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J ii So Tuesday, Sept. 20, 1994 - 5a "A Family Tradition for 128 Years" PORT PERRY STAR - Choosing the right international funds for you As with all investments, a sensible, balanced approach to international mutual funds is an appropriate strategy. The decision making process, how- ever, will differ somewhat de- pending upon the type of fund involved-regional vs. country specific; global vs. regional; eq- uity vs. fixed income. An individual venturing into the international markets for the first time, may feel more comfortable with a large global- ly oriented fund focused on the developed markets. By choos- ing this investment opportuni- ty, the investor leaves major de- cisions (including country allocation as well as industry weightings and stock selection) to the professional manager running the fund. Recently, there have also been the introduction of a num- ber of balanced international funds that provide investors with an opportunity to allow the professional manager to also make the appropriate decisions as to global asset mix. These types of funds would appeal to the more conservative investor. More regional or country spe- cific opportunities would be ap- propriate for those individuals who wish to target their invest- ments more directly to take ad- vantage of above average growth opportunities about which they are generally aware but are unwilling or unable (whether due to time, financial or knowledge limitations) to create a balanced portfolio with- in those markets. Outside of North America there are three major global markets. EUROPE Currently many European equity markets are underval- ued and undercapitalized. Pres- ently, Europe accounts for about 24 per cent of the world's stock market capitalization but Robert J. Gow Be Financially Prepared For The 90's ROBERT J. GOW 434-7156 or 1-800-267-1522 RICHARDSON GREENSHIELDS Investment advisors to Canadian enterprise and enterprising Canadians 111 Simcoe St. N., Oshawa, Ontario L1G 4S4 [nvest in larger American companies. While they're small. 8.2% Universal U.S. Emerging Growth Fund PAYNE 27.2% ~ since inception Jan. 1992 15.3% tomorrow's leaders today. growth potential. the number below. il RICHARDSON GREENSHIELDS 1 indicate have reduced returns. CGRUNIVERSAL ' FUNDS | The manager of Universal U.S. Emer have a rare knack for identifying and investing in Which means that you can invest in larger American firms -- while they're still small...and ripe with emerging The fund manager continues to be optimistic about future returns available from emerging growth companies in a number of key sectors. And we'd love to tell you why. For the full story on Universal U.S. Emerging Growth Fund -- and other international funds managed by Mackenzie Financial Corporation, please call me today at ROBERT GOW (905) 434-7156 111 Simcoe St. N., Oshawa, Ontario L1H 7M9 Important information about the ¢ ) : simplified prospectus. Investors s wuld obtain a on and read it car¢fully before investing. When purchasing mutual should be aware that: » mutual fund investments are not guaranteed; « unit values and investment returns will fluctuate over time; and * past performance does not assure similar future returns. The rates of return to August 31, 1994 are historical annual compounded total returns, including changes in unit value and reinvestment of all distributions, and do not take into account sales, redemption, or optional charges payable by an investor which would g Growth Fund ering is contained in the Fund's unds, investors Mackenzie Building Financial independence has only a 37 per cent share of the world's gross domestic prod- uct. By investing in Europe, in- vestors can also leverage into emerging markets. Spain, Por- tugal and Greece are considered by many international invest- ment firms to be emerging mar- kets. Accordingly, their eco- nomics should grow at a more rapid rate than the more indus- tralized nationg. European funds also give investors a win- dow on Eastern Europe. In ad- dition, lower interest rates and more cross-border deregulation will simulate the economic re- covery over the next few years. There are several well diversified European funds available with a long-term suc- cessful track record. FAR EAST OR PACIFIC RIM The Far East is one of the fastest growing regions in the world. Over the next several years, the Far East is expected to see real economic growth at a rate considerably faster than the more mature areas of the world, such as the U.S. or Eu- rope. Far Eastern countries in- clude the emerging economies of Taiwan, Hong Kong, Indone- sia, Malaysia, Thailand, South Korea, the Philippines and Chi- na and also more developed economies such as Japan and Singapore. A wide array of mutual funds investing in the Far East and Pacific Rim region