCPs), central securities depositories, or settlement systems. Those international standards are set out in principles that the International Organization of Securities Commissions and the Committee on Payments and Market Infrastructure developed in 2012, which aim to enhance the safety and efficiency of financial market infrastructure, limit systemic risk and foster financial stability. Share this article and your comments with peers on social media “These harmonized standards will support resilient and cost-effective clearing agency operations, which in turn promote financial stability and orderly capital markets,” says Louis Morisset, the CSA’s chairman and president and CEO of the Autorité des marchés financiers (AMF), in a statement. The new rule is scheduled to take effect on Feb. 17, 2016. At the same time, the CSA also published proposed amendments to accompanying policy guidance, which was developed jointly by the CSA and the Bank of Canada, that would also introduce international standards related to recovery and orderly wind-down planning by CCPs. Those proposed changes are out for a 60-day comment period, ending Feb. 1, 2016. In addition, eight of the provincial securities regulators — including those in Ontario, Quebec, Alberta, British Columbia, Saskatchewan, Manitoba, New Brunswick and Nova Scotia — signed a memorandum of understanding (MOU) that sets out how they will co-operate and co-ordinate their oversight of clearing agencies, trade repositories and matching service utilities. The MOU will take effect once it receives government approval. Under the MOU, a single regulator, or a group of regulators, will take the lead in conducting direct oversight of financial infrastructure firms. This arrangement aims to avoid regulatory duplication and inconsistent requirements. The agreement also enhances co-ordination for processing the applications from firms that are seeking regulatory recognition. “This MOU reflects our collective commitment to co-operative oversight, information sharing and consultation,” Morisset says. “The co-ordinated oversight model will help reduce the compliance burden on the entities that provide market infrastructure.” Facebook LinkedIn Twitterlast_img read more