Friday, May. 24, 2013 5:00AM EDT

Proxy advisory firms’ clout undiminished

JACQUELINE NELSON

Battles in the boardroom caused by activists are on the rise in Canada, but as large investors and shareholders become better prepared for these contests, proxy advisory firms are still highly influential in deciding these fights.

That may be different than in the U.S., where the influence of these advisory groups is decreasing, according to a report in the Wall Street Journal on Thursday. The article notes that companies more often approach important investors ahead of major votes, and large investors are more likely to have their own research and analysis teams in place.

Thursday, May. 23, 2013 4:14PM EDT

M&A resurgence may be right around the corner

DEREK DECLOET

Bay Street may lament the lack of merger activity, but a few signs point to busier days ahead in the global deals market.

Private equity funds have been raising money briskly: globally, they raised $67.2-billion (U.S.) in the first quarter, according to Prequin. Five of the 10 largest funds to close were buyout funds – and there’s more to come, says Bruce Myers, managing director of Cambridge Associates, a Boston-based investment advisory firm.

Thursday, May. 23, 2013 2:54PM EDT

At TD Securities, making more while paying less

BOYD ERMAN

Tough times in the securities business? For shareholders of Toronto-Dominion Bank, not so much, as the bank’s results signal that firms that have the ability to do more than finance miners and handle mergers can still bring in a lot of cash.

For employees, it may be a bit of a different story. Even as TD’s revenue in the securities business rose, the bank cut expenses.

Thursday, May. 23, 2013 2:08PM EDT

Reporting rules relaxed for upstream oil sector mergers

JEFFREY JONES

The oil industry’s complaints of excessive red tape regarding mergers appear to have struck a chord in Ottawa.

The Competition Bureau has relaxed reporting requirements for mergers involving the exploration and production, known as ‘upstream’, sector. No longer will deal makers have the headache of filing detailed information about who operates and uses oil field gear such as batteries, compressor stations and gathering pipelines when the bureau vets upstream transactions, according to Rujuta Patel, a lawyer in Norton Rose’s Calgary office specializing in business law and global resources.

Thursday, May. 23, 2013 11:38AM EDT

TD’s U.S. loan growth a bright spot for the bank

TIM KILADZE

What’s a bank to do these days, when even the bank chiefs admit that their flagship Canadian retail divisions face headwinds?

If you’re Toronto-Dominion Bank, you rely on your sizable U.S. operation, complete with 1,310 branches.

Yet TD hasn’t always been able to do that. Even though the bank shelled out big bucks to buy Banknorth and Commerce Bancorp, the rewards haven’t been very handsome – at least not yet. Last year, the U.S. personal and commercial division brought home a profit of $1.1-billion, while the Canadian counterpart made $3.3-billion.

Thursday, May. 23, 2013 10:14AM EDT

New dark pool rules called into question

TIM KILADZE

When Canada implemented new dark pool rules last fall, the expectation was that they would improve the trading experience. But a new study suggests that market quality hasn’t improved, yet hidden trading costs have climbed.

For those who don’t know much about dark pools, they allow trades to be executed away from the spotlight of the regular ‘lit markets’. In other words, they allow trades to happen in secret and get reported after the fact.

Thursday, May. 23, 2013 5:00AM EDT

Waiting for M&A to return, Bay St. feels pinch

JEFF GRAY

Bay Street has been suffering through a drought of big mergers and acquisitions that some say shows few signs of ending any time soon.

While smaller “strategic” deals – like Telus Corp.’s recent $380-million acquisition of Mobilicity – are still happening, blockbuster multibillion-dollar mergers are completely on hold, Bay Street deal makers say.

Wednesday, May. 22, 2013 5:55PM EDT

Post-financial crisis, Aon sees new risks

JACQUELINE NELSON

Global companies might have put the financial crisis behind them, but one risk-management executive says they are facing more risks than ever.

Gregory Case, chief executive officer of London-based Aon PLC, says many companies are under-prepared for such pressing concerns as cyber-threats, terrorism, social media, and global warming.

Wednesday, May. 22, 2013 10:34AM EDT

Detour Gold bites bullet, sells $153-million in shares

TIM KILADZE

If you’re a miner, you probably don’t want to sell shares in a weak commodity market.

And you definitely don’t want to issue new stock when your shares are in deep slump.

Yet Detour Gold eschewed both rules late Tuesday, raising $153-million by selling new shares in order to fund the development of its Detour Lake project.

Wednesday, May. 22, 2013 5:00AM EDT

Why Canada’s bank stocks went soft

TIM KILADZE

So much for relying on the Big Six to boost your RRSP.

Since the start of the year, the S&P/TSX bank index is up just 3 per cent, leaving investors who rely on these institutions for returns incredibly underwhelmed. The S&P 500, by contrast, has soared 17 per cent.

What gives? Apparently investors are being prudent and pricing in an eventual lending slowdown. Quarter after quarter the banks have surprised with solid profits, but it looks like investors assume the fundamentals will ultimately catch up with the Big Six.

