Briefly:

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AGF Investments has launched three new funds, along with a few changes to existing mandates. The new funds include AGF Traditional Income Fund, AGF Global Aggregate Bond Fund and AGF Pure Canadian Balanced Fund.

“At AGF, we are committed to having the right products that are right for the times,” said Blake C. Goldring, chairman and CEO of AGF Management Limited. “Whether you are a baby boomer nearing retirement or a young person starting out, these enhancements are part of our strategy to give you a choice of income products suited to your financial goals.”

The Traditional Income Fund is managed by Peter Frost, together with Tristan Sones and Tom Nakamura. It targets a 5% annual distribution stream, paid monthly.

The AGF Global Aggregate Bond Fund will invest primarily in investment grade debt securities of governments, corporations and other issuers around the world. It will be managed by Charbonneau and Nakamura, and will be available to investors on or about July 15, 2010.

The AGF Pure Canadian Balanced Fund is available immediately, and invests almost exclusively in Canadian bonds and stocks. It is managed by AGF’s chief investment officer Martin Hubbes, along with Charbonneau, Sones and Nakamura.

In addition to the new funds, AGF also announced it was changing the name of AGF Canadian Balanced Fund to AGF Canadian Asset Allocation Fund. The company is also changing the name of AGF Canadian Balanced Value Fund to AGF Traditional Balanced Fund.

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Scotia buys Puerto Rico bank

The troubled U.S. banking sector continues to provide Canadian banks with acquisition opportunities, as Scotiabank announced the purchase of R-G Premier Bank of Puerto Rico.

The sale was facilitated by the Federal Deposit Insurance Corporation (FDIC).

“As we celebrate 100 years of operating in Puerto Rico, we are very pleased to build on our long history of serving our customers, employees and communities here with this acquisition,” said Rick Waugh, president and CEO of Scotiabank. “This announcement will increase our market share to approximately nine per cent and is consistent with Scotiabank’s international strategy to grow incrementally to scale in target markets.”

The deal gives Scotiabank US$5.6 billion in assets including US$5.3 billion in loans covered under a loss-sharing agreement with the FDIC. That agency guarantees 80% of loan losses.

Scotia also adds US$2.2 billion in deposits, and the deal will result in an immediate positive contribution to earnings for Scotiabank Group.

Consolidation R-G Premier into Scotiabank de Puerto Rico will begin immediately. R-G Premier Bank of Puerto Rico has 29 branches and 61 ATMs and Scotiabank de Puerto Rico has 17 branches and 60 ATMs.

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Tax refunds headed for bill payment

With the tax-filing deadline now behind us, many Canadians are awaiting their tax refund. So what are they planning on doing with the cheque? Apparently, be responsible, according to a survey by BMO Nesbitt Burns.

The poll found 48% were planning to pay down their credit cards or other bills. Great for their balance sheets, but it does little for your book. The second largest group (21%), however, said they would invest the refund in their RRSP and/or TFSA.

Sprucing up the homestead was top of the list for 15% of Canadians, while 12% will put the cash toward travel or other leisure pursuits. Just 4% said it would go toward their mortgage.

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Cottage season time for ‘the talk’

In much of the country, the month of May means one thing: opening up the cottage. But it also presents an opportunity to open a conversation about where that cottage fits into the owner’s estate plan.

“While the possibility of inheriting a cottage is a nice problem to have, it’s important to start the conversation early to avoid disappointment and disputes down the road,” says Elaine Blades, director for estate and trust products and services at Scotia Private Client Group. “So, while children may feel awkward broaching this subject with their parents, it’s in everyone’s best interest.”

She suggests the easiest way to work these issues out is to start at the desired outcome and work backward toward the present. Clients need to plan for a worst-case scenario and cover off any liabilities that may present.

“It’s all about discussing, planning and seeking the right expert advice,” says Blades. “By starting the succession conversation, adult children often find they’re doing their parents a favour. Have the discussion and have it now.”

(05/03/10)