By Staff | July 6, 2006 | Last updated on July 6, 2006
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(July 6, 2006) One of the world’s largest hedge fund companies is setting up shop in Toronto. Man Investments Canada will focus on private client and institutional investors.

The Canadian subsidiary of the British firm will be headed by CEO Toreigh Stuart. The office will have an initial staff of just six professionals, but will service all of Canada with a senior executive to be based in B.C.

“Man Investments has developed significant demand for its products, with approximately $500 million raised through our successful strategic alliance with Canadian asset manager BluMont Capital Corporation,” said John M. Kelly, the Chicago-based president and CEO of Man Investments, who will also serve as chair of the Canadian operation. “Our new operation will build on this experience and broaden the range of alternative investment products available in Canada.”

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Dynamic launches three new notes

(July 6, 2006) Goodman & Company has announced the launch of three new principal protected notes under the Dynamic brand, to be issued by the Bank of Montreal.

Dynamic PRINCIPALPLUS Deposit Notes will be available until August 18, 2006. The notes offer investors up to 200% exposure to a portfolio of funds managed by Dynamic and carry a 100% principal guarantee if held to maturity, on or about February 13, 2015.

The three notes being offered include Yield Class, Series 3, which will pay monthly taxable distributions, if any; Return of Capital (R.O.C.) Class, Series 3 which pays monthly tax efficient distributions, if any; and Total Return Class, Series 2, geared towards maximizing growth.

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TD Securities agrees to $350,000 fine

(July 6, 2006) Canada’s stock market regulator has approved a settlement with TD Securities over various issues, including best execution of client orders, exposure of client orders, audit trail violations, record keeping and supervision. The firm has agreed to pay a $350,000 fine plus $80,000 in costs.

The Market Regulation Services (RS) hearing panel reviewed concerns about the firm’s handling of hundreds of retail client orders for TD Waterhouse, between December 2003 to January 2005.

The trades in question involve clients entering non-matching orders for shares trading on the then-new CNQ marketplace. Before February 2005 only designated market makers were allowed to enter non-matching bids.

Until December 2004, these orders were routed to a printer on the retail trading floor at TDSI and retrieved by a trader designated for CNQ trading, who then executed the orders.

The RS investigation found the trader’s CNQ order management methodology was ineffective and that TDSI repeatedly failed to transmit the orders to the dealer for order entry, allowing the orders to expire. To make matters worse, neither TDSI nor TD Waterhouse maintained a separate trading blotter for CNQ trading, hindering the investigation.

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PH&N launched four new funds

(July 6, 2006) Phillips, Hager & North Investment Management has announced the launch of four new funds, including two which are sub advised by BonaVista Asset Management.

The BonaVista Canadian Equity Value Fund and BonaVista Global Balanced Fund will follow that firm’s relative value investment style.

“The introduction of the BonaVista funds to PH&N’s lineup gives investors the opportunity to diversify the equity portion of their portfolio by investment style,” said John Montalbano, president of PH&N.

The other two new funds — Phillips, Hager & North Currency-Hedged U.S. Equity Fund; and Phillips, Hager & North Currency-Hedged Overseas Equity Fund — are designed to provide investors with exposure to foreign equity markets without exposure to foreign currencies.

Upon reaching “a reasonable size,” the A class units of the BonaVista funds are expected to have MERs of between 1.15% and 1.25%. The A class units of the Currency-Hedged U.S. Equity Fund is expected to have an MER of between 1.25% and 1.35%, while the Currency-Hedged Overseas Equity Fund’s MER is expected to be between 1.55% and 1.7%.

A minimum initial investment of $1,000 (per fund) is required to purchase units in the BonaVista funds and the currency-hedged funds. Clients must also maintain a minimum account size of $25,000.

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