Canada’s economy is on solid ground and is well positioned to weather the current economic turbulence, according to federal Finance Minister Jim Flaherty.
“It’s important to note that, although our economy is closely tied to the United States, we are not the United States,” he said in a speech to the Economic Club of Toronto on Monday. “The factors behind the current economic malaise are not likely to be duplicated here.”
Flaherty added that the Canadian economy has expanded for 16 consecutive years—the second longest period in the country’s history.
“Our economy is resilient,” he said. “Our economic fundamentals are solid. Our budget is balanced.”
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AGF Asset Management Group Welcomes New Vice-President
Michael Still has joined AGF Asset Management Group as vice-president, business development, Ontario and Western Canada.
He will focus on building AGF’s assets under management from pension plans, charities, foundations and endowments in Ontario and the western provinces.
Still has 20 years experience in financial services, most recently as an investment consultant to institutional plan sponsors with a large national consulting company.
His career has also included high net worth private client management and analyst duties for Canadian investment firms.
“Mike’s experience with both the consulting and plan sponsor sides of the institutional business makes him a very valuable addition to our team,” says Gary Wing, senior vice-president, AGF Asset Management Group Limited.
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Morgan Stanley Closes US$4B Infrastructure Fund
Morgan Stanley has successfully closed Morgan Stanley Infrastructure Partners with US$4 billion of equity commitments, exceeding the firm’s initial target of $2.5 billion.
The fund raised its capital globally in North America, Europe, Australia, the Middle East and Asia.
Investors include major pension funds, insurance companies, high net worth individuals as well as the brokerage’s employees.
“The successful fundraising underscores the particular demand for infrastructure investment, and broadly, for alternative assets that generate long-term stable cash flows,” says James Gorman, co-president of Morgan Stanley.
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Global Manager Searches in Alternative Asset Classes Accelerate
Search activity in non-traditional asset classes continues to rise globally as investors seek to diversify their portfolios in the face of unstable markets, according to Mercer.
Canada saw a considerable increase in activity in 2007, at 120 searches—up from 101 in 2006—led by global equity searches. Overall aggregate assets placed were down slightly at US$5.9 billion (compared with US$6.1 billion the prior year), but were still well above 2003, 2004 and 2005 levels.
While the number of Canadian equity searches increased, these were overshadowed by the combined growth of non-domestic equity mandates. Equity funds with a socially responsible or ESG (environmental, social and corporate governance) focus generated some interest.
“With some traditional managers now starting to consider the impact of climate change in their research, we expect to see more dialogue between plan sponsors and managers about the role of ESG issues on investment decisions,” says Jeff Gabrione, Mercer’s head of investment manager research for the Americas.