Caldwell Investment Management Ltd. has been naughty:
Caldwell Investment ran nine mutual funds and managed assets ranging from $320-million to $495-million between Jan. 1, 2013, and Nov. 15, 2016, the period in which the OSC found the infractions occurred.
As an example of problematic dealings, the OSC said two-thirds of Caldwell’s balanced-fund equity trades were made through unaffiliated dealers at an average commission rate of 5 cents a share. The remaining third, however, were executed through Caldwell Securities, at an average commission rate of 16 cents a share.
The OSC also found instances where the same security was traded at Caldwell Securities with commission rates between four and 13 times higher than what was available at unaffiliated dealers.
The Settlement Agreement has more juicy details, e.g.:
Security Account B/S Date traded Quantity Dealer Commission/
shareMultiple over unaffiliated dealer Bank Nova Scotia Balanced Fund B 2014-01-30 4400 CIBC $0.05 Bank Nova Scotia Balanced Fund B 2014-01-31 2000 CSL $0.30 6x
Some readers may wonder who in their right mind would agree to pay even $0.05 per share to trade 4,400 BNS. So I’ll point out that, in the ethos of the Street, we’re not talking about real money here. We’re talking about client money, which is an entirely different thing.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -1.0334 % | 1,938.6 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -1.0334 % | 3,557.2 |
| Floater | 6.14 % | 6.32 % | 37,162 | 13.43 | 4 | -1.0334 % | 2,050.1 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0225 % | 3,349.5 |
| SplitShare | 4.65 % | 4.63 % | 78,481 | 4.14 | 7 | 0.0225 % | 4,000.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0225 % | 3,121.0 |
| Perpetual-Premium | 5.62 % | -17.88 % | 54,310 | 0.09 | 7 | -0.2801 % | 2,978.5 |
| Perpetual-Discount | 5.46 % | 5.58 % | 60,377 | 14.55 | 25 | -0.2619 % | 3,111.7 |
| FixedReset Disc | 5.45 % | 5.53 % | 163,346 | 14.60 | 69 | -0.5795 % | 2,108.3 |
| Deemed-Retractible | 5.23 % | 5.88 % | 65,954 | 7.97 | 27 | -0.1532 % | 3,106.2 |
| FloatingReset | 4.07 % | 4.18 % | 38,302 | 2.44 | 4 | -0.5523 % | 2,348.4 |
| FixedReset Prem | 5.15 % | 4.01 % | 166,861 | 1.91 | 17 | -0.3089 % | 2,588.8 |
| FixedReset Bank Non | 1.98 % | 4.30 % | 93,979 | 2.45 | 3 | -0.1393 % | 2,647.6 |
| FixedReset Ins Non | 5.28 % | 7.48 % | 87,570 | 8.00 | 22 | -0.5659 % | 2,160.6 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BAM.PR.X | FixedReset Disc | -3.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 12.61 Evaluated at bid price : 12.61 Bid-YTW : 6.50 % |
| SLF.PR.J | FloatingReset | -2.96 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 13.12 Bid-YTW : 10.77 % |
| MFC.PR.N | FixedReset Ins Non | -2.74 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 16.66 Bid-YTW : 8.88 % |
| TD.PF.D | FixedReset Disc | -2.74 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 19.50 Evaluated at bid price : 19.50 Bid-YTW : 5.55 % |
| BAM.PF.A | FixedReset Disc | -2.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 18.78 Evaluated at bid price : 18.78 Bid-YTW : 6.21 % |
| TD.PF.E | FixedReset Disc | -2.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 19.77 Evaluated at bid price : 19.77 Bid-YTW : 5.56 % |
| TD.PF.J | FixedReset Disc | -2.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 20.13 Evaluated at bid price : 20.13 Bid-YTW : 5.43 % |
| RY.PR.M | FixedReset Disc | -2.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 18.88 Evaluated at bid price : 18.88 Bid-YTW : 5.57 % |
| SLF.PR.D | Deemed-Retractible | -2.09 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.58 Bid-YTW : 6.91 % |
| PWF.PR.Z | Perpetual-Discount | -2.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 22.17 Evaluated at bid price : 22.50 Bid-YTW : 5.73 % |
| MFC.PR.M | FixedReset Ins Non | -2.02 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 16.99 Bid-YTW : 8.72 % |
| GWO.PR.Q | Deemed-Retractible | -1.98 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.25 Bid-YTW : 6.13 % |
| TRP.PR.A | FixedReset Disc | -1.80 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 13.65 Evaluated at bid price : 13.65 Bid-YTW : 6.43 % |
| BAM.PR.B | Floater | -1.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 10.95 Evaluated at bid price : 10.95 Bid-YTW : 6.38 % |
| EMA.PR.F | FixedReset Disc | -1.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 17.06 Evaluated at bid price : 17.06 Bid-YTW : 6.27 % |
| CM.PR.Q | FixedReset Disc | -1.62 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 18.79 Evaluated at bid price : 18.79 Bid-YTW : 5.75 % |
| MFC.PR.K | FixedReset Ins Non | -1.59 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.00 Bid-YTW : 8.19 % |
| TRP.PR.E | FixedReset Disc | -1.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 15.70 Evaluated at bid price : 15.70 Bid-YTW : 6.26 % |
| NA.PR.G | FixedReset Disc | -1.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 20.15 Evaluated at bid price : 20.15 Bid-YTW : 5.57 % |
| TRP.PR.C | FixedReset Disc | -1.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 12.22 Evaluated at bid price : 12.22 Bid-YTW : 6.22 % |
| BAM.PR.K | Floater | -1.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 10.96 Evaluated at bid price : 10.96 Bid-YTW : 6.38 % |
| W.PR.K | FixedReset Prem | -1.42 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-01-15 Maturity Price : 25.00 Evaluated at bid price : 25.06 Bid-YTW : 5.14 % |
| BAM.PF.G | FixedReset Disc | -1.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 17.55 Evaluated at bid price : 17.55 Bid-YTW : 6.35 % |
| PWF.PR.S | Perpetual-Discount | -1.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 21.35 Evaluated at bid price : 21.35 Bid-YTW : 5.65 % |
| CU.PR.D | Perpetual-Discount | -1.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 22.26 Evaluated at bid price : 22.56 Bid-YTW : 5.50 % |
| SLF.PR.I | FixedReset Ins Non | -1.29 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.10 Bid-YTW : 7.48 % |
| BIP.PR.D | FixedReset Disc | -1.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 22.08 Evaluated at bid price : 22.41 Bid-YTW : 5.94 % |
| IAF.PR.I | FixedReset Ins Non | -1.24 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.65 Bid-YTW : 6.95 % |
| BMO.PR.S | FixedReset Disc | -1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 17.98 Evaluated at bid price : 17.98 Bid-YTW : 5.49 % |
| BAM.PR.R | FixedReset Disc | -1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 15.02 Evaluated at bid price : 15.02 Bid-YTW : 6.32 % |
| TD.PF.B | FixedReset Disc | -1.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 17.72 Evaluated at bid price : 17.72 Bid-YTW : 5.43 % |
| SLF.PR.A | Deemed-Retractible | -1.12 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.00 Bid-YTW : 6.40 % |
| BMO.PR.T | FixedReset Disc | -1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 17.52 Evaluated at bid price : 17.52 Bid-YTW : 5.51 % |
| BAM.PF.F | FixedReset Disc | -1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 17.85 Evaluated at bid price : 17.85 Bid-YTW : 6.26 % |
| BMO.PR.W | FixedReset Disc | 1.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 17.46 Evaluated at bid price : 17.46 Bid-YTW : 5.50 % |
| GWO.PR.R | Deemed-Retractible | 1.49 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.55 Bid-YTW : 6.14 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TD.PF.M | FixedReset Disc | 290,998 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 23.16 Evaluated at bid price : 25.00 Bid-YTW : 5.08 % |
| CM.PR.Y | FixedReset Disc | 261,072 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 23.15 Evaluated at bid price : 24.96 Bid-YTW : 5.15 % |
| BMO.PR.F | FixedReset Disc | 190,524 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 23.22 Evaluated at bid price : 25.15 Bid-YTW : 5.05 % |
| RY.PR.F | Deemed-Retractible | 179,628 | YTW SCENARIO Maturity Type : Call Maturity Date : 2019-08-18 Maturity Price : 25.00 Evaluated at bid price : 25.33 Bid-YTW : -3.25 % |
| CU.PR.D | Perpetual-Discount | 176,710 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-07-19 Maturity Price : 22.26 Evaluated at bid price : 22.56 Bid-YTW : 5.50 % |
| MFC.PR.F | FixedReset Ins Non | 165,722 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 13.37 Bid-YTW : 10.12 % |
| SLF.PR.G | FixedReset Ins Non | 141,863 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 13.62 Bid-YTW : 10.05 % |
| There were 54 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| GWO.PR.Q | Deemed-Retractible | Quote: 23.25 – 23.90 Spot Rate : 0.6500 Average : 0.4403 YTW SCENARIO |
| TD.PF.L | FixedReset Disc | Quote: 24.74 – 25.20 Spot Rate : 0.4600 Average : 0.2606 YTW SCENARIO |
| TD.PF.D | FixedReset Disc | Quote: 19.50 – 20.12 Spot Rate : 0.6200 Average : 0.4240 YTW SCENARIO |
| NA.PR.G | FixedReset Disc | Quote: 20.15 – 20.69 Spot Rate : 0.5400 Average : 0.3777 YTW SCENARIO |
| EMA.PR.F | FixedReset Disc | Quote: 17.06 – 17.60 Spot Rate : 0.5400 Average : 0.3831 YTW SCENARIO |
| TD.PF.E | FixedReset Disc | Quote: 19.77 – 20.21 Spot Rate : 0.4400 Average : 0.2899 YTW SCENARIO |