Provincial budgets were also tabled yesterday in Alberta and today in Quebec. For a summary of tax-related announcements included in this year's provincial budgets, please our special budget editions of TaxNewsFlash-Canada, available on the KPMG website at: http://www.kpmg.ca/en/services/tax/tnf/tnfc0610.html

GMAC, the wholly-owned financial services subsidiary of General Motors Corporation (NYSE: GM), sold 78 percent of its equity in GMACCH, up from the previously announced 60 percent target, in exchange for more than $1.5 billion in cash. At the closing, GMACCH also repaid to GMAC approximately $7.3 billion of inter-company loans, bringing GMAC's total cash proceeds from the transaction to almost $9 billion.

GMACCH, a leader in real estate finance, investments and services announced that it has changed its name to Capmark Financial Group Inc. (Capmark). The name change will be fully implemented in the second quarter of this year.

Simultaneous with the equity interest sale, Capmark closed with a syndicate of banks on a $10.75 billion loan facility that will provide the company with a solid intermediate and long-term debt funding base.

"This is an exciting time for our company, and we have a great deal to celebrate," said Capmark Chief Executive Officer Robert D. Feller. "With investment-grade ratings from the three primary rating agencies and enhanced access to the capital markets, Capmark is poised to fully realize the opportunities that exist for each of its businesses."

GMAC Chairman Eric A. Feldstein said, "GMAC is optimistic about the growth prospects for Capmark. With improved access to cost-efficient funding, this commercial mortgage business should continue to thrive. We are expecting strong returns on the significant investment that GMAC will retain in this business. At the same time, this transaction will enable GMAC to redeploy a significant amount of capital -- almost $9 billion -- to other critical areas of our business."

Concurrent with the closing of the sale, the percentage of ownership interest of both the investor group and GMAC has been reduced proportionately by the sale of shares to members of Capmark's management team, who have acquired an equity stake of approximately four percent. With the management team's investment, the investor group holds a majority interest of approximately 75 percent, while GMAC retains a common equity stake of approximately 21 percent. GMAC also will invest an additional $250 million in Capmark trust preferred stock.

Capmark's board of directors will be led by newly appointed independent Chairman Dennis Dammerman, a former vice chairman of General Electric and chairman and chief executive officer of GE Capital Corp. GMAC will hold two seats on Capmark's 15-member board, which includes three independent directors.

"I am very pleased to serve as chairman of the board of directors of Capmark," said Dammerman. "With increased access to capital, a new name and investment-grade ratings, the company can build on its many strengths, drive profitability and enhance the value of the enterprise."

KKR, Five Mile Capital Partners and Goldman Sachs Capital Partners said in a joint statement, "As a global leader in each of its businesses, Capmark is very well positioned to begin its next chapter as a standalone company. We look forward to working with the management team to realize the company's full potential by making use of the wide range of funding options now available to Capmark."

The Advisor's Role in a Rapidly Changing Environment
Are you creating value for your clients? And do they know it?
Ideal for Advisors in Finance, Accounting, Management and Legal fields!
Coming to Kitchener for an exclusive half-day workshop: Jim Harris, International management consultant and best selling author, reveals:

• How professional advisors can provide MORE value to their clients – in this rapidly changing business environment.
• Learn a powerful methodology to determine what clients value.
• Why some clients can’t articulate what they really want – and how you can unearth these needs.

This interactive workshop will allow participants to explore the changing role of the advisor to family run businesses — and how to make sense out of the increasingly rapid changes that blindside companies and entire industries!

Make it all about you!

Register before April 1, and be one of six participants whose business issues will form the basis of Jim’s workshop. Jim will personally contact six participants to uncover their worst “business pain” – and then create his workshop around fixing these pains! This highly personalized format ensures this seminar meets the unique needs of the Waterloo Region audience.

Jim Harris is one of North America’s foremost management consultants, authors and thinkers on change and leadership. Jim is the Principal of Strategic Advantage, a management consulting firm whose clients include Fortune 500 companies (and those who want to be). Jim co authored The 100 Best Companies to Work for In Canada, The Learning Paradox and Blindsided!

Proudly Sponsored by: BDO Dunwoody LLP, Arca Financial Group Inc., BMO Financial Group, Miller Thomson LLP

In Partnership with: Greater Kitchener Waterloo Chamber of Commerce, Canada’s Technology Triangle Inc., Communitech

Limited Seating! Register online at cffb.ca or call (519) 749-1441

When:

Friday, April 21, 2006, from 1 to 4:30 pm
Where: Coldwell Banker Peter Benninger Realty Theatre, 508 Riverbend Drive, Kitchener ON

Cost:Advanced registration - *Members: $85, Non members: $195
At the door - *Members: $130, Non members: $260

* Member of CFFB or one of the partnering organizations

The start of the new year saw non-residents invest $3 billion in Canadian securities, composed entirely of equities. This largely reversed the significant divestment in December 2005.