Tuesday, May. 21, 2013 6:45PM EDT

Mutual fund and ETF leaders united on investor education

JACQUELINE NELSON

While mutual funds and exchange-traded funds often compete for the same retail investor dollars in Canada, leaders from both sides of the fence can agree on one point: investors need to be better educated on fees.

How the industry communicates with investors could be improved, according to Noel Archard, head of BlackRock Canada, and Eric Bushell, chief investment officer of CI Investments. The two spoke at the Bloomberg Canada Economic Summit in Toronto on Tuesday.

Tuesday, May. 21, 2013 3:47PM EDT

Caisse chief Michael Sabia has a new investment strategy

JACQUELINE NELSON

The largest pension fund manager in the country is increasingly looking for strong businesses to invest in, rather than relying on opportunistic bets on certain asset classes, says Michael Sabia, chief executive officer of Caisse de dépôt et placement du Québec.

“Real performance is going to come from being highly selective in the types of assets you invest in,” Mr. Sabia said at the Bloomberg Canada Economic Summit in Toronto on Tuesday.

Tuesday, May. 21, 2013 12:54PM EDT

Canada’s financial community facing changing of the guard

TIM KILADZE

Come 2014, the titans of Canada’s financial sector will have to welcome a slew of new names to the family.

After years of stability during which there was little turnover at the top of the country’s biggest financial institutions and regulators, suddenly there is a flurry of change that will put new faces at their helms.

Tuesday, May. 21, 2013 10:41AM EDT

U.S. ambassador to Canada David Jacobson to join BMO as vice-chairman

TIM KILADZE

Editor's note: This post has been updated to include Mr. Jacobson's remarks.

Current U.S. ambassador to Canada David Jacobson will join Bank of Montreal as vice-chairman once he returns to the U.S.

Mr. Jacobson is originally from the mid-west, where BMO is growing its U.S. operations following its acquisition of Marshall & Ilsley Corporation in 2010, and he will work out of Chicago.

Tuesday, May. 21, 2013 5:00AM EDT

ConocoPhillips pulls back on plan to sell Canadian oil sands assets

CARRIE TAIT, JEFFREY JONES

ConocoPhillips Co. is pulling back on plans to sell its Canadian oil sands assets after it exceeded its target for raising capital by divesting energy properties elsewhere in the world.

The oil and gas major had been looking to find buyers or partners for 50 per cent of its mostly undeveloped oil sands holdings as part of its quest to pocket between $8-billion (U.S.) and $10-billion by selling assets around the world. The Houston-based company has exceeded this amount, allowing it to relax its plans in Alberta.

Monday, May. 20, 2013 6:37PM EDT

Sun Life throws the net wide in Asia

JACQUELINE NELSON

For Sun Life Financial Inc.’s Kevin Strain, competing in Asia is like trying to get on the subway at rush hour in Tokyo or Hong Kong, where “pushers” pack people onto the trains. If you don’t move with the crowd, you’ll be left behind.

The insurance business is growing so rapidly that “if you miss the mark, you become subscale and you’re fighting to get back in, and it’s going to be almost impossible,” Mr. Strain, president of the insurer’s business in Asia, said in an interview. “If you sit back in Asia, you’re going to get lost.”

Friday, May. 17, 2013 4:10PM EDT

CIBC names CIO, BMO hires currency strategists

BOYD ERMAN

There are some new appointments to report at two of Canada’s largest banks, with Bank of Montreal bulking up the foreign exchange group in its capital markets business and Canadian Imperial Bank of Commerce naming new senior money managers at its investment unit.

Canadian Imperial Bank of Commerce’s Global Asset Management unit named Suzann Pennington chief investment officer, and Stephen Carlin senior portfolio manager for Canadian equities.

Friday, May. 17, 2013 12:13PM EDT

First tech sector IPO in months hits the TSX

JACQUELINE NELSON

In both Canada and the U.S. the tech sector showed strength in the early part of 2013, and a number of new issues came to market south of the border. Now, a bellwether is stepping out on the Toronto Stock Exchange.

Halogen Software Inc. hits the TSX this morning under the trading symbol HGN. “At this point in time we thought it was a great opportunity to go to the markets and raise additional capital,” said Halogen’s chief executive Paul Loucks.

Friday, May. 17, 2013 11:02AM EDT

NBF hires mining banker for Vancouver office

TIM KILADZE

National Bank Financial has hired a new managing director for its Vancouver office.

Dan Barnholden is joining the investment dealer from Cormark Securities to cover mining and metals in Vancouver. At the moment Mr. Barnholden is based in Toronto, but will move west in the coming months.

Mr. Barnholden fills the hole created when former managing director Dan Wilton left to focus on mining at private equity player Pacific Road Group.

Friday, May. 17, 2013 9:39AM EDT

For Telus, Mobilicity deal is a free option

BOYD ERMAN

Telus Corp.’s deal for Mobilicity is a free option on a small but valuable chunk of Canada’s airwaves.

Key among the deal’s terms is the lack of a break fee in the $380-million acquisition transaction. Often in a deal with significant risk of failure, there is a fee payable from one side to the other if the deal is blocked to compensate for the loss of the transaction. However, even though there is a solid chance the government blocks this deal, there is no payment.

