Archive for December, 2005

Criminals bump up their scams for the season

Wednesday, December 14th, 2005

People who Christmas shop on the Internet need to protect themselves as criminals bump up their scams for the season

Peter Wilson
Sun

An e-commerce clerk takes a call from an online customer. Cyber criminals have created websites that duplicate store sites to fool buyers into revealing their credit card numbers. Photograph by : Joe Raedle, Getty Images

Better watch out, better not to pout when Santa Claus comes to the Internet this holiday season.

Now’s the time to learn how to protect yourself because jolly old St. Nick is sure to be accompanied by spams, scams, fake websites and even evil-twin wireless networks.

Last Christmas 3.5 million Canadian adults spent an average of $228 each on presents. And, as always at this time of year, Net nasties simultaneously bumped up their cash snatching schemes to match e-sales activity.

“It’s Christmas, so this is absolutely going to happen,” said senior analyst Gregg Mastoras of security firm Sophos Inc, which has a major spam lab in Vancouver. “Unfortunately, it’s a bit like clockwork.

“In 2004 we saw a tripling in the number of spams that were offering Rolex watches and other luxury goods,” said Mastoras. “So expect to see more spam offering that kind of thing.”

As well, said Mastoras, there will be a rise in what are called phishing attacks — especially e-mails containing fake offers of the likes of loans, credit cards, increases in credit card limits and lines of credit.

Phishing was estimated by Financial Insights to have cost global financial institutions at least $400 million U.S. in 2004.

Phishing, said Mastoras, takes on two aspects. The first is simply an e-mail that asks you to forward such information as passwords, identities and account numbers.

“The second sends you to a website that looks like the one that belongs to your bank or your credit card company. It’s going to ask you for information there.”

A recent e-mail, carrying the logo of the Royal Bank of Canada, said that there was a suspicion that the recipient’s account might have been “accessed by an unauthorized third party.”

The e-mail continued:

“We are asking you to immediately log in and report any unnoticed password changes, unauthorized withdrawals or deposits, and check your account profile to make sure no changes have been made.”

Clicking on to the link led to a website that was an exact duplicate of that of the Royal Bank. Once the user signed in, of course, the account number and the password would go straight to the phishers.

As well, there are false stores and the usual fraudulent eBay sites.

“Another thing is that you’ll see is a lot of people writing viruses, trojans and worms trying to take advantage of the holidays,” said Mastoras.

These will seem innocent enough, with subject lines like “Open me, holiday jingle” and “funny card.”

Last year at about this time the Zafi-D worm, which accounted for 16.7 per cent of all viruses reported to Sophos in the last 12 months, began appearing with such subjects as “Merry Christmas,” “Joyeux Noel,” and “Feliz Navidad.”

Some e-mails, perhaps appearing to come from an online bookstore, will ask people to “click here for your rebate” or offer some other enticement. And those who have recently shopped at the site represented in the e-mail may do just that.

“You click on them and the next thing you know is you’ve downloaded a virus,” said Mastoras.

This is a particularly dangerous problems because downloading viruses could lead to much bigger problems than the user’s computer being rendered inoperative.

“There are some viruses out there that if they do get into your system they actually do things so that they know, for example, when you’re typing in www.ebay.com and they’ll basically take that information and redirect you [to a fake site],” said Mastoras.

And, as with the sites that took advantage of Hurricane Katrina, there are certain to be others that pluck at your heart strings to give money to sites purporting to help the down and out and the homeless, said Mastoras.

Then there’s the chance, if you’re sitting in a coffee shop with a wireless connection that, if you don’t have protection in place, your hard drive could be available to someone else on the network or someone could be operating an evil-twin network that captures everything that you’re doing online, including paying for goods with your credit card.

All of this evildoing, and reports of the evildoing have tended to make Canadians nervous about buying things online and far more apprehensive than their counterparts in the United States.

“I think what we’re starting to see is a little bit of fear, which is causing people to wonder if they should do online shopping to begin with,” said Mastoras. “Maybe it’s gone a bit too far in pushing people away from using the Internet as a tool.”

And Mastoras looks to be correct. A recent survey, conducted for the Canadian Alliance Against Software Theft, showed that 40 per cent of Canadians will back away from cyber shopping this Christmas because of their fears about a lack of Internet security.

That figure compares with just 24 per cent of those with Internet access in the U.S. who say they’ll be avoiding online shopping for security reasons.