Meanwhile, Canadians continued to invest heavily in foreign securities. Purchases of $3.7 billion worth over the month were led by a record investment in foreign bonds as Canadians sold off some of their holdings of foreign equities.

Foreign investment in Canadian equities surges

Non-residents rushed into Canadian equities in January as they purchased $4.7 billion worth. Foreign purchases of outstanding Canadian shares were at their highest level in almost six years. American investors were the primary buyers purchasing $3.8 billion worth, their largest foray in the Canadian secondary market since June 2000. Canadian stock prices increased 6% in January as the S&P/TSX Composite Index closed the month at a record 11,945.6.

Non-residents continue to sell Canadian debt instruments

Foreign investors divested a further $1.3 billion worth of Canadian bonds in January after a drop of $7.4 billion in December. Whereas the December reduction was caused by net retirements (retirements less new issues), the January divestment was almost entirely due to non-residents selling outstanding bonds back to Canadians, largely federal issues.

Investors from the United Kingdom dominated the selling with net sales of $4 billion worth in January. These sales were partially offset by purchases by American and Japanese investors; the $1.7 billion worth bought by Japanese investors was their largest net purchase of Canadian bonds since May 2003. On a currency basis, the bonds moving back to Canada in January were concentrated in Canadian dollar denominated issues.

After making a substantial $2.7 billion investment in December, foreign investors sold $350 million of Canadian money market paper in January. Similar to the bond market, the activities of investors out of the United Kingdom drove the month's net activity. The sale of $945 million worth of Canadian money market paper by investors in the United Kingdom was their largest divestment of these instruments since January 1999. Overall, these sales occurred across most sectors but primarily in federal enterprise and corporate issues. For a second straight month however, significant purchases were recorded in federal government paper.

Canadians make record purchase of foreign bonds

After purchasing a record $27.6 billion of foreign bonds in 2005, Canadian investors continued the trend into 2006 by acquiring a further $4.5 billion worth in January, a monthly record. Investment for the month was concentrated in US treasury bonds with purchases totalling $3.4 billion, the largest investment by Canadians in US treasury bonds in more than three years. Canadian investors also continued to purchase US corporate and overseas issues totalling $1.1 billion.

Canadians sold off $837 million of foreign equities in January. Canadian investors sold $1.2 billion of overseas equities, the largest divestment in overseas shares since June 2004. Partially offsetting these sales in January, Canadians purchased US equities for the 12th consecutive month. Meanwhile, Canadian net transactions in foreign money market paper were nominal as they purchased $78 million worth.
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Three join expanding number of major companies supporting board oversight and public disclosure of soft money contributions

Washington, D.C. Bristol-Myers Squibb (NYSE: BMY) and Staples (NASDAQ: SPLS ) agreed to disclose and have their directors oversee soft money political contributions made with corporate funds. In addition, Amgen (NASDAQ: AMGN) became the first company whose board of directors endorsed a shareholder resolution calling for disclosure and board oversight of the company’s soft money giving. Shareholder activists announced these developments March 20. The groups, Washington-based Center for Political Accountability (CPA), the Service Employees International Union (SEIU), and environmental investment firm Green Century Capital Management, are part of a nationwide campaign to bring transparency and accountability to company political spending.

Bristol-Myers Squibb and Staples join Morgan Stanley (NYSE: MWD), Johnson & Johnson (NYSE: JNJ), Schering-Plough (NYSE: SGP), Pepsico (NYSE: PEP), Coca Cola (NYSE: KO) and Eli Lilly (NYSE: LLY) which adopted political transparency and accountability policies during the 2005 shareholder resolution season. Under the policies, all soft money political contributions will be reviewed at the Board level on an annual basis. In addition, each company will post a complete list of corporate political contributions on its website and disclose the guidelines for their political giving.

Amgen shareholders will vote on the political disclosure resolution at the company’s annual meeting scheduled for May. Timothy Smith, president of the Social Investment Forum and senior vice president of Walden Asset Management, called Amgen’s action “remarkable. Over the last 35 years of shareholder resolutions on social issues very few companies have actually supported a resolution and urged its investors to back it. Doing so is testimony to the timeliness and importance of the political contribution issue.”

“Companies are recognizing that political disclosure and accountability are good corporate governance. These latest developments show a change in corporate outlook,” said CPA Co-Director Bruce Freed. “The Center congratulates the boards of Bristol-Myers Squibb, Staples and Amgen for recognizing their responsibility to make public and account for their political spending with shareholder money. Secrecy is fast disappearing.”

Current campaign finance law allows corporations to make donations in many states and to political committees commonly known as 527s, but not to federal candidates. However, companies aren’t required to disclose political contributions made with corporate funds, leaving institutional investors and individual shareholders in the dark about the use of company resources for political activities.

