Briefly: “Canaccord completes ABCP relief plan” and more of Monday’s news

Canaccord Capital has completed its Canaccord Relief Program, which repurchases, at par value, up to $152 million of restructured third-party asset-backed commercial paper from eligible clients.

“Over the past 17 months, Canaccord has worked to protect our clients’ best interests through a very difficult situation,” said Mark Maybank, COO of Canaccord Capital. “I’d like to thank our investment advisors, operations team and everyone involved at Canaccord for working diligently toward this successful conclusion on behalf of our clients.”

Under the relief program, Canaccord provided top-up payments to ensure that clients received par value from the ABCP settlement hammered out by the Pan Canadian Committee of Third Party ABCP. Investors have also received previously unpaid interest.

The firm purchased about $9.5 million worth of MAV 2, Class 15 notes, which will be added to the company’s treasury position.

The Canaccord program involved about 1,440 investors who held $1 million or less in ABCP. The transaction has closed, and funds are now available in eligible clients’ accounts.

Canaccord expects to record yet another charge of about $2.7 million (pre-tax) related to the ABCP mess when it releases its third-quarter earnings on February 12, 2009.

“We are disappointed by the necessity of additional charges for our firm,” said Paul Reynolds, president and CEO of Canaccord Capital. “However, our commitment to our clients and to the Canaccord Relief Program is unwavering. We remain a well-capitalized company focused on operating effectively in this challenging environment.”

To read Advisor.ca’s complete ABCP coverage, check out Scrap Paper.

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Seniors worried about their financial future

Fifty-three percent of Canadian seniors feel less secure about their financial future now than they did one year ago, according to a recent Angus Reid Strategies study.

The study also found that 37% of participants who are not yet retired have been forced to delay retirement plans due to the current economic situation, while 44% of Canadians over 60 are worried about their homes decreasing in value.

“While this study was conducted before the federal budget was delivered and is a reflection of considerable concern by seniors about their financial future, it’s encouraging to see that there are a number of measures in the federal budget that will help seniors manage their finances,” says Steven Ranson, president and chief executive officer of Canadian Home Income Plan (CHIP), which commissioned the study.

“These measures include the changes to tax brackets, increase on the senior age credit and the home renovation tax credit,” he added.”

When it comes to the present state of the stock market, 68% of respondents are concerned about investment losses in 2009, while 41% of those age 60 to 65 said they are very concerned about investment losses this year.

The troubled economy has also led 15% of seniors to consider downsizing or selling their home, according to Mario Canseco, vice-president of public affairs with Angus Reid. “Almost one in five respondents living in households with a yearly income of less than $50,000 are considering this as an option,” he says.

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Bank West buys AgriFinancial

Western Financial Group and its subsidiary Bank West have completed the purchase of AgriFinancial Canada Corp. from C.A. Bancorp Inc. and Sentry Select Total Strategy Fund.

AgriFinancial provides specialized lending services to the agribusinesses sector in Western Canada, with more than 25,000 farmers carrying its specialty credit card, AgriCard.

“We are building on our already strong insurance relationships with Western Canadian farmers,” said Scott Tannas, president and CEO of Western Financial Group. “Bank West now has a valuable and unique product offering targeted at one of our largest and most important customer segments. It’s a great strategic fit, and we are excited about the cross-selling opportunities within our various business groups.”

AgriFinancial is now an operating unit within Bank West. The acquisition adds $85 million in profitable loan assets to Bank West’s portfolio.

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GMP Private Client launches new research program

GMP Private Client has launched its Guided Strategy Program, which develops a focus list of North American equity investments using fundamental, quantitative and technical analyses.

The research results are passed on to the firm’s portfolio advisory committee for appraisal.

“Clients can feel further assured knowing that their investment advisors have on hand an additional layer of investment due diligence at their disposal — a key resource in order to thoroughly analyze equity investments,” said James Werry, CEO, GMP Private Client.

GMP Private Client is also developing a series of model portfolios that will layer an asset-allocation process over its two equity focus lists.

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RRSP reminders

If some of your clients still have room for an RRSP contribution, here are a few reminders that you may want to pass along:

• The deadline for contributions to be applied against the 2008 tax year is March 2.

• The maximum RRSP contribution limit for 2008 is $20,000.

• Investors can exceed their personal contribution limit by up to $2,000 without being subject to a penalty tax.

• Clients who reached 71 years of age in 2008 must convert their RRSPs into a retirement income vehicle before the end of 2009 to avoid being taxed at fair market value on their RRSPs.

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Mackenzie fully absorbs Saxon

Mackenzie Financial has amalgamated the legal entity of Saxon Funds Management into its overall corporate structure, effective January 26.

The move makes Mackenzie the official manager of Saxon Funds. Mackenzie had bought Saxon Financial and its subsidiaries in October 2008.

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Guardian Capital names new president

Guardian Capital Group has named George Mavroudis as president of the company, effective January 30.

Mavroudis joined Guardian in 2005 as senior vice-president, strategic planning and development. He has served as CEO for the company’s private client and institutional investment management businesses, Guardian Capital Advisors LP and Guardian Capital LP. He will continue to hold these titles.

(02/02/09)