By Staff | August 26, 2003 | Last updated on August 26, 2003
3 min read

(August 28, 2003) In its inaugural release the C.D. Howe Institute’s Monetary Policy Council has called on the Bank of Canada to lower its trend-setting overnight lending rate to 2.75%, citing sluggish growth, easing inflation and the high value of the Canadian dollar.

The recommendation was arrived at by averaging the targets set by the council members, which include top economists at the big banks and academics. The recommended rates ranged from 2.25% to 3.00%.

The institute plans to make its recommendation a permanent fixture on the economic landscape, offering advice a week prior to every Bank of Canada rate setting announcement.

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Earning season ends for bank sector

(August 28, 2003) The last of the big banks have released their earnings reports, as TD Bank, Laurentian and National Bank opened their books.

TD Bank Financial Group reported net income of $501 million, or 73 cents per share, compared to a loss of $273 million (47 cents per share) in the previous quarter. The same quarter in 2002 saw the bank lose $405 million.

Laurentian Bank earned $10.3 million for the quarter, or 29 cents a share, down from $22 million in the same period in 2002. National Bank earned $162 million or 89 cents per share, up from $26 million in 2002.

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Auditors board appoints new CEO

(August 27, 2003) The Canadian Public Accountability Board (CPAB) has announced the appointment of David Scott as chief executive officer, effective October 1, 2003. Scott is a senior partner with PricewaterhouseCoopers (PWC).

Most recently he was global risk managing partner for the worldwide PWC Assurance and Business Advisory Services and has represented the company on the International Forum of Firms of the International Federation of Accountants (IFAC).

“With his work on audit quality and risk management and his international experience, Scott is uniquely suited to lead this important initiative,” said Gordon Thiessen, chair of the CPAB. “He will have the full support of the board of directors of the CPAB as he takes on the challenge of ensuring a high-quality standard of auditing of public companies in Canada.”

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Banks rack up big profits again

(August 26, 2003) The big banks are alive and well, with Royal Bank, Bank of Montreal and Bank of Nova Scotia announcing strong earnings today.

BMO reported earnings growth of 46% today, with net income hitting $504 million. The bank announced an increase in its dividend to 35 cents. Royal Bank also raised its quarterly dividend to 46 cents, after announcing a net profit of $776 million.

Scotia announced quarterly earnings of $626 million, up from $564 million, but left its quarterly dividend at 44 cents per share.

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Arrow announces new multi-strategy notes

(August 26, 2003) Arrow Hedge Partners has launched Arrow Multi-Strategy Notes, Series 2, issued by BNP Paribas (Canada) and guaranteed by BNP Paribas SA.

The notes are linked to the performance of Arrow Multi-Strategy Hedge Fund, which has been returning 7% to 9% after fees, and will offer geographic and style diversification through investments by 20 hedge fund managers.

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Mackenzie unveils second principal-protected note

(August 26, 2003) Mackenzie Financial has launched CIBC FULPAY™ Mackenzie Funds-Linked Deposit Notes, Series 2, which will offer returns based on the performance of Mackenzie Ivy Foreign Equity Fund, Mackenzie Cundill Canadian Security Fund and Mackenzie Maxxum Dividend Growth Fund.

“With this launch, we’re meeting a demand for investments that have the ability to capture the upside of equity markets through mutual funds but with principal protection,” said Jim Fraser, senior vice-president of Mackenzie Financial Services Inc.

The notes will be available from August 25, 2003 until October 3, 2003.

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Desjardins outlines reorganization

(August 26, 2003) Desjardins Financial Security has announced a reorganization, aimed at focusing more on business sectors than on distribution networks.

The firm has created four business units: Individual Insurance; Savings and Segregated Funds; Group and Business Insurance; and AssurFinance for Institutions, AssurDirect and Desjardins Relations.

Desjardins says these units will have “full control over all activities impacting its objectives, regardless if they occur before or after the sale, this includes product design and customer service, or whether they affect product distribution directly.”

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(08/26/03) staff


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