Bristol-Myers Squibb, a leading pharmaceutical company, and Staples, a major office supply firm, adopted these policies following discussions with SEIU and North Star Asset Management respectively. The board of Amgen, a top biotech company, endorsed the resolution following its submission at the company by Green Century. SEIU, Green Century and the CPA are associate members of the Interfaith Center on Corporate Responsibility (ICCR).

“Amgen’s board has shown true leadership by recommending a ‘yes’ vote on this resolution,” said Green Century’s Andrew Shalit. “By embracing the recommendation from shareholders, the company is not only endorsing political transparency, they are also endorsing the shareholder dialogue process. This issue is particularly important for environmental investors, because companies have such a huge influence over environmental policies.”

Margaret Covert of North Star Asset Management said, “Staples is to be congratulated for its commitment to corporate responsibility by adopting political disclosure and accountability. Through its action, the company is affirming a new standard of corporate governance.”

Daniel Rosan, ICCR’s program director for public health, said “These reforms will bring expanded levels of transparency and accountability to the public policy debate surrounding the pharmaceutical sector. I’m pleased to see labor, the faith community, and social investors working in concert to bring changes in the interests of all shareholders.”

For the past three years, the CPA, a non-partisan, non-profit advocacy group, has been leading a shareholder campaign that includes 19 institutional investors and allied groups to get companies to agree to political disclosure and accountability. For the 2006 proxy season, CPA-model resolutions will be voted on by more than 40 companies.

In the 2004 election cycle, companies contributed more than $75 million in soft money at the federal level. According to the CPA, some of the contributions have gone to political activities that conflict with a company’s publicly stated policies and practices or are unrelated to its core business.

The Center for Political Accountability is a non-profit, non-partisan advocacy group whose mission is to bring transparency and accountability to corporate political spending.
Website: http:// www.politicalaccountability.net

High on the 'most requested services' list of many retail holders, these new plans offer a convenient alternative to receiving a dividend cheque, in addition to the opportunity to increase holdings in Manulife shares through direct share purchase. The dividend reinvestment programs will operate on a similar basis in both Canada and the United States in terms of structure, costs and features.

"While these programs are available to all Manulife common shareholders in North America, we expect them to be particularly attractive to our more than 600,000 direct retail shareholders who do not have access to brokerage dividend reinvestment programs or brokerage accounts," said Terri Neville,

Assistant Vice President, Shareholder Services. "With 24-hour access to

on-line accounts, electronic delivery of statements, annual tax reporting and the ability to sell shares, the DRIP and DSPP offer our shareholders convenience, service and value with a reasonable fee structure."

Manulife's transfer agents, CIBC Mellon Trust Company in Canada and Mellon Investor Services in the United States, will administer the programs and information on the programs can be obtained from the administrators. Details on the DRIP and DSPP, and enrolment information, will be mailed to current common shareholders in the March 2006 dividend mailing.

OTTAWA - According to recent figures released from Statistics Canada, insurance industry profits reached over $6 billion in 2005, a whopping $2 billion or 50% increase over last year. However, Canadians have not heard that story from the insurance companies.

The insurance industry, through people such as George Cooke of Dominion whose company raked in a record 139 million or 66.7% ahead of Dominion's 2004 profit of 83.7 million, likes to use a much lower figure that remains unconfirmed by the industry's main lobby group.

Commenting on the confusion, Bruce Cran, President, Consumers' Association of Canada says, "To date, industry has ignored calls from consumers to release and comment on its record profits in 2005. Consumers have the right to know because at the end of the day it is their money. I guess it begs the question - Have insurance profits reached the stage that the industry is too embarrassed to release or comment?"

Total lease amounts outstanding rose slightly to $22.1 billion, an increase attributed to a rise in the leasing activity of finance companies.

Finance companies dominated this activity with a market share of nearly two-thirds. They reported a 21.3% jump in lease amounts outstanding in 2004, most of it resulting from commercial vehicle leases. This is a service that domestic banks are not permitted to provide.

The Bank Act restricts domestic banks from engaging in any personal property leasing activity, such as the financial leasing of motor vehicles.

Domestic banks accounted for 14.1% of total amounts outstanding, down from 20.1% the year before.

Note to readers

Statistics Canada conducts the Survey of Suppliers of Business Financing in partnership with Industry Canada and the Department of Finance as part of a larger program of research into financing for small- and medium-sized enterprises.

Since most suppliers of financing do not track the employment size of their business clients, they were asked to group their clients by authorization size, that is, by the maximum amount they were allowed to borrow. Note that authorization size is used in this survey as a proxy for business size for lack of employment size indicators.

The survey was based on a census of enterprises in selected finance and leasing industries, including government business enterprises, with assets of $5 million or more. Excluded from the survey were government programs, private not-for-profit organizations, informal suppliers such as business "angels" and family members, and foreign suppliers.

Domestic banks include the six large domestic banks and several smaller ones as defined by the Office of the Superintendent of Financial Institutions.

