Briefly:

(December 18, 2006) Home ownership is the number one financial goal for Canadians, according to a new survey, with saving for retirement a close second.

Sixty-one percent of poll respondents said home ownership is their most important financial objective; 56% said retirement savings; and reducing debt came in third, at 53%.

“Canadians want to make the most of life in the moment, and they aren’t necessarily willing to put their plans for the future on hold,” said Dave Richardson, vice-president of RBC Asset Management. “The challenge is to do the right planning, to find the balance between being able to live well today, and still being financially comfortable tomorrow.”

More than half of those surveyed said they believed they were on schedule in terms of their retirement savings plan. Of that 55%, the vast majority (83%) are working with an advisor to make financial decisions.

The survey also revealed that Canadians are starting to think earlier about retirement planning. Nearly half of those surveyed in the 18–34 age category said they were already planning for retirement.

Canadians are also contributing to RRSPs at a younger age. Sixty-two per cent of those aged 18 to 34 now hold RRSPs — up from 44% five years ago.

“This is the first time in the 16 years we’ve been conducting this poll that this younger age group has figured so strongly in these retirement planning statistics,” said Richardson. In all age groups, 68% of Canadians have RRSPs.

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Franklin Templeton launches pair of new funds

(December 18, 2006) Franklin Templeton Investments has added two new funds to its family, both intended to meet the growing demand among Canadians for yield.

The Bissett Corporate Bond Fund is designed to provide high current income by investing primarily in investment-grade corporate bonds, debentures and short-term notes. The Franklin Templeton Managed Corporate Yield Class fund is intended to increase after-tax yield by using forward contracts to provide capital gains instead of interest income.

“Many Canadians are looking for additional income solutions,” said Don Reed, president and CEO, Franklin Templeton Investments. “Our new Corporate Bond Fund is ideal for investors seeking an income stream and potentially higher yield. And our new Managed Corporate Yield Class fund is suitable for investors who want the stability of income and the tax efficiency of capital gains.”

The Franklin Templeton Managed Corporate Yield Class fund uses forward contracts to provide a return similar to its reference fund, the Bissett Corporate Bond Fund. “By entering into forward contracts that are tied to the performance of the Corporate Bond Fund, the new Managed Corporate Yield Class fund is positioned to increase after-tax yield,” Reed explained.

Guy Le Blanc, lead manager of the Bissett Bond Fund, and Heather McOuatt, co-manager of the Bissett Canadian Short Term Bond Fund along with Le Blanc, will co-manage the two new funds.

Franklin Templeton also announced today that the Bissett Canadian Balanced Fund is now available in a corporate class version.

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Foreign securities purchases hit new record

(December 18, 2006) Canadians bought $68.5 billion worth of foreign stocks and bonds as of the end of October, already surpassing the annual record set in 2000.

Statistics Canada says Canadians snapped up $5.7 billion in foreign bonds in October, with purchases about equally split between overseas and U.S. offerings.

On the securities side, acquisitions of U.S. shares remained strong in October, totalling $2.3 billion. However, Canadians sold off $1.6 billion in overseas shares during the month.

Foreign investors reduced their holdings of Canadian securities by $5 billion in October, following a $2.9 billion sell-off the previous month.

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Hartford Bond Fund gets new manager

(December 18, 2006) Hartford Investments Canada has announced the resignation of Robert McHenry as portfolio manager of the Hartford Bond Fund.

McHenry has managed the fund since its inception in 2001.

Robert Crusha and Raymond Uy will assume will assume joint responsibility for the fund’s day-to-day investment decisions effective immediately, providing a transition period before McHenry steps down as manager at the end of the year.

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(12/18/06)