exists. Some focus only on the emerging mar- kets while others may only fo- cus on one particular country, such as Japan or Korea. Since Far Eastern markets are very volatile, consider purchasing a fund which is highly diversified. Some manager further temper volatility within their fund by also purchasing stocks of those companies who are investing heavily in the region but may not actually be physically locat- THE FROM 7.5% Ist Mtges. to 95% 2nd & 3rd Mtges. e Rental Properties & Cottages + Re-financing + Debt Consolidation e Rural Properties + Self Employed ¢ Bad Credit No Income - No Problem Prime Deals Below Bank Rates Fast Professional Service since 1975 666-4986 ed there. LATIN AMERICA Latin America includes coun- tries such as Mexico, Venezue- la, Brazil, Chile, Argentina, Peru and Columbia. There emerging economies are experi- encing an explosion of activity and economic forecasts predict growth levels as high as 5 per cent annually throughout the 1990s. In the wake of the North American Free Trade Agree- ment, Canada has seen the emergence of several mutual funds focused on Latin Ameri- ca. To gain exposure to this market yet with lower volatili- ty, one might consider those funds which combine invest- ments in both North and South America within one portfolio. Your selection of internation- al mutual funds are based on your personal goals and invest- ment objectives. A qualified in- vestment advisor can help you select funds that meet your needs. Courtesy of, Robert Gow, Richardson Greenshields, Oshawa Look sharp for tax breaks Any Stocks or Shares hang- ing around? Maybe from your companies stock option plan, or dear old granny left you some in her will. How about personal treasures like stamp or coin col- lections, art or even jewelry. Those beautiful vintage cars I see cruising around Port Perry. Then there's the cottage or may- be that piece of land you bought a while back that you plan to build your retirement home on. Then this article is important to you. Unless you make the correct decision, you could end up pay- ing thousands of dollars in un- necessary taxes in future years. As of February 1994 the $100,000 lifetime Capital Gains Deduction has been eliminated. That means, any increase in value of Stocks Shares, Real Es- tate, Personal Capital Property or Rental Property is now sub- ject to tax at the time it is sold. However, Revenue Canada has not cut us off cold, they have giv- en us the opportunity to take advantage of the Capital Gains - Deduction for one last time by filing what they refer to as an Election' with your 1994 tax re- turn. If the 'Election' is not made with the '94 tax return it will meafi that in future years, at the time the property is sold, or the owner dies, the full in- crease in value from the time of purchase is taxable. For instance, if you bought some shares in 1975 for $100 and they are worth $1,000 in 1994, you have a gain of $900. Suppose you sold them in 1998 for $1,200 and had not taken ad- vantage of the 'Election,' you would have to pay tax on the to- SHEPHERD & POWELL Chartered Accountants Accounting & tax return preparation for farms, small businesses & corporations. * New business planning and start-up * Financial & estate planning * Personal, confidential service DAVID R. POWELL, B. Comm, M.BA., CA. 250 QUEEN STREET, PORT PERRY (905) 985-9791 tal capital gains of $1,100 ($1,200 - $100). However, if the 'Election' was made with your '94 tax return, the first $900 would be covered by the Capital Gains Deduction and tax in 1998 would only have to be paid on the extra $200. Taking advantage of the 'Election" however could in cer- tain circumstances increase your tax liability for 1994. For Instance, if your property is Real Estate, a portion of the gain that pertains to two years out of the total number of years owned is not covered by the de- duction (the deduction was re- moved from real estate in Feb- ruary 1992) so is therefore taxa- ble. Also in claiming the capital gains for 1994, this could trig- ger claw-back of Old Age Pen- sion or U.lL, reduce/eliminate G.L.S. or Ontario tax credit as well as GST cheques and Fami- ly Benefits. If investment losses in the past outweigh invest- ment income, then the total cap- ital gains will not be covered. Also if the deduction is over $40,000, this could trigger the Alternate Minimum Tax. How- ever, any additional tax paid due to AMT can be recouped in future years. So take your financial future into your own hands. Research your options and see if it is to your advantage to claim the Capital Gains Deduction for the last time. Courtesy of, Kathleen White, H&R Block, Port Perry H&R Block Offers iI RE) GA HlTIEY Wm Learn a NEW skill! Mm Increase your tax KNOWLEDGE! Bm CONVENIENT times & locations! Starting soon! For more information call: pr a TY tt eC 2 Zr 985-9803 oman a