Briefly: “Munich Re: Buffett raises stake” and more news

By Staff | October 19, 2010 | Last updated on October 19, 2010
3 min read

German reinsurer Munich Re AG says U.S. investor Warren Buffett has raised his stake in the company above 10 per cent and plans to acquire more.

Munich Re said in a statement Tuesday that Buffett’s share of the voting rights amounted to 10.24 per cent on Oct. 12.

The company said Buffett had told it that “the investment serves the purpose of making trading profits and not of implementing strategic objectives.” It added he intends to acquire further voting rights over the next year.

Munich Re announced in January that Omaha-based Buffett, who invests through his company Berkshire Hathaway Inc., held just over 3 per cent of the company, and the investor has increased his stake since then.

The company’s shares were up 1 per cent at C108.30 ($150.80) in Frankfurt trading.

– Associated Press

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RBC launches Monthly Income Bond Fund

RBC Global Asset Management is offering something new. Today they have launched the RBC Monthly Income Bond Fund.

The diversified fixed-income portfolio consists of bond mutual funds from PH&N Funds and RBC Funds.

RBC claims the strength of the new fund is it will “benefit from the active management of two fixed-income teams” and will be regularly rebalanced. RBC believes the payout rate will be approximately 3%.

There are four management fee options: 0.65 per cent for Series D (for those who invest directly through PH&N Investment Services and RBC Direct Investing), 1.00 per cent for Series A, 1.00 per cent for Advisor Series and 0.50 per cent for Series F (available through financial advisors).

RBC Monthly Income Bond Fund  
PH&N Short Term Bond & Mortgage Fund 40%
PH&N Total Return Bond Fund 20%
RBC Bond Fund 20%
RBC Global Corporate Bond Fund 10%
RBC Emerging Markets Bond Fund 5%
RBC High Yield Bond Fund 5%

– John Powell

• • •

Moncton, Charlottetown top biz cities

The Canadian Federation of Independent Business says Moncton, N.B., and Charlottetown are the most business friendly cities in Atlantic Canada.

The organization’s annual ranking of the top 100 entrepreneurial cities put Moncton in 22nd spot and Charlottetown at 26th.

Virtually all of the top 10 cities – Grand Prairie, Alta., is rated No. 1 – are in Alberta, Saskatchewan and British Columbia, with the only exception being Saint-Georges, Que.

The top-rated Newfoundland city is St. John’s at 36th.

Nova Scotia’s largest municipalities failed to break the top 50, with Kentville rated the highest at 60.

Halifax was listed in 89th spot.

– Canadian Press

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Conference Board: Domestic spending cooling

The Conference Board has lowered its forecast for Canada’s growth next year, saying domestic spending has cooled and the U.S. economy has weakened.

The Ottawa-based forecaster says it now expects the Canadian gross domestic product will increase by 2.5 per cent in 2011 over this year – four percentage points lower than its previous prediction in the summer.

It estimates 2010 as a whole will show three per cent growth over last year, when Canada’s GDP shrank due to a severe global economic slowdown.

The Conference Board says that Canada’s domestic economy is losing steam and the country’s growth will rely on the U.S. and global economies.

The forecast says Canada won’t be helped by the strength of its currency, which is expected to be worth 99 cents US on average next year.

– Canadian Press

(10/19/10) staff


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