Of those Canadians who do shop online there are some who do so despite being worried, because 88 per cent of us say we feel some Internet retailers haven’t done enough to protect their online customers.

Strangely, it’s not that Canadians aren’t doing anything to protect themselves.

Ninety-six per cent of survey respondents said they believe it’s important to protect themselves online and 68 per cent said they have at least three to five security software products on their computers.

Anti-virus software leads the way at 85 per cent, followed by firewalls used by 67 per cent of Canadians , e-mail filtering by 64 per cent and anti-spyware software at 60 per cent. Just 33 per cent report they have Web content filtering or blocking software.

That sounds impressive, but the survey, conducted by Forrester Research, also showed that a huge 81 per cent of Canadians aren’t confident in their own ability to protect themselves from losing information to an online threat.

And 74 per cent say they’re not confident they can protect themselves against unsolicited e-mail or spam.

And that could be because, although people like the convenience of computers and the Internet, when it comes to their inner workings they’re just not sure of what to do.

“Most people focus on the functionality and the features of their computer,” said Simon Tang of the consulting firm Deloitte, which provided much of the security information in the accompanying story.

“If it’s working, then why touch it.”

But to really combat this, people need to develop a real sense of online awareness, said Tang.

“Most, if not all, banks have come on and said that they would never ask someone to send back their credit card information or their account numbers,” said Tang, Toronto-based senior manager of Deloitte’s security services practice. “So, if in doubt, always call the financial institution.”

Tang also warned about wireless networking problems in the home, considering that a lot of users never bother to turn on encryption on their wireless modems. This, he said, is especially a problem for those who have large houses and have used signal boosters to beef up their networks.

“Then you can send signals out up to a kilometer or two or more surrounding the radius of your house.”

A wireless security expert from California was recently in town for a security conference and made an interesting discovery.

Sheila Luskin, western regional manager for AirMagnet, said that while she was demonstrating her products in Vancouver she was approached by a British Columbia retailer who had discovered a hacker outside a store, wirelessly collecting credit card information on purchasers.

“I think that Canada is more lax with security and I think that’s why people are concerned,” said Luskin.

SAFE HOLIDAY SHOPPING:

Tips from Deloitte on safe online shopping during the holiday period:

– Make sure the firewall and anti-virus software on your computer are updated and running. Scan the computer to detect any malicious programs (Trojan horses, spyware) that may have been planted to disclose sensitive information or to misdirect you to a fraudulent website.

– Verify that your browser has the latest security upgrades and that it supports 128-bit encryption. Your browser’s encryption level can be found in the tools menu under the “about” option.

– Make sure your wireless network has strong wireless security and controls built in such as wired equivalent privacy (WEP) or Wi-Fi protected access (WPA).

– Never respond to e-mails requesting that you log into a shopping-financial transaction website, claiming that your login credentials need updating or that your account is in arrears.

– Type in the URLs of websites that interest you and avoid clicking on those sent in an e-mail link.

– Confirm any online seller’s physical address and phone number in case you have questions or problems.

– Never send your financial information via e-mail because it is not secure.

– If you want to send your financial information through a website, look for indicators that the sight is secure, like a lock icon on the browser’s status bar or an URL that begins with https: (the “s” stands for secure. However, be careful, no indicator is foolproof.

– Don’t open e-mail attachments, even if it seems to have come from a friend or co-worker, unless you are expecting it or know what it contains.

– Consider shopping at sites that offer strong encryption (128-bit vs. 40-bit). You can find out the level of encryption by clicking on the lock item in the browser’s status bar.

– Avoid opting for the “remember password and user name” option. Although this can be a convenience, anyone who uses your computer can then gain access to your account and personal information.

– Print and save records of all your online transactions, including the product description and price, the online receipt and copies of correspondence with the seller. Read your credit card statements as you receive them and be on the lookout for unauthorized charges.

Edited tips based on information provided by Deloitte’s security services group.

PHISH OR CUT BAIT:

How to avoid the costly hook of phishing:

– Be suspicious of any e-mail with urgent requests for personal financial information.

– Unless the e-mail is digitally signed, you can’t be sure it wasn’t forged or “spoofed.”

Phishers typically include upsetting or exciting (but false) statements in their e-mails to get people to react immediately.

– They typically ask for information such as user names, passwords, credit card numbers, social security numbers, etc.

