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The Investment Industry Association of Canada (IIAC) is pleased with finance minister Jim Flaherty’s decision to launch a Canadian Securities Transition Office, which will work closely with the provinces and territories to develop a federal Securities Act and design a transition plan for a single securities regulator.

IIAC also endorsed the appointment of Doug Hyndman as chair and CEO and Bryan Davies as vice-chair.

“The strong leadership and resources behind this effort, based on the recommendations of the expert panel on Securities Regulation, will succeed where similar efforts in the past have failed,” said Ian Russell, president and CEO, IIAC.

The IIAC had established a Steering Committee, of experienced executives representing IIAC firms from across the country, to provide industry input to the Transition Office.

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Sentry Select proposes fee reductions

Sentry Select Inc. is proposing further reductions to the annual management fee for the Sentry Select Diversified Income Fund Restructuring Proposal.

The annual management fee is payable over the course of the declining redemption fee schedule following the conversion of the fund to an open-end mutual fund. The original proposal provided for an annual management fee reduction from 1.50% to 1.25% of the fund’s net asset value.

The manager is now proposing to waive a portion of the annual management fee thereby reducing the fee to 0.75% of NAV until December 31, 2010, with the annual management fee payable increasing in line with the declining redemption fee schedule.

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Investors Group seeks approval to amend two funds

Winnipeg-based Investors Group has proposed to change the investment mandates of its Investors Short Term Capital Yield Class and Investors Capital Yield Class.

The proposal involves broadening the mandates to allow each Class to generate investment returns similar to a Canadian fixed income fund by not requiring them to invest primarily in equities and forward contracts.

This change is intended to ensure more stability and protection from the disruptions in the equity, credit and interest rate markets.

Securityholders of record — as of June 26, 2009 — of these two funds will receive a notice of meeting, proxy form and management information circular detailing the changes. Securityholder meetings are scheduled for August 13, 2009. If approved, these changes are expected on or about September 1, 2009.

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New Brunswick increases LSVCC tax credit

After March 17, 2009, New Brunswick taxpayers who purchase shares in labour sponsored venture capital corporations (LSVCC) can expect to receive an enhanced tax credit.

“We are pleased with these developments in New Brunswick and other provinces,” said Tom Hayes, president and CEO of GrowthWorks Atlantic Venture Fund. “We believe these tax incentives will allow the Fund to raise more capital for investment in promising New Brunswick businesses.”

New Brunswick adopted amendments to allow for increase in purchase of LSVCC shares from $5,000 to $10,000, and the tax credit rate increase from 15% to 20%. These shares must be held for eight years for full use of the tax credit amount.

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Dynamic launches new series of notes

Dynamic Funds has announced the launch of the eleventh and twelfth series of Bank of Montreal Dynamic RetirementEdge Income Portfolios deposit notes.

Designed with boomers in mind, the notes aim to provide a balance of capital appreciation, stable cash flow, principal protection and tax efficiency.

The notes will be available until Friday, July 24, 2009, and will be issued by Bank of Montreal on or about July 29, 2009. They are 100% eligible for registered plans and tax-free savings accounts. Series 11 is made available for rollover transactions from previously issued portfolios, while series 12 is available for new purchases.

The new offering will be available in two options. The first option is the “current pay notes” which pay immediate monthly distribution at an annual rate of 4% of original deposit for a 20-year term, with the balance and any variable return paid at maturity. The other option is the “deferred 5 note” which starts monthly distributions in the sixth year at an annual rate of 5% of the original deposit for a term of 25 years.

(06/23/09)