Other banks include foreign banks, trust companies and all other deposit-accepting institutions except credit unions and caisses populaires, which appear in their own category.

Finance companies include non-deposit accepting enterprises that provide financing to businesses, often for the purchase of goods and services. Debt financing is commonly provided; however, companies that purchase accounts receivable or provide both debt and lease financing are also included here. Examples include the acceptance companies of vehicle and equipment manufacturers, factoring companies and many government business enterprises. Enterprises providing only lease financing are usually classified as leasing companies.

Portfolio managers, venture capital companies and financial funds include enterprises typically engaged in managing or investing pools of assets. Examples include mutual fund companies, investment advisors, venture capital companies, labour-sponsored venture capital funds, mutual funds and segregated funds.

Insurance companies include life, health, and property and casualty insurers and re-insurers.

Leasing companies include enterprises providing lease financing, usually for vehicles or equipment.

Sept March investor Six-Month One-Year

2005 2006 Country Credit Rating Change Change

1 1 Switzerland 95.5 1.1 1.0

2 2 Norway 94.6 0.4 0.9

5 3 Finland 94.2 1.4 1.5

4 4 U.K. 94.1 1.0 1.4

6 5 Denmark 94.0 1.3 1.9

3 6 Luxembourg 93.7 0.4 0.9

8 7 Sweden 93.6 1.1 2.0

9 8* U.S. 93.5 1.0 1.1

7 9* Netherlands 93.5 0.9 1.5

11 10 Canada 93.2 1.4 2.3

10 11 France 93.1 1.0 0.9

12 12 Austria 92.9 1.5 1.7

13 13 Germany 92.8 1.4 1.0

14 14 Ireland 91.5 0.7 1.5

15 15 Belgium 90.5 1.1 1.5

17 16 Spain 89.4 0.9 1.8

16 17 Singapore 88.9 -0.1 -0.6

18 18 Australia 85.9 -1.3 -0.1

19 19 Japan 85.3 0.0 0.9

21 20 Italy 84.6 1.4 1.0

* Order determined by actual results before rounding.

Over the past 27 years, Institutional Investor Country Credit ratings have gained a following among economists and government officials. The U.S. government has selected the Country Credit ratings as an indicator in determining the suitability of countries seeking assistance from the U.S. Millennium Challenge Account economic aid program. For more information please visit www.InstitutionalInvestor.com/pr.

Tax specialists outline commonly missed deductions and provide other useful hints to effectively navigate tax season

TORONTO - With tax season in full swing, people's thoughts are turning to filing their personal tax returns. To assist Canadians through what can be a daunting process, Ernst & Young's tax professionals have prepared 10 practical tax-filing suggestions aimed at helping taxpayers through this busy season. Some of these tips will save time, some will save stress and - best of all - many will save money. Careful preparation and a methodical approach to completing the T1 form can take the anxiety out of tax season and help taxpayers to gain the most benefits in the process.

1. Charitable Donations - One spouse should claim all the family donations.
There are a number of filing opportunities relating to donations. The federal tax credit for donations is available in two stages. A low-rate credit is available on the first $200 of donations made in the year and a high-rate credit is available on the remainder. Spouses and common-law partners can claim donations in respect of one another - therefore, it makes sense for only one spouse to claim all of the family donations. A tax savings results because the low-rate credit is only used once. Another way to benefit from the high-rate credit is to accumulate donations made over a few years and claim them all in one year. The donation credit is available for donations made within the five preceding years. Remember, if you donated stocks, bonds or mutual funds, only 25% of the resulting capital gain must be included in your income.

2. Medical Expenses - The lower-income spouse should claim all medical expenses.
The claim for medical expenses is limited by an income threshold. In other words, the lower your net income, the more you can claim in eligible medical expenses. Because one spouse or common-law partner can claim medical expenses on behalf of the entire family, claim all expenses in the lower- income spouse's return. But remember, this credit is non-refundable; the spouse who is making the claim should have sufficient income to absorb the entire credit. If you cared for an elderly parent, grandparent or infirm dependant in your home, you may be entitled to claim a caregiver tax credit.

3. Business Owners - Ensure you benefit from the many deductions available to business owners.
As a self-employed individual, there are a number of business-related expenses that you can claim to reduce the tax you pay. Ensure that you have taken advantage of all available deductions, including automobile expenses, parking, business association fees, home office expenses (if you qualify), entertainment, convention expenses (a maximum of two per year), cell phone, depreciation on your computer and salaries paid to assistants, including family members. In most cases you can deduct private health-care premiums as a business expense instead of a medical expense and one-half of CPP paid in respect of self-employed earnings is deductible instead of creditable. A word of caution: If you claim home-office expenses, you're likely better off not to claim the depreciation on the home office portion of your home. Although this will give you a deduction in the current year, you will lose some the capital gains protection available from the principal residence exemption.