Phisher e-mails are typically NOT personalized, while valid messages from your bank or e-commerce company generally are.

– Don’t use the links in an e-mail to get to any web page, if you suspect the message might not be authentic.

– Instead, call the company on the telephone, or log on to the website directly by typing in the Web address in your browser.

– Avoid filling out forms in e-mail messages that ask for personal financial information.

– You should only communicate information such as credit card numbers or account information via a secure website or the telephone.

– Always ensure that you’re using a secure website when submitting credit card or other sensitive information via your Web browser.

– Regularly log into your online accounts:

– Don’t leave it for as long as a month before you check each account.

– Ensure that your browser is up to date and security patches applied.

Edited version of suggestions by the Anti Phishing Working Group at www.antiphishing. org

© The Vancouver Sun 2005

Telecommunicating set to take off

Wednesday, December 14th, 2005

Quadruple play of TV, high-speed Net, land-line and mobile phone for 2006

Jim Ja
Province

Telus’s Fred Di Blasio sees excitement in merging Internet with cable television. Photograph by : Gerry Kahrmann, The Province

Imagine you’re watching a fever-pitched hockey game on television and the Flames have just scored a soft goal on the Canucks.

Suddenly a text box opens on your TV screen. It’s your cousin from Calgary. “Flames rule!” says the text message. “Your goalie couldn’t stop a beachball.”

You have your own response, ready to type into wireless keyboard, but decide to wait until Naslund picks the top corner.

The preceding isn’t available yet, but Telus Corp. plans to include it soon in a TV service it has begun rolling out in Calgary and Edmonton and expects to offer in the Lower Mainland by mid-2006.

Telus vice-president of consumer product marketing Fred Di Blasio gave The Province a preview of the company’s long-awaited Telus TV product yesterday.

He said it would be price-competitive with TV services from cable company Shaw and satellite providers Bell ExpressVu and StarChoice, but will offer more flexibility and a wider range of services.

“What makes this so exciting is what you can do with an [Internet-based] infrastructure,” said Di Blasio. “It’s the ability to bring all those services together in one unit and provide all sorts of functionality.”

The current offering includes incoming call display on your TV screen, Video On Demand (VOD; $5 per movie), a multi-functional remote-control interface and the ability to display information such as weather or sports scores while watching regular programming in a split-screen format.

The 200-digital-channel lineup begins at $22 a month for a basic package of 23 channels as well as 45 music channels. Customers can add theme packs of certain types of content such as sports, news, entertainment, family or lifestyle at $6 a month for up to four packs and declining rates for more.

Telus also offers 43 other niche channels at $2 a month each.

Shaw, for example, charges $25 for its basic cable package of 36 analog channels.

Customers will need to purchase ($150) or lease ($10 a month) a set-top box to receive Telus TV, after a technician performs a free installation.

Telus TV doesn’t yet offer channels in high definition — as do Shaw and the satellite providers — but Di Blasio said it expects to launch HD content by mid-year.

Eventually, he said, Telus plans to offer bundles that combine the so-called quadruple play of TV, high-speed Internet, and land-line and mobile-phone service.

However, you’ll have to be patient because Telus is being very cautious not to repeat the less than smooth roll-out of its high-speed Internet service a few years ago. The demand was so high that Telus couldn’t build out its network fast enough.

“We want to make sure we do this right,” said Di Blasio.

Early in the New Year, Telus will begin a trial program with some employees. By mid-year it expects to begin offering the service to selected areas in the Lower Mainland.

© The Vancouver Province 2005

Phone-line TV quietly arrives in B.C. and Alberta

Tuesday, December 13th, 2005

Telus taking it slow to ensure it’s done right

Paul Marck
Sun

Television, your future is calling — by phone. After years of planning and testing, Telus TV is finally bringing TV to viewers over phone lines in Alberta and B.C., using technology developed in Edmonton.

However, if you want to sign up for Telus TV in the Lower Mainland, you’ll have to wait for a phone call or an invitation in regular mail from Telus.

In other words, don’t call them, they’ll call you,

There’s a simple reason for the many delays in launching the new service, says Fred Di Blasio, Telus’s vice-president of consumer product marketing.

“We wanted to make sure we got it right,” said Di Blasio, a Montreal native and former executive with AT&T in New York and at Britain’s Cable & Wireless.

Now a quiet rollout is offering an alternative to cable and satellite TV in selected neighbourhoods in Edmonton, Calgary and the Lower Mainland.

