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(March 6, 2007) Nineteen weeks after its introduction, Manulife Investments has racked up $1 billion in sales of IncomePlus, its guaranteed minimum withdrawal benefit product.

Manulife said the product is a retirement solution that provides guaranteed monthly payments independent of when an investor retires in the market cycle, as well as growth potential, flexibility and control.

“Our research told us that a guaranteed minimum withdrawal benefit would fill a need among pre-retirement or retired investors, especially after we observed the success of this category in the U.S.,” said J. Roy Firth, executive vice-president, Manulife Financial. “But frankly, the results have far exceeded even our most optimistic expectations. We’re thrilled that Canadian investors and advisors see this as a useful tool and innovative solution to help them plan for retirement.”

Manulife said IncomePlus is currently the only product of its type available in Canada that provides downside protection, the ability to extend the guaranteed payment period and potentially increase the payments; flexibility and control over investments and access to funds; and security from creditors, probate process and fees.

IncomePlus includes a range of funds managed by fund companies such as AIM Trimark Investments, CI Investments, Fidelity Investments, MFC Global Investment Management and Mackenzie Investments.

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TSX launches mining index

(March 6, 2007) TSX Group and Standard & Poor’s have announced they will create the S&P/TSX Global Mining Index. The companies say the index will be similar to the S&P/TSX Global Gold Index but with a broader scope in terms of the types of miners to be included. The Global Mining Index will track leading international mining issuers.

TSX said a mining index makes sense since its exchanges have 1,274 listed mining companies, which it estimates is approximately 60% of the world’s public mining companies, with a quoted market value of over $322 billion. In addition, it said Canada has the world’s largest mining analyst community that covers issuers on both the Toronto Stock Exchange and TSX Venture Exchange.

Further details and a list of issuers to be included in the new index will be released by Standard & Poor’s prior to an expected launch in June 2007.

“With commodity prices strong and increased interest in this asset class, real-time information on global mining issues is critical,” said Steve Rive, vice-president of Canadian Index Operations at Standard & Poor’s. “Building on the success so far of the S&P/TSX Global Gold Index, we believe the S&P/TSX Global Mining Index will be a broad representative of opportunities available in the global mining marketplace.”

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Canadian homebuyers worried about prices, not mortgages

(March 6, 2007) An RBC poll on home ownership has found that 57% of Canadians believe that mortgage rates will drop in the upcoming year, but roughly the same number, 59%, believe that housing prices will continue to rise.

Higher prices do not seem to be a deterrent for prospective homebuyers. According to the poll, 90% of Canadians believe buying a home is a good investment, and 28% of respondents are planning to buy a house over the next two years.

RBC said this level of investor confidence is accompanied by a sharp rise in the number of homeowners who say the value of their home has increased by 50% or more. Eleven per cent of respondents say they’ve seen their home equity go up by that amount, compared to 6% two years ago.

“It’s clear an overwhelming majority of Canadians believe purchasing a home is a good investment. In fact, the average Canadian estimates their home has increased by 22% in the last two years,” said Catherine Adams, RBC’s vice-president of home equity financing. “And the ‘buy now’ message is coming through loud and clear across all age groups — from 25 through to 55-plus.”

RBC’s poll highlights that this buyer exuberance is tempered by smaller aspirations. While 48% of Canadians who are planning to purchase a home in the next two years cite wanting a bigger house, a steadily increasing number of Canadians are planning to scale down on their next home purchase.

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Bank of Canada stands pat on rates

(March 6, 2007) The Bank of Canada has held the line on interest rates, maintaining the key overnight rate at 4.25%. The Bank Rate, which is based on the overnight, remains 4.50%.

The Bank explained that both the Canadian and global economies were unfolding as expected, with the domestic economy operating at or above capacity. Inflation is expected to remain low, at just 1% through the first half of 2007.

“Despite recent volatility in global financial markets, the Bank continues to judge that the risks to its inflation projection are roughly balanced,” the Bank said in a release. “The main downside risk continues to be that growth in the U.S. economy could be lower than expected.”

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(03/06/07)