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With tough economic times and volatile market returns, a survey of Ontarians has found that investors may be wary of contributing to their RRSP this year.

The survey found seven in 10 will contribute the same amount to their RRSP this year as they did last year, or less. Roughly 30% will not contribute to an RRSP at all.

The poll, sponsored by VentureLink Funds, also found six in 10 Ontarians said additional tax incentives would affect their selection of investments. The survey also found that about half of investors wanted high growth potential, perhaps in hopes of recovering recent losses.

VentureLink Funds is a manufacturer of retail venture capital funds, also known as labour sponsored investment funds (LSIFs).

Chasing past performance remains in vogue, as almost half of survey respondents said they will look to funds that performed well in 2008.

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RBC cuts MER on education fund

RBC Asset Management has cut the management expense ratio (MER) for the RBC Target 2010 Education Fund by 55 basis points, to 1.00%, effective January 1, 2009.

RBC Target Education Funds are target date funds that become more conservative as maturity nears, which is selected based on the expected date of an investor’s child beginning post-secondary education.

There are no changes to the MERs for the RBC Target 2015, 2020 or 2025 Education Funds at this time.

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AGF offers dollar cost averaging fund

AGF Funds is offering investors a disciplined approach to easing back into the markets, launching the AGF Dollar Cost Averaging Fund, available January 19, 2009.

Investors may make a lump sum investment to the fund, which will then invest that capital in AGF funds selected by the investor, over a 12-month period.

“Many advisors have been telling us their clients are concerned about making big lump-sum purchases right now due to market volatility,” says Randy Ambrosie, president, AGF Funds Inc. “The strategy of dollar cost averaging can help ease the concerns investors may have about how and when to get into the market.”

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Hartford lowers DCA minimum

Hartford Investments Canada has cut minimum investment for Hartford DCA Advantage Program in half, from $10,000 to $5,000, effective immediately. The move was made to allow Canadians to use the program within their TFSA.

The DCA Advantage Program pays investors a premium interest rate on capital waiting to be invested on a set six-month or 12-month dollar cost averaging schedule.

The company also announced the launch of two new series of DCA units, effective March 4. The new Six-Month Series 5 of each class of DCA units of Hartford Canadian Money Market Fund offers a yield of 3.00%. The 12-Month Series 2 of each class of DCA units yields 2.00%.

The two new series replace the Six-Month Series 4 and 12-Month Series 1of DCA units.

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CC&L offer premium money market fund

Connor, Clark & Lunn Managed Portfolios has launched the CC&L Money Market Fund, a lower cost, premium money market product.

“Advisors wanted an option for their most conservative clients, and our new money market liquidity account provides them with exactly what they asked,” said Nick Mancini, president and CEO of CC&L Managed Portfolios. “We are delighted to offer retail investors this quality of investment management at institutional prices.”

Management fees and operating expenses are capped at 0.30% for Series A units. Assets are managed by Montreal-based Baker Gilmore & Associates Inc.

In a separate announcement, CC&L has named Vic Raye as managing consultant, advisor relationships. He will lead sales and service for CC&L Managed Portfolios in B.C. and Alberta.

“To meet advisors’ needs, experienced, quality individuals like Vic working on the ground, in the region are essential,” said Mancini. “Independent advisors will undoubtedly benefit from his deep understanding of the wealth management industry.”

Raye has over 20 years of experience working with advisors, on both the brokerage side and the wealth management side of the industry.

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Gencap offers O’Leary Global Income fund

Gencap Funds has filed a preliminary prospectus for the O’Leary Global Income Opportunities Fund with each of the country’s securities regulators.

The fund’s stated investment objectives are to maximize total return, based on interest, dividend income and capital appreciation; and to provide a monthly distribution of six cents per unit.

The initial offering price is $12 per unit.

(01/13/09)