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(February 12, 2007) B2B Trust, a subsidiary of Laurentian Bank, announced Monday the signing of agreements with Meritas Financial Inc. for the distribution of investment loan and RRSP loan programs.

B2B Trust said that it serves the majority of Canadian mutual fund companies that do not have an in-house lending capability and choose to offer a third-party investment loan program to their advisors.

For Meritas, a leading provider of socially responsible investments, the new loan programs are an additional tool that can help advisors deliver their financial plan recommendations to clients with a higher risk tolerance, a good credit rating and a desire to increase their participation in the mutual fund and RRSP investment arenas.

“We have had a growing demand for loan products in the last year, and we are pleased to have established an alliance with B2B Trust to provide these to the advisor community across Canada,” said Gary Hawton, CEO of Meritas Mutual Funds.

In addition to its RRSP loans, B2B Trust offers three loan products for non-registered investments that are available up to a maximum of $250,000 and with a variety of collateral options. These products include a 100% investment loan, where B2B will finance 100% of the investment for the purchase of eligible mutual funds; a 2-for-1 loan, where B2B will lend up to two dollars for every dollar pledged by the borrower; and a 1-for-1 loan, where B2B will match a client’s every dollar for the purchase of mutual funds.

B2B will provide its loan programs to Meritas Mutual Funds for distribution through licensed financial advisors only.

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BMO announces key hires for U.S. operations

(February 12, 2007) BMO Capital Markets has hired two new senior people to head up some important lines of business for the firm’s U.S. operations.

In Chicago, Scott Humphrey has been appointed executive managing director and head of U.S. mergers and acquisitions. BMO Capital Markets has also hired Tod Benton as managing director and head of the firm’s energy and power group.

“The appointments of Scott and Tod will greatly help BMO Capital Markets accelerate our growth in the U.S., a key priority for 2007,” said Tom Milroy, co-president of BMO Capital Markets.

Humphrey will oversee a team of more than 20 M&A professionals based in key client centres that include Chicago, New York and Houston. He will also work closely with the firm’s M&A group in Canada to help clients capitalize on cross-border strategies.

Benton will oversee the energy front by managing a team of more than 35 professionals dedicated to serving clients engaged in the energy and power business across the United States.

BMO said both have extensive industry experience and deep knowledge of their respective sectors.

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Ottawa wants more transparency for resource firms

(February 12, 2007) Minister of Finance Jim Flaherty announced Monday that Canada will officially support the Extractive Industries Transparency Initiative. EITI is a coalition of governments, industries, investors and international agencies that support improved governance in resource-rich countries through the full publication and verification of company payments and government revenues for the oil, gas and mining industries.

The federal government believes that by making oil, gas and mining activities more transparent by publicizing payments and revenues, EITI will encourage improved government accountability and long-term economic sustainability.

“Accountability, transparency, fairness — these are the principles of this international partnership, designed to increase the disclosure of resource revenues in developing countries,” Flaherty said. “They are principles Canada supports, and we intend to play a leading role in ensuring that citizens, not just governments or foreign companies, share in their nation’s prosperity.”

Canada’s support will include a contribution of $750,000 to the EITI Multi-Donor Trust Fund, as well as $100,000 in annual, ongoing funding.

The government also indicated that it will provide technical support in areas such as corporate governance in cooperation with leading Canadian mining companies.

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Conference Board reports consumer confidence up for January

(February 12, 2007) The Conference Board of Canada reports that consumer optimism rose again in January, as its Index of Consumer Confidence edged up 3.1 points.

The January index came in at 101.1; however, this figure is slightly adjusted from what it would have been because, beginning with the January 2007 survey, the Conference Board has recalculated the index. The base year for consumer confidence has been changed to 2002 from 1991. For example, under the new system, the December 2006 index would now be calculated at 98.0 instead of 120.5, as was previously published.

January was a banner month in Ontario. Its 5.5-point gain pushed its adjusted index above 100 for the first time in three years. Confidence in Quebec increased by 2.4 points in January, but as a result of the reclassified base year, the province’s index stands at 90.9.

“Retailers should be happy to hear that consumers are increasingly ready to make major purchases,” said Alicia Coughlin, an economist for the Conference Board. “Consumers were quite optimistic about their current and future financial situation, and expressed more optimism about future job conditions.”

The Conference Board said it chose 2002 as the base for consumer confidence because economic conditions in most regions of the country were relatively even that year.

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