“We have to upgrade our customers to six or seven megabits [per second] on their lines before they can get it,” Jim Johannsson, Telus service development director, said of the B.C. rollout. “Generally, most customers have just under two megabits now.

“So, when it’s available in the neighbourhood, we’ll contact them and give them the materials and pitch them the offer.”

Telus gave The Journal an exclusive preview of its new TV service, which operates on its ADSL high-speed Internet network and runs into customer homes on existing copper telephone wire.

What consumers will get, some of which is different from standard cable, is an Internet-based digital service, with video on demand, telephone call display on their TV screens and a host of special features such as program reminders.

They’re all displayed in an on-screen menu that has interactive features similar to those of a computer.

Initially, Telus TV, which uses Internet bandwidth, can connect to a maximum two TVs per household, in addition to telephone and Internet service. Telus promises that will go up to three sets per home after the company upgrades to the next-generation ADSL2+ network sometime over the next couple of years.

Telus is making a low-key launch of the new service through direct-mail advertising in neighbourhoods where it is available — a far cry from the lavish news conferences and wine receptions Shaw staged last year for the start of its telephone service.

It will take some time for network upgrades in Alberta and B.C.’s major cities before Telus TV is generally available, expected after next summer.

Johannsson said that Telus, which has been quietly offering its TV service for a month, doesn’t have the capacity to roll it out all at once.

“What’s hurting us is our experience with ADSL a few years ago. Everybody had to have ADSL and we couldn’t build it fast enough. “And we had people just frothing mad, because we couldn’t serve their neighbourhood quickly enough and we had customers on wait lists.”

Johannsson said this time, Telus wants to contact customers and then be able to come and install Telus TV and show them what it can do.

Telus TV’s programming ranges from Canadian and U.S. standards, to specialty sports, culture, movies, kids’ and adult entertainment and 45 commercial-free radio channels.

“You get unbelievable picture quality, with more than 200 digital channels,” Di Blasio said. “Plus you get choice, with video on demand; you get call display. It’s a plethora of different services that today no one else can match.

“It’s exciting and it’s leading edge. It is what I left the U.S. for,” said Di Blasio, who joined Telus 18 months ago.

While competitors package a TV offering with telephone and high-speed Internet, Telus said it is the first company in Canada to offer add-on features in a basic package.

In Alberta, it starts with a basic lineup of 24 channels for $22 a month. Customers can add theme “packs” of sports, entertainment, lifestyle, news and family choices at $6 a month for up to four packs and declining rates for more.

But unlike cable, Telus offers up to 44 individual channels at $2 a month each. Like cable, movie, feature, international and adult entertainment packages are available at from $8 to $20 a month. Video-on-demand movies are $5 each.

The TV project faced some big technical hurdles.

“The technology has not been around for 40 years, the way cable technology has,” Di Blasio said.

It started in the late 1990s, when 3,200 new homes in Edmonton and Calgary were built with special wiring for a possible new Telus TV product. But several years of testing concluded that TV couldn’t be delivered over standard, twisted-pair copper telephone wires.

The project was abandoned.

But as Internet technology became more refined, Telus took another stab at it. By 2002, the company had developed a special Internet infrastructure in Edmonton for media services.

Not only was the product developed there, the operations centre is in Telus’s downtown Edmonton Toll Building, where TV content from satellite and other sources is distributed to Telus customers in Alberta and B.C.

Quebec is to be added later.

With racks of file servers, banks of monitors and a central control desk, the set-up looks like something out of the Starship Enterprise. As insurance against potential power failures, all systems are backed up by batteries and there are gas turbines on the roof.

Telus won’t say how much it has spent bringing its TV offering to market, but indications are that it has been hundreds of millions since the late ’90s. Nor will the company say what kind of subscriber numbers it expects.

“I think with Telus you get a premium product, with differentiated elements to it. I think that’s a great deal for customers. That’s what they want, and that’s what we’re going to provide them with.”

The TV service is part of an overall consumer plan Telus calls the “Future-Friendly Home,” which is designed to integrate a growing number of products and services seamlessly into a customer’s life. What began with wireline phone service years ago has been augmented by DSL high-speed Internet, Internet home security and, now, TV.

Now, with an ugly four-month labour dispute behind it, Telus is ramping up. More product announcements are expected next year. It expects to hire up to 800 new staff in Alberta and B.C. over the next couple of years for customer service and installation to backstop its new TV offering.

