***Renato Anzovino, CFA, Vice President and Portfolio Manager, Heward Investment Management Inc., available for face-to-face and telephone interviews***
MONTREAL, Nov. 26, 2013 /CNW Telbec/ - As lead Portfolio Manager of the Heward Investment Management Inc. (Heward) Canadian Dividend Growth Fund (the Fund), Renato Anzovino is focused on investment opportunities presented by dividend growth stocks and offers an insightful perspective on this subject.
- Dividend growth stocks outperform the index
Dividend growth stocks have outperformed the TSX composite index for the last 25 years and continue to do so. This performance is reflected in the Fund, which is up 16.54% YTD (as of Oct. 31, 2013), compared to the S&P/TSX Total Return Index, which is up 10.29% (for the same period). Additionally, for the three-year period ending Oct. 31, 2013, the Fund generated an 11.59% return, versus 4.77% for the S&P/TSX.
- Dividend growth stocks are less volatile than the index
For example, the Fund beta: 0.46. S&P/TSX Total Return Index beta: 1.0 (for three-year period ending Oct. 31, 2013). Note: "Beta" is a standard calculation of systematic risk based on fluctuation of returns relative to overall market.
Why are dividend growth stocks increasingly attractive to investors?
- As dividends are increased, stock prices tend to react positively.
- An aging population tends to avoid market volatility, a trend that is expected to grow considerably. (In 2011, 5 million Canadians were 65 years of age or older. By 2036, that number is expected to double - to more than 10 million people.)
- Fixed income investments (for example, government-issued bonds), often regarded as a relatively low-risk investment strategy, are less attractive in the current low interest rate environment.
"There is a misconception in the market that dividend growth stocks may have peaked," says Renato Anzovino, Vice President and Portfolio Manager, Heward. "But, one of the most compelling attributes of dividend growth stocks is that they tend to perform relatively well in any environment. So, viewed as a separate asset class, dividend growth stocks offer a long term investment strategy that is likely to continue performing relatively well for quite some time. I would encourage investors to consider making dividend growth stocks a significant portion of their total portfolio, perhaps in the order of 10% to 20%. As a distinct asset class, these stocks present a particularly compelling investment opportunity for the aging "Baby Boomer" generation, because these investments deliver growth with relatively low risk," adds Mr. Anzovino.
About Renato Anzovino, CFA
Renato Anzovino is the lead Portfolio Manager of the Heward Canadian Dividend Growth Fund. Mr. Anzovino has more than 20 years of experience in portfolio management. Prior to joining Heward in 2003, Renato was a Vice President at a prominent investment management firm. Previously, he was a Portfolio Manager in the private client division of Royal Trust and Royal Bank Financial Group. Renato Anzovino is an active member of the Montreal Society of Financial Analysts.
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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For more information, or to schedule an interview with Renato Anzovino, please contact:
For Heward Investment Management Inc.
E-mail: [email protected]
Tel: (514) 499-9632
Mobile: (514) 576-2519