Briefly: Cdns spend tax returns wisely and more news

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The 2009 tax return deadline has arrived, and a new survey looks at how Canadians plan to use their tax returns this year.

The survey, commissioned by BMO Nesbitt Burns and conducted by Ledger Marketing, found that:

• 48% will be using their refund to pay down credit cards and other bills;
• 21% will invest their refunds in RRSPs or TFSAs;
• 15% plan to use their refunds for home renovations or other household expenses;
• 12% will likely treat themselves with leisure items or travel; and,
• 4% plan to put their refunds towards a lump sum on their mortgage.

The average return last year was $1,400, according to the Canada Revenue Agency.

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IFIC responds to consultation report

The Investment Funds Institute of Canada (IFIC) published its comments on the Manitoba’s consultation paper, Mechanisms for Expanding Pension Coverage and Retirement Income Adequacy in Canada (the Manitoba Paper).

In its letter to Manitoba’s Minister of Finance, Rosann Wowchuk, the IFIC underlines the advantages of the current retirement system and outlines how financial advise helps Canadian save for retirement. The letter does acknowledge that there is room for improvement in the way Canadian currently plan for retirement and suggests that targeted solutions rather than drastic changes.

“There is no one size fits all approach that can be taken,” said Joanne De Laurentiis, president and CEO of the IFIC. “We should provide Canadians with retirement savings options, as well as support in selecting the most appropriate option, which can only come from professional financial advise.”

To view the complete document, click here.

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CIBC aquires CIT Business Credit Canada

CIBC has announced its purchase of CIT Financial Ltd.’s interest in CIT Business Credit Canada Inc. and now owns 100% of the company.

CIT Business Credit has been re-named CIBC Asset-Based Lending Inc. The portfolio was created in 2000 as a joint venture between CIBC and CIT Canada.

“This transaction is consistent with CIBC’s priority to grow our business banking operations in Canada,” said Sonia Baxendale, president of CIBC Retail Markets. “We are acquiring full control of an organization we know well following our long relationship with CIT. We are very familiar with the clients, the assets and the quality of the portfolio.”

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Fidelity Investments proposes changes funds

Fidelity Investments Canada ULC has announced its plans to change the investment objectives of two of its funds, the Fidelity Income Trust Fund and the Fidelity Monthly High Income Fund. The company states that these changes are due to tax rule changes slated to take effect on Jan. 1, 2011.

The proposed changes will broaden the investment objectives of the funds. The portfolio management teams will remain unchanged.

Unit holders can expect an information circular describing the proposed changes to be mailed to them around June 15, and a meeting will be held to vote on these changed on or around July 15, 2010.

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Sentry Select takes Lazard fund

Sentry Select Capital Inc. has announced that it will be taking over as the investment manager of the Sentry Select Lazard Global Infrastructure Fund, previously managed by Lazard Asset Management LLC. The change will likely occur on June 4.

The name of the fund will be changed to “Sentry Select Infrastructure Fund.”

The fund in question is an open-end mutual fund with around $39.7 million in net assets (as of April 28, 2010). Sentry Select is also proposing changes to the fund’s investment objective, subject to security holder approval. Subject to regulatory approval, the Sentry Select Infrastructure Fund will begin offering Series I and Series A securities.

For more information, visit www.sedar.com.

(04/30/10)