“I think the company is viewed as a trendsetter in the industry,” Di Blasio said.

© The Vancouver Sun 2005

Nintendo software, hardware sales strong

Tuesday, December 13th, 2005

Company says it’s looking like an incredibly successful Christmas, which accounts for 55% of sales

Marke Andrews
Sun

Nintendo DS is enjoying extremely strong Christmas sales. The DS (Dual Screen) is a handheld system.

Richmond-based Nintendo Canada is enjoying strong Christmas sales of both hardware and software, despite the launch of the sophisticated Microsoft Xbox 360 console in late November.

“It’s looking like an incredibly successful Christmas, especially for Nintendo DS,” says Pierre Trepanier, marketing director of Nintendo of Canada, who said 55 per cent of the company’s sales are made over the Christmas shopping season.

Trepanier says Nintendo hasn’t really felt the effects of the Xbox 360 launch.

“They are completely different markets,” says Trepanier. “When you’re spending a thousand bucks for a new system, you’re in a very different segment than people buying GameBoy. You can get a GameBoy and game for $100.”

Trepanier’s figures are somewhat exaggerated. Microsoft released the Xbox 360 on Nov. 22, selling the premium model for $499, and the core model for $399. The less-expensive core model requires a 20-gigabyte hard drive, which sells for $130. Microsoft projects sales of 2.75 million to three million consoles by late February.

By comparison, both the GameBoy and the GameCube console, which is not a portable, sell in the $100 range. The GameBoy Micro, launched in September, sells for $129 and the Nintendo DS goes for $169.

Since launching the GameBoy player in 1989, Nintendo has been head of the hand-held pack, withstanding challenges from a score of portable players, including Nokia’s N-Gage. The biggest challenge has come from the Sony PlayStation Portable, which launched in Japan last December, and in North America in March.

In sales of hand-held games units in Canada, PSP is third to GameBoy Advance and Nintendo DS, a dual-screen player which Nintendo launched last November and has sold 8.8 million units worldwide in 12 months. From October, 2004, to September, 2005, GameBoy Advance’s sales in Canada were 427,780, Nintendo DS sold 119,069 and PlayStation Portable sold 109,224.

GameBoy, in its various forms, has sold more than 67.6 million units worldwide to date. GameBoy software sales exceed 280 million games sold.

Trepanier says the relatively low cost of Ninetendo players, and the variety of games available for all units, explains why they sell so well.

“The library of games for GameBoy is up over 800 games now,” says Trepanier, who claims Nintendo has “90 to 95 per cent” of the portable market.

Nintendo has had great success with the virtual-pet game Nintendogs, which is popular with girls as well as the traditional male games player. Many consumers who bought Nintendogs also bought portable machines to play them on, meaning they were just getting into video games.

“Games like that have the potential to expand the gaming population, and Nintendo has always focused on expanding the gaming population,” says Trepanier.

The company continues to produce new software. This week, Nintendo released Super Mario Strikers, a five-on-five soccer game with armed players, explosive goal-scoring and electrified fences that opposing players can be slammed into. Vancouver’s Next Level Games developed Super Mario Strikers for the Nintendo GameCube.

Nintendo of Canada has donated 150 copies of the new game to children’s hospitals across Canada.

Nintendo recently announced that purchasers of next year’s new Revolution game machine, which still does not have a release date, will be able to get a password-controlled play control system, whereby parents buying the unit for their children can block them from playing games meant for older gamers.

The system rates games in four categories: E for Everyone; E10+ for 10 and Older; T for Teen; and M for Mature.

Meanwhile, Vancouver games studios Radical Entertainment and Electronic Arts Canada are counting on big sales from their games.

Kelly Zmak, COO and senior vice president of product development for Radical Entertainment, said both Crash Tag Team Racing, released two weeks ago, and Hulk: Ultimate Destruction, released in October, “are doing very well in the marketplace,” although he would not give numbers of units sold or shipped..

Trudy Muller of Electronic Arts expects Need for Speed Most Wanted, which is available for 11 games platforms, to be a good seller, in addition to The Sims 2, FIFA 06. NHL 06 (in Canada) and Madden NFL 06 (in the U.S.).

 

© The Vancouver Sun 2005

Portfolio needs a blueprint

Monday, December 12th, 2005

An investment policy statement will keep you on track

Kevin Greenard and Keith Greenard
Province

Would you build a house without a plan?

