Friday, Mar. 07, 2014 3:10PM EST
The $51.6-billion Healthcare of Ontario Pension Plan (HOOPP) bested its peers with a funding ratio of 114 per cent at the end of 2013. But even with that success, HOOPP’s chief executive isn’t expecting other plans to adopt his investing methods.
HOOPP is well known for its liability-driven investment (LDI) pension management strategy, which aligns the plan’s assets with its future liabilities to limit volatility. This involves holding a lot of long-term bonds. In the past few years, the focus on bonds has been highly profitable for HOOPP, leading to double-digit investment returns in 2011 and 2012, and keeping the plan more than fully funded.More »
Friday, Mar. 07, 2014 1:52PM EST
Dividends are usually viewed by management as sacrosanct. Except at Constellation Software Inc., where Mark Leonard, the company’s CEO, just told his shareholders the quarterly payout could disappear at any moment.
Constellation is an acquisition machine, so it might need the money for a purchase, Mr. Leonard said as the company announced earnings.More »
Friday, Mar. 07, 2014 11:17AM EST
From Bay Street to Ottawa and back again.
That’s been the career path for David Wolf, who was just named Fidelity Investments Canada’s newest portfolio manager.
Mr. Wolf used to work on Bay Street, at both RBC Dominion Securities and Merrill Lynch Canada, but he left for Ottawa in 2009, where he served as adviser to former Bank of Canada governor Mark Carney.More »
Thursday, Mar. 06, 2014 6:40PM EST
Arizona-based Chaparral Gold Corp. said on Thursday that it controls enough shares to block a hostile bid from Toronto-based private equity firm Waterton Global Resource Management.
Chaparral directors, management and shareholders representing more than 50 per cent of its outstanding shares have indicated that they will not tender their stock to Waterton’s $58.8-million offer, the company said in a statement.More »
Thursday, Mar. 06, 2014 7:25AM EST
Goldcorp Inc.’s sale of $225-million of shares in Primero Mining Corp. drew a lineup of buyers, yet another signal that interest in the gold sector is heating up.
And it means shares of Osisko Mining are likely to get some attention on Thursday morning as the sale gives hostile bidder Goldcorp more cash to potentially raise the bid.More »
Thursday, Mar. 06, 2014 5:00AM EST
Here we go again. For what feels like the umpteenth time, someone with clout is calling for a big drop in Canadian house prices.
This week the culprit is Pimco, speculating that domestic house prices will drop 10 to 20 per cent in real terms over the next three to five years. The more heavyweights that join the chorus, the more international news organizations pile on, with the Financial Times the latest to report on the worries.More »
Wednesday, Mar. 05, 2014 4:53PM EST
Come May, Bank of Nova Scotia will only have one head of its capital markets arm.
Steve McDonald, currently group head and co-chief executive officer of Scotia Capital, is retiring at the end of April.
Mike Durland, who co-heads the global banking and markets arm, will assume sole leadership after Mr. McDonald leaves.More »
Wednesday, Mar. 05, 2014 2:22PM EST
Resource Capital Funds, a private-equity firm that invests in mining assets, has hired a syndication specialist to help pull together entire financing packages for miners.
“The real potential value to be created in this market is to be the catalyst to bring the financing, the entire package together,” Denver-based Resource Capital partner Ross Bhappu told a mining conference in Toronto on Wednesday.More »
Wednesday, Mar. 05, 2014 1:26PM EST
KKR Inc., the investment firm led by Henry Kravis and George Roberts, has amassed a $2-billion (U.S.) fund targeting unconventional oil and gas resources in North America.
The New York-based firm said its KKR Energy Income and Growth Fund I attracted a wide array of global investors, including pension funds, sovereign wealth funds, insurance companies and individuals. It will concentrate on joint-venture drilling, acquiring assets and seeking out other “opportunistic” investments, it said.More »
Wednesday, Mar. 05, 2014 12:25PM EST
Salman Partners Inc. intends to stay active in the oil patch despite its current challenges. It’s just a question of how broadly it will cover the sector, chief executive Terry Salman said.
