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(June 16, 2006) On Monday, plan to sit back in relax. According to the Fraser Institute you’ve paid your dues to the government for 2006 and are you working for yourself. And it’s not even summer.

Tax Freedom Day is June 19 this year, which is five days earlier than in 2005. The latest Tax Freedom Day came in 2000 when it fell on June 25.

“Although this year marks a reversal of the recent upward trend in taxation, Tax Freedom Day falls over a month and a half later than it did 45 years ago,” said Niels Veldhuis, senior research economist at the Institute. “In 1961, the earliest year for which the calculation has been made, Canada’s Tax Freedom Day was May 3.”

Tax Freedom Day calculations include all taxes levied on Canadians such as income taxes, property taxes, and sales taxes, as well as profit taxes, health, social security and employment taxes, import duties, license fees, taxes on the consumption of alcohol and tobacco (“sin” taxes), natural resource fees, fuel taxes, hospital taxes, and a host of others.

In 2006, the average Canadian family with two or more individuals will earn $79,396 in income and pay a total of $36,650 in taxes, according to the report.

Tax relief announced in the 2006 federal budget contributed to the decline. The reduction in the GST to 6% from 7% alone accounted for one day of the five day change. Tax changes at the provincial level also factored in.

Alberta will enjoy the earliest Tax Freedom Day. Theirs has already come and gone on June 6. Quebecers will have to wait until June 27 for theirs.

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Laurentian Bank appoints new COO and CEO designate

(June 16, 2006) Laurentian Bank of Canada has appointed Réjean Robitaille to the position of senior executive vice-president and chief operating officer. He has also been tapped as Raymond McManus’ successor as president and CEO when he retires in early 2007.

Robitaille has been at Laurentian since 1988 and has held several senior positions including his current title as senior executive vice-president, retail and commercial financial services. He will continue to be responsible for the three lines of business currently reporting to him but will take a more active role in Laurentian Bank’s overall operations.

McManus will continue to serve as CEO until his retirement.

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Canada’s economic outlook “outshines” most industrial countries: IMF

(June 16, 2006) A newly released report from the International Monetary Fund forecasts continued growth for the Canadian economy.

The annual IMF report projects Canadian real gross domestic product growth to be 3.1% this year and 3% in 2007. The report concludes that while Canada would be sensitive to a sharp slowdown in the United States, that risk would be largely contained to Ontario, which comprises one-third of the economy.

The federal finance minister latched on to the report. “I’m glad to see the IMF staff highlight how Canada’s macroeconomic and policy performance has continued to ‘outshine’ that of most other industrial countries,” Jim Flaherty said in a release.

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Hedge funds sour in May

(June 16, 2006) Hedge funds pulled back in May with the largest drop coming from the tactical sector, which includes equity long/short, macro and managed futures.

The macro sector, which involves discretionary trading in the global currency, interest rate, equity and commodity markets, dropped 2.7% in May, according to the latest figures from RBC Hedge 250 Index. Equity long/short strategy funds were close behind with a loss of 2.1%. Overall the index was down 1.18% in May, which all but erased April’s 1.64% gain.

The figures out of RBC Hedge 250 Index closely parallel Credit Suisse/Tremont Hedge Fund Index, which was down 1.3% in May. Dedicated short bias hedge funds outperformed with a gain of over 5% in May as the early signs of the market correction that took hold. Emerging markets suffered its worse decline since 1998 down 3.75%. Long/short strategies also did poorly, down 2.84%.

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Investors Group unitholders approve changes

(June 16, 2006) On Thursday unitholders gave Investor Group Funds the go ahead to broaden its mandate and revise its fee structure. The firm is also renaming its Investors Mortgage Fund to Investors Mortgage and Short Term Income Fund.

One of the changes will allow the firm to lower mortgage content and increase investments in fixed-term and liquid debt securities. Along with this change the company said it also plans to lower its fee structure over time.

In the same announcement, the company said the IG AGF International Bond Fund and IG Templeton World Bond Fund will be merged into Investors Global Bond Fund. The two funds were specifically structured to meet foreign content rules which are no longer in effect. This change will take effect June 23.

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Cervus transfers assets, sells firm

(June 16, 2006) The Ontario Superior Court has approved a vesting order for Cervus Financial Group to transfer certain assets to its wholly owned subsidiary.

After transferring unspecified assets Cervus, which filed for Companies Creditor Arrangement Act protection earlier this month, will be sold to Macquarie Bank for $12.5 million. The deal, which is subject to certain purchase price adjustments including a reduction for all amounts owing under the DIP financing on the closing date, is expected to close as soon as all of the conditions are met.

Upon the completion of the deal, Cervus Financial Group will to change its name to CFG Holdings Inc.