Briefly:

Previous Brieflies this week: | MON | TUE | WED | THU |

The federal government is reminding Canadians who received a letter requesting more information about their Tax-Free Savings Account, that the deadline to reply is August 3.

“Our government has made the decision to be as flexible as possible by waiving taxes on excess contributions for the first year of the program where a genuine misunderstanding of the TFSA contribution rules occurred,” said Keith Ashfield, Minister of National Revenue. “Moreover, we are extending the deadline from June 30 to August 3 for Canadians to sign and send back TFSA returns.”

If the taxpayer fails to provide more information and does not contact the CRA, a notice of assessment will be issued.

• • •

Dynamic plans non-HST fund series

Dynamic Funds has announced its plan to offer a new series of its funds for investors residing in provinces not subject to a harmonized sales tax, subject to regulatory approval. The non-HST series is expected to be available for new purchases and switches in the fall.

“Our goal is to ensure fairness for all investors,” said David Goodman, president and CEO of DundeeWealth. “For those investors who are not subject to HST, we are identifying where it will be possible to create a new series on certain funds without incurring operating expenses that exceed the tax savings we are trying to pass down.”

The firm will launch the new series on specific funds, with the selection based on analysis of asset size and asset class. The new series will be subject only to the 5% goods and services tax.

Currently, HST charged within a specific series of a Dynamic fund is being calculated by applying a blended tax rate on fees and operating expenses, according to the specific rules and guidelines governing HST.

• • •

National Bank alters five fund mandates

National Bank Securities has announced the modification of the investment strategy on five of its funds.

Effective July 26, the funds will no longer invest directly in the securities suggested by their names, but will invest indirectly, through one or more National Bank Securities Mutual Funds.

The affected funds are:

• National Bank Protected Canadian Bond Fund • National Bank Protected Retirement Balanced Fund • National Bank Protected Growth Balanced Fund • National Bank Protected Canadian Equity Fund • National Bank Protected Global Fund

• • •

CIBC names new sub-advisor

CIBC Asset Management has appointed The Boston Company Asset Management as portfolio sub-advisor of the CIBC U.S. Small Companies Fund, effective August 2, 2010.

“CIBC Asset Management is focused on partnering with portfolio managers that deliver strong returns and manage risk for our clients,” said Steve Geist, president of CIBC Asset Management. “We are pleased to extend The Boston Company’s presence within our CIBC Mutual Funds platform, and are confident that their proven track record in the U.S. small-cap equity space will further enhance the quality of our offer for clients.”

The Boston Company offers a bottom-up approach to stock selection that focuses on fundamental research in a process-driven environment. The firm manages US$32.5 billion in assets.

(07/26/10)