4. Old Receipts - Certain deductions can be carried forward beyond the year incurred.
In gathering together your information, you may stumble across older receipts you think are garbage, but that actually still have value in your 2005 return. Charitable donations can be carried forward and used in any of the five years after the year the gift is made. Medical expense receipts can be claimed for any 12-month period that ends in that year if they have not been claimed previously. In addition, under the fairness provisions, CRA has the discretion to make adjustments to previously filed returns (10 years back), in relation to certain errors or omissions, on request from a taxpayer.

5. Moving Expenses - The cost of travel, meals and lodgings if you moved to a new job or went away to school are expenses that can be claimed.
If you moved during 2005 to start a new job, a new business or go to university or college, you may be able to claim expenses relating to the move. In addition to the actual cost of moving your personal effects, you can claim travel costs, including meals and lodging while en route. Lease cancellation costs, as well as various expenses associated with the sale of your former residence, are also deductible, including up to $5,000 in costs associated with maintaining a former residence that was not sold before the move. The expenses are only deductible to the extent of income from the new work or business location and if this income is insufficient to claim all of the moving expenses in the year of the move, the remaining expenses may be carried forward and deducted in the next year.

6. Tax Returns for Kids - Filing a return for children establishes room for RRSP contributions for future years.
It is often not necessary for your children to file a tax return, even though they may have earned income in the year. Nonetheless, in many cases it makes sense to file a tax return. If your children had part-time jobs during the year or have been paid for various small jobs, such as baby-sitting, snow removal or lawn care, by filing a tax return they report earned income and thus establish contribution room for purposes of making RRSP contributions. Contributions can be made in any future year. Another advantage is the availability of refundable tax credits. Many of the provinces offer such credits to low- or no-income individuals. When there is no provincial tax to be reduced, the credit is paid out to the taxpayer.

7. Business Investment Losses - Money lost investing in a small business corporation may be claimed.
If you've invested money in a small business corporation, perhaps to help a friend or family member get started, and all you have to show for your investment are shares or a note of a worthless corporation, you may be able to claim a loss on the invested funds. This loss, referred to as a "business investment loss," is like a capital loss in that only one-half is deductible; unlike a capital loss, however, it can be claimed against any income in the year, not just capital gains.

8. Capital Losses - Carry back your capital losses.
Capital losses can only be applied against capital gains - and if you have a net capital loss for the year, it can be carried back three years and/or carried forward indefinitely, to be applied against capital gains realized in those years. If you realized a net capital loss in 2005 and have realized net gains in any of 2002-2004, file a form T1A to carry the loss back to those years and recover the related tax.

9. Go Digital - Use tax preparation software to save time and maximize deductions.
There are a number of inexpensive income-tax software packages available that you can use to prepare your tax return. These programs often provide step-by-step instruction and helpful tax-filing hints based on the information you input.

10. E-File - Electronic filing is as much as three times as fast as submitting a hard copy.
Electronically filed returns are generally quicker and easier to prepare and are less prone to mechanical errors. The processing time of electronically filed returns is substantially shorter than that associated with paper returns. If you are getting a tax refund, you can expect it within two weeks if you file electronically (as opposed to six to eight weeks for a paper return). Electronic filing options include Netfile, Efile and Telefile. In order to Netfile, you will have to use approved tax-return software. Alternatively, you can have your return filed electronically by using an approved Efile agent who will charge a fee for this service. Telefile is available for simple returns.

And here's a bonus suggestion: Most people who report more than just employment income on their annual tax return can benefit from having the return prepared or at least reviewed by a professional advisor. Tax-return information can alert an advisor to a number of potential tax-savings opportunities that can provide benefits for many years to come.

These and other helpful tips and information are included in Ernst & Young's Line-by-Line Guide to Preparing the 2005 Personal Tax Return. Designed for professional tax return preparers, the guide is a combination of Ernst & Young commentary and CRA guidance, and is organized by line number of the T1 return. Available as a book with a bonus reference CD containing all referenced materials, or as a searchable Internet edition (in English or French) with links to more than 50,000 underlying cross-referenced documents and resources, the Line-by-Line Guide to Preparing the 2005 Personal Tax Return complements any tax preparation software.

The Line-by-Line Guide to Preparing the 2005 Personal Tax Return is available by contacting The Canadian Institute of Chartered Accountants at 1-800-268-3793 or online at www.knotia.ca/store/2005-EYT1.

World Bank President Paul Wolfowitz is putting words into action: corrupt governments can say good-bye to aid money, reports Dutch daily Volkskrant. In a short period of time, Wolfowitz halted disbursement of aid money to a number of projects out of uncertainty the money would be well spent. Nongovernmental organizations are full of praise for his fight against corruption. "It is fantastic that Wolfowitz takes the fight against corruption so seriously," says Huguette Labelle, the President of Transparency International.

