Briefly: “FEI Canada calls for increased credit to businesses” and more news

The government must play a more active role in increasing the credit available for Canadian businesses, according to Tuesday’s testimony by the Financial Executives International (FEI) Canada before the House of Commons Standing Committee on Finance.

“Greater access to long-term credit financing, particularly for small-to-medium businesses, in addition to increasing inter-provincial trade efficiency and establishing a national securities regulator are all critical factors in helping to shape the foundations of a strong Canadian economy and global competitiveness,” said Michael Conway, CEO of FEI Canada. “Increasing overall accessibility of credit to Canadian businesses will facilitate expansion projects and assist corporations in the growth and development of both human capital and market expansion.”

FEI Canada’s submission to the federal Finance Committee focused on increasing Canadian business access to credit, enhancing capital market efficiency and rebuilding confidence in the Canadian economy.

FEI Canada also recommended the government assist in the restructuring of the securitization market by ensuring better transparency, accountability and reporting practices to improve liquidity and availability of short and long-term funding.

A copy of FEI Canada’s recommendations can be found here.

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Brompton fund files final prospectus

Manulife Brompton Advantaged Bond Fund has filed a final prospectus for an initial public offering of $100 million, according to Brompton Funds Management Ltd. The fund is offering Class A and Class F units priced at $10 per unit. The Class F units are designed for fee-based accounts and will not be listed on a stock exchange.

The fund’s investment objectives are to provide unitholders with attractive monthly tax-advantaged cash distributions together with the opportunity for capital appreciation. Distributions are targeted at $0.70 per annum for Class A or Class F units consisting primarily of return of capital, representing a yield on the issue price of 7% per annum. The fund will seek to achieve its investment objectives through exposure to an actively managed bond portfolio consisting primarily of North American corporate bonds.

Brompton has chosen MFC Global Investment Management (Canada), a part of the asset management division of Manulife Financial Corporation, to manage the portfolio.

The Toronto Stock Exchange has conditionally approved the listing of the Class A units and trading is expected to start on April 23, 2009.

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American consumer confidence holds steady in March

American consumer confidence held steady in March — with a slight blip upward halting three months of declines as slivers of hopes about the economy buoyed consumers.

But Americans are still feeling gloomy about their future given mounting layoffs and shrinking earnings.

The New York-based Conference Board said Tuesday that its Consumer Confidence Index rose to 26.0 in March from a revised 25.3 reading in February, which was itself a big drop from 37.4 in January.

The reading, however, came in below the 28 expected by economists surveyed by Thomson Reuters, and remains less than half of its level of 65.9 last March.

How people feel about their current economic circumstances, or the Present Situation Index, slipped to 21.5 from 22.3 last month. Their assessment about the economy over the next six months, or the Expectations Index, rose to 28.9 from 27.3 in February.

Despite the slight improvement in that reading, many economists believe that a recovery is not near, and people continue to worry about what’s ahead.

“We have seen some signs of improvement in the economy, but they are subtle,” said Bernard Baumohl, chief global economist at the Economic Outlook Group. “We have seen nothing significant to shift the mood of the consumer.”

(03/31/09)