By Staff | November 6, 2009 | Last updated on November 6, 2009
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Canadian investors will soon have access to the investment guidance of oil patch legend T. Boone Pickens. The T. Boone Pickens Energy Fund has filed its preliminary prospectus in every jurisdiction in Canada.

The closed-end fund will be managed by TBP Investments Management, LLC, led by Pickens himself, who will own 10% of the fund’s units.

The fund is available in A and F classes, priced at $10, and a U class, priced at US$10. Each unit consists of one transferable redeemable unit of the class and one transferable warrant for one unit of the class. The offering is expected to close in mid-December.

While Pickens made his name in the oil industry, the fund may also invest in alternative and renewable energy sources. The portfolio will be managed to maximize absolute returns.

BMO Nesbitt Burns will act as the administrator of the fund and will be responsible for its management and administration.

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Unitholders approve DFA fund mergers

Dimensional Fund Advisors (DFA) has received unitholder approval to merge the DFA U.S. Small Cap Fund into the DFA U.S. Value Fund, renaming the fund DFA U.S. Vector Equity Fund.

Also being merged are the DFA International Small Cap Fund and the DFA International Value Fund, with the resulting fund being renamed DFA International Vector Equity Fund.

Unitholders also approved changes to the investment objectives of the affected funds and agreed to increase the management fee and maximum annual fees and expenses payable by the DFA International Value Fund.

The proposed mergers and changes will be effective on or about Nov. 17, 2009, subject to regulatory approval.

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Stone & Co. changes lineup

Stone & Co. Ltd. has announced changes to its Flagship Growth & Income Fund Canada, which will see A, B and C units re-designated to reflect a target annual distribution of 8%.

The units will be renamed as T8A, T8B and T8C units, with fees, rights and privileges, other than the distribution policy, remaining unchanged. The change will be effective Dec. 4, 2009.

On the same date, Stone & Co. will close T8B and T8C units of each of the Stone & Co. Mutual Funds to new sales.

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Discount rates negate equity gains

A Towers Perrin report offers further evidence that the recent gains provided by equities markets may be offset by falling discount rates.

Towers Perrin’s 2009 Third Quarter Capital Market Update reports that the accounting funded ratio of Towers Perrin’s benchmark plan at Sept. 30, 2009, is still slightly below the ratio measured at Dec. 31, 2008.

“Positive investment returns in 2009 may well be more than offset by increases in solvency liabilities caused by decreases in discount rates used for the solvency measure,” says Karen Figueiredo, a principal with Towers Perrin. “Smoothing techniques, as well as the temporary funding relief measures introduced in many jurisdictions, may provide some flexibility to sponsors.”

Figueiredo explains that in the near term, plan sponsors should estimate the year-end balance sheet entry, 2010 income statement expense and anticipated cash contribution requirements using today’s assets and liabilities. They should also be thinking about how to manage their pension plan “subsidiaries” in the long term.

(11/06/09) staff


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