VenGrowth caps fund

Toronto-based VenGrowth Asset Management Inc. and its affiliates have capped VenGrowth Investment Fund Inc. The final date for subscriptions from eligible existing investors is Nov. 28. The fund was launched in 1995 and was closed to both new and existing investors in 1999 to allow its venture portfolio to mature. In December 2006, VenGrowth Investment Fund was temporarily reopened to existing shareholders to enable eligible investors to roll over their original holdings in the maturing venture portfolio and generate the opportunity for new tax credits of 30%. As a mature fund with an established investment portfolio, the fund is now seeking optimal exit values for existing portfolio companies and to return capital to investors.

TFSA applications are rolled out

Mackenzie Financial Corp., Royal Bank of Canada (both based in Toronto) and Investors Group Inc. of Winnipeg are among the first financial services companies to make applications available for tax-free savings accounts. Canadian investors can complete Mackenzie or Investors Group TFSA applications with contributions accepted beginning Jan. 2, 2009. Mackenzie is offering a variety of investments for TFSAs, including equity mutual funds, fixed-income funds, asset-allocation funds, target-date funds, segregated funds, money market funds and deposits. At Investors Group, eligible TFSA investments include mutual funds, money market funds, guaranteed investment certificates, term-certain annuities and Investors Group iProfile portfolios. RBC is offering pre-registration and advice through its branch and telephone banking network. RBC clients will have access to a wide variety of investment options for TFSAs, including RBC mutual funds, RBC GICs and RBC savings deposits. In addition, there will be no annual administration or withdrawal fees. RBC is also offering the opportunity for clients to make regular, pre-authorized contributions. Individuals can deposit up to $5,000 a year in a TFSA. Earnings inside a TFSA are not taxed and any amount can be withdrawn at anytime without incurring tax liabilities. The TFSA can be used for a long-term savings strategy or to meet a short-term financial goal.

New option for RBC disability insurance

RBC Insurance Co. of Toronto has enhanced its disability insurance product by creating a new long-term care conversion option for individual disability income-protection plans. The enhancement means that new disability income insurance clients can convert their disability insurance coverage to a long-term care insurance policy between the ages of 55 and 65. “This option is designed to adapt to the needs of clients as they age and their needs change,” says John Young, president and CEO of RBC Life Insurance.

Desjardins beefs up its guaranteed products

Montreal-based Desjardins Financial Security has added three new features to its Helios Guaranteed Investment Funds Contract. Starting on Dec. 1, the Helios Guaranteed Investment Funds Contract will offer a guaranteed lifetime withdrawal benefit providing age-based income options, an annual protected value reset and a high accumulation bonus. The GLWB can start as early as age 45. It will pay a guaranteed and predictable income for life, based on the age at which the first withdrawal is made. This means investors can choose when to start making withdrawals, based on the age they think will be best for them, while aiming to maximize the guaranteed income they would like to receive, says Desjardins. The second new feature is that protected values for both the GLWB and guaranteed minimum withdrawal benefit are reset every year in which the markets perform well — vs the average reset, which usually occurs every three years — giving Desjardins clients more opportunities to lock in the protected value of their contracts at a higher amount. Desjardins has also introduced a bonus, which is available with both the Helios GLWB and the GMWB. When one of these optional guarantees is selected, a 7% bonus will be added to the total amount used to calculate the investor’s guaranteed retirement income every year for the first 10 years, provided no withdrawals are made.

RBC welcomes newcomers

Toronto-based Royal Bank of Canada has created a “Welcome to Canada” package focusing on the key financial decisions newcomers face in their first few months in Canada. The package includes introductory discounts on products and services to meet immediate banking needs while providing guidance and advice to achieve financial goals. It was developed for new immigrants who have been in Canada for less than three years. According to RBC research, 41% of newcomers open their first bank account within a couple of days of moving to Canada; 31% sign up for a credit card within their first month; 38% start an RESP for their children’s education within their first year in Canada; and 36% take out a mortgage to buy a home within three years.

@page_break@Compiled by Clare O’Hara (cohara@investmentexecutive.com).