SPOTLIGHT: The Year Ahead in 2004
Asia, Venture Capital this Year's Watchwords
If the story plays out like many mutual fund managers are
predicting, 2004 should see investors pump money back into the coffers of
Canadian mutual fund companies.
As Carolyn Leitch writes, that forecast should offer relief to
an industry that has watched a net $1.7-billion flow out of Canadian funds in
"Meanwhile, burgeoning scandals at marquee mutual fund
companies in the United States threatened to unnerve Canadians even more."
Read what some top analysts and fund managers are predicting for 2004 with
respect to world equity markets, labour-sponsored funds and fixed income
Funds End 2003 With a Bang
Here We Go Again: Predictions for 2004
According to Globe and Mail columnist Eric Reguly, 2004 will see some
companies hit the skids and others soar.
Air Canada's $20-million man
Robert Milton will have a miserable year, bank mergers will be on tap, the
Hudson's Bay Company will undergo signicant change, and Saputo will
snap up Parmalat Canada.
Read Reguly's near-term vision of the future.
Parmalat: It's Still too Easy for Firms to Milk it for All it's Worth
The Hot and Not of 2003
TAXES: Resolve to Defer
Taxes in the New Year
Deferring Tax Payment Puts Money in Your Pocket
How exactly can you defer tax to a future year? Read this article to review
ideas from Tax Columnist Tim Cestnick, including deferring taxable
dispositions of assets until a future year and making only the required tax instalments throughout the year in order to avoid getting refunds.
Manager Profile, Paying Twice, Fund Scandals
Bruce Kagan: Broker-Turned-Manager Loves Challenge
Streetwise Columnist Andrew Willis writes: "It takes a pretty special
stockbroker to go the management route, and do it well. Bruce Kagan is one of
those rare individuals."
"He used to make a million bucks a year as a Midland Walwyn stockbroker entrusted with $220-million of his clients' savings. He was
among the most successful brokers in the country. Establish this kind of base,
and you're set for life. Mr. Kagan decided to set it all aside."
Read of Kagan's new challenges at Dundee.
RBC's John Kellett: Fund Manager Finds Long-Term Approach Pays Dividends
If there's one guy in Canada's vast money management business who seems least
likely to get carried away with euphoria, it's John Kellett, manager of the
$2.9-billion RBC Dividend Fund. Read the full profile by VOX columnist Derek
Victor Li: Victor Victorious?
Where does father Li Ka-shing end and son Victor Li begin? The Victor Li
enigma has long been a subject of fascination in Asia, and in the fall of
2003, as the battle for control of Air Canada raged.
Canadians too had cause to be curious: Li was the distant figure who promised
a (somewhat) Canadian solution to the red-ink airline's quandary. Get to know
this Canadian newsmaker:
MUTUAL FUND SCANDALS:
Fallout from 2003
Soft Dollar: You Only Pay Twice
There's a little-understood practice in the industry called a "soft dollar"
trade, writes Columnist Doug Steiner. "In a soft-dollar arrangement, your fund
manager pays a dealer a trading commission, but the dealer takes some of the
commission and pays cash for external services the manager needs to run his
business. Not only does this boost trading costs, it allows fund companies to
pay their bills with your money."
"All of this is okay with regulators if it benefits fund unitholders - which
certainly leaves a lot of grey areas. But, have faith, the heat on this issue
is about to go up." Get the hard facts on the soft dollar concept.
Trading Practices Being Reviewed
The MFDA has asked its 201 members to fill in a survey detailing whether they
are aware of any late trading and market timing activities in their firms. The
Investment Dealers Association plans to send a similar survey to its 200
members. Find out what the organizations will do with the results.
Funds Under Microscope in Wake of U.S. Scandal