Financieele Dagblad (Netherlands) writes that the World Bank is stepping up its fight against corruption through a policy of zero tolerance. "The future of millions of people is at stake when money disappears into corrupt pockets. Kids cannot go to school because they don't have books, and pregnant women don't receive adequate heath care. Every form of fraud needs to combated," Wolfowitz said in The Hague, where he met with Dutch Prime Minister Jan Peter Balkenende, Finance Minister Gerrit Zalm, and Minister for Development Cooperation Agnes Van Ardenne.

The financial daily notes that two countries in particular experienced recently what it is like to deal with the stricter anti-corruption measures of the World Bank. The Bank has notified Kenya that it will not disburse five loans worth $250 million. A loan to Chad was also recently suspended. According to Wolfowitz this was because future oil revenues would not benefit the poor. Wolfowitz however noted that talks with the Chadian government on how to resolve the issue were ongoing.

Agence France Presse meanwhile reports that Wolfowitz said in The Hague that Africa had to be the international lending institution's top priority. "Africa has to be the first priority to the World Bank and I'm pleased to see that it's a priority in Dutch development efforts," he said. Developing transparent institutions, Wolfowitz said, was crucial to fight corruption. "We also owe it to the taxpayers of the developed countries to make sure that the money is used for what it's supposed to be used for and that it is giving poor people a chance to build better lives."

Dutch news agency ANP adds that the Washington based development bank considers the eradication of corruption as a means to getting closer to achieving the Millennium Development Goals. The focus on fighting corruption within the Bank is not new, however. A special division within the Bank was set up a few years ago under former Bank President James Wolfensohn with the aim of eliminating fraud.

OTTAWA - Export Development Canada (EDC) announced today the first advance from a USD 10.5 million letter of offer for debt financing for Hanfeng Evergreen of Toronto in partnership with the Bank of China (Canada) (BOCC). The transaction marks the first time that EDC has provided financing for Canadian direct investment in China, and is an example of the growing trend towards globalizing operations.

The financing will be used to complete Hanfeng's fertilizer plant in Jiangyan, Jiangsu Province, China. Hanfeng began construction of the sulfur coated urea (SCU) plant in April 2005 and is scheduled for completion in the first quarter of 2006. The plant uses proprietary technology licensed from Brantford, Ontario based Nu-Gro Corporation. The plant's annual capacity is expected to be 100,000 tonnes of SCU, a controlled-release nitrogen fertilizer for the Chinese market.

"EDC is pleased to provide financing in support of Hanfeng Evergreen's plant operations in Jiangyan, which marks an evolution of our commercial solutions to facilitate integrative trade", said Norman Low, Vice-President of Information Technologies and Energy, Infrastructure and Services for Export Development Canada. "As more Canadian exporters and investors are looking at global supply chains in various markets including China, EDC is responding to their needs with innovative commercial solutions such as this transaction." EDC is developing more innovative products and services related to Canadian direct investment abroad and equity investments in order to assist companies in establishing global supply and distribution chains. EDC's approach recognizes the need to help Canadian companies successfully compete with foreign companies in Canada as well as abroad.

About Hanfeng Evergreen

Hanfeng is a leader in China's growing market for urban greening and high value agricultural products and services. Headquartered in Toronto, Canada and with operations in Dalian, Shanghai and Beijing, China, Hanfeng has its own production facilities in China and also imports greening products sourced from leading North American and European suppliers of fertilizers and horticultural products.

TORONTO, Feb. 22 - Royal Bank of Canada today announced that it has received approval from the China Banking Regulatory Commission to upgrade its Representative Office in Beijing to a branch.

"More than fifty years ago, RBC became the first North American bank to offer correspondent banking services to institutions in the People's Republic of China," said Gordon M. Nixon, President and Chief Executive Officer, RBC Financial Group. "With today's announcement, we will be able to provide a broader range of banking services to our clients doing business in China, and to Chinese citizens planning to emigrate to Canada."

The branch, located at 7 Financial Street, Winland International Financial Center, Xicheng District, will open February 28, 2006 and will initially have a staff of 16 local RBC employees who will be able to assist institutional and business clients with a range of banking activities, including correspondent banking and trade finance.

Specifically, the full branch license will permit RBC Capital Markets to extend its range of services to its client base in China, as well as institutional and business clients around the world. The upgrade to branch status will help RBC facilitate the Canada/China trade requirements of its clients, and is also the first step in enabling RBC to provide foreign currency products and related services to clients in China, as regulations permit.

In addition, the branch will be able to facilitate personal banking relationships in Canada, and RBC expects to open an additional representative office in the future to support insurance relationships in Canada. According to Mark Whitmell, National Manager, Cultural & Community Markets, "Our goal is to help new Chinese immigrants easily set up their financial affairs before they arrive in Canada. By having local RBC employees available in Beijing, we are making one part of the immigrating transition that much easier.

RBC's history in China began in 1954, when it became the first Canadian bank to offer financial services to China. In addition to the branch in Beijing, RBC also has a branch in Hong Kong, from which the company offers private banking, brokerage, correspondent banking and capital markets services.

