Briefly: “Financial advice most sought-after staff benefit” and more…

A recent report released by Shepell•fgi Research Group, Financial Distress Impacts Health and Productivity, found that the number of requests for financial counselling and consultation are increasing at twice the rate of all other employee assistance program services (EAP).

In the second half of 2008, there was a 13% increase in the rate of access for financial issues as compared with the second half of 2007.

According to the report findings, the top five financial issues for employees were debt/credit (37.6%), financial planning (15.2%), divorce/finances (8.7%), financial stress (5.5%) and bankruptcy (5.2%).

“In troubled economic times, employers must understand what is causing the decline in productivity and driving ever-increasing costs so they can get ahead of things,” said Rod Phillips, president and chief executive officer of Shepell•fgi. “Organizations need to focus on preventing the impact of serious financial stress, engaging their employees and helping employees stay healthy and productive.”

Other key findings in the report indicate that: almost twice as many women as men are accessing EAPs for financial issues (65% versus 35%), and employees living in Nova Scotia, Prince Edward Island, Ontario and Quebec are accessing EAPs for financial issues at a higher rate than the rest of Canada.

• • •

Mackenzie adds another PM

Mackenzie Financial has hired Jim Thompson as senior vice-president, team lead and portfolio manager at its Mackenzie Cundill Investment Management division.

Thompson is a value manager who made his name with Southeastern Asset Management, being made partner before shipping off to England to open the firm’s research shop in London. He returned to the U.S. and opened his own investment shop in 2007.

“We are delighted to have the opportunity to add a leader with the experience and background that Jim brings to the Cundill team,” said Charles R. Sims, president and CEO of Mackenzie Financial. “Jim has an excellent value-oriented pedigree from his tenure at Southeastern.”

Mackenzie has been bolstering its lineup of managers lately, having signed a deal with Tim McElvaine’s McElvaine Investment Management to run the Maxxum Canadian Value fund (and its related corporate class) on February 18.

Read: Mackenzie hires McElvaine’s firm

• • •

CIBC offers RDSP

CIBC has announced that it will join the ranks of the other banks and offer registered disability savings plans to eligible customers.

“The RDSP is an effective way for clients with disabilities and their families to save for the future and make the most of government grants and bonds, all the while deferring tax on the plan’s earnings and growth,” says Jamie Golombek, managing director of tax and estate planning, CIBC.

The RDSP is similar to the registered education savings plan in that contributions are not tax-deductible but growth within the plan is tax-deferred. Canada disability savings grants (CDSG) and Canada disability savings bonds (CDSB) were designed to augment assets held within the RDSP.

• • •

CRA offers disability-related tax tips

In a stroke of good timing, the Canada Revenue Agency has issued a reminder of all the benefits available to Canadians with a disability, pointing out that filing one’s taxes by April 30 will ensure timely delivery of benefits.

Families with a child under the age of 18 with a severe or prolonged physical or mental impairment may qualify for the Child Disability Benefit, which provides up to $199.58 per month. The amount is reduced for families with an income above $37,885.

Adults with a certified severe and prolonged impairment in physical or mental function can claim the disability amount of $7,021 on their 2008 return. This can be transferred in whole or in part if the person with the disability does not need it to reduce his or her taxable income.

Medical expenses in excess of 3% of net income or $1,962, whichever is less, may be deducted.

• • •

Central planning boosts commodity prices

There were some signs of recovery in the commodities market in January, as the government of China began buying up raw materials from base metals to grains, according to the latest reading of the Scotiabank Commodity Price Index.

The overall index gained 1.3% from December 2008, ending a five-month slide. The Agricultural Index led the pack, gaining 9.5% month over month, as purchases by China’s State Reserve Bureau (SRB) drove the price of canola higher.

“China’s imports of Canadian canola are approaching the substantial volumes shipped to Japan and could top two million tonnes in 2008–09, up sharply from 960,000 tonnes in the previous 12 months, welcome news for Prairie farmers, who harvested a record canola crop last autumn,” says Patricia Mohr, vice-president, economics, and commodity market specialist at Scotiabank.

China’s appetite was not limited to the agriculture sector, as the SRB loaded up on key base metals, particularly copper and zinc. The country is engaged in one of the world’s biggest infrastructure programs and plans to spend more than 6% of its nominal GDP in 2009 and 2010.

“Measures to bolster nine key industries have or will be announced ahead of the National People’s Congress on March 5,” says Mohr. “The impact of these programs should start to support industrial activity in the second half of 2009, with China potentially leading the recovery in world growth.”

The all-items index remains 38.2% below the July 2008 peak and 19.6% below a year ago.

• • •

Creststreet outsources services

Creststreet Asset Management has named RBC Dexia to provide custody, fund valuations and investor recordkeeping for its onshore and offshore funds. Until now, Creststreet has handled these functions in-house.

“The benefits to our firm and our clients include the high levels of quality, reliability and service that RBC Dexia delivers in the alternatives arena,” said Robert J. Toole, managing director of Creststreet. “We were also impressed with their proven expertise in facilitating the distribution of our products in multiple jurisdictions, which is a significant part of our growth strategy going forward.”

Creststreet specializes in energy investment products for institutional and affluent investors on a long- and short-term basis.

(02/24/09)