In a statement released on Wednesday, Schwab Investments said it is “pleased” the federal government will support the company’s plan to bring its $50 billion portfolio of investments back online.
The Canadian Securities Administrators said Schwabs plan will “provide an effective tax benefit to Canadian investors for up to the first 10 years of ownership of our portfolio, which are expected to begin in 2018.”
Canada is the world’s third-largest exporter of investment goods and services, but it is facing an unprecedented wave of job losses as foreign investment shrinks.
Investment in the country’s manufacturing sector dropped 10 per cent in the second quarter from the first three months of 2017, the latest data from Statistics Canada showed.
The sector added a record $8.2 billion in 2017, and its losses will likely continue to mount in 2018 as companies relocate their operations and expand operations overseas.