Fund outperforms S&P/TSX by more than 2%
MONTREAL, July 23, 2014 /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 fifth year on June 30, 2014. Since its inception, the Fund has outperformed the S&P/TSX Total Return Index (the "Index") by more than 2%.
For the period of June 30, 2009 to June 30, 2014, the Fund delivered an annualized return of +13.15%. For the same period, the Index returned +11.01%. The Fund therefore outperformed the index by +2.14%.
Additionally, the Fund has offered lower volatility than the Index. The 'beta' is a standardized calculation of systematic risk, based on fluctuation of returns relative to the overall market. For the five-year period ending June 30, 2014, the Fund's beta was 0.49, whereas for the same period, the Index's beta was 1.00.
The Fund invests in Canadian equities with a history of consistently growing dividends. The criteria for selection include: straight-forward business models, the provision of need-based products and services, long term earnings, visibility and predictability, and proven management teams that successfully increase cash flows and operate with low levels of leverage.
Research indicates that dividend-growing equities outperform non-dividend-paying counterparts in the mid/long term. The Fund will not own a stock that has cut dividends. The Fund is recommended for clients seeking tax-efficiency, lower volatility, long term growth and value-added performance/returns.
"We are very pleased with the five-year performance of the Fund," says Renato Anzovino CFA, Vice-President and Portfolio Manager, Heward. "This milestone validates a vision that was initiated five years ago. By adhering to proven principles of value investing with rigorous discipline, we have beaten the Index and offered our clients reduced risk and volatility. We believe that dividend growth products, such as our Fund, are increasingly relevant to Canadian investors. By 2036, about a quarter of Canadians will be over 65 years of age and aging investors are expected to have a reduced appetite for risk and an increased interest in capital preservation. Dividend growth as an asset class - as exemplified by our Fund - is particularly well-aligned with the financial objectives of the Baby Boomer generation," continues Mr. Anzovino.
"On behalf of the Heward team, I'd like to congratulate Renato on the five-year performance of the Fund," adds James Heward, President, Heward. "This is a significant milestone, considering that only about 30% of Canadian equity funds outperform the market on a five-year basis. The Fund is an excellent example of our firm's philosophy of growth at a reasonable price, with a value bias. Our clients want long term growth with lower volatility. Based on these recent numbers, we can proudly say that the Fund succeeds in delivering on these essential objectives," concludes Mr. Heward.
About Heward Investment Management Inc.
Heward has been providing client-focused portfolio management services since 1981. The firm's independence and disciplined investment management approach have made Heward 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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