Briefly: ‘Create a holiday plan: IG’ and more news

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Investors Group advisors are available to offer holiday planning advice for Canadians.

A press release from the firm, says, “Ornament lined shelves in early November should be your signal to start thinking about your Christmas Shopping Plan”

Some of the tips suggested for this plan include developing a charitable giving strategy rather than spontaneously giving money to charity and consider contributing to a tax free savings account to someone you love. We are also reminded that Canadians over the age of 18 will have a cumulative $10,000 in contribution room – assuming they did not contribute this year – as of January 1, 2010.

Don’t spend too much either, says the Investors Group. “When you overindulge in festive food, the cure can be as quick and easy as an antacid tablet and maybe a few weeks of dieting to get your weight back on track. But, when you overindulge financially, chances are you’ll be paying a steep price for a long, long time,” the release states.

Rather than the common practice of grandparents giving cash gifts, IG suggests you consider something else. “One interesting phenomenon of our increasingly prosperous society is the number of people who want to start investing not only for themselves and for their children, but also for their grandchildren. “However, before you start putting large amounts of money under the Christmas tree, there are important issues to consider.”

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Canadian companies optimistic about going public: KPMG

Nearly two thirds (60%) of Canadian executives expect the Canadian initial public offering market to increase in the next 6 to 12 months, with one-third expecting it to remain the same, according to a newly-released KPMG survey.

Overall, respondents are optimistic that the Canadian economy will experience growth in the next 12 months, with 89% of private companies and 82% of bankers/lawyers expecting moderate growth.

An overwhelming majority of respondents (86%) expect their company to grow in the next 12 months and indicate this will have a positive effect on their plans to go public. Meanwhile, 18% survey respondents say they plan to go public in the next two years, with another 15% indicating they do not have current plans to go public, but it is being actively considered.

“We are very pleased to see such optimism returning to Canadian private companies,” says Rob Brouwer, Canadian managing partner, markets, KPMG LLP. “However this is no accident — our economy is built on strong, entrepreneurial foundations, reflected in these organizations now starting to plan beyond the recession and toward financial recovery and expansion.”

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BMO acquires Diners Club

BMO Financial Group today announced that it has signed a definitive agreement to purchase the Diners Club North American franchise from Citigroup. The acquisition is expected to more than double BMO’s overall corporate card business.

The deal gives BMO exclusive rights to issue Diners Club cards to corporate and professional clients in the U.S. and Canada. In total, the agreement represents net receivables of almost US$1 billion and approximately US$7.8 billion in card transactions.

“This acquisition will immediately enhance our competitive position by placing us among the top commercial card issuers in North America,” says Frank Techar, president and CEO of personal and commercial banking at BMO Bank of Montreal.

He added, “We’ve consistently said that we will seize good opportunities that arise, accelerate growth in our business and improve customer loyalty. The Diners Club North American franchise brings new card members to our company, provides attractive additional options for our existing customers, and makes us an even more compelling choice in the market for prospective commercial customers in Canada and the United States.”

Citigroup will continue to provide support until the Diners Club business is fully integrated within BMO. As part of the acquisition, BMO will retain key resources responsible for product delivery, sales and customer service.

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Manulife buys into Chinese fund business

Manulife Financial announced that it has signed an agreement to purchase Fortis Bank SA/NV’s 49% per cent ownership in ABN AMRO TEDA Fund Management for approximately US$156 million.

The new joint venture will be called Manulife TEDA Fund Management Company and will provide traditional retail and institutional asset management across the Chinese market. While Manulife TEDA Fund Management Company plans to maintain and grow its existing platform of high quality asset management products, over time it also plans to seek regulatory approval for expanding its lines of business as and when permitted by CSRC (China Securities Regulatory Commission) and other relevant bodies.

“Our new partnership with TEDA provides a rare strategic opportunity to make a fast track entry into China’s large and high growth market for individual and institutional wealth management services. This accelerates our expansion in China’s huge growth market by several years,” says Manulife Financial’s president and CEO Donald Guloien.

He adds, “We are impressed by the quality of this asset management operation with its strong management team and competitive culture. The business has shown excellent performance, underpinned by its quality administration, use of web-based tools, positive reputation with regulators and satisfied customers.”

The asset management industry in China is expected to become one of the largest in the world in the coming decade. Current industry assets under management of US$338 billion are forecast to grow significantly and exceed US$1 trillion by 2014.

Manulife points out that China has one of the world’s highest savings rates at 51% of GDP A very high proportion of household wealth is held in the form of deposits.

“Both parties will cherish the opportunity to cooperate closely to make rapid progress,” says Mr. Liu Huiwen, president of TEDA. “Manulife TEDA, in Chinese, has a very auspicious sounding name: Manulife stands for ‘abundant reward’ while TEDA stands for ‘all the best wishes are destined to come true.’ We believe with this combination of close cooperation and our lucky brand name, nothing can deter us from achieving success.”

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(11/24/09)