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As tax season fast ap- proaches, the question on most Canadian's minds is how can I reduce the 'amount of income tax I pay? Maximizing your al- sponsore lowable RRSP contribu- tion should be your first priority, of course. But, if you have already taken advantage of this tax re- Spon- duction, Labour RE tb Sh 1 year 3 year Looking for a secure investment? A GIC fills the bill. Looking for preservation of capital and superior returns? Historically, GICs have come up short. For more than 15 years, Mackenzie's Industrial Income Fund has been the choice of return and safety conscious investors. As advisors, we believe the Industrial Income Fund portfolio ~ combining government and corporate bonds and selected equities - is a timeless investment solution. For more information on this and other income- building investment opportunities from Mackenzie, please call us today at the number below. Building Finantial Independence + 3 p: a rr LE sored Investment Funds might be another option to consider. | A Labour Sponsored In- vestment Fund, or LSIF, 18 a venture capital fund mpare these returns with your GIC Industrial Income Fund: Consistently Better S year 10 year 10.0% since inception Sept. 1974 ROBERT J. GOW I'll Simcoe St. N. Oshawa, Ontario LIH 7M9 Phone: (905) 434-7156 1-800-267-1522 | | | | | Importanéinformation about this offering is contained in the Fund's simplified prospectus. Obtain a copy from us and read it carefully that invests in small and medium-sized Canadian businesses. Small busi- ness represents an impor- tant part of the Canadian economy. Over 99 per cent of our country's business- es operate with fewer than 500 employees. In fact. Lr ---- investment funds are wise small business accounts for approximately 60 per cent of the total private sector employment. Unfortunately, under- capitalization is one of the major reasons for business failure, especially in the early stages of growth. Al- PENNY ¢~ASSOC. - Computerized Accounting ACCOUNTING SERVICES Betty Penny, Principal Accountant Patrick Fortune, Assoc. Accountant 180 Mary St., Port Perry Ontario LIL 1C4 Phone (905) 985-0712 Toll Free 180026996190 Fax (905) 985-9461 Training, (Accpac Plus, Simply Business Visions, Quickbooks & Lotus) Management Consulting Part-time Controllership Personal & Corporate Taxes 'Temporary Bookkeepers New Business Set-Ups Mobile Service . Competitive Rates B® vba i 1 fill out the form wrong? What if I make a math error? What if I misunderstand B (he instructions? Whar if 1 forget to file for A the GST? What if I file incorrectly for the child tax benefit' What if 1 use the wrong form? What if I don't include receipts? line? Call HOR Block at 985-9803 though some companies are able to become public- ly traded, raising capital by selling shares on the market, most are either unable to meet the en- trance requirements or unwilling to give up con- trol to outside investors. Faced with the need for additional money to keep their businesses viable, many business owners turn to venture capital pools for their financing needs. A LSIF is similar to a mutual fund. Like a mutu- al fund, individual inves- tors pool their money, al- lowing a professional money manager to make investment decisions on their behalf. Individuals investing in the fund share in both the profits or losses from these invest- ments. By investing in a number of different com- panies through the mutu- al fund, the individual in- vestor is able to reduce their overall investment risk. A LSIF is different than amutual fundin a number of ways, however. A LSIF investment portfolio will include many private com- panies and will thus be in- herently more risky than a typical mutual fund. A successful manager of a LSIF will take an active role in the business of the companies they are invest- ing in, often sitting on the board of these companies. This may not occur with traditional mutual funds. Importantly, companies in a LSIF venture capital portfolio require a number of years to mature before the full benefit to inves- tors is realized. As a re- sult, there are limits on re- before investing. Unlike GICs, mutual fund investments are not guaranteed. The indicated rates of return to December 31, 1995 are i ad h- Wo ears of the the historical annual compounded total returns, including changes funda. 8 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 have reduced returns. Past performance is not necessarily indicative of future returns. Given the risks involved in LSIF, why has there been such an interest in LSIFs by the average in- vestor over the past few years? Simple. The tax benefits are too favorable to ignore. Individual resi- dents of Ontario who in- vest in LSIFs qualify for tax credits totalling 40 per cent of the amount invest- ed, up to a maximum in- vestment of $5,000. In oth- ROBERT J. GOW er words, a $5,000 investment would give the I'l'l Simcoe St. N. investor $2,000 in tax Oshawa, Ontario credits; a $1,000 federal Because it's your money, a a -------------- 2m Ha BLOCK i Yi ee --------.., THE INCOME TAX SPECIALISTS 174 Perry St, Port Perry, 985-9803 WHAT'S THE RIGHT BALANCE BETWEEN RISK AND RETURN? For more information call: IE youre not sure whats nght for vou, TRIMARK INCOME GROWTH FUND 70" 159" 145 FY AR yy EARS » YEARS Io Is TRIMARK SELECT BALANCED FU 150" M2" 134" nh [nmark Balanced Funds may be the answer, These funds strive to achieve a balance of long-term capital growth from ND equity management and a steady cash flow from the fixed-income portion of the funds, LIH 7M9 tax Sram and a 51.000 PYAR FYE ARS » YEARS FOYT ARS } provincia ax credit. An ' Fund performance as of December 311995 Phone. (905) 134-7156 GREENSHIELDS investor in the top margi- ATRIMARK 1-800-267-1522 nal tax bracket who. n vested $5,000 of his or her RRSP in a LSIF would have a net cost of $340 af- ter tax. Of course, aside from the tax benefits, a LSIF fans, be does offer the potential for oo _-- - DE Turnto Page 20 MUTUAL FUNDS We Manage. To Outperform. Trimark Balanced Funds retin audited Dy Finst E Youne Chartoed Necomntants are historrcal annual compounded vats of senon and veflect chances muni vali and distoobutons om ested They do not take mio account sales charges or admmisoanon foes payable by unmitholders. which would have seduced vetwns Past \ Herman does not guarantee futon sosadis Your wm value and imvestment retin wall fluctuate Important mformation about any ovatual fund ix contamed mis po which should be read cane fully before im ste Copies of the fraps tus arc avatlable from the fimancial [hens or frome Temark Investment Manacemaont Ine ® Registered trademark of Trimark Tnvestme nt Management Inc Designed by Toomvark Toa catment Management Ine