Highstreet and Scotia Managed Companies introduce innovative dividend strategy
TORONTO, Feb. 19, 2013 /CNW/ - Scotia Managed Companies Administration Inc. and Highstreet Asset Management Inc. (Highstreet) are pleased to partner on their latest innovative investment product specifically designed to offer investors an attractive income stream with lower volatility. With Scotia Managed Companies as the manager and Highstreet as the portfolio manager and options advisor, the three new funds each invest in the 20 highest-yielding large-cap companies in their respective markets.
Top 20 Dividend Trust, Top 20 U.S. Dividend Trust and Top 20 Europe Dividend Trust, take the top-yielding equities from each market as defined by the S&P/TSX 60 Index in Canada, the Dow Jones Industrial Average in the U.S. and the Europe Dow in Europe. The income from the portfolios on each fund is supplemented with a limited covered call writing strategy managed by Highstreet to provide consistent distributions to unitholders. This suite of investment products features a low management fee of 0.50 per cent per annum with no service fees.
"The Top 20 strategy focuses on large, diversified and well-known companies and includes a rebalancing of the portfolio each quarter and a top-to-bottom reconstitution each year," said Brian McChesney, Chief Executive Officer of Scotia Managed Companies, a wholly owned subsidiary of Scotia Capital Inc. "The products meet investor needs by targeting an attractive distribution of 7 per cent annually for Top 20 Dividend Trust and an attractive tax-efficient distribution of 5 per cent annually for Top 20 U.S. Dividend Trust and 6 per cent annually for Top 20 Europe Dividend Trust."
Highstreet, based in London, Ontario, serves as portfolio manager and options advisor for all three funds. Highstreet, a majority-owned subsidiary of AGF Management Limited, is pleased to partner with Scotia Managed Companies in launching new and innovative products for Canadian investors.
"We have a dedicated team of investment professionals that develop and continually refine in-house strategies such as these that deliver attractive levels of income in a low volatility framework," said Ben Legge, President & Chief Investment Officer, Highstreet Asset Management Inc. "We believe that these high-yielding large capitalization companies with global growth prospects offer great value as underlying portfolio holdings."
"Canadian investors are looking for products that deliver a strong yield while minimizing risk," said Blake Goldring, Chairman and Chief Executive Officer, AGF Management Limited. "This innovative yet straightforward strategy plays to the strengths of the world's leading equity markets and is the result of a collaborative approach from two leading companies."
Top 20 Dividend Trust (TTY.UN), Top 20 U.S. Dividend Trust (TUT.UN) and Top 20 Europe Dividend Trust (TTE.UN) are listed on the TSX.
ABOUT AGF MANAGEMENT LIMITED
AGF Management Limited is one of Canada's premier independent investment management firms with offices across Canada and subsidiaries around the world. AGF's products include a diversified family of award-winning mutual funds, mutual fund wrap programs and pooled funds. AGF also manages assets on behalf of institutional investors including pension plans, foundations and endowments as well as for private clients. With over $40 billion in total assets under management, AGF serves more than one million investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.
Caution Regarding Forward-Looking Statements
This release includes forward-looking statements. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes' or negative versions thereof and similar expressions, or future or conditional verbs such as 'may,' 'will,' 'should,' 'would' and 'could.' Forward-looking statements are based on certain factors and assumptions, including expected growth, results of operations, economic factors, business prospects, business performance and opportunities. While the company considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements due to, but not limited to, important risk factors such as level of assets under management, volume of sales and redemptions of investment products, performance of investment funds and of investment managers and advisors, competitive fee levels for investment management products and administration, and competitive dealer compensation levels and cost efficiency in our investment management operations, as well as interest and foreign-exchange rates, taxation, changes in government regulations, unexpected judicial or regulatory proceedings, and the company's ability to complete strategic transactions and integrate acquisitions. The company cautions that the foregoing list is not exhaustive. The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements. Forward-looking statements are given only as at the date of this release and other than specifically required by applicable laws, the company is under no obligation (and expressly disclaims any such obligation) to update or alter the forward-looking statements, whether as a result of new information, future events or otherwise. Additional risks and uncertainties can be found in our MD&A for the fiscal year ended November 30, 2012 under the headings "Caution Regarding Forward-Looking Statements" and "Risk Factors and Management of Risk" and in our other filings with Canadian securities regulatory authorities.
For further information:
AGF Management Limited shareholders and analysts, please contact:
Robert J. Bogart
Executive Vice-President and Chief Financial Officer
Vice-President, Corporate Development
Media, please contact: