By Staff | May 11, 2006 | Last updated on May 11, 2006
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(May 11, 2006) Morningstar Canada has announced that for the first time, it has issued ratings on mutual funds in the income trust fund category. The newly issued ratings are based on April’s performance.

The inclusion of income trust mandates has added to the number of five star funds offered by a number of manufacturers, including Acuity, which now has 11 separate mandates earning the top rating.

Mackenzie and RBC are tied for second place with six five-star funds apiece, while Altamira, CI Investments, Dynamic and TD each have five, tying them for third place. That’s a drop of one fund for Altamira, Dynamic and TD, while CI remains unchanged.

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Great-West buys $9 billion worth of U.K. annuities

(May 11, 2006) Great-West Lifeco has purchased the bulk of the not-for-profit pension annuity business of Britain’s Equitable Life.

The acquisition was made through Great-West’s UK subsidiary, Canada Life, and includes about 130,000 policies, with liabilities and assets valued at about $9.3 billion.

“We believe this transaction represents the largest acquisition of a not-for-profit annuity portfolio in the U.K.,” said Raymond L. McFeetors, president and CEO of Great-West Lifeco. “This transaction represents a major strategic step in the continued expansion of Canada Life’s presence in the U.K., and will enable Canada Life to benefit from greater economies of scale in a growing market.”

The deal still requires regulatory approval and is expected to close in the first quarter of 2007.

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Edmonton advisor fined, ordered to pay back fees

(May 11, 2006) An IDA hearing panel has fined Kelly John Campbell Husky $25,000 for failure to “use due diligence to learn and remain informed of the essential facts relative to every customer.”

Husky also admitted to having executed one unauthorized trade in each of two client accounts in April 2004. On top of the $25,000 fine, Husky must disgorge fees totaling $1,227 and will be subject of close supervision for six months. He must also rewrite and pass the Conduct and Practices Handbook exam and pay $4,000 in costs.

At the time of the infractions, Husky was a rep at the Edmonton office of RBC Dominion Securities. He is currently employed by BMO Nesbitt Burns, which has levied a fine of $5,000 against him.

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IDA expels iForum Securities

(May 11, 2006) The IDA has expelled Montreal-based iForum Securities, following an expedited hearing by the Quebec district panel held on May 3, 2006.

The firm was suspended from the IDA in November, 2005 and all client accounts were transferred to another dealer. Now in bankruptcy and in the process of being liquidated, iForum is entangled in the Norshield investigation.

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