Fund outperforms S&P/TSX by 3.51%
MONTREAL, July 24, 2013 /CNW Telbec/ - Heward Investment Management Inc. ("Heward"), a Montreal-based portfolio management firm, today announced that its Heward Canadian Dividend Growth Fund (the "Fund") marked its fourth year on June 30, 2013 and has outperformed the S&P/TSX Total Return Index over a one-, two-, three- and four-year period (also as of June 30, 2013).
For the period of June 30, 2009 to June 30, 2013, the Fund delivered a return of +10.50%. For the same period, the S&P/TSX Total Return Index returned +6.99%. Therefore, the Fund outperformed the Index by +3.51%.
The Fund invests in a portfolio of 25 - 35 Canadian companies with strong cash flows and a history of dividend payments. Independent research shows that companies that grow their dividends typically outperform the Index, over a 25-year cycle. Similarly, dividend-paying companies have been shown to be significantly less volatile than other investment opportunities.
"Now into its fifth year, I am pleased to say that the Fund has consistently delivered value for our clients," says Renato Anzovino CFA, Vice-President and Portfolio Manager, Heward. "The investment philosophy that we presented four years ago has been validated and remains unchanged. We look for high levels of predictability, businesses we understand, products based on consumer needs - not wants, free cash flows, low debt levels and proven management teams. The logic behind dividend-based investing is very compelling and the success of our Fund supports this approach. While the long term stability benefits may be widely appreciated, our Fund has also shown its resilience in the short term. For example, in the second quarter of this year, the Index was down by more than 4%, whereas our Fund was only down by 1.5%, in the same period. Unlike other funds that focus on companies that pay-out a higher dividend, we focus on companies that are growing dividends. So, unlike high-yield dividend funds, the Fund is designed to do well in any environment," continues Mr. Anzovino.
"On behalf of the entire team, I'd like to congratulate Renato on the continued performance of the Fund," notes Jamie Heward, President, Heward. "The Fund's performance exemplifies our approach to portfolio management and our emphasis on understanding client needs. Like many investors, our clients want long-term growth with lower volatility. Based on its performance, we are pleased to say that the Fund delivers on these key objectives," concludes Mr. Heward.
About Heward Investment Management Inc.
Heward Investment Management has been providing client-focused portfolio management services since 1981. The firm's independence and disciplined investment management approach have made Heward Investment Management a trusted partner by providing clients with value-added performance. For more information, please visit www.heward.com.
SOURCE: Heward Investment Management Inc.
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