The resource-focused boutique dealer recently announced several departures of key staff, against a backdrop of weak market conditions and squeezed revenue.More »
Wednesday, Mar. 05, 2014 10:16AM EST
Canadian technology startups have someone they need to get to know: Kent Thexton, who is now in charge of technology, media and telecommunications at OMERS Ventures.
OMERS Ventures has been the go-to fund for venture capital investments in Canada of late, especially when a company needs a big cheque. The fund has backed many of the hot startups in Canada that are now queued up to go public, including Vision Critical and Shopify.More »
Tuesday, Mar. 04, 2014 2:08PM EST
Canada’s largest banks are stuffed with capital, giving them the freedom to go buying should they so choose.
Across the five biggest banks, the common equity Tier 1 ratio – the all-important measure – now averages 9.4 per cent. At that level, the banks are well above the globally-mandated 7-per-cent minimum, and even surpass Canada’s 8-per-cent requirement.More »
Tuesday, Mar. 04, 2014 8:39AM EST
Insurance and investment company Fairfax Financial Holdings Ltd. is selling down one third of its stake in the Bank of Ireland, a transaction that has become a model for its other investments in distressed countries.
Fairfax’s chief executive officer and founder Prem Watsa led a consortium of investors to take a 35-per-cent stake in the bank in 2011, then worth $1.5-billion. The move saved Bank of Ireland from nationalization. The government of Ireland took a minority stake, which it maintains today.More »
Monday, Mar. 03, 2014 5:58PM EST
Barrick Gold Corp. shareholders take note: Bay Street financier Ned Goodman has opinions and he is going to share them whether you like them or not.
Mr. Goodman is one of the four independent directors Barrick nominated after shareholders staged a mini-revolt after the company awarded incoming chairman John Thornton a $11.9-million bonus.More »
Monday, Mar. 03, 2014 5:47PM EST
JEFF GRAY Law Reporter
Just days after Dentons LLP announced that it had absorbed a total of 46 new lawyers jumping ship from now-sunk rival Heenan Blaikie LLP, it appears that some Dentons lawyers have decided to jump themselves.
Cassels Brock & Blackwell LLP has announced that it is picking up five lawyers from Dentons’ Toronto restructuring and insolvency group: Shane Kukulowicz, Michael Wunder, Ryan Jacobs, Jane Dietrich and Natalie Levine.More »
Monday, Mar. 03, 2014 1:14PM EST
Two key staffers have left Salman Partners Inc.’s Calgary office in the latest blow to a resource-focused boutique dealer following a year and a half of weak market conditions.
Stephen Calderwood has resigned as Salman’s senior vice-president of investment banking after more than two years in the position, according to knowledgeable sources. Mr. Calderwood has yet to land in a new position.More »
Monday, Mar. 03, 2014 9:53AM EST
One of the fastest growing books of business for Canadian banks is starting to show signs of slowing.
Commercial lending, the business driven by borrowing from small-to-mid-sized companies, exhibited extremely encouraging growth over the past few years, with annual expansion rates often in the low double digits. Even as personal lending started to cool, commercial borrowing stayed hot.More »
Monday, Mar. 03, 2014 5:00AM EST
Hot technology markets have prompted investment bankers on both sides of the border to call for a torrent of initial public offerings in the coming year.
In Canada, technology sector gains on the TSX are making IPOs more appealing, and there are six or seven quality companies waiting in the wings, according to some bankers.More »
Friday, Feb. 28, 2014 7:12PM EST
The mystery suitor in a recent multi-part deal pulled off by a cluster of Calgary investment bankers has revealed itself. After Advantage Oil & Gas Ltd. sold its stake in Longview Oil Corp. in a bought deal, another firm purchased part of the stake when the bankers couldn't sell all the shares to investors. That firm, however, remained anonymous, until now: Surge Energy Inc. revealed Friday that it intends to obtain a large, strategic equity position in Longview.More »
Friday, Feb. 28, 2014 5:16PM EST
Canada Mortgage and Housing Corp. says it needs to raise prices for mortgage insurance to reflect higher capital targets – even though its stockpile of capital is already growing quickly under the old prices. That suggests there is more at play with this move.
