Insight April 2009 Monthly Update

The bond and income sectors of the Canadian mutual funds market are often seen as ho-hum and designed for the risk-averse and the aged. However, the recent turmoil in the credit markets and the resulting search for safety have resulted in renewed investor interest in the bond market and that part of the equity market that delivers reliable income. As always, we aim to mirror industry issues, and the focus of the lead story in the April issue of Insight is on income funds of all shapes and sizes. The Trend Lines article looks at the Canadian preferred share market, which received a boost of $30 billion or so in the first quarter of 2009 thanks to a series of new issues featuring the major banks and a handful of other institutions. The $3.2 billion of preferred share issues between January and March builds on the momentum established in 2007 and 2008, when preferred shares with a total issue value of $11.8 billion were brought to market.