Imagine building a house without a set of plans. How would that house look if you randomly selected flooring, furniture and window coverings without regard to how they would look together?

It certainly can be done, but we all know that when building or decorating a home, it is best to follow a plan. Once it is put in place, the results can be spectacular.

Too often investors select investments without considering the other investments within their portfolio. Does purchasing the new investment increase or reduce the risk to the portfolio? Does it increase the return potential or reduce it? Does it complement the other investments?

The equivalent to a blueprint for building a home is an Investment Policy Statement. Ideally an IPS should be laid out in advance of the portfolio’s construction. However, an IPS can be done at any time — call it a renovation if done after the fact.

Developing an IPS normally begins with the investment adviser asking the client to answer a series of questions. The adviser should review the answers to these questions with the investor and clarify any inconsistencies. The responses, along with notes made during the discussions, are the foundation of an IPS.

An IPS is part of a disciplined approach that attempts to remove some of the emotional component of investing. Uncertainty about the markets, fear of losing your money and confusion as to what is the best course of action during volatile market times can cause investors to abandon the plan. Sticking to the IPS during difficult times is critical. As we all know, we cannot individually control the market, but we can control how we react to it. An IPS can help manage those bumpy times.

The easiest way to look at risk tolerance is by the percentage of equities in the account. An investor who is averse to risk would have a lower percentage of equities. Such an investor should have a larger proportion of GICs, treasury bills and investment- grade bonds in the portfolio.

As fixed-income investments are not as volatile as equities, they are a key component for those who have capital preservation as a primary investment objective. Most investors desire total returns greater than those currently offered by fixed income and are willing to hold some equities.

Every investor reacts differently to volatility. A risk-tolerant investor typically has a longer time horizon, high annual income, high net worth and multiple sources of income. The typical investor who is risk-averse would have a shorter time horizon, be retired or approaching retirement, have a fixed income, low to moderate net worth and limited sources of income.

These general rules do not apply to everyone. This is why a customized IPS is necessary for each investor.

Determining the balance of cash, fixed income and equities is ultimately the decision of the investor. An IPS is not set in stone — changes may occur with time, life-changing events and investment experience. Some advisers may recommend increasing or decreasing the fixed-income component during certain economic cycles.

One rule of thumb used by some advisers is that the fixed-income component should reflect one’s age. A 20 year-old investor should have 20 per cent in fixed income, while an 80-year-old investor should have 80 per cent in fixed income. This method of determining asset mix is simplistic but does show how an investor should have a larger fixed income component as he or she gets older.

It takes time and patience to build a house; ditto with a portfolio. Once built, it requires maintenance. The IPS is a plan, not an immediate reflection of how the portfolio will look on Day 1.

© The Vancouver Province 2005

Twinning worries GVRD

Monday, December 12th, 2005

New regional board questions bridge plan

Kent Spencer
Province

A new GVRD board will look at provincial government plans to twin the heavily travelled Port Mann Bridge. PROVINCE FILE PHOTO

The province’s plan to twin the Port Mann Bridge will come under scrutiny at the new GVRD, say board members.

Port Moody Mayor Joe Trasolini said 16 newcomers on the 32-member board, including Delta Mayor Lois Jackson as chairwoman, will set a new direction.

“Does twinning the Port Mann adhere to the Livable Region Strategic Plan?” asked Trasolini. “The GVRD needs to discuss it with the province.”

The board elected Jackson as its chairwoman and Vancouver Coun. Peter Ladner as vice-chairman.

“I have worked with Lois for several years. She seems to approach things in a reasonable manner,” said Langley City Coun. Gayle Martin.

Surrey Coun. Marvin Hunt, whose city was accused by GVRD staff of contravening the regional plan, was defeated in a bid to be re-elected chairman.

The GVRD chairman earns about $40,000 annually. Directors receive $200 per meeting, $400 if meetings last more than four hours.

North Vancouver City Mayor Darrell Mussatto said the “new leadership gives a shot in the arm to the Livable Region Strategy.

“The strategy was being followed, but not as well as it could have been. The Agricultural Land Reserve in the Fraser Valley was being challenged for conversion to residential subdivisions,” he said.

The province says the Port Mann must be twinned because hundreds of thousands of residents south of the Fraser River sit in traffic jams for hours each day. Commercial traffic also suffers.