The public line for the price increases announced Friday is that they “reflect higher capital targets.” That’s a good thing because it reduces the exposure of taxpayers, who own CMHC, to any losses at the insurer.More »
Friday, Feb. 28, 2014 1:26PM EST
Two of the three Canadian banks with large U.S. operations say there aren’t worried about the Federal Reserve’s new rules for foreign banks.
After a length consultation period, the Fed recently released final details on the regulation of foreign banking organizations – or foreign banks with sizable U.S operations.More »
Friday, Feb. 28, 2014 12:08PM EST
Every day ROB Insight delivers exclusive analysis on breaking business news and market-moving events. Streetwise offers news and analysis on Bay Street and the world of finance. Insight the Market delivers up-to-the-minute insights on developing market news.
Here are our editors’ picks of some of the best reads available to Globe Unlimited subscribers this week.More »
Friday, Feb. 28, 2014 10:12AM EST
At a sold-out gala in Toronto, three banks took the top honours as Canadian Dealmakers of the year.
The capital markets arm of Royal Bank of Canada won top Canadian investment bank after having dominated the rankings for deals in 2013, while in the mid-market category, National Bank Financial and GMP Securities tied for the prize.More »
Thursday, Feb. 27, 2014 3:30PM EST
After a bruising fight over its Aeroplan credit card accounts, Canadian Imperial Bank of Commerce investors couldn’t help but worry that the bank was tripping up.
By selling half its Aeroplan portfolio to TD, CIBC quickly parted ways with a business that contributed roughly 5.5 per cent of its annual earnings. At the very same time, the bank pledged to spend $50-million to market a revamped Aventura travel rewards card, for which success was anything but guaranteed.More »
Thursday, Feb. 27, 2014 3:21PM EST
Roger Hardy, founder of Vancouver-based Coastal Contacts Inc., says he wasn’t looking for a buyer for his maker and online retailer of eye wear products.
But when when the world’s largest lens manufacturer, France-based Essilor International SA, approached the company in the fall, Mr. Hardy began to see value in the partnership. Essilor announced on Wednesday it would buy Coastal for $435-million.More »
Thursday, Feb. 27, 2014 9:25AM EST
The insurance industry is struggling to come to grips with how to measure the risk posed by devastating water damage.
The standard methods of calculating property insurance rates based on historical claims may no longer be reliable because of rapid changes in climate, deteriorating infrastructure and changes in living patterns, according to the Canadian Institute of Actuaries (CIA) and KPMG LLP.More »
Thursday, Feb. 27, 2014 9:24AM EST
Private equity’s role in financing the oil patch has never been larger than it is now and it’s expected to keep growing even as public markets recover from a year-long slowdown.More »
Thursday, Feb. 27, 2014 9:23AM EST
Canada’s high-tech sector is getting bigger and busier – which bodes well for deal makers, since no area is as hot right now as digital commerce.More »
Wednesday, Feb. 26, 2014 7:16PM EST
Investment company Fairfax Financial Holdings Ltd. is not boosting its shares of BlackBerry Ltd., holding fast at a 10.5-per-cent equity stake in the smartphone maker.
Wednesday’s reports that the company was increasing its position stem from a filing with the Securities and Exchange Commission that appeared to attribute to Fairfax a 16.8-per-cent investment stake in BlackBerry.More »
Wednesday, Feb. 26, 2014 5:25PM EST
Two Canadian law firms said Wednesday they have hired 90 lawyers from failed law firm Heenan Blaikie LLP, including the firm’s entire teams from two smaller cities in Quebec.
Quebec-based law firm Lavery de Billy said it has hired the Sherbrooke and Trois-Rivières teams from Heenan – a total of 31 lawyers, plus two notaries and 30 staff members – on top of 13 other lawyers and 12 staff members previously hired earlier this month from Heenan’s Montreal office.More »
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Tim Kiladze is a business reporter with The Globe and Mail. Before crossing over to journalism, he worked in equity capital markets at National Bank Financial
Jacqueline Nelson is a financial services reporter at the Report on Business.
Joanna Slater is the Globe's New York Bureau Chief. Prior to joining the Globe in 2010, she worked for The Wall Street Journal, where her assignments included reporting on the financial crisis out of New York and covering South Asian business and politics from Mumbai.
Follow Joanna on Twitter @jslaternyc