Matrix Funds Management

Matrix Funds Management

November 22, 2011 13:57 ET

Matrix Funds Management Announces an Investment First in Canada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 22, 2011) - Matrix Funds Management* has launched Canada's first licensed Dow Jones Canada High Dividend 50 Index product.

The Matrix Dow Jones Canada High Dividend 50 Fund (Corporate Class) is designed to closely match the returns and characteristics of the new Dow Jones Canada High Dividend 50 index, combining high dividend paying companies with four fundamental based quality factors in a composite approach. "We listened to advisors and saw a need in the high dividend equity income market," says David Levi, CEO. "This index could become the benchmark for High Dividend equity income in Canada. The strategy has significant appeal with its focus on current and former income trusts and we are confident investors will agree."

The fund combines the power of Exchange-Traded Funds or ETFs with the convenience and broad accessibility of mutual funds in a tax beneficial corporate class structure. "This combination of desirable features has created a unique Canadian investment vehicle, allowing us to bring new choices based on sound investment principles to investors," says Grahame Lyons, Managing Partner.

The fund has low cost, portfolio transparency and tax efficiency which are common attributes of popular ETFs. "Based on our research, the fund will solve some trading related issues for securities licensed advisors (IIROC) and investment counsellors (ICPM)," adds Lyons. The product is also expected to meet demand from the larger body of mutual fund advisors (MFDA) and eligible insurance licensed advisors looking for these features in providing financial services to Canadians.

Moreover, the tax deferral opportunity of a Corporate Class share structure means investors with taxable accounts can defer capital gains taxes that would otherwise have been payable on redemption if they are switching into other Matrix corporate class funds. This can add significantly to investor returns after tax over time. "Our research indicates there are $44.7 billion in assets in 350+ Corporate Class funds, almost all using traditional active management. We see an opportunity to provide investors choice with this prominent index provider's strategy," says Lyons.

According to recent research on Canadian Equity sectors, Energy High Yield returned 19.3% compared to 14.7% for TSX Energy, Financials High Yield returned 18.7% compared to 14.5% for TSX Financials and Materials High Yield returned 12.0% compared to 9.0% for TSX Materials index (all figures total return, from December 1995 to December 2010+).

The new Dow Jones Canada High Dividend 50 Index is what Matrix Funds considers a "smart indexing" solution. "Combining traditional indexing with fundamental factors that active fund managers consider to measure yield quality is well suited for this monthly income product," says Lyons.

+Equity Strategy, Stay Positive on Canada, RBC Dominion Securities Inc. March 2011

About Matrix Funds Management

*Matrix Funds Management (a division of Growth Works Capital Ltd.) is the manager of the Matrix Funds and a subsidiary of Matrix Asset Management Inc. (TSX:MTA). Matrix provides diversified asset and wealth management for both individuals and institutional investors. Please visit www.matrixfunds.ca for more information.

Matrix Funds are distributed through authorized investment dealers. Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance provides no assurance or indication of future performance. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. Management fees apply to the Fund which may lower returns of the Matrix Dow Jones Canada High Dividend 50 Fund (Corporate Class) as compared to the Dow Jones Canada High Dividend 50 Index. Please review the Fund(s) prospectus carefully for important information before investing. The above contains "forward looking statements", including statements based on management's current beliefs and assumptions in respect of indices with higher dividend income. Actual results may differ from those implied by such statements or information as a result of numerous known and unknown risks affecting the Fund, including general market and economic conditions, changes in dividend policy risk, and other risks referenced in the Fund's public disclosure record. Many of these risks are beyond the control of the Fund or its manager. Neither the Fund nor the manager assumes any obligation to update such statements or confirm the accuracy of such information.

The Dow Jones Canada High Dividend 50 Index is a product of Dow Jones Indexes, the marketing name and a licensed trademark of CME Group Index Services LLC ("CME"), and has been licensed for use. "Dow Jones®", "Dow Jones Canada High Dividend 50 Index" and "Dow Jones Indexes" are service marks of Dow Jones Trademark Holdings, LLC ("Dow Jones"), and have been licensed to CME and have been sublicensed for use for certain purposes by Matrix Management. Matrix Dow Jones Canada High Dividend 50 Fund (Corporate Class) is not sponsored, endorsed, sold or promoted by CME Indexes, Dow Jones or their respective affiliates, and CME Indexes, Dow Jones and their respective affiliates make no representation regarding the advisability of trading in such product.

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