"This license makes RBC the first foreign bank to come to Financial Street, the hub of Beijing's financial district. It is a great location from which to expand relationships with Chinese clients doing business in Canada, which in turn will enhance bilateral economic and trade cooperation between Canada and China," said Mike Chen, China Country Head, RBC Financial Group.

RBC has a long history with the Chinese community in Canada, dating back to 1926 when the company set up a special department to serve Chinese-Canadian customers in Vancouver. Today, RBC has over 175 specialized Asian-focused branches across the country, serving over 500,000 clients with Chinese background. In the greater Toronto Area alone, RBC has close to 50 specialized units, staffed with people who understand the Chinese culture and who speak Mandarin, Cantonese, and a number of other Chinese dialects.

Gross written premium in the fourth quarter declined 1.8% to $486 million, compared to $495 million in the fourth quarter of 2004. The loss ratio for the quarter was 63.1%, compared to 59.4% during the comparable period last year. The combined ratio of claims and operating expenses was 97.0%, compared to 93.7% for the fourth quarter of 2004.

Gross written premium on a year-to-date basis was $1,995 million, reflecting an increase of 0.4% over last year. Earned premium growth was 1.3% above the previous year. Net income was $132.1 million, compared to $139.5 million for the year ended December 31, 2004. Investment income at $164.0 million increased 32.7% from the $123.6 million reported for 2004.

Earnings per common share were $1.81 for the fourth quarter compared to $1.81 for the same period last year. Year-to-date earnings per common share were $6.16, compared to $6.54 for the year ended December 31, 2004.

<<

Co-operators General Fourth Quarter Results Summary

(In thousands, except for earnings per share)

---------------------------------------------

4th quarter 4th quarter To Dec 31 To Dec 31

2005 2004 2005 2004

---- ---- ---- ----

Gross Written Premium $ 486,386 $ 495,083 $1,994,749 $1,986,955

Net Earned Premiums $ 443,556 $ 435,419 $1,738,703 $1,715,640

Investment Income $ 44,690 $ 29,669 $ 164,003 $ 123,553

Net Income $ 39,088 $ 38,803 $ 132,115 $ 139,492

Earnings per common

share $ 1.81 $ 1.81 $ 6.16 $ 6.54

Loss Ratio 63.1 59.4 66.7 64.0

Expense Ratio 33.9 34.3 31.4 30.9

Combined Ratio 97.0 93.7 98.1 94.9

"These solid financial results are good news for us, our Canadian co- operative and credit union member-owners and, most importantly, our clients," says Kathy Bardswick, president and CEO of The Co-operators. "We are pleased that despite increased storm activity, our results remain strong. Solid investment income and client growth helped offset the effects of our auto insurance rate reductions. As we begin 2006, we are well positioned to continue to deliver strong results, offer great service and invest in Canadian communities."

With assets of approximately $4.2 billion, Co-operators General Insurance Company is the leading Canadian-owned multi-product insurance company. Co- operators General preference shares are listed on the Toronto Stock Exchange under the trading symbol CCS.PR.A. The company is part of The Co-operators, a national group of companies owned by 32 Canadian co-operative organizations that focuses on insurance as well as investment products and property development.

The results of Institutional Investor’s 21st annual All-Europe Research Team reflect the opinions of more than 1,700 buy-side analysts and portfolio managers at almost 500 institutions managing an estimated $4.1 trillion in European equities. For a more in-depth look at the All-Europe Research Team, please visit our Web site, www.institutionalinvestor.com.

OTTAWA - The Winter issue of the Bank of Canada Review will be released on Thursday, 16 February 2006.

This issue of the Review features the following articles:

- "70 Years of Central Banking: The Bank of Canada in an International Context, 1935-2005"
- "Free Banking and the Bank of Canada"
- "Towards a Made-in-Canada Monetary Policy: Closing the Circle"
- "From Flapper to Bluestocking: What Happened to the Young Woman of Wellington Street?"

At 10:30 (EST), the Review and summaries of the articles will be available: media only

- at the Parliamentary Press Gallery (Room 350-N, Centre Block, and Room 607, Wellington Building)
- at the Bank's regional offices in Halifax, Montréal, Toronto, Calgary, and Vancouver
- on the Bank's website at http://www.bankofcanada.ca

vacant units (e.g., vacant portions of a building);
vacant/excess land;
charities occupying commercial/industrial space;
property tax calculation errors;
brownfield redevelopment (phase 2 environmental site assessment);
incorrect property tax classes; and
heritage property.

Appeals: Property Owners/Tenants Can Protect Themselves

Property tax assessments received before January may be wrong. In fact, substantial mistakes are not uncommon. Appeals frequently lower the tax assessed. The only way to determine whether a property is being taxed correctly is to file a complaint, which makes all information on your file available. This allows your property tax assessment to be reviewed to determine whether there are grounds for appeal, which often are complex and can include:

current value assessment;
equity among properties;
tax classification/sub-classification;
excess vacancy, obsolescence;
exemptions from taxation; and
contaminated property tax reductions.

