SPOTLIGHT: Hedge Funds -
Bankers raise red flag over hedge funds
Canada's major banks are calling for greater regulatory scrutiny of the
burgeoning but secretive hedge fund industry, an area of the markets that has
increasingly found favour with retail investors looking for an alternative to
mutual funds. Sinclair Stewart has the story.
Reguly: Methinks banks doth protest too much about hedge funds
Regulator keeps eye on trading in hedge funds
Structured Products, Long Bonds Revisited
Structured products scramble begins
Competition is heating up in the structured products
industry, higher-risk investments that have the banks and mutual funds
jockeying for new cash from increasingly sophisticated investors. Major players including Bank of Montreal, National Bank
of Canada, CI Fund Management Inc. and Mackenzie Financial Corp. are now
flogging complex structured products that guarantee investors their capital
investment plus the promise of double-digits returns. Keith Damsell checks
Long bonds are a safe road to take for your RRSP
Short-term thinking is depriving investors of decent returns
from bonds. Too many people have a one- to five-year mindset when buying
fixed-income investments. The explanation may be that this is the way
GICs and mortgages are sold, or maybe not.
Whatever the reason, it's shortsighted. Rob Carrick looks at the other side.
INCOME TRUSTS: Hitting the Big Time
Income trusts make the TSX big league
Canada's income trust sector scored a huge victory yesterday
with news that it will be included in the benchmark S&P/TSX composite
index by the middle of this year, a move that reflects the tremendous
influence of the upstart sector that now accounts for more than $118-billion
in market capitalization. Elizabeth Church examines the implications.
Protections seen too weak to have income trusts in S&P
The governance protections at some income trusts are too
weak to justify their sweeping inclusion in Canada's benchmark S&P/TSX
index, shareholder advocate David Beatty said yesterday, adding that there are no regulatory
guidelines in place to ensure fundamental investor rights are protected at
all trusts. Janet McFarland has more.
Investors are lovin' those trusts
Last year was the year of yield and income products in the mutual fund
industry, greatly benefiting the red-hot income trust sector. Sales ''were
almost all yield-driven; you can read that to be income trusts,'' said CI's
Bill Holland, manager of the $2.5-billion CI Signature High Income Fund. Keith
Damsell has more.
PERSONAL FINANCE: Spending the House,
Bank flags consumer debt 'time bomb'
Charles Jamieson's excellent adventure with credit has put a
new car in the driveway and a remodelled kitchen and bathroom in his
family's home. It couldn't have been easier. Mr. Jamieson just went to his
bank and asked to borrow the money through a personal line of credit secured
by the value of his house. John Partridge and Rob Carrick look at the risks.
Don't rely on CPP, study warns Canadians
The Canada Pension Plan will not meet the financial needs of
Canadians on its own, and must be overhauled, concludes a new report on
retirement incomes. ''The CPP is simply not an adequate pension plan,'' said
Colin Deane, managing director of Analytica Management Consultants Ltd.
Keith Damsell looks at the alternatives.