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(June 19, 2007) Energy enthusiasts take note: a new energy sector ETF is on the market. Jovian Capital Corporation and BetaPro Management announced Tuesday that they have launched the first ETFs in Canada to offer “inverse and magnified exposure” to the S&P/TSX Capped Energy Index.

“The Horizons BetaPro S&P/TSX Capped Energy Bull Plus ETF is designed to provide daily investment results — before fees, expenses, distributions, brokerage commissions and other transaction costs — that correspond to two times (200%) the daily performance of the S&P/TSX Capped Energy Index,” the Horizons said in a release.

Their other offering, the Horizons BetaPro Capped Energy Bear Plus ETF, will provide the same leverage, but returns will be inverse to the daily performance of the S&P/TSX Capped Energy Index.

“The Canadian energy sector, the second largest by market capitalization, is an important component of our domestic equity market. Offering tools to help investors efficiently manage their energy exposure is a significant addition to our growing suite of ETFs,” said Howard Atkinson, president of the Horizons BetaPro ETFs.

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Excel Funds launches India-focused trust

(June 19, 2007) Clients with an interest in India have limited investment opportunities, but there is one more option coming to market, as Excel Funds launches the Excel India Trust.

The trust, which has been designed to give investors exposure to an actively managed portfolio, will be composed mainly of equity securities of Indian companies. A fund-on-fund structure should minimize Indian withholding taxes on capital gains and help to avoid some foreign investment restrictions.

Starting at $10.00 a unit, the trust will provide investors with a quarterly distribution starting at $0.125 or 5% per annum based on the offering price. The distributions should start in 2008.

The fund will be managed by Mumbai-based investment manager Birla Sun Life Asset Management.

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Tax Freedom Day comes early this year

(June 19, 2007) Thankfully, we don’t pay our taxes upfront, but if we did, Wednesday would be a sweet day.

Tomorrow is Tax Freedom Day, or the day Canadians can officially “start working for themselves,” said the Fraser Institute in a release.

“If you look at the average Canadian family’s total tax bill, each and every dollar they earn before June 20 would be required to pay the taxes owing to all levels of government. It takes until June 20 before they begin earning money for themselves,” said Niels Veldhuis, the director of Fraser Institute’s Centre for Tax Studies.

Taking into account a variety of taxes including income, sales and property taxes, the Fraser Institute can come up with a date when all taxes would be, theoretically, paid off.

The big news is that this year, Tax Freedom Day falls four days earlier than it did last year, and five days earlier than the latest Tax Freedom Day ever, which occurred on June 25, 2000.

Part of the date shift is a result of lower GST rates, but “even with the recent improvements,” said Veldhuis, “Tax Freedom Day still falls almost two months later than in 1961, the earliest year for which we have calculations.”

This year the average Canadian family of two will earn $83,775 and pay $38,992 in taxes, or 46.5% of its income.

When it comes to provinces, Alberta has the earliest Tax Freedom Day at June 1, while Newfoundlanders have to wait until July 1 to finish paying their debts to the government.

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Alberta dealer fined in B.C.

(June 19, 2007) It seems like a no-brainer, but, as one mutual fund dealer found out, trading securities without a licence is a big no-no.

The BCSC announced Tuesday that it had settled with Alberta-based D.W. Good Investment Company, after it admitted that it traded securities in B.C. without being registered.

Between Jan. 1, 2006, and Jan. 24, 2006, the dealer traded securities for 24 B.C. residents, making 13 purchases and eight redemptions.

D.W. Good gave up its B.C. registration on Dec. 31, 2005, and re-registered on Jan. 25, 2006, but continued to trade between those two dates. The company paid BCSC $3,500 to settle the complaint.

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Manulife unveils new U.S. savings accounts

(June 19, 2007) Want to get more for your American dollar? On Tuesday Manulife Bank announced that it’s launching two new U.S. investment savings accounts.

With interest rates set at 4.85% and 5% for its F Class product, the bank says it’s offering investors security and liquidity at a high rate. The accounts can be used for RRSPs, RRIFs, RESPs and LIFs, as well as non-registered investment accounts.

“Canadians are becoming more aware of the need to diversify their investments internationally,” said J. Roman Fedchyshyn, president and CEO of Manulife Bank. “Our U.S. investment savings accounts allow people to diversify the secure, liquid portion of their investment portfolios into the currency of the world’s largest economy.”

(06/19/07)