24- Sunday, Febriary 19, 1995 — North Shore News

——(4—
Let’s Talk

Foreign Investment

© Janet MacDonald RRSP’S customer talking with Sam DaSilva Asst. Manager Lynn Valley Branch

If you currently have a First Canadian® Mutual Funds
RRSP, we have an exciting development for you. You
can now hold up to 20% of your RRSP’s book value
(original investment cost) in First Canadian foreign
mutual funds. There’s more good news — Bank of
Montreal also offers a sophisticated new tracking system
that monitors your plan for you ... making sure you
don’t exceed the 20% foreign content limit. At Bank of
Montreal, we talk foreign investment in a language you
can ‘understand.

For more information, contact one of
our 11 North Shore Branches
or call InfoService® 665-2700

Our new Top Rate Plus RRSP Program gives you a rate equal to or greater
» than those posted by the five largest, national, full-service banks. And you mity

“ quatily. for special customer Bonuses, over and above that already high rate!
Ask at your nei west branch for full details.

1578 Marine Drive, West Van.

Cash simple introduction to foreign markets.

INTERNATIONAL INVESTING
can make sense for most people,
although a time-share or recreational
property might not be the first
choice.

“For example, the tax rules cover-
ing Canadians who own property in
the U.S. are’ complicated enough —
and at least they are in the same lan-
guage,” said a Certificd General
Accountant who helps clients with
international taxation matters.

The CGA suggested you start
your international investing with
something more simple like a U.S.
dollar account, which almost every
financial institution in Canada offers.
This protects your buying power in
U.S. dollars — very important if you
frequently holiday in the U.S. or buy
through U.S. mail order catalogues.

“OF course, if the Canadian dollar
strengthens against its U.S. counter-
part and you convert back into
Canadian funds, you'll lose money,”
said the CGA. “So try to use your
U.S. account, only .when ‘the
Canadian dollar is: down.”

Jf you don’t have too much faith
in the U.S. dollar, or perhaps you
travel more often (o another country,

- it’s just as easy to open a foreign cur-

922-3311

— 1457 Lonsdale Ave., North Van. 980-2451

«xd

Ho nekong Bank of Canada
Bank of British Columbia Division

Ce or
: 1 wots

rency account. At least one financial
institution also offers daily interest
accounts, with no minimum balance
and no service charges, in currencies
like the Japanese yen, British pound
sterling, German mark, Swiss franc,
French franc and Hong Kong dollar.
(There could be a charge if you
deposit ‘a large amount of foreign
bank notes.)

“Foreign currency accounts have
no Canada Deposit Insurance
Corporation coverage,” the CGA”
warned. “And again, if the Canadian

dollar appreciates against the curren-.

cy you choose, you'll lose money.
Also, the financial. institution
charges more to sell you foreign cur-
rency than it pays to buy those funds
from you. if you convert back to
Canadian dollars.”

You can have an account in a for- ‘

eign country; check service charges .

and rules covering such an account

being operated by a Canadian.

The next level of diversifying by
investing outside Canada ‘is to buy
mutual funds. with international
holdings, or some link to a foreign
currency. The mutual fund will hold
a variety of foreign securities. Often
these funds have a focus‘on a partic-
ular area like. Europe, Central and

South America, or the Far’ East. .
: Other funds specialize in one coun-’

try, or look all over the world...
If you have enough money to give

For moje information on . ;

Trimark’s RSP Mutual Funds contact:

GIC Rate ”"¢
Fully cashable —

(Rates subject to change) ,

you some diversification, you can
buy individual stocks and bonds,
whether North. American securities

with an international flavor or for-- .

eign securities.

“You .must | remember these
investments are not guaranteed,” the
CGA said. “You can make money if
the mutual fund units or individual
shares rise in ‘value, but can just as
easily lose if prices drop.”

The U.S. market is easy to watch,
thanks to TV and U.S. business pub: ;
lications. But unless you have local :
contacts abroad, the farther. away
you get from Canada, the more diffi-
cult it is to know what" S really, hap:

And you do, ‘need to kno the
_local conditions — especially: xhe .

various rules including tax Jaws —!.,

before you buy any. foreign’ property:
: (or even. a time-share), or get into
any sort of business investment.” .’

Be very careful to’ separate that

“holiday” feeling: from the basic

principles of sound investing when...
you consider putting money ‘inte
something like real estate.: "
“Much more important are. face,”
tors like local.conditions and rules,

_,espacially those regarding. foreign |

owners/investors,".:. said the CGA
What’ about renting ‘ out. the place
when you're not there? ’ ‘What is the
market like ona year- “round basis?

What about i income taxes?’

“ TRIMARK
»MUTUAL FUNDS
WE MANAGE.” ;
To OUTPERFORM

ey

ROGER LATTA & COMPANY. up.

. Corporate Life Insurznca, Pension Solutlona, Investment Funds

417-1000 aintand Street, Vancouver, B.C. V6B am Tel. (604) CBF Fax (04) BB157O0

All reearns, cute dd hy Ernst & Young, Chartered Accountants, are histarical ‘ane compounded total

rates of return and reflect changes in wnit’ value and distributions winveste
foes payable by unitholders which ha

account sales charges or administrati

ty do not take into |
reduced warns,

Pust performance does not guarantee futine resis: Your unit vabue tind amscsement rvtarn will fluctu. .
: nite. Hmportanc information about any mutual fund is. contained ta inc simplified prospectus. Resid your

i scarrfully before investing, You can abet

Seo Desathed hy Cranack by

pone frome thi financial adviser list

ment sangge ment Tne.

Sa A AARREAES IRAE RAIA eae