By Staff | September 25, 2006 | Last updated on September 25, 2006
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(September 25, 2006) Bank of Montreal and Generation Capital recently launched the BMO Generation Capital Integrated Energy Deposit Note, Series 1, for sale until November 10.

The notes offer exposure to energy securities with 100% principal protection from the Bank of Montreal. Variable returns, if any, are linked to the performance of a basket of assets allocated between an energy portfolio of energy bonds and equities, notional bond portfolio and the Energy Index Security. The equity component of the energy portfolio initially comprises nine equally weighted global large-cap integrated oil companies. The Energy Index Security uses different financial instruments to approximate the aggregate capital value and distributions associated with holding all of the securities that make up the S&P/TSX Capped Energy Index.

The deposit notes are scheduled to mature on October 30, 2015. Commissions are $5 per note plus $0.30 annual trailer fee per note for the first eight years. Early redemption fees are 6.95% in year one, 4.65% in year two and 2.30% in year three. Maximum management fees are 2.60% when the underlying basket of investments is 100% allocated to the energy portfolio. Minimum investment is $2,000.

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Mavrix merges income trust and income growth products

(September 25, 2006) Mavrix Balanced Income and Growth Trust will complete its merger with the Mavrix Canadian Income Trust Fund on October 2. The last day of trading for units of the trust will be September 29.

Unitholders approved the merger at a special meeting on September 14. The merger is intended to promote improved operational efficiencies and enhance the economic viability of both products. Once the merger is completed, the continuing mutual fund will increase to roughly $56.8 million.

The Canadian income trust fund, launched in June 2003, invests in income-producing securities, including income trusts, bonds, common and preferred shares. Management fees are 2% or 0.75% for F-class shares. Minimum investment is $500.

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Sun Life introduces dividend reinvestment program

(September 25, 2006) Sun Life Financial has introduced a Canadian Dividend Reinvestment and Share Purchase Plan. The program allows shareholders to automatically reinvest cash dividends paid on common shares in additional common shares of the company.

“We are pleased to offer a cost-effective and convenient way for retail shareholders to reinvest their common share dividends and the means to purchase additional common shares of Sun Life,” says Sun Life CEO, Donald Stewart.

Clients invested in the company will receive an explanatory brochure, enrolment form and optional cash purchase form with their October 2 dividend payment.

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Scotiabank adopts international sustainable development principles

(September 25, 2006) Scotiabank announced Monday that the bank has adopted the revised Equator Principles, a set of internationally recognized, voluntary guidelines governing social and environmental standards for project financing.

In adopting the Equator Principles, Scotiabank agrees to provide loans only to those projects whose borrowers can demonstrate their ability and willingness to comply with comprehensive processes aimed at ensuring projects are developed in a socially responsible manner, according to sound environmental practices.

“The Equator Principles have enabled Scotiabank to better assess, mitigate, document and monitor the potentially adverse social and environmental risks associated with financing projects,” says executive vice-president and chief risk officer, Brian Porter. “We are fully committed to integrating the revised Equator Principles into policies and processes, including the establishment of reporting mechanisms and proper training.”

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Man offers new Canadian hedge fund

(September 25, 2006) Man Investments Canada is now offering the Man AHL Diversified (Canada) Fund, a managed-futures product for accredited, private-client and institutional investors.

The fund structure provides access to the AHL Diversified Programme, a quantitative and directional strategy that attempts to capitalize on upward and downward trends in the market, using a portfolio that trades a broad range of futures and forward contracts. Minimum investment is $25,000.

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