Ontario’s deadline for filing an appeal is March 31, 2006.

The Board of Directors of Sun Life Financial Inc. also announced quarterly dividends of $0.296875 per Class A Non-Cumulative Preferred Share Series 1; $0.30 per Class A Non-Cumulative Preferred Share Series 2; and $0.234692 per Class A Non-Cumulative Preferred Share Series 3, payable March 31, 2006 to shareholders of record at the close of business on February 22, 2006.

Sun Life Financial is a leading international financial services organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of December 31, 2005, the Sun Life Financial group of companies had total assets under management of $387 billion.

TORONTO, Feb. 9 - Manulife Financial Corporation today reported 2005 shareholders' net income of $3,294 million, an increase of 29 per cent over 2004. Earnings per share were $4.11, 13 per cent higher than the $3.65 reported a year ago. Premiums and deposits increased 22 per cent over last year to a record $61.5 billion driven by strong organic growth and four additional months of contribution from John Hancock.

"We are very pleased to report record top and bottom line results for the company in 2005," said Dominic D'Alessandro, President and Chief Executive Officer of Manulife Financial. "This continues our exceptional track record of

strong earnings growth with an average annual growth rate of more than

20 per cent over the past decade. And with the successful integration of John Hancock now behind us, we look forward to building on the strengths of our combined operations."

Manulife Financial reported record fourth quarter results with shareholders' net income of $908 million, up 20 per cent, and basic earnings per share of $1.14, up 23 per cent over the same period a year ago. Return on common shareholders' equity for the fourth quarter was 15.5 per cent, an improvement of 253 basis points over the 13 per cent return reported for the fourth quarter of 2004. Other records set in the fourth quarter include:

- Record variable annuity sales in the United States and Japan;
- U.S. Individual Insurance sales of US$229 million, an increase of
60 per cent over last year;
- Premiums and deposits of $16.3 billion, 14 per cent higher than
the fourth quarter of 2004; and
- Funds under management of $372.3 billion, seven per cent higher
than December 31, 2004. On a constant currency basis, funds under
management would have been $384.1 billion or 10.6 per cent higher
than last year.

"The increase in fourth quarter earnings reflects continued growth from in-force earnings, strong sales growth and favourable investment experience that was offset to some extent by increased claims and the negative impact of currency movements," noted Peter Rubenovitch, Senior Executive Vice President and Chief Financial Officer.

The fourth quarter results included certain atypical items that were largely offsetting. Integration expenses and a charge in the Reinsurance Division primarily related to Hurricane Wilma were offset by a reserve release resulting from a move to a less risky asset profile in Japan and a benefit resulting from the fourth quarter review of actuarial methods and assumptions.

OPERATING HIGHLIGHTS

- Manulife Financial Corporation's Board of Directors approved the
establishment of dividend reinvestment and share purchase plans
that allow shareholders to automatically reinvest their dividends
in common shares of the Company. Arrangements to implement these
plans are being finalized and further details will be communicated
shortly.

- John Hancock Mutual Funds continued to expand its fund line-up to
retail mutual fund investors with the introduction of five asset
allocation fund-of funds called "Lifestyle Portfolios." The
company brings extensive experience in this area having managed
lifestyle assets for 401(k) plan participants and variable annuity
contract holders since 1996. John Hancock is currently the third
largest provider of lifestyle products in the United States with
more than US$15 billion of assets in this segment.

- John Hancock Retirement Plan Services ("RPS") was named 'Best in
Class' in seven service categories in PLANSPONSOR magazine's
annual survey of plan sponsors. Published in the magazine's
November issue, John Hancock earned top honours in categories
ranging from communication and education to statements and forms.
This marks the fifth consecutive year that RPS has been awarded
top ratings in participant services.

- Manulife-Sinochem continued to expand its operations in China with
the start of operations in the cities of Nanjing, Hangzhou, and
Zhongshan. Also, new licenses were received for Shenzhen and
Chengdu. The company is now authorized to operate in twelve cities
in China, the most of any foreign insurer in mainland China. As
the Official Life Insurance Partner of the 2008 Olympic games in
Beijing, Manulife-Sinochem expects to build additional brand
awareness.

- Manulife Japan launched "Manustep" a universal life insurance
product that provides a balanced combination of insurance coverage
and retirement funds, and allows customers to tailor their desired
policy combinations. In addition, this quarter, four banking
subsidiaries of the Mitsubishi UFJ Financial Group began selling a
new variable annuity product developed with Manulife Japan through
approximately 660 branches and sub-branches throughout Japan.

- In January 2006, Manulife Financial Corporation completed a
preferred share offering of 12 million, 4.5% non-cumulative Class
A Shares, Series 3 at a price of $25 per share for gross proceeds
of $300 million.