{"id":21167,"date":"2013-02-21T21:10:49","date_gmt":"2013-02-22T01:10:49","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=21167"},"modified":"2013-02-21T21:10:49","modified_gmt":"2013-02-22T01:10:49","slug":"february-21-2013","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=21167","title":{"rendered":"February 21, 2013"},"content":{"rendered":"

Poor little Encana’s having a temper tantrum<\/a>:<\/p>\n

A lawyer for Encana Corp. is demanding the deletion of an Internet posting containing audio of an Encana executive swearing.<\/p>\n

On Feb. 14, during a quarterly results conference call, microphones caught someone \u2013 Encana has not said who \u2013 muttering an angry expletive. The audible whisper followed a question from Canaccord Genuity analyst Phil Skolnick, who asked: \u201cBut in terms of new investment guidelines which were updated, do you think that prohibits a company like Encana from being acquired?\u201d
…<\/b>
Encana apologized after the conference call. The swearing does not appear in a transcript of the call, nor in a company replay of the audio.<\/p>\n

The company now wants the clip off the Internet, too. On Thursday, Chirbit founder Ivan Reyes said he has received a takedown request from Encana.<\/p><\/blockquote>\n

I wouldn’t have posted anything about this yesterday because somebody swearing during a conference call is stupid, but not interesting. A major corporation getting its shorts in a knot over a triviality and displaying the collective brainpower of a fourteen year old girl, however, is fascinating. Especially when the fourteen year old girl hasn’t even heard of the Streisand effect<\/a>. One can only assume that Encana management is not very bright.<\/p>\n

Speaking of less-than-intelligent corporate management, there’s a bit more news about Scotia Capital’s persecution of David Berry<\/a>:<\/p>\n

\u201cIIROC will not be appealing the decision,\u201d said Elsa Renzella, IIROC\u2019s director, enforcement litigation.
…<\/b>
One interpretation behind the decision not to appeal is that IIROC wanted to wash its hands of the whole affair after at least initially bending over backwards to accommodate the bank.<\/p>\n

How accommodating was IIROC? At the time, it said the following: \u201cWe are pleased that Scotia Capital recognized in this settlement that, even though supervision was not an issue, it would not be appropriate to retain profits generated by the wrongdoing of its employees.\u201d<\/p>\n

In normal circumstances, it would be tough for a bank to get such an overwhelming level of support, given that the Berry\/IIROC matter had not been heard and given that almost six years later the three-person panel said that \u201cthe preponderance of evidence suggests\u201d that Berry\u2019s immediate superiors knew of his tactics.
…<\/b>
And given the dynamics of Scotiabank upper management, a reasonable expectation would be that an attempt will be made to settle the matter [of Berry’s $100-million unjust dismissal lawsuit].<\/p>\n

The dynamics: the bank is undergoing a change, with chief executive Rick Waugh seemingly set to leave in the near term. If the pundits have called it right, it seems Brian Porter, who was named president late last year, will replace Waugh.<\/p>\n

Porter was Berry\u2019s ultimate boss at the time the supposed transgressions occurred. If the matter is not settled and if Porter were put on the stand, the session would be well attended.<\/p><\/blockquote>\n

Berry was vindicated on January 17<\/a>.<\/p>\n

There’s an interesting US court case about Mutual Fund Fees<\/a>:<\/p>\n

>According to a 1982 legal precedent known as the Gartenberg standard, the courts will deem a fund\u2019s management fee excessive only if it is \u201cso disproportionately large that it bears no reasonable relationship to the services rendered and could not have been the product of arm\u2019s-length bargaining.\u201d In part because it is often difficult to\u00a0isolate the portion of management fees covering the crucial work of\u00a0picking stocks and bonds from\u00a0other more mundane\u00a0administrative costs,\u00a0proving that has been virtually impossible.<\/p>\n

Until now. In December U.S. District Judge Renee Marie Bumb in Newark, New Jersey,\u00a0allowed a case known as\u00a0Kasilag et al. vs. Hartford Investment Financial Services<\/em>\u00a0to proceed, denying Hartford\u2019s motion to dismiss.
…<\/b>
According to Kasilag\u2019s complaint, in 2010 Hartford earned $157.6 million\u00a0in investment management fees from six of its sub-advised funds and paid $57.6 million\u00a0for subadvisory services to Wellington and Hartford Investment Management Company (HIMCO), a Hartford subsidiary hired as a sub-adviser.
…<\/b>
A key argument plaintiffs put forth\u00a0in the Hartford case is that\u00a0competitor Vanguard offers similar funds run by Wellington for much less. Both the Vanguard Health Care and the Hartford Healthcare funds are run by Wellington.\u00a0Vanguard has a total expense ratio of 0.35 percent, compared with the 1.49 percent charged by\u00a0Hartford Healthcare\u2019s A share class. That\u2019s on top of the 5.5 percent\u00a0front-end commission paid to brokers who sell it; Vanguard\u2019s fund is no-load. Wellington declined to comment on the Hartford case.<\/p><\/blockquote>\n