Friday, May. 17, 2013 5:00AM EDT

Public comments favour crowdfunding in OSC review

TIM KILADZE

The comments are in, and the majority are in favour of crowdfunding.

Earlier this year the Ontario Securities Commission put out a request for public comment on the merits of allowing companies to raise equity through crowdfunding. One hundred letters were ultimately sent in and law firm Osler, Hoskin & Harcourt LLP has very handily combed through them. The verdict: Most people support the proposal.

Thursday, May. 16, 2013 4:10PM EDT

CPPIB readies mobile ‘growth team’

JANET McFARLAND

The Canada Pension Plan Investment Board is taking a page from private equity giants by creating an internal team that can work with companies it invests in to improve their returns.

Launched a year ago, the small team is part of CPPIB’s private investment operation and has a mandate to parachute in to companies – particularly firms recently acquired by CPPIB in private equity deals – when needed to help develop a growth plan.

Thursday, May. 16, 2013 1:00PM EDT

Home Capital could soon be Home Trust Bank

JACQUELINE NELSON

Home Capital Group is edging closer to deciding whether it will convert its operations from being a trust to being a bank. But one this is certain: it won’t be calling itself “Home Bank.”

Chief executive Gerald Soloway joked about naming the company after a Canadian bank that collapsed in 1923 (after making a series of bad loans) at the company’s annual shareholder meeting in Toronto on Wednesday. “We didn’t think that was a good name to build on. It’s still available, but that was not our first choice,” Mr. Soloway told the crowd, chuckling. “And then there are numerous Home Banks in the United States.”

Thursday, May. 16, 2013 11:13AM EDT

Infrastructure still the hot sector for private equity

TIM KILADZE

With mega U.S. takeovers roaring back to life, you’d think that there would be a big shift in the private equity world.

For the past few years infrastructure has been the hot spot for this market, attracting major private equity players like Canadian pension funds. But lately more and more private companies – think Dell – have become leveraged buyout targets, increasing the number of investment opportunities for buyout funds.

Thursday, May. 16, 2013 5:00AM EDT

Global body revisiting the rules for credit default swaps

TIM KILADZE

The global body responsible for derivatives oversight has started the process of redefining the rules for credit default swaps.

The swaps are like a form of insurance against corporate debt. Typically, fixed-income investors buy them so that they will be reimbursed should a bond issuer go bankrupt. They can also be used by investors to bet again a company’s – or a country’s – financial health.

Wednesday, May. 15, 2013 8:00PM EDT

Scotiabank looks to expand wealth management

JACQUELINE NELSON

Canadian banks have put a major focus on their wealth management businesses in recent years, and Bank of Nova Scotia sees expansion in emerging economies as one of the biggest growth opportunities for the sector.

The bank is looking to increase its footprint in South America and Asia, where the growing ranks of the middle class find themselves with more wealth to manage. Companies such as Scotiabank see an increasing demand for services such as pensions and retirement planning in these countries.

Wednesday, May. 15, 2013 3:45PM EDT

What exactly did Bloomberg reporters see?

JODY WHITE

Can’t-miss stories from the Web

Red faces at Bloomberg
After it was revealed that Bloomberg journalists had been snooping on the company’s Wall Street clients, several private equity firms are now pushing hard to find out if any M&A data was leaked, and whether it may have affected any deals.

Jamie and Lloyd, foul weather friends
Goldman Sachs CEO Lloyd Blankfein, no stranger to scrutiny, appears to be a strong shoulder for JPMorgan’s Jamie Dimon to lean on while JPMorgan shareholders consider a non-binding vote to strip him of his chairmanship.

Wednesday, May. 15, 2013 1:39PM EDT

Zyblock named Dynamic Funds’ chief investment strategist

TIM KILADZE

Dynamic Funds has hired Myles Zyblock as its chief investment strategist, ushering in a new era at the asset manager.

Before the shuffle, industry veteran Rohit Sehgal held the title at Dynamic, which is now under the umbrella of Scotiabank. He will be replaced by Mr. Zyblock, who is a well-known name on Bay Street after his years as chief institutional strategist at Royal Bank of Canada.

Wednesday, May. 15, 2013 10:41AM EDT

Cash Store concludes investigation, says no change needed

BOYD ERMAN

Cash Store Financial Services Inc. has finished up its investigation of an acquisition gone awry and appears to have concluded the issue was poor management, not something more sinister.

Some of the issues at Cash Store (a topic of numerous prior Streetwise posts on its troubles) stem from its acquisition of a portfolio of previously off-balance sheet loans that turned out to be way overvalued. How overvalued? Cash Store issued $132-million in bonds to purchase a loan portfolio. The purchase took place in early 2012. The portfolio was held at a fair value of $50-million by the end of last year.

Wednesday, May. 15, 2013 5:00AM EDT

Manulife sees opportunity in emerging market debt

JACQUELINE NELSON

The global asset management arm of Manulife Financial Inc. has been working to restructure its portfolios and improve investment offerings around the world. As part of that, the company announced plans to add an emerging market debt portfolio management team on Tuesday.

Roberto Sanchez-Dahl and Paolo Valle have joined the firm as senior portfolio managers – both have experience in emerging markets.