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(December 11, 2006) Microcredit has been attracting a great deal of media attention of late, with the Nobel Peace Prize going to Dr. Muhammad Yunus, who pioneered the concept with Grameen Bank. The idea is quite simple: in developing countries, a small loan allows the poor to start their own businesses, while exposing the lender to very low risk.

The principal of these loans is often less than the equivalent of $100, but that tiny sum can go a long way in poorer countries. Not only can microcredit lead to independence for the borrower, but if their business thrives, it may increase employment in areas desperate for economic activity.

“Providing poor households — and most notably women — with ready access to affordable financial services can be one important element of a sustainable, community-based strategy to reduce poverty,” said Robert Fox, executive director of Oxfam Canada.

There is now a means for Canadian investors to help stimulate impoverished economies through microcredit, as Citizens Bank of Canada has launched the Shared World Term Deposit.

“The Shared World Term Deposit is not charity — it’s a competitive investment vehicle with a social objective,” said Jason Farris, president and CEO of Citizens Bank of Canada. “We see this as an opportunity to provide investors with a sound financial return and a solid social return, ultimately making a difference in the lives of many people.”

The deposits are pooled into a fund administered by Citizens Bank in collaboration with the Calvert Social Investment Foundation, and are then invested in community loan funds, which provide affordable credit in low-income communities in Africa, Latin America, Asia, Eastern Europe and the former Soviet Union.

The term deposit currently offers an interest rate of 3.70%, with a minimum investment of just $100. The investment is covered by CDIC and may be held in either registered or non-registered accounts. The minimum term is one year.

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New president at Investor Education Fund

(December 11, 2006) The Investor Education Fund has named a new president, Thomas M. Hamza, the former vice-president, financial services, and chief compliance officer at KidsFutures Investments.

“Tom joins us with a strong strategic vision and a track record of demonstrated leadership and of building long-term relationships,” said Paul Bates, chair of the Fund. “I’m confident Tom will drive the Fund’s strategic priorities.”

Hamza’s appointment is effective Monday, December 11, 2006.

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CCH signs support deal

(December 11, 2006) Tax research and compliance provider CCH has signed a deal with Financial Plan Advantage to provide telephone planning support and live Web-based training to FP Solutions customers.

“FPA is a firm of FP Solutions experts who can help us respond to our customers’ needs more effectively and quickly,” said Kate Pattison, marketing manager for financial planning at CCH. “All our secondary, or planning, support team have their CFP or are working towards that designation.”

“We’re experts in FP Solutions: we use it every day to prepare financial plans for advisors,” said Dave Faulkner, founder and president of Financial Plan Advantage. “It’s a natural fit to share our knowledge with CCH and support its financial planning customers.”

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(12/11/06)