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(November 23, 2006) For the second year in a row, Canadians have been better savers and investors, according to Statistics Canada.

Tax returns filed this past spring show that almost 7.8 million people reported about $34.5 billion in income from their investments (including interest and dividend income from taxable corporations) in 2005. The number of individuals reporting income outside of their RRSPs was up 3.4% from 2004, while the amount of income claimed on their tax files was up 8% over the same period.

While these numbers are encouraging, the amount most Canadians are able to squirrel away each year is still fairly low. StatsCan reports the median investment income reported in 2005 was just $460.

In terms of how individual cities performed, the highest median investment income was found in Victoria at $750. Vancouver was next highest at $590. /p>

The number of savers in Canada was also up, albeit a slight 0.8% from 2004. According to StatsCan, this is the first increase since 2001. At the same time, the amount of interest income reported by those Canadians in 2005 was down 5.9% to $6.7 billion.

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BluMont to merge funds

(November 23, 2006) BluMont Capital is proposing to merge its Strategic Partners Hedge Fund with its Canadian Opportunities Fund.

The firm has scheduled a special meeting of unitholders for December 29 to vote on the plan. The firm says that the investment objectives and strategies of the two funds are similar.

Under the proposal, all of the hedge fund’s assets would be transferred to the Canadian Opportunities Fund. In exchange, hedge fund unitholders would receive units of the Canadian Opportunities Fund on a tax-deferred “rollover” basis while all outstanding units of the hedge fund would be redeemed.

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Covington completes portfolio sale

(November 23, 2006) Covington Fund I has completed the sale of its venture portfolio to Birch Hill Equity Partners for $41 million in cash. The sale is for virtually all of the fund’s venture holdings.

The announcement follows Covington’s decision in June to wind up the fund. According to the company the fund had reached “a stage in its life cycle whereby it was a logical and appropriate time to begin winding up proceedings and to prepare for a return of capital to the fund’s investors.”

The completion of the sales makes Covington Fund I the first labour-sponsored investment fund to wind up operations in an orderly fashion in Canada. Other LSIFs that ceased operations have done so either through a merger, a takeover or bankruptcy.

Over the next four to eight months the fund will focus on the winding-up process, including regulatory approval and a return of capital to the fund’s shareholders.

Covington has five other labour funds, with total assets of around $500 million.

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