It was a highly uninteresting day for the Canadian preferred share market, with PerpetualPremiums gaining 2bp, FixedResets up 1bp and DeemedRetractibles off 1bp. Volatility was minimal. Volume was high.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.6332 %<\/td>\n2,615.8<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.09 %<\/td>\n3.43 %<\/td>\n24,714<\/td>\n18.46<\/td>\n1<\/td>\n0.4329 %<\/td>\n3,971.7<\/td>\n<\/tr>\n
Floater<\/td>\n2.54 %<\/td>\n2.84 %<\/td>\n84,793<\/td>\n20.09<\/td>\n5<\/td>\n0.6332 %<\/td>\n2,824.4<\/td>\n<\/tr>\n
OpRet<\/td>\n4.79 %<\/td>\n1.88 %<\/td>\n45,745<\/td>\n0.35<\/td>\n5<\/td>\n-0.1309 %<\/td>\n2,603.4<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.57 %<\/td>\n4.08 %<\/td>\n41,837<\/td>\n4.28<\/td>\n2<\/td>\n0.1592 %<\/td>\n2,948.0<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1309 %<\/td>\n2,380.5<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.25 %<\/td>\n0.23 %<\/td>\n82,402<\/td>\n0.09<\/td>\n29<\/td>\n0.0167 %<\/td>\n2,354.6<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n4.84 %<\/td>\n4.91 %<\/td>\n130,197<\/td>\n15.58<\/td>\n4<\/td>\n0.0304 %<\/td>\n2,648.7<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.89 %<\/td>\n2.60 %<\/td>\n277,758<\/td>\n3.05<\/td>\n78<\/td>\n0.0103 %<\/td>\n2,503.6<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.87 %<\/td>\n0.71 %<\/td>\n146,082<\/td>\n0.25<\/td>\n45<\/td>\n-0.0086 %<\/td>\n2,438.2<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
TRI.PR.B<\/td>\nFloater<\/td>\n1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-02-21
\nMaturity Price : 24.05
\nEvaluated at bid price : 24.30
\nBid-YTW : 2.15 %<\/td>\n<\/tr>\n
BAM.PR.C<\/td>\nFloater<\/td>\n1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-02-21
\nMaturity Price : 18.54
\nEvaluated at bid price : 18.54
\nBid-YTW : 2.85 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n194,650<\/td>\nNational crossed blocks of 49,600 and 28,000, both at 24.70. TD crossed 100,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.60
\nBid-YTW : 3.31 %<\/td>\n<\/tr>\n
SLF.PR.I<\/td>\nFixedReset<\/td>\n79,856<\/td>\nDesjardins crossed 52,500 at 26.95.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.79
\nBid-YTW : 2.47 %<\/td>\n<\/tr>\n
RY.PR.X<\/td>\nFixedReset<\/td>\n70,810<\/td>\nDesjardins crossed 50,000 at 26.75.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.68
\nBid-YTW : 1.71 %<\/td>\n<\/tr>\n
BNS.PR.Y<\/td>\nFixedReset<\/td>\n50,810<\/td>\nNesbitt bought 37,900 from National at 24.81.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.81
\nBid-YTW : 2.93 %<\/td>\n<\/tr>\n
IFC.PR.C<\/td>\nFixedReset<\/td>\n47,503<\/td>\nTD crossed 30,800 at 26.36.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.42
\nBid-YTW : 2.73 %<\/td>\n<\/tr>\n
ENB.PR.T<\/td>\nFixedReset<\/td>\n38,230<\/td>\nTD crossed 19,900 at 25.66.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.65
\nBid-YTW : 3.54 %<\/td>\n<\/tr>\n
There were 48 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
PWF.PR.A<\/td>\nFloater<\/td>\nQuote: 23.31 – 23.98
\nSpot Rate : 0.6700
\nAverage : 0.5010<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-02-21
\nMaturity Price : 23.04
\nEvaluated at bid price : 23.31
\nBid-YTW : 2.23 %<\/td>\n<\/tr>\n

TCA.PR.Y<\/td>\nPerpetual-Premium<\/td>\nQuote: 52.30 – 52.80
\nSpot Rate : 0.5000
\nAverage : 0.3694<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-05
\nMaturity Price : 50.00
\nEvaluated at bid price : 52.30
\nBid-YTW : 1.41 %<\/td>\n<\/tr>\n

TCA.PR.X<\/td>\nPerpetual-Premium<\/td>\nQuote: 51.60 – 51.90
\nSpot Rate : 0.3000
\nAverage : 0.1963<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-10-15
\nMaturity Price : 50.00
\nEvaluated at bid price : 51.60
\nBid-YTW : 1.14 %<\/td>\n<\/tr>\n

BAM.PF.B<\/td>\nFixedReset<\/td>\nQuote: 26.20 – 26.50
\nSpot Rate : 0.3000
\nAverage : 0.2192<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-03-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.20
\nBid-YTW : 3.45 %<\/td>\n<\/tr>\n

TD.PR.O<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.78 – 26.05
\nSpot Rate : 0.2700
\nAverage : 0.1938<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-03-23
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.78
\nBid-YTW : -5.32 %<\/td>\n<\/tr>\n

CM.PR.L<\/td>\nFixedReset<\/td>\nQuote: 26.40 – 26.59
\nSpot Rate : 0.1900
\nAverage : 0.1198<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.40
\nBid-YTW : 2.05 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Poor little Encana’s having a temper tantrum: A lawyer for Encana Corp. is demanding the deletion of an Internet posting containing audio of an Encana executive swearing. On Feb. 14, during a quarterly results conference …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-21167","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/21167","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21167"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/21167\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21167"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}