Martin, who lives south of the Fraser, believes the twinning is a done deal. “It’s coming from the province. It appears it is going to happen.

“I’m not sure how much say the GVRD is going to have,” said Martin. “It may not fit in with the Livable Region Strategy, but something has to give to relieve the congestion.”

The next major item on the GVRD’s agenda will be to choose 12 TransLink directors, 10 of whom will likely be new. TransLink has a budget of about $800 million and major decisions on its plate, including funding for a light rapid transit line in the northeast sector.

© The Vancouver Province 2005

A peek at next RRSP season

Monday, December 12th, 2005

Marketing will focus on what’s been hot

Ray Turchansky
Province

Mutual-fund companies are marketing machines, says Michael Lee-Chin. Photograph by : Bruce Stotesbury, Times Colonist

EDMONTON — Recent visits from financial-institution executives have provided a hint of what’s in store this coming RRSP season.

“Mutual-fund companies, generally speaking, are marketing machines,” said Michael Lee-Chin, chairman and CEO of AIC Ltd.

“If they are marketing machines, they are going to sell what is hot. So just look at what was hot in 2005 and it will tell you what the theme will be for the RRSP season.”

That would be income trusts, plus dividend-paying stocks and mutual funds, areas that recovered nicely after federal Finance Minister Ralph Goodale’s pre-election announcement of no tax on income trusts and an increase in the dividend tax credit.

“We are careful and skeptical of some of the best-performing areas,” said Jonathan Wellum, chief investment officer with AIC. “The trusts are a good example.

“It goes back to our fundamentals that wealth is ultimately

created by staying in the right places and not getting sidetracked.

“One of the things we focus on is tax efficiency; we’re not moving around the market and market-timing. We make sure the companies we’re buying can take any economic downturn and come through it in a stronger position from a business point of view, even if their stocks are weaker.”

AIC’s decision to spit into the wind by shunning income trusts is part of its strategy to project itself as being different from other mutual fund companies.

“The banks are certainly very, very strong in the industry since their entry in 1989, to the point where the mutual-fund product has been commoditized — a lack of differentiation,” said Lee-Chin.

“Most companies will find it a challenge to differentiate themselves, and if they can’t differentiate themselves, they can’t grow.”

Fund companies are using a variety of approaches in an attempt to set themselves apart. AGF Funds Inc., for instance, is presenting a novel approach to fees. Four of five new portfolios it is launching will rebate portions of their management fees if they fail to meet their performance benchmarks.

In the case of AIC, it’s staking its territory through long-term value investing and globalization.

“What we’ve tried to do, again for differentiation, is to add more

global funds to our stable,” said Wellum. “For the next 10 years, people should be taking advantage of a high Canadian dollar and taking advantage of the fact that while their assets are creating high

valuations today, they should be diversifying prudently and carefully.”

“We are interested in long-term secular trends,” said Lee-Chin. “For instance, we have invested in an Indian company, Infosys, which provides software business solutions. A software engineer in India makes $12,000 a year; a software engineer in North America makes $72,000 a year.

“Infosys in 2002 had 13,000 engineers; today they have over 42,000 engineers. And software engineering standards are universal.”

However, by reducing exposure to energy among Canadian holdings and retaining financial stocks, AIC is joining an industry trend.

Mutual-fund research firm Morningstar Canada reports that “energy stocks have continued their torrid pace while managers continued to underweight this hot sector. Meanwhile, the S&P/TSX composite index’s largest sector, financial services, saw its weighting in Canadian equity funds increase as the weight of the sector dipped slightly within the index.”

It comes down to volatility.

“We do have very good financials in this country, when you look at Manulife, Sun Life, Power Financial and TD Bank,” said Wellum.

“I think financials — although they’ve done well and some of them might be a little ahead on price-to-book and some valuations you use — they still have pretty decent embedded growth in them.

“The energy market is more of a wild card.”

Lee-Chin said AIC is unique in using the philosophy of the richest people in the world: Use other people’s money, own fewer than a handful of high-quality businesses that you understand and are in long-term growth industries, and hold them for the long run.

© The Vancouver Province 2005

How do I shield my fixed-income portfolio?

Monday, December 12th, 2005

Chris Carter
Province

I know I should be allocating a greater portion of my investments to fixed-income securities like bonds, but I’m worried about interest rates rising after I’ve locked in my funds. Is there any way a regular investor like me can insulate his or her portfolio against rising rates, like a portfolio manager would?

— Todd, Kelowna

Dear Todd,

In some instances, investment-fund managers will hedge the risk of rising interest rates by buying sophisticated derivative contracts such as options and futures. If rates move higher, the derivatives would increase in value, offsetting any declines in the long-term bond prices.

Unfortunately, these derivative-type investments can be expensive and, in the hands of an unsophisticated investor, might just as likely cause more harm than good when it comes to improving your portfolio returns.

A more practical approach that any investor can take is to invest in several different bonds of varying maturities, selecting bonds with staggered, or “laddered,” maturities — that is, spacing your bonds to mature every two or three years.

You ensure liquidity by always owning a bond nearing its maturity. And by diversifying your investments between short-, medium- and longer-term holdings, your portfolio value stands to fluctuate much less, even during volatile swings in the bond market. If rates rise persistently, you can reinvest each bond as it matures at a new and improved rate of return.

© The Vancouver Province 2005

Microsoft MSWorks suite 2006 – for those who do not need jull version of Microsoft Office

Sunday, December 11th, 2005

MS WORKS SUITE 2006:

Province

For those who don’t need the heavy artillery of Office, Microsoft has a multifaceted alternative to the popular productivity suite.
   Microsoft Works Suite 2006 features the industry standard for writing, with Word, but also includes Encarta Encyclopedia Standard 2006, Digital Image Standard 2006, Money 2006 Standard, and Streets & Trips Essentials 2006. This enhanced version of Works offers:
Video support, hierarchical keywords and labels for organizing photos and video clips in Digital Image.
A new tool that allows users to sort information by relevancy or group results by type, such as article or medium, with Encarta.
   Updated data for both the U.S. and Canada, new Locate Me technology for lost travellers, and Night Map Style for easy reading when travelling at night with Streets & Trips Essentials.
   A new tool that provides the option to pay multiple bills from numerous accounts all at once directly from the Bill Calendar.
   Microsoft Works Suite 2006 is available at electronics stores for $139.95 before a $40 mail-in rebate.

Creative web cam live 78 degree motion camera for $180.00 with smart face tracking

Saturday, December 10th, 2005

Sun

1) Creative Web-Cam Live! Motion, $180.

This USB 2.0-connected Web cam has a 76-degree field of view, which beats out the typical 52-degree cam by almost 50 per cent. With Smart Face tracking, it can follow your movement and keep you in frame or it can be operated from the computer screen. The quiet motor pans and tilts with ease with 200-degree horizontal and 105-degree vertical viewing. Its base is designed to attach in the perfect place on your monitor for capturing video for messaging or conferencing. With its glowing blue ring, it comes in either pearl white or black. Oh, and if you want, you could use it to monitor a room in your house while you’re away.

2) NHL Optical Aqua Mouse, $29.95

We’re sure you’ve got your favourite NHL team’s pennants flying from either side of your LCD monitor. But that’s not really enough is it? Well, now you can get these NHL Model mice (mouses? meese?) — with a puck floating in water — for your favourite Canadian team. Once they were offered only in an arena version and sold in the likes of GM Place in Vancouver, but now they’re being made available by Pure Orange of Vancouver in retail stores, just in time for Christmas. Stores include CompuSmart and the Source by Circuit City.

3) Panasonic SDR-S100 camcorder, $1,650.

Lightweight and ultra-compact this three CCD camcorder records its images on SD memory cards rather than CDs or tape. It features 10x optical zoom and image stabilization. It is sold along with a two gigabyte memory card with the capacity to hold approximately 100 minutes of MPEG2 video if you record in LP mode. The SDR-S100 records in the 16:9 aspect, the same as widescreen TVs. And it can frame shots for the 4:3 aspect featured on traditional television sets. As well, the unit can be used to take 3.1 megapixel still shots.

4) USB Christmas Tree, just released in Japan, no price.

Yes, there are a number of USB Christmas trees around. Just plug them into the (USB, natch) port of your computer and they glow nicely throughout the Yuletide season. But this one has a little blower motor in it that takes tiny pieces of Styrofoam and scatters them around in an imitation of whirling snow. It also plays four Christmas songs, although it’s hard to make out from the Google translations from the Japanese exactly what these are since one of them is described as Once Upon a Time, Mary Christmas, which we suspect just isn’t true. In any case, it probably has, oh, half an hour’s worth of amusement in it.

© The Vancouver Sun 2005