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(March 1, 2007) The Canadian Centre for Policy Alternatives has declared that Canada’s income gap between the rich and poor is growing, largely because the spoils of economic growth are going primarily to the 10% of families who make more than $100,000 a year.

The study, The Rich and the Rest of Us: The Changing Face of Canada’s Growing Gap, looks at the earnings and after-tax incomes of Canadian families raising children under 18, comparing families in the late 1970s and those in the early 2000s.

The bottom half are shut out, the CCPA points out. Between 1976 and 1979, the bottom half of families earned 27% of total earnings. Between 2001 and 2004, that figure dropped to 20.5%, even though they worked more. Up to 80% of families lost ground or stayed put compared to those of the previous generation, in both earnings and after-tax terms, so the poorest saw real incomes drop.

“Canada’s gap is growing at a time when Canadian families are playing by all the rules — working harder, contributing to a growing economy — but most aren’t getting payback,” says study author Armine Yalnizyan, a research fellow with the CCPA.

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Claymore launches Merrill Lynch Index securities

(March 1, 2007) Claymore Investments is launching the Merrill Lynch Claymore International Fundamental Index Accelerator Securities, Series 2, which are based on fundamental global indexes.

Two separate securities will be issued, one priced in Canadian dollars and another in U.S. dollars. Claymore calls the product an “innovative equity-based security” providing exposure to the international equity markets. It is the third launch of Accelerator products by Merrill Lynch based on the Fundamental Indexes.

The product is designed to provide an accelerated return based on a reference basket consisting of 50% FTSE RAFI Europe Index; 35% FTSE RAFI Japan Index; and 15% FTSE RAFI Hong Kong/China Index.

Claymore anticipates that the acceleration factor for each security will be 145% on the Canadian-priced security and 165% acceleration on the U.S.-priced security.

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Mackenzie raises foreign equity limit on resource funds

(March 1, 2007) Mackenzie Investments has announced that investors have approved a change to the investment objectives for Mackenzie Universal Precious Metals Fund, Mackenzie Universal Canadian Resource Fund and Mackenzie Universal Canadian Resource Class.

Effective immediately, the funds will have the ability to invest up to 49% of assets in non-Canadian securities. Mackenzie said this investment change provides a broadened investment universe for the funds’ investment team, led by manager Fred Sturm.

In addition, Mackenzie expects the change to increase diversification, as a number of natural resource sectors are not fully represented in the Canadian market.

Previously, Mackenzie Universal Precious Metals Fund could invest up to 30% in non-Canadian securities and Mackenzie Universal Canadian Resource Fund could invest up to 35% in non-Canadian securities.

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Sun Life names new CFO

(March 1, 2007) Sun Life Financial has named Richard P. McKenney as executive vice-president and CFO, succeeding Paul W. Derksen, who has retired.

Prior to joining Sun Life, McKenney, 38, was senior vice-president and CFO of Genworth Financial. Reporting to Donald Stewart, Sun Life’s CEO, McKenney leads the company’s enterprise-wide financial, actuarial, risk management, asset and liability management, capital management, taxation, planning, mergers and acquisitions, and investor relations functions.

“Rick has hit the ground running and has already made his presence felt in many positive ways,” Stewart said. “The transition from Paul to Rick has gone extremely well, and the addition of an individual of Rick’s high calibre to our senior executive team has us well positioned